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2025-01-30 AEA Agenda and docs
813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG Alaska Energy Authority Board Meeting January 30, 2025, 9:00 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 – November 18, 2024 5. PUBLIC COMMENTS (2 minutes per person) see call in number above A. Terra Energy Center Project Introduction 6. COMMITTEE REPORTS – A. Personnel Committee – Employee Policies and Guidelines 7. OLD BUSINESS – None 8. NEW BUSINESS A. Resolution 2025-01 FY26 Operating and Capital Budget Submissions Ratification B. Resolution 2025-02 Use of Interest for Bradley Lake Required Project Work C. Resolution 2025-03 Authorize AEA to borrow $3.5 million from AIDEA for working capital. D. Utility Priority for Purchase of Bradley Lake Renewable Energy Certificates 9. DIRECTOR COMMENTS A. Economic Impact Analyses B. Owned Assets Update i. Dixon Diversion Video ii. GRIP Video C. Railbelt Transmission Organization (RTO) Update D. Denali Commission Update E. PCE Endowment F. IIJA Update i. Home Energy Rebates and Training for Residential Energy Contractors G. AEA Brochures / Publications H. Legislative Submittals (Statutorily Required Reports) I. Legislative Update J. Community Outreach K. Articles of Interest L. Next Regularly Scheduled AEA Board Meeting – Thursday, April 24, 2025, 9:00 am. 10. EXECUTIVE SESSION – Discuss confidential financial matters related to Bradley Lake. 11. BOARD COMMENTS 12. ADJOURNMENT Alaska Energy Authority Page 2 of 2 Public Comment Guidelines Members of the public who wish to provide written comments, please email your comments to publiccomment@akenergyauthority.org by no later than 4 p.m. on the day before the meeting, so they can be shared with board members prior to the meeting. On the meeting day, callers will enter the teleconference muted. After board roll call and agenda approval, we will ask callers to press *9 on their phones if they wish to make a public comment. This will initiate the hand-raising function. We will unmute callers individually in the order the calls were received. When an individual is unmuted, you will hear, “It is now your turn to speak.” Please identify yourself and make your public comments. 813 W Northern Lights Blvd, Anchorage, AK 99503 Phone: (907) 771-3000 Fax: (907) 771-3044 Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG RGYAUTHORITY.ORG Alaska Energy Authority BOARD MEETING MINUTES Monday, November 18, 2024 Anchorage, Alaska 1. CALL TO ORDER Chair Koplin called the meeting of the Alaska Energy Authority to order on November 18, 2024, at 9:00 am. 2. ROLL CALL BOARD MEMBERS Members present: Clay Koplin (Public Member); Duff Mitchell (Public Member); Tony Izzo (Public Member); Robert Siedman (Public Member); Jenn Miller (Public Member); Llewellyn Smyth (Delegate for Adam Crum (Commissioner DOR)); Julie Sande (Commissioner DCCED). Members absent: Ingemar Mathiasson (Public Member). A quorum was established. 3. AGENDA APPROVAL MOTION: A motion was made by Vice Chair Mitchell to approve the agenda. Motion seconded by Mr. Siedman. A roll call was taken, and the motion to approve the agenda passed unanimously. 4. PRIOR MINUTES – October 22, 2024 Vice Chair Mitchell requested to administratively correct his statements made on Page 11. He noted that the study referenced is a 2024 White Paper, and that the 9.8% number he previously discussed is actually 9.1%. There were no objections. Mr. Siedman corrected a typographical error on page 5 of the minutes: Ms. Siedman should be Mr. Siedman. There were no objections. A roll call was taken, and the minutes of October 22, 2024, including the administrative changes, were approved unanimously. 5. PUBLIC COMMENTS (2 minutes per person) There were no members of the public online or in-person who requested to comment. 6. COMMITTEE REPORTS – None Alaska Energy Authority Page 2 of 6 7. OLD BUSINESS A. Battery Energy Storage Systems (BESS) Service Agreements i. Resolution 2024-13 – Authorizing Purchase from Alaska Electric & Energy Cooperative of Battery Energy Storage System (BESS) or Related Services ii. Resolution 2024-14 – Authorizing Purchase from Chugach Electric Association of Battery Energy Storage System (BESS) or Related Services iii. Resolution 2024-15 – Authorizing Purchase from Golden Valley Electric Association of Battery Energy Storage System (BESS) or Related Services – (Pending) iv. Resolution 2024-16 – Authorizing Purchase from Matanuska Electric Association of Battery Energy Storage System (BESS) or Related Services MOTION: A motion was made by Mr. Siedman to approve Resolution 2024-13, a Resolution of the Alaska Energy Authority authorizing the purchase from Alaska Electric & Energy Cooperative of priority rights to BESS services. Motion seconded by Vice Chair Mitchell. Vice Chair Mitchell requested to approve all the BESS resolutions within one motion. There was no objection. Chair Koplin requested Executive Director Curtis Thayer to provide an overview of each of the BESS resolutions. There was no objection. Mr. Thayer reported that the BESS resolutions were tabled at the previous meeting, during the ongoing utility negotiations. The language has since been agreed by representatives and counsel. Mr. Thayer explained the background of the resolutions and the pro rata share for each utility. He noted that Alaska Electric & Energy Cooperative is Homer Electric Association (HEA). Mr. Thayer acknowledged that the BESS resolution for Golden Valley Electric Association (GVEA) is not included in today’s packet. GVEA has funding for the battery that they are installing, and the resolution will come back before the Board at a later date. Mr. Thayer requested Mark Billingsley, AEA Counsel, to comment. Mr. Billingsley indicated that GVEA intends to execute the term sheet, yet they will wait to execute the contract until they either significantly upgrade their control system or install a new BESS. Vice Chair Mitchell asked for confirmation that the GVEA project would not impact the other utilities’ amounts or ability to proceed. Mr. Thayer agreed that there is no effect from the timing of GVEA’s BESS. Alaska Energy Authority Page 3 of 6 Mr. Siedman requested to make a friendly amendment to his motion per Vice Chair Mitchell’s request. MOTION: A motion was made by Mr. Siedman to approve Resolution 2024-13, Resolution 2024-14, and Resolution 2024-16, as presented. Motion seconded by Vice Chair Mitchell. Vice Chair Mitchell commented that AEA and the utilities should be proud of the efforts and cooperation to strengthen the resiliency of the grid through the integration of BESS and to lower the cost to the Alaskan rate payers. He expressed support for the resolutions. Chair Koplin expressed support for the resolutions. He added to Vice Chair Mitchell’s comments and noted that reducing the cost of energy on the Railbelt could, by extension, lower the cost of energy to the Power Cost Equalization (PCE) recipient communities. Chair Koplin asked Mr. Izzo if he is recusing himself from the vote due to a perceived conflict. Mr. Izzo agreed that he will recuse himself from the vote due to the perceived conflict. Mr. Izzo discussed that he has a different perspective from the Railbelt. He commented that he believes what was done in the prior executive session is contrary to the intent of the legislation that restructured the AEA Board. Mr. Izzo agreed with Vice Chair Mitchell’s characterization of the Railbelt and AEA’s cooperation, however, he feels the difficulty is that even though he is closest to the issue, he has been muzzled by counsel. Mr. Izzo noted for the record that he is pleased that the process is moving forward, and that it is the right thing to do. He discussed that in his business, the positive nature of performance is viewed as being because of someone or despite someone, and not just because someone was present when something positive happened to the organization. Mr. Izzo believes this issue is an example that had he not pushed beyond the limit that counsel wanted him to remain silent, it would have cost the Railbelt power consumers potentially $14 million because of the tax credits. Mr. Izzo explained that working through the issues took another day of counsel meeting together and adjusting the wording. Mr. Izzo noted that he disagreed with the sentiment, but will recuse himself from voting due to the agreed perception of the conflict. Chair Koplin thanked Mr. Izzo for his comments. Chair Koplin emphasized that it is not the intent that members of AEA are prevented from providing feedback, especially comments regarding impacts on rates. Vice Chair Mitchell expressed appreciation for Mr. Izzo’s discussion of support for the resolutions. Vice Chair Mitchell stated for the record that AEA’s meetings are public, and that other people can come forward to discuss different viewpoints. He does not believe it is a good characterization that the previous meeting discussion concerned that any money would be lost. Vice Chair Mitchell believes the reason for the special session was to identify the issues and to refine the documents. He believes the fruits of those efforts are the resolutions before the Board today. There were no other comments. Alaska Energy Authority Page 4 of 6 A roll call was taken, and the motion to approve Resolution 2024-13, Resolution 2024-14, and Resolution 2024-16, as presented passed, with Mr. Izzo recused. 8. NEW BUSINESS A. Power Project Fund (PPF) Loan Regulation Change MOTION: A motion was made by Ms. Miller to approve the proposed changes to the Power Project Fund loan regulations, as presented. Motion seconded by Mr. Smyth. Vice Chair Mitchell requested Mr. Thayer or Conner Erickson, AEA, provide an overview of the proposed changes. Mr. Thayer explained that AEA is required to make regulatory changes based on the passage of House Bill (HB) 307, which affected the Power Project Loan Fund. The proposed changes align the AEA regulations with HB 307. Mr. Thayer discussed the administrative process. Staff recommends that the information included in the packet is approved today to go out for the 30-day public comment period, after which time, the Board would review any public comments received, advance any changes to Department of Law (DOL), and ultimately, the final changes would be directed to the Lieutenant Governor’s Office for signature and implementation. Mr. Erickson commented that Mr. Thayer provided a succinct summary of the proposed changes to the regulations. He noted that the changes are minor, and are within the bounds of the specific statute. Ms. Miller highlighted for future consideration the language on page 22 under 3AAC 106.120 Terms of Loans under (A) (vii) energy storage. It is not being revised today. She discussed that energy storage degrades every year, but can be augmented through the project life. The useful life of energy storage does not get to zero at year 20. Ms. Miller emphasized that this subject can be considered at a different time. Chair Koplin agreed, and commented that modular systems can also be renewed beyond the 20- year timeframe. There were no other comments or questions. A roll call was taken, and the motion to approve the proposed changes to the Power Project Fund loan regulations passed unanimously. 9. BOARD COMMENTS Vice Chair Mitchell commented on the well-run meeting, and is pleased that the special meeting afforded additional time to clarify issues. He hopes that additional progress can be made on the issues raised by Mr. Izzo. Mr. Izzo expressed appreciation to Mr. Thayer and to the AEA team for their work and efforts regarding the approved resolutions. Mr. Izzo clarified his previous comments and expressed his Alaska Energy Authority Page 5 of 6 frustration with what he sees as a systemic issue regarding the unwillingness to discuss and address conflicts of interest. He believes that any member of the Board may find themselves in a similar situation. Mr. Izzo noted that Mr. Billingsley negotiated the agreements, and that Mr. Billingsley likely has a conflict of interest due to the ownership he represents, and yet he was resistant to hearing the facts that there were a couple of words that needed to be changed to ensure that the utilities did not lose investment tax credits that relate to savings for the Railbelt consumers. Mr. Izzo noted that one option for addressing the systemic issue is that he step down and attend as a member of the public. Another option is that the Attorney General’s Office provide an opinion. The hope is that an open discussion regarding conflicts can occur, either in public or in executive session, as appropriate. Mr. Izzo believes that the current structure of the Board creates another hurdle to reducing the rates and the cost of energy for Alaskans. Mr. Thayer requested to comment. There was no objection. Mr. Thayer noted for the record that Mr. Billingsley worked with the Department of Law, and that everyone attended the ethics training. Mr. Thayer added that staff will seek clarification from the DOL on this matter and point of conflict. Mr. Thayer emphasized that Mr. Billingsley is a member of the team and should not be singled out by a Board member at a public meeting on a difference of a legal opinion. Mr. Thayer reiterated for the record that he does not wish to have employees named during the meeting. If there is an issue with an employee or with a decision that they make, the issue needs to be brought to Mr. Thayer or Chair Koplin directly, rather than singled out or ridiculed during a public meeting. Chair Koplin commented that he believes Mr. Izzo identified that Mr. Billingsley is the attorney for AEA, and that AEA was also party to the contract at issue, rather than the intention to single him out an employee. Mr. Siedman commented that he believes the right decision was made, but the situation neared going into an unintended direction. He agreed that the Board will have to address the conflicts of interest issues and the circumstances under which recusal occurs. Mr. Siedman expressed his belief that a conflict of interest is an issue if it is directly specific to one entity or one person. Mr. Izzo clarified for the record that his comments were not meant to ridicule an employee. Mr. Izzo stated that the nature of his conflict of interest was not discussed, which is part of the issue. Mr. Izzo clarified that he was calling attention to the fact that if he had a conflict of interest, then the attorney who negotiated the agreements was likely closer to the issue than Mr. Izzo. Mr. Izzo expressed appreciation to Mr. Billingsley for his efforts, and believes he is a great member of the team. Chair Koplin commented that is unfortunate that a large magnitude contract came before the AEA Board at its first Board meeting, and that the Railbelt managers did not have much time to absorb and consider the items on the agenda. Chair Koplin believes the appropriate process was followed regarding conflicts of interest. If there is a conflict of interest, the Board member recuses themselves from the vote, but can testify as a public member. Chair Koplin expressed firm opposition to Mr. Izzo’s consideration to step down from the Board. Chair Koplin emphasized the Alaska Energy Authority Page 6 of 6 importance of public and stakeholder testimony to the Board regarding contracts and agreements. Chair Koplin indicated that the process can be refined and clarified, as necessary. Mr. Izzo expressed appreciation for the latitude. He summarized for the public that the contract was for BESS services, and that Matanuska Electric Association (MEA) absolutely needed to recuse itself from the vote. That recusal was never in question. The contention was the sense that as a Board member, Mr. Izzo could not raise the issue that the utilities were concerned about language changes that the tax advisors had indicated would prohibit the eligibility for the investment tax credits. Mr. Izzo noted the concerns were finally able to be communicated. He does not agree that the information represented any competitive advantage to any single member of the Board. Mr. Izzo commented that he wants to avoid direct conflicts of interest and perceived conflicts of interest while maintaining the latitude to provide information before an absolute decision is made. Vice Chair Mitchell wished members and staff happy holidays. There were no other comments. 10. ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 9:41 am. ______________________________________ Curtis W. Thayer, Executive Director 1 1/20/2025 SECURE LONG -TERM ALASKA POWER 2 FUEL AND SITE WORK DECARBONIZED POWER PLANT NEXT STEPS 3 COAL IS ALASKA’S FUEL 521Mt Reserve/Resource verified to date 100MW plant = ~22.5M tonnes over 30 yrs 1GW plant = ~225M tonnes over 30 yrs 4 COAL POWER IS EPA PERMITTABLE PERMITTING 6 YRS DATA NO RED FLAGS •State land •Project qualifies to opt into FAST-41 •Presidential Executive Order to “expedite the permitting…of energy and natural resource projects in Alaska” Image: Boundary Dam CCS Coal Plant successfully in operation with first generation CCS, for 10 years MET STATION, FODAR, LIDAR, SURFACE WATER, GROUND WATER, SNOW SURVEYS, WETLAND SURVEY, COAL QUALITY, GEOLOGY, BIOTA, FISH, TRANSPORTATION ROUTES & IMPACTS 5 ESG: LOW IMPACT SURACE EXTRACTION AND UNIQUELY CLEAN FUEL EXCEPTIONALLY LOW CONTAMINANT KEY TRACE ELEMENTS: MOST WELL BELOW TYPICAL U.S. COAL RANGE US Coal Typical Range** ppm Project Coal ppm Arsenic 14 –15 2.8 Boron 50 –102 31.6 Cadmium 1.3 –2.5 0.2 Lead 16 –35 4.4 Mercury 0.18 –2.0 0.036 (36 ppb) Molybdenum 3.0 –7.5 1.24 Selenium 2.1 –4.1 0.11 * Lower acid rain risk from Sox. Low NOx means low potential to form Nitrous Oxide (N2O), a greenhouse gas that can contribute to global warming. ** United States Energy Association and U.S. Department of Energy: https://usea.org/sites/default/files/092012_Trace%20element%20emissions%20from%20coal_ccc203.pdf and netl.doe.gov/research/Coal/energy-systems/gasification/gasifipedia/nitrogen-oxides Typical Content**Project Coal Sulphur (SOx)*0.2 –5.0 %0.13 % Nitrogen (NOx)*0.5 –3.0 %0.68 % 6 ESG: EMISSIONS DISPELLING THE MYTH OF DIRTY COAL •ENVIRONMENTAL: WITHOUT CCS: coal is cleaner than imported LNG https://doi.org/10.1002/ese3.1934 [2024] https://pubs.acs.org/doi/10.1021/acssuschemeng.1c01517 [case study 2021] WITH CCS: cleaner than wind with natural gas peakers UAF/EERC Economic Feasibility Report, Dec 2023 / March 2024 •SOCIAL & GOVERNANCE: Need for lower cost power in high-priced market National, Defense and State energy security objectives Economic development value –high-paying jobs, increased tax and royalty revenues, increased utility customer base 7 FUEL AND SITE WORK DECARBONIZED POWER PLANT NEXT STEPS COULD SUPPLY ALL S.CENTRAL ALASKA ELECTRICITY, SAVING GAS FOR HEATING 3.22.2024 –Governor’s announcement: (S&P Global 22.3..2024) 6.3.2024 –Host municipality votes to pursue coal power and seek State support (communications 2.2024 MSB/AACEC, session 5.3.2024) 7.2.2024 –Gas distribution utility Enstar recommends coal-fired power generation to legislative Joint Resources Committee (video, JRC hearing 7.2.2024) 8 9 STUDIES: LOWEST CAPEX FIRM POWER OPTION1 1 Various Alaska studies examining firm power alternatives to LNG import 10 STUDIES: LOWEST FUEL COST 11 REGIONAL DEPLETING GAS SUPPLY LNG IMPORT: PLANNED FOR HEATING AND A “BRIDGE SOLUTION” FOR POWER Option Estimated Fuel Supply Cost * Coal Biomass ~$4 /MMBtu Utilities Working Group BRG Report New Gas Supply Options (New Inlet Gas, Pipeline, Kenai LNG, Floating Regas Unit, Barge) with regasification costs $18 -$22 /MMBtu 800 mile gas pipeline for Southcentral MIN $12.80 /MMBtu ASSUMING •CAPEX IS $10B , WITH 25% EQUITY NEEDED -$2.5-3.5B •FEED GAS IS $1/MMBtu –LESS THAN HALF OF HENRY HUB RECENT PRICES, WHICH AVERAGED ~$2-$8 SINCE 2020 •ASSUMES ALL SOUTHCENTRAL & INTERIOR AK ELECTRICITY AND HEAT DEMAND INCL FAIRBANKS CONVERTING OIL/WOOD TO PIPELINE SOURCE, PLUS NIKISKI REFINERY RAMPUP, FOR THE ‘BASELOAD’ SCENARIO. NO FUEL OR POWER DIVERSIFICATION. EIA Actual U.S. LNG import prices (2022-23)~$8-41 /MMBtu Enstar LNG “could be ~$20 -$30” /MMBtu ** * Based on UAF/EERC Economic Feasibility Report, Cook Inlet Region Low Carbon Power Generation with Carbon Capture, Transport, and Storage Feasib ility Study, Dec 2023 / March 2024 and BRG Cook Inlet Supply Report, July 2023 produced for AK Utilities Working Group. (Utility CEA has since released its own summary Black & Veatch Feb 2024); and Economic viability assessment, Alaska LNG project Phase 1, Wood Mackenzie, Oct 2024 . ** RCA Jan 15, 2025 Enstar Presentation 12 WIND, SOLAR & GRID BATTERY STRATEGIES CARRY SUPPLY CHAIN RISKS MATERIALS ARE IN ‘CRITICAL’ SHORT SUPPLY (DOE) EXECUTIVE ORDER: PAUSES WIND LEASING AND PERMITTING Figure ES.2. Medium-term (2025–2035) criticality matrix [edited for relevance; EV info excluded]: • Rare earth materials (neodymium [Nd], praseodymium [Pr], dysprosium [Dy], and terbium [Tb]) used in magnets in wind turbine generators continue to be critical. • Materials used in batteries for stationary storage are now considered to be critical. While cobalt (Co) was found to be critical in this and previous reports, lithium (Li) becomes critical in the medium term due to its broader use in various battery chemistries and the rampant growth of the EV industry. Natural graphite is a new addition in this assessment and is also found to be critical. • Major materials like aluminum (Al), copper (Cu), nickel (Ni), and silicon (Si) move from noncritical in the short term to near critical in the medium term due to their importance in electrification. • Electrical steel is near critical due to its use in transformers for the grid DOE Critical Minerals Assessment, July 2023 13 •EPA: •CC is a proven technology, Best System of Emissions Reduction (BSER) •Track record of CC success with coal plants; as yet unproven with gas plants •Large CC technology global deployment (2022): •41 in operation •26 under construction •325 under development CARBON CAPTURE TECHNOLOGY IS IN USE 14 Alaska imports 95% of food o CCS plant can provide HEAT and CO2 for greenhouses at low cost o DNR land adjacent to power plant o National growers interested Alaska imports 100% of CO2 o Essential for hospitals, beverage industry, industrial uses o TEC can supply at lower cost than current CO2 USE AS AN ALTERNATIVE TO STORAGE: FOOD SECURITY & PACKAGED CO2 STAKEHOLDER AND POLICY SUPPORT 2024 –Carbon Storage and Class VI Permitting Primacy Legislation Passed 2024 DOE $9M with $2.2M State Matching – work under way for pipeline routing and CO2 storage verification 2024 –House votes unanimously (39-0) to prohibit LNG infrastructure costs being passed on to utility customers, signalling lack of support for long term LNG 2023 –Dittman Public Research Poll: 65% support coal with CCS 65% opposed to LNG impor t G7 and EPA affirm decarbonized coal will not be phased out. Decarbonized coal fits COP28 goals 15 16 DOE HAS FUNDED MULTIPLE COAL CCS PROJECTS: 17 $400M DOE NOFO FOR CCS COAL PLANT ISSUED TIMING: November ’24 NOFO ISSUED Mar 1 ’25 CONCEPT PAPER July ’25 APPLICATIONS Winter ‘25-’26 SELECTIONS NEGOTIATION 18 FUEL AND SITE WORK DECARBONIZED POWER PLANT NEXT STEPS PreFeed Results Q1 2025 20 Large Power Plant Procurement in Most Jurisdictions State entity or utility leads procurement process •issues RFP with draft PPA •sets out firm capacity need, term, guarantees, start date, interconnection, conditions Developer prepares proposal and submits commitment letters from development team: •Financing •EPC •Major equipment suppliers State entity or utility conditionally contracts power plant developer Elements similar to the successful Bradley Lake power plant financing CUSTOMARY PROCESS TO MOVE TO FID WHAT WE OFFER Secure, long-term in-State fuel source providing power security for critical needs such as DoD expansion Economic development –powering critical minerals and other mining sites Scalable for data center customers –three potentials in discussion New infrastructure power at cost competitive with existing gas-fired plants Diversification from gas power averages down overall consumer utilities costs. Preserves remaining Cook Inlet reserves for heating needs 21 22 TERRA ENERGY CENTER POWER ALASKA’S FUTURE NOW 23 Certain statements included in this presentation constitute forward-looking statements or forward-looking information under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. No independent third party has reviewed the reasonableness of any such statements, estimates or assumptions. No member of the Company’s management represents or warrants that such forward-looking statements will be achieved or will prove to be correct. Actual future results and operations could vary materially from the forward-looking statements. Similarly, no representation or warranty is made that the assumptions on which the forward-looking statements are based may be reasonable. While third parties have been relied on for much of the analysis, no audit, review or verification has been undertaken by the Company or an independent Qualified Person of the assumptions, data, results, calculations and forecasts presented or referred to herein. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. The recipient acknowledges that neither it nor the Company intends that the Company act or be responsible as a fiduciary to the recipient, its management, stockholders, creditors or any other person. Forward-looking statements include disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include any statement relating to future events, conditions or circumstances. The Company cautions you not to place undue reliance upon any such forward-looking statements. Forward-looking statements or information may or may not contain statements with words such as “should”, “will”, “may”, “can”, "anticipate", "believe", "expect", "intend", "indicate", “extrapolate” or similar words suggesting possible, probable or expected outcomes, or statements regarding an outlook. Financial and other calculations and data are in draft form and subject to correction of errors and are based on assumptions and data that may prove to be incorrect. All information contained in this presentation, other than statements of historical fact, is forward-looking information. Forward-looking statements or information in this presentation include, but are not limited to, statements or information with respect to: business strategy and objectives; development of the company's properties; capital expenditures; revenue; operating and other costs. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the company and described in the forward-looking statements or information. These risks and uncertainties which may cause actual results to differ materially from the forward-looking statements or information include, among other things: the ability of management to execute its business plan; general economic and business conditions; uncertainties as to the availability and cost of financing; and financial risks affecting the value of the Company investments. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties. The forward-looking statements or information contained in this presentation are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward looking statements or information contained in this presentation are expressly qualified by this cautionary statement. E.&O.E Important Notice –Forward Looking Statements COVER Inside Front Cover Photo caption: Clockwise From Top: Bradley Lake Hydroelectric Project, Pillar Mountain Wind Farm, Alaska Intertie, Powerhouse, Bulk Fuel Tank Farm, Solar Panel. COVER .................................................................................................................................................................... 1 PART I: ABOUT THE AUTHORITY ............................................................................................................................. 7 PART II. RECEIPT OF EMPLOYEE POLICIES AND GUIDELINES ................................................................................... 8 PART III: POLICIES & GUIDELINES ............................................................................................................................ 9 BENEFITS .............................................................................................................................................................. 10 1. HOLIDAYS ..................................................................................................................................................... 11 Legal Holidays ............................................................................................................................................... 11 Work Performed on a Holiday ...................................................................................................................... 11 2. INSURANCE AND RETIREMENT ..................................................................................................................... 12 3. LEAVE ACCRUAL, USE OF LEAVE, AND LEAVES OF ABSENCE .......................................................................... 13 Accrual: ........................................................................................................................................................ 13 Use of Leave: ................................................................................................................................................ 13 Mandatory Usage of Accrued Leave: ............................................................................................................ 14 Leave Cash-In: .............................................................................................................................................. 14 Donation of Leave: ....................................................................................................................................... 15 Leave Balance at Separation (Terminal Leave): ............................................................................................. 15 Posting of Leave Accrued and Taken ............................................................................................................. 15 Leave and Holidays: ...................................................................................................................................... 15 Court Leave: ................................................................................................................................................. 15 Medical Leave: ............................................................................................................................................. 15 The Family and Medical Leave Act of 1993 and the Alaska Family Leave Act ................................................ 16 The Family and Medical Leave Act (FMLA) .................................................................................................... 16 Reasons for Taking Leave ............................................................................................................................. 17 Advance Notice and Medical Certification .................................................................................................... 17 Expressing Breast Milk at the Workplace ...................................................................................................... 17 Military Leave ............................................................................................................................................... 18 Leave of Absence Without Pay ..................................................................................................................... 19 Cancellation of Leave of Absence ................................................................................................................. 19 Effect of Leave Without Pay on Anniversary Date ......................................................................................... 19 COMPENSATION .................................................................................................................................................. 20 1. COMPENSATION ........................................................................................................................................... 21 Hourly and Salary Rates: ............................................................................................................................... 21 Overtime Pay: ............................................................................................................................................... 21 Work Performed on a Holiday: ..................................................................................................................... 21 Total Remuneration: ................................................................................................................................... 21 New Employee’s Pay: ................................................................................................................................... 22 Promoted Employee’s Pay: ........................................................................................................................... 22 Temporary Promotion Pay (Acting in a Higher Range): ................................................................................. 22 Transferred Employee’s Pay: ........................................................................................................................ 22 Re-evaluated Position: ................................................................................................................................. 23 Demoted Employee’s Pay: ............................................................................................................................ 23 Merit Increases: ............................................................................................................................................ 23 Merit Anniversary Date (MAD): .................................................................................................................... 23 MAD and Performance Evaluations: .......................................................................................................... 23 Step Increases and Pay Increments: .............................................................................................................. 23 Cell Phone Reimbursement: ......................................................................................................................... 24 2. HOURS OF WORK ......................................................................................................................................... 25 Scheduled Hours of Work: ............................................................................................................................ 25 Minimum Work Week: ................................................................................................................................. 25 Normal Work Week: ..................................................................................................................................... 25 Normal Work Day: ........................................................................................................................................ 25 Overtime Hours: ........................................................................................................................................... 25 Timesheets: .................................................................................................................................................. 25 Work Performed on a Holiday: ..................................................................................................................... 25 Office Closures: ............................................................................................................................................ 26 Returning to Duty: ........................................................................................................................................ 26 Flex Time: ..................................................................................................................................................... 27 Telework: ..................................................................................................................................................... 27 Other Employment: ...................................................................................................................................... 27 3. TRAVEL ......................................................................................................................................................... 28 EMPLOYMENT LAWS, ADMINISTRATIVE ORDERS, AND RELATED POLICIES ........................................................... 29 1. ALCOHOL AND DRUG-FREE WORKPLACE ...................................................................................................... 30 2. AMERICAN WITH DISABILITIES ACT ............................................................................................................... 31 3. BUSINESS USE-ACCEPTABLE USE POLICIES .................................................................................................... 32 3.1 Artificial Intelligence Guidance Summary ............................................................................................... 33 4. DISCRIMINATION and DIVERSITY IN THE WORKPLACE .................................................................................. 35 5. EFFECTS OF VIOLATIONS OF FEDERAL OR STATE LAW ................................................................................... 36 6. EMPLOYMENT OF IMMEDIATE FAMILY ......................................................................................................... 37 7. EQUAL EMPLOYMENT OPPORTUNITY: .......................................................................................................... 38 8. INFORMATION TECHNOLOGY, PUBLIC RECORDS AND RECORD RETENTION .................................................. 39 9. PROHIBITIONS AND PENALTIES .................................................................................................................... 40 Code of Ethics: .............................................................................................................................................. 40 Outside Employment: ................................................................................................................................... 40 Securing of Positions: ................................................................................................................................... 40 Party Assessments: ....................................................................................................................................... 40 Party Endorsement: ...................................................................................................................................... 40 Post Authority Employment: ........................................................................................................................ 40 Nomination and Candidacy: ......................................................................................................................... 41 Misrepresentation: ....................................................................................................................................... 41 Rights of Others: ........................................................................................................................................... 41 Investments: ................................................................................................................................................. 41 Use of Information: ...................................................................................................................................... 41 Use of Office Technologies: .......................................................................................................................... 41 Gifts and Favors: ........................................................................................................................................... 41 Purchases of Commodities and Services: ...................................................................................................... 42 Legal Counsel: .............................................................................................................................................. 42 10. RETURN TO WORK AFTER RETIREMENT ...................................................................................................... 43 11. SEPARATIONS, SUSPENSION AND DEMOTION ............................................................................................ 44 Retirement: .................................................................................................................................................. 44 Resignation: ................................................................................................................................................. 44 Layoff: .......................................................................................................................................................... 44 Dismissal: ..................................................................................................................................................... 44 Suspension: .................................................................................................................................................. 44 Demotion: .................................................................................................................................................... 44 12. SEXUAL HARASSMENT AND OTHER DISCRIMINATORY HARASSMENT ......................................................... 45 13. TRAVEL POLICY SUMMARY (AAM 60) ......................................................................................................... 46 Duty Station: ................................................................................................................................................ 46 Lodging Allowance: ...................................................................................................................................... 46 Meals and Incidental Expense (M&IE): ......................................................................................................... 46 Non-Commercial Lodging Facility: ................................................................................................................. 46 Per Diem: ..................................................................................................................................................... 46 Residence: .................................................................................................................................................... 46 Ticket Class: .................................................................................................................................................. 47 Travel Expenses: ........................................................................................................................................... 47 Travel Status: ................................................................................................................................................ 47 14. WHISTLEBLOWER ACT ................................................................................................................................ 48 OFFICE AND EMPLOYEE CONDUCT ....................................................................................................................... 49 1. COMPLAINT PROCEDURE .............................................................................................................................. 50 2. CONFIDENTIALITY AND EMPLOYMENT RECORDS .......................................................................................... 51 Confidentiality .............................................................................................................................................. 51 Employment Records .................................................................................................................................... 51 3. DRESS CODE ................................................................................................................................................. 53 4. DELEGATION OF AUTHORITY ........................................................................................................................ 54 Delegation of Procurement Authority........................................................................................................... 54 Violations of Procurement Regulations and Delegations of Authority .......................................................... 55 5. EXPENSES: FOOD, ENTERTAINMENT, GIFTS POLICY ...................................................................................... 56 6. EXTERNAL COMMUNICATIONS ..................................................................................................................... 57 Authorized Spokespersons ........................................................................................................................... 57 Procedures ................................................................................................................................................... 57 Are there exceptions? ................................................................................................................................... 58 7. MEETING ROOMS AND RECORDING MEETINGS ............................................................................................ 59 8. OFFICE CONDUCT ......................................................................................................................................... 60 9. PUBLIC RECORDS REQUEST ........................................................................................................................... 61 10. SOCIAL MEDIA ............................................................................................................................................ 63 11. SMOKING ................................................................................................................................................... 64 12. VEHICLE PARKING, USAGE, AND SEAT BELTS ............................................................................................... 65 Employee Parking: ........................................................................................................................................ 65 Personal Vehicle Use for State Business: ...................................................................................................... 65 Insurance ...................................................................................................................................................... 65 Seat Belt Requirement: ................................................................................................................................. 66 13. VISITORS IN THE WORKPLACE ..................................................................................................................... 67 Visitors ......................................................................................................................................................... 67 Contractors ................................................................................................................................................... 67 Office Events ................................................................................................................................................ 67 PERFORMANCE MANAGEMENT ........................................................................................................................... 68 1. PERFORMANCE MANAGEMENT .................................................................................................................... 69 I. Employee Information ............................................................................................................................... 69 II. Performance Expectations ........................................................................................................................ 69 III. S.M.A.R.T. Goals ...................................................................................................................................... 70 IV. Learning and Development Plan .............................................................................................................. 70 2. TUITION ASSISTANCE AND TRAINING ........................................................................................................... 72 DEFINITIONS ........................................................................................................................................................ 73 PART IV: APPENDIX .............................................................................................................................................. 77 A: TELEWORK ................................................................................................................................................... 78 AEA Teleworking Policy & Guidelines ........................................................................................................... 79 AEA Telework Request and Work Agreement (TWA) Form ........................................................................... 85 B: TUITION REIMBURSEMENT AND TRAINING .................................................................................................. 91 In-Person/Online Training Request form ...................................................................................................... 92 University Tuition Reimbursement Request form ......................................................................................... 93 AEA Tuition Reimbursement Guidelines ....................................................................................................... 94 AEA Tuition Reimbursement Recovery Agreement ....................................................................................... 95 C: CONFIDENTALITY .......................................................................................................................................... 96 D: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES ........................................................................ 99 D.1: ALCOHOL AND DRUG FREE WORKPLACE ............................................................................................. 100 D.2: AMERICAN WITH DISABILITIES ACT ..................................................................................................... 101 D.3: BUSINESS USE/ACCEPTABLE USE POLICIES .......................................................................................... 109 D.4: DISCRIMINATION AND DIVERSITY IN THE WORKPLACE ....................................................................... 120 D.5: FAMILY AND MEDICAL LEAVE ACT AND ALASKA FAMILY LEAVE ACT ................................................... 123 D.6: EMAIL RETENTION POLICY ................................................................................................................... 126 D.7: HOW TO NAME ELECTRONIC FILES AND FOLDERS ............................................................................... 129 D.8: RECORD RETENTION AND DISPOSITION SCHEDULE ............................................................................. 130 D.9: RETENTION OF PUBLIC RECORDS ......................................................................................................... 134 D.10: RETIREE RETURN TO WORK POLICY ................................................................................................... 185 D.11: SEAT BELT POLICY (AO 85) ................................................................................................................. 187 D.12: SEXUAL HARRASSMENT AND OTHER DISCRIMINATORY HARASSMENT ............................................. 189 D.13: SOA ETHICS INFORMATION ............................................................................................................... 192 D.14: TRAVEL POLICY (AAM 60) .................................................................................................................. 198 F: OFFICE AND EMPLOYEE CONDUCT POLICIES ............................................................................................... 228 F.1 EXPENSES: FOOD, ENTERTAINMENT, GIFTS POLICY ............................................................................... 229 F.2 MEETING ROOMS POLICY...................................................................................................................... 230 F.3 RECORDING MEETINGS POLICY ............................................................................................................. 231 F.4 SOCIAL MEDIA .............................................................................................................................................................................................. 233 BACK COVER .................................................................................................................................................................. 239 7 PART I: ABOUT THE AUTHORITY Alaska Energy Authority (AEA) AEA was established in 1976 as a public corporation of the State of Alaska governed by a board of directors with the mission to “reduce the cost of energy in Alaska.” AEA is the state's energy office and the lead agency for statewide energy policy and program development. To achieve its mission, AEA strives to diversify Alaska's energy portfolio — increasing resiliency, reliability, and redundancy. As part of its $1.5 billion energy portfolio, AEA owns the largest hydropower installation in Alaska, the Bradley Lake Hydroelectric Project, as well as over 200 miles of transmission line that comprises the Alaska Intertie (170 miles) and the Sterling to Quartz Creek Transmission Line (39.4 miles) on the “Railbelt,” which refers to the 700-mile-long transmission corridor that stretches from Fairbanks through Anchorage to the Kenai Peninsula where about 75 percent of Alaskans live. Rural Alaska has more than 200 rural communities served by standalone electrical grids. AEA has a long history in these remote areas of designing and constructing bulk fuel tank farms and powerhouse systems. To ensure this critical energy infrastructure lasts its full lifecycle, AEA manages the Circuit Rider Program, a team of trained technicians who provide remote troubleshooting and onsite technical support, operator training, procurement and logistics support, and emergency assistance. AEA also administers the Power Cost Equalization Program, a $48 million program that helps to lower electricity costs for approximately 82,000 rural Alaskans to levels comparable to Alaska’s larger cities. In addition, AEA offers grants and loans for power-related projects across the state. Since its creation in 2008, the Renewable Energy Fund program has secured over $327 million in state funds, leveraged over $300 million in federal and local funds with rural-community projects making up over 80 percent of all REF awards, and displaced approximately 85 million gallons of diesel fuel. Since 2020, AEA has secured over $700 million in federal Infrastructure Investment and Jobs Act and Inflation Reduction Act funds. The funds support several programs including the Grid Resilience and Innovation Partnerships Topic 3 (Grid Innovation), the Greenhouse Gas Reduction Fund Solar for All Program, Statewide Grid Resilience and Reliability, the National Electric Vehicle Infrastructure Formula Program, and the Home Efficiency Rebates and Home Electrification and Appliance Rebates. Collectively, these federal awards, in combination with $166 million in Railbelt utility bonding, have increased AEA’s capital budget by over 2,600 percent. AEA is committed to providing energy solutions to meet the unique needs of Alaska’s rural and urban communities, now and in the future. 8 PART II. RECEIPT OF EMPLOYEE POLICIES AND GUIDELINES These employee policies and guidelines have been written to provide employees with general information about the Authority’s employment practices. The information in this manual is subject to change without notice to the employees. The information in this manual is not intended to create an employment contract of any kind and does not represent implied or actual contract provisions. The intent of the information in this manual is to comply with all federal, state, and local laws applicable to the Authority and its operations. The Authority offers no employment contracts nor does it guarantee any minimum length of employment. Authority employees have no seniority rights or benefits. All employment is based upon the Authority’s desire for employee services and the Authority reserves the right to terminate any employee at any time "at will" with or without cause. A supervisor or Officer of the Authority has no authority whatsoever to make any contrary representations to any employee. No exception is possible other than in an express written agreement authorized by the Board of the Authority and signed by the Executive Director of the Authority. However, it is the policy of the Authority to not enter into any employment contracts. EXCEPTION TO EMPLOYEE GUIDELINES The Executive Director serves at the pleasure of the Board, and the AEA Directors work for the Executive Director to whom they report. Therefore, they are not subject to all the provisions included in this manual. All employees are subject to the State, Federal, and local laws referenced in this manual. If you have any questions or wish to have further information about any particular policy or guideline in this manual, please contact the Human Resources Department. These policies and guidelines supersede all previous manuals, letters, memoranda and understandings. ACKNOWLEDGEMENT By signing below, I acknowledge I have received a copy of the 2024 Employee Policies and Guidelines. I understand I am to read the entire manual and become familiar with its contents. If I have questions or do not understand any portion of this manual I know it is my responsibility to ask my supervisor or the Human Resources Department and get my questions answered. I understand that these policies and guidelines outline my responsibilities and AEA’s expectations while I am employed here. I further understand that my employment is considered at will, subject to termination by the Authority at any time, with or without cause. Date Employee Signature Printed Name 9 PART III: POLICIES & GUIDELINES Part III covers: • Section 1: Benefits • Section 2: Compensation • Section 3: Employment Laws, Administrative Orders and Related Policies • Section 4: Office and Employee Conduct • Section 5: Performance Management • Section 6: Definitions 10 Section 1 BENEFITS This section covers: • Holidays • Insurance and Retirement • Leave Accrual, Use of Leave and Leave of Absence 11 Part III: Section 1: BENEFITS 1. HOLIDAYS Legal Holidays: Authority employees are State employees. The Authority observes the following as paid Authority holidays for non-temporary employees: (1) The 1st of January, known as New Year’s Day (2) The 3rd Monday in January, known as Martin Luther King, Jr. Day (3) The 3rd Monday in February, known as President's Day (4) The last Monday in March, known as Seward's Day (5) The last Monday in May, known as Memorial Day (6) The 19th of June, known as Juneteenth (7) The 4th of July, known as Independence Day (8) The first Monday in September, known as Labor Day (9) The 18th of October, known as Alaska Day (10) The 11th of November, known as Veteran's Day (11) The fourth Thursday in November, known as Thanksgiving Day (12) The 25th of December, known as Christmas Day, and, (13) Every day designated by public proclamation by the Governor of the State as a legal holiday. Part-time employees will be entitled to those holidays on which they are regularly scheduled to work and will receive compensation only for those hours for which they would have been regularly scheduled to work. If a holiday listed above falls on a Sunday, the following Monday shall be a holiday. If a holiday listed above falls on a Saturday, the preceding Friday shall be a holiday. Work Performed on a Holiday: Prior approval is required before working on a holiday for all employees. For hourly/overtime eligible employees, all hours worked on a holiday will be paid at the holiday premium rate of straight time holiday pay in addition to seven and one-half (7.5) hours regular holiday pay. Hours that an employee works and for which the employee is compensated at the holiday premium rate will be considered hours worked for purposes of computing straight time overtime as well as 1.5 overtime eligibility. For salaried/overtime ineligible employees who work on a holiday, all hours worked on a holiday will be recorded as regular hours worked; however, the employee will be credited the equivalent in personal leave, up to 7.5 hours, if the entire holiday was spent working. If the employee works only part of the holiday, a leave slip must be submitted for the amount of time not worked. For example, if an employee whose schedule is 7.5 hours per day, works 4 hours on a holiday, a leave slip must be completed for 3.5 hours to account for the difference in added to their leave bank. 12 Part III: Section 1: BENEFITS 2. INSURANCE AND RETIREMENT Eligible employees are entitled to participate in several State benefit packages: • Alaska Care Health Plans (employer provided with optional programs) • Life Insurance (employer provided with optional coverage available) • Alaska Public Employees' Retirement System (PERS) (mandatory for regular employees) • Supplemental Benefits System (SBS) (mandatory for all employees) • Deferred Compensation Plan (optional) • Health Reimbursement Arrangement For more information on these benefit packages, including additional optional benefits, contact the State of Alaska, Division of Retirement and Benefits or the Human Resources Department. For more benefits information go to: http://doa.alaska.gov/drb/employee/index.html 13 Part III: Section 1: BENEFITS 3. LEAVE ACCRUAL, USE OF LEAVE, AND LEAVES OF ABSENCE Effective 6/1/2020, the Authority converted to a bi-weekly pay period and therefore a bi-weekly leave accrual system. The following accruals are expressed in terms of hours and minutes. For example, 7:30 means 7 hours and 30 minutes. Accrual: Full-time, non-temporary employees of the Authority hired after July 1, 2013, accrue "Personal Leave" at the following rates: 1. 6:04 for each full bi-weekly pay period if the employee has less than two (2) years of State service. 2. 6:55 for each full bi-weekly pay period if the employee has two (2) but less than five (5) years of State service. 3. 7:47 for each full bi-weekly pay period if the employee has five (5) but less than ten (10) years of State service. 4. 8:39 for each full bi-weekly pay period if the employee has ten (10) but less than fifteen (15) years of State service. 5. 10:23 for each full bi-weekly pay period if the employee has fifteen (15) or more years of State service. Full-time, non-temporary employees hired prior to July 1, 2013, accrue “Personal Leave” at the following rates: 1. 6:55 for each full bi-weekly pay period if the employee has less than two (2) years of State service. 2. 7:47 for each full bi-weekly pay period if the employee has two (2) but less than five (5) years of State service. 3. 8:39 for each full bi-weekly pay period if the employee has five (5) but less than ten (10) years of State service. 4. 10:23 for each full bi-weekly pay period if the employee has ten (10) or more years of State service. Part-time employees accrue leave on a prorated basis. There shall be no accrual of leave for any pay period during which an employee is absent without approved leave. The accrual will be adjusted for periods of approved leave without pay. Leave is not available for use until after 30 days of employment. For purposes of leave accrual, “State service” includes work for the State prior to joining the Authority. Use of Leave: With prior supervisory approval, via email, calendar notification, or another written method agreed upon by the supervisor, an employee may take accrued Personal Leave when the Authority’s business makes such leave convenient. Employees should make every effort to provide a 30 day advance notice when leave is being requested. If a 30 day advance notice is not possible, 14 as much notice as reasonably possible is expected. Leave in excess of two consecutive weeks requires the advance approval of the Executive Director. Employees who are unable to continue working their scheduled hours due to an unplanned event need to notify their supervisor as soon as possible, making an effort to notify their supervisor prior to leaving for the day. The Authority uses an electronic timesheet system that requires all leave to be documented. This electronic system automatically generates a leave form for each segment of leave taken. When a supervisor approves the employee’s timesheet, they are also approving the leave form(s) required for processing payroll. Mandatory Usage of Accrued Leave: Leave accrued but not used shall carry over from one year to the next and accumulate until separation from service. However, AAM 280.060 requires that some mandatory days of Personal Leave must be used each leave year. Employees and their supervisors shall be advised during the month of November each year if the employee has not yet met the minimum requirement. If the employee does not schedule the mandatory days of leave, the supervisor may direct that the leave be taken to satisfy the requirement. AS 39.20.225 (c) mandates ten days of personal leave usage in a leave year for employees covered by the statute that have a personal leave balance of 400 hours or less on the first day of the leave year and AS 39.20.240 (d)(2) mandates fifteen days of personal leave usage in a leave year for employees who have a balance in excess of 400 hours on the first day of the leave year. AS 39.20.225 and AS 39.20.240 (d)(2) both state that unused mandatory leave will be subtracted, without pay, from the employee’s accrued leave balance, unless the head of the agency (the Executive Director) certifies in writing that the employee was denied the opportunity to take the mandatory leave. In such cases, the employee may request to have that leave preserved. Such requests must be received by the HR Department by December 15th. The HR Department will verify that the requested leave was denied and no alternative dates were available. Once this verification takes place, the HR Department will work with the Executive Director to provide the required written certification to the SOA payroll department. In cases where the employee declined alternative dates proposed by the department leadership, the request to preserve unused leave most likely will be declined. Please note: Each employee is responsible for tracking his/her leave usage. Employees may opt to cash in up to five days of leave to meet the mandatory usage of accrued leave requirement. Leave Cash-In: Employees with more than five (5) days of accrued personal leave may cash in personal leave up to six (6) times a year as provided in AAM 280.180 and 2 AAC 08.065. An employee may not reduce the employee’s personal leave balance below 37.5 hours. For each leave cash-in request, the employee’s leave balance will be reduced by the number of hours/days requested and the leave cash value will be reduced based on a first-in-first-out basis (the value of the leave accrued earliest shall be subtracted first). The amount paid to the employee will be the value reduced from the leave balance. 15 Donation of Leave: Employees may donate accrued Personal Leave to another employee for medical leave purposes only. Donated leave will be deducted from the donor’s account and credited to the recipient's leave account during the next payroll period. The amount of donated leave is based upon the hourly rate of the donor at the time of transfer. The total donation in hours by the donor will be transferred to the recipient in equal dollar amount but translated into hours based upon the recipient's hourly rate at the time of transfer. Leave donations must be submitted on the appropriate form available from the Human Resources Department. No leave is transferable or usable until properly posted. Leave Balance at Separation (Terminal Leave): An employee shall receive a lump sum payment within 30 days of separation of employment for any unused accrued Personal Leave. Compensation for leave balances shall equal the leave cash value of the employee’s leave account at the time of termination. Posting of Leave Accrued and Taken: Records of leave accrued and taken shall be maintained by DOPLR. An employee cannot use leave time before it has been accrued. Leave and Holidays: 1. If an employee is on leave without pay (LWOP) all day before or after a holiday, the employee is considered to be on leave without pay for the holiday. 2. Personal Leave is not deducted for holidays falling within a period of paid Personal Leave. 3. If the employee's termination is effective on a holiday because the employee worked on that holiday, the employee will be paid for that holiday. 4. An employee's final day cannot be a leave day, unless it relates to a medical reason (i.e., workers' compensation, family leave, sickness, etc.). Court Leave: A full-time employee called to serve as a juror or subpoenaed as a witness is entitled to court leave at no loss of pay. If released before the end of the normal work day, the employee must return to work. Court leave must be supported by written documents, such as subpoena, court clerk’s statement of attendance, payment for jury duty, jury duty per diem and travel pay, etc. An employee shall submit payment received from the Court for jury duty to the Authority’s Finance Division. Medical Leave: An employee may take Personal Leave for medical reasons upon notification to the employee's supervisor. The supervisor may require written notification from a physician to verify the medical leave requirement for an absence exceeding one day. Written notification may be requested to verify the employee's ability to safely return to work. The following constitute "medical reasons" for taking accrued leave and are subject to the conditions noted: 1. Illness or injury of an employee is a medical reason for taking accrued leave. 2. Illness or injury of a member of an employee's immediate family is a medical reason for taking accrued leave, provided that the employee’s attendance to the immediate family member is required. 16 3. A medical condition of an employee that makes the employee’s presence at work a danger to the health of fellow employees is a medical reason for taking accrued leave. 4. Death of a member of an employee's immediate family is a medical reason for taking five days of accrued leave. Additional days may be granted at the discretion of the supervisor. An employee on approved medical leave will receive payment at the employee’s current pay to the extent the employee has Personal Leave accrued. If wage continuation payments are made to the employee under the Alaska Workers’ Compensation Act, leave eligible employees will be placed on personal leave for absences that are the result of a workers' compensation injury or illness. Additionally, family leave entitlements are invoked for those employees who meet the required thresholds. Refer to AAM 280.360 – Family Leave. Once a Report of Occupational Injury or Illness is filed, the Authority must ensure the employee reports all hours of leave related to the injury or illness and clearly identifies the leave as 'workers' compensation' on the leave slip. To meet this requirement a qualified leave slip will automatically be generated each time an employee uses the workers’ compensation code option in the Authority’s timesheet system. An employee retains all workers' compensation lost wage payments. The employee's use of accrued leave is proportionately offset by the amount of work time represented by such payments. The work time represented by the lost wage payment is considered workers' compensation leave-without-pay. The Department of Finance, Payroll Section, is responsible for processing all retroactive leave adjustments for workers’ compensation claims. The Family and Medical Leave Act of 1993 and the Alaska Family Leave Act: The Authority complies with all requirements under the federal Family and Medical Leave Act of 1993 and the Alaska Family Leave Act (AS 39.20.500-.550). The provisions of these acts are complex and employees are encouraged to consult with the Human Resources Director with respect to the applicability of the Acts to particular circumstances. For more details and your rights and responsibilities under these Acts, please refer to Appendix D.5. The following is a general description of these acts: The Family and Medical Leave Act (FMLA) FMLA requires covered employers to provide up to 12 weeks of unpaid job-protected leave to eligible employees for certain family and medical reasons (up to 26 weeks when caring for a covered service member). Employees are eligible if they have worked for the Authority or the State for at least one year (need not be continuous) and for 1,250 hours over the previous 12 months. For the duration of FMLA leave, employee health coverage is maintained under the group health plan. The Alaska Family Leave Act (AFLA) AFLA has certain requirements that the employee must meet to qualify. A qualified employee may take family leave of 18 work weeks during any 24-month period for a serious health condition or 18 work weeks within a 12-month period following childbirth or adoption. 17 For employees subject to AS 39.20.200-330, AFLA leave is available immediately upon employment with no restrictions on length of service, number of hours employed, or size of the local work force. Reasons for Taking Leave: Unpaid leave is available for the following reasons for absence: • to care for the employee's child after birth, or placement for adoption or foster care; • to care for the employee's spouse, son, daughter, or parent, who has a serious health condition; or • for a serious health condition that makes the employee unable to perform the employee's job; or • for an employee whose family member is a military member who has a qualifying exigency or a serious illness or injury. All FMLA (12 weeks), AFLA (18 weeks), and paid Personal Leave (balance of accrued leave when starting FMLA or AFLA) run concurrently. All employees must use their accrued Personal Leave while on FMLA and AFLA. AFLA allows a holdover of five (5) days of accrued Personal Leave for use upon return (AS 39.20.300-.310). Once an employee has opted to retain Personal Leave, that Personal Leave cannot be used for an ALFA leave condition until the AFLA leave entitlement is exhausted. If an employee elects this option, notice must be given to Human Resources to ensure proper notice has been provided by employees electing this option. Advance Notice and Medical Certification: The employee may be required to provide advance leave notice and medical certification. Requests to take FMLA or AFLA leave may be denied if the requirements are not met. • The employee ordinarily must provide 30 days’ advance notice when the leave is foreseeable. • The Authority may require medical certification to support a request for leave because of a serious health condition, and may require second or third opinions (at the Authority’s expense), periodic updates, and a fitness for duty report to return to work. For additional details, refer to the FMLA/AFLA policy adopted by the State located at: http://doa.alaska.gov/dop/fileadmin/absenceManagement/FMLARightsResponsibilities.pdf. Information is also available in Appendix D.5 of this manual. Expressing Breast Milk at the Workplace: The State of Alaska recognizes the health and economic advantages of breastfeeding for infants and mothers and provides a supportive environment to enable employees who are nursing mothers to express milk during work hours. AAM 280.460 Break Times and Locations • Employees who are nursing mothers are allowed to express milk as needed. If an employee needs time in addition to the authorized break and lunch periods, she must adjust her work schedule with her supervisor’s approval, or she may take leave in accordance with the appropriate bargaining unit agreement and leave policy. 18 • A place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public shall be made available for employees to express breast milk. Employee Responsibilities • An employee wishing to express milk during her regular work hours shall keep her supervisor informed of her needs so that appropriate accommodations can be made to satisfy the needs of both the employee and the State as an employer. • Nursing employees are responsible for keeping milk expression areas clean for the next user. • Each nursing employee is responsible for proper storage of her milk. If a shared refrigerator is used, the employee should label expressed milk clearly with her name Federal Law requires employers to provide reasonable break time for an employee to express breast milk for her nursing child for one year after the child's birth each time such employee has need to express the milk. Employers are also required to provide a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public, which may be used by an employee to express breast milk. The break time requirement became effective when the Affordable Care Act was signed into law on March 23, 2010. Alaska Law states a municipality may not enact an ordinance that prohibits or restricts a woman breast-feeding a child in a public or private location where the woman and child are otherwise authorized to be. In a municipal ordinance, “lewd conduct,” “lewd touching,” “immoral conduct,” “indecent conduct,” and similar terms do not include the act of a woman breast-feeding a child in a public or private location where the woman and child are otherwise authorized to be. Nothing in this section may be construed to authorize an act that is an offense under a municipal ordinance that establishes an offense with elements substantially equivalent to the elements of an offense under AS 11.61.123. This section is applicable to home rule and general law municipalities. Military Leave: The Uniformed Services Employment and Reemployment Rights Act (USERRA) gives employees serving in all branches of the military reemployment rights if they are called into active military service. This service may be voluntary or involuntary and the employee must leave the military in good standing to qualify for reemployment. If an employee is called to active duty, the employee must notify the Authority in advance, either verbally or in writing, unless giving notice is impossible, unreasonable, or precluded by military necessity. The time period the employee has to apply for reemployment or to report back to work after military service is based on time spent on military duty. For example, for service of more than 180 days, the employee must submit an application for reemployment within 90 days of honorable discharge from active duty. For service of more than 30 days but less than 181 days, the employee must submit an application for reemployment within 14 days of release from service. For service of less than 31 days, the time period is very short. If an employee is called to active military duty, the employee will need to claim the service for credit upon return to employment by contacting the Division of Retirement and Benefits. The employee must submit a written request, along with a copy of the employee’s discharge papers, to the Human Resources Department and the Division of Retirement and Benefits. USERRA provides that employees are entitled to be reemployed in the job he or she would have attained had he or she not been absent for military service, with the same seniority, status and pay, as 19 well as other rights and benefits determined by seniority. USERRA also requires that reasonable efforts (such as training or retraining) be made to enable returning service members to refresh or upgrade their skills to help them qualify for reemployment. Administrative Order 213 allows State employees to continue health benefits when called to active duty in support of conflicts in Iraq and Afghanistan. Complete, detailed information about USERRA may be found online from the U.S. Department of Labor, Veterans Employment and Training Service. Leave of Absence Without Pay: Upon application by an employee, a leave of absence without pay may be granted by the Executive Director for the following: • Disability because of sickness or injury. Such leave shall be limited to one month for each full month of service to a maximum of 24 months. The Authority, from time to time, may require that the employee submit a certificate from the attending physician or from a designated physician as evidence that the leave should be continued. In the event of a failure or refusal to supply such certificate or if the certificate does not clearly show sufficient disability to preclude the employee from the performance of the employee's duties, the Authority may cancel the leave of absence without pay and require the employee to report for duty on a specified date. • When a leave of absence for travel or study will equip the employee to render more effective service, which the Executive Director deems beneficial to the interests of the Authority, and where the leave exceeds 6 months, the Authority may keep the position open by hiring a temporary or part-time employee on a substitute basis to perform the necessary duties of the position, until the return of the employee. • Employees may be granted leave without pay, not to exceed a total of 12 months, on the basis of applications for leave without pay approved by the Executive Director. Such leave shall be granted only when it will not result in undue prejudice to the interests of the Authority beyond any benefits to be realized. Cancellation of Leave of Absence: All leaves of absence without pay may be canceled by the Authority upon written notice to the employee specifying a reasonable date of termination of the leave. The Executive Director, upon prior notice to the employee, may cancel an approved leave of absence if the Executive Director finds that the employee is using the leave for purposes other than those specified at the time of approval. Effect of Leave Without Pay on Anniversary Date: The leave anniversary date and the merit anniversary date of an employee shall be set forward one month for any leave without pay totaling 172.5 hours in the leave year. 20 Section 2 COMPENSATION This section covers: • Compensation • Hours of Work • Travel 21 Part III: Section 2: COMPENSATION 1. COMPENSATION Employees in the exempt service in the executive branch are identified in AS 39.25.110. Compensation for these exempt employees is set by statute, by the State Officers Compensation Commission (AS 39.23.540) or by the appointing authority. (AAM 200.080). AEA is considered the “appointing authority” for employees working for AEA. All employees of the Authority are in the exempt service, and therefore the Human Resources Director shall maintain and administer a pay plan for all employee positions. For positions in ranges 26 and below, unless otherwise approved, the pay plan will be based upon the State’s exempt pay scale, “Unit Designation XE – Partially Exempt and Exempt Executive Branch Employees,” N00 salary schedule. Positions in range 27 and above, the Human Resources Director will administer a pay plan approved by the Executive Director(s) and/or the Board. Hourly and Salary Rates: Employees who are exempt from the Fair Labor Standards Act (FLSA) will be paid on a salary basis, and those employees who are not exempt from FLSA will be paid on an hourly basis. Overtime Pay: An employee who is eligible for overtime pay (employees paid on an hourly basis) in accordance with these guidelines and FLSA shall be paid at the employee’s regular hourly rate for hours actually worked in excess of 37.5 hours and up to 40 hours during the work week. Overtime compensation for eligible employees will be paid at time and one-half the employee's hourly rate for hours actually worked in excess of 40 hours per week. Leave and holiday time are not considered hours worked for purposes of overtime compensation. Work Performed on a Holiday: Prior approval is required before working on a holiday for all employees. For hourly/overtime eligible employees, all hours worked on a holiday will be paid at the holiday premium rate of straight time holiday pay in addition to seven and one-half (7.5) hours regular holiday pay. Hours that an employee works and for which the employee is compensated at the holiday premium rate will be considered hours worked for purposes of computing straight time overtime as well as 1.5 overtime eligibility. For salaried/overtime ineligible employees who work on a holiday, all hours worked on a holiday will be recorded as regular hours worked; however, the employee will be credited the equivalent in personal leave, up to 7.5 hours, if the entire holiday was spent working. If the employee works only part of the holiday, a leave slip must be submitted for the amount of time not worked. For example, if an employee whose schedule is 7.5 hours per day, works 4 hours on a holiday, a leave slip must be completed for 3.5 hours to account for the difference in added to their leave bank. Total Remuneration: The salary paid to an employee shall represent the total remuneration for services rendered by the employee. Except as otherwise provided in these guidelines or unless approved in 22 advance by the Executive Director, no employee shall receive pay from the Authority in addition to the salary authorized, regardless of whether the employee’s services were in the discharge of the employee’s ordinary duties or any additional duties the Authority assigned or were volunteered by the employee. Compensation includes payment for hours of paid leave and holidays, in accordance with these guidelines. New Employee’s Pay: Every position at the Authority has been assigned a pay range which allows Human Resources and the Executive Director to choose a starting pay that reflects the final candidate’s level of proficiency. An entry-level candidate should be at the beginning of the pay range; whereas an experienced candidate should start further along the pay range. The following factors will be used to determine the starting pay of a new employee: • Comparable pay with internal staff; • Individual’s knowledge, skills, abilities, experience, education, licenses, or certification that are relevant to the position and enhance an employee’s ability to excel in the position; • Recruiting difficulty (size of qualified applicant pool, length of recruitment, etc.; • Budget Promoted Employee’s Pay: A promoted employee's entrance salary shall take the following elements into consideration: • Comparable pay with internal staff; • Individual’s knowledge, skills, abilities, experience, education, licenses, or certification that are relevant to the position and enhance an employee’s ability to excel in the position; • Budget Promotions cannot change the employee’s status as an “at will” employee. Even though an employee may receive a promotion, or more than one promotion, all employees remain “at will” employees whose employment is subject to termination by the Authority at any time, with or without cause. Temporary Promotion Pay (Acting in a Higher Range): An employee who has accepted a delegation to perform essentially all of the duties of a specific position at a higher range for fifteen (15) or more consecutive calendar days shall be paid at the step of the higher range that would be appropriate in case of a promotion, retroactive to the first day of such duties. The employee’s pay will be adjusted back to the prior pay when the higher level acting assignment ends. Transferred Employee’s Pay: An employee transferred from one Authority position to another Authority position that is assigned to the same pay range may be appointed at the same pay held prior to transfer, and the employee's merit anniversary date shall remain unchanged. 23 Re-evaluated Position: An employee occupying a position which is reassigned to a lower pay range or reassigned to a higher pay range shall be treated as follows: • If an employee’s current salary is the same as any step in the new range, the employee shall enter the new range at the equivalent step. • If an employee’s current salary falls between steps, the employee will be placed at the higher step. • The merit anniversary date and the performance review cycle of an employee whose position is re-evaluated will remain unchanged. Demoted Employee’s Pay: An employee who is demoted involuntarily will enter the new pay range at no less than the step/increment occupied in the higher range. An employee who receives a voluntary transfer to a position assigned a lower pay range may be paid at the step/increment in the lower range position that best matches the employee’s current pay. Merit Increases: Merit increases shall be based upon the Authority’s evaluation of an employee's performance. A merit increase may be given to an employee who has received a "Mid-Acceptable" or better performance evaluation. Such increases are not mandatory even if acceptable performance is observed. Merit Anniversary Date (MAD): The merit anniversary date shall be the first day of the pay period following the completion of one year of service in the current position based on the employee’s date of hire. For part-time employees, the merit anniversary date moves by one month for each 172.5 hours of non-worked time. At the beginning of each year, the computation begins anew. For employees who are granted a promotion, their MAD shall be the first day of the pay period following one year in their new position. MAD and Performance Evaluations: The Authority has adopted an October 15th end date for the annual performance evaluation cycle. If granted a pay increase, the effective date of the increase will coincide with the employee’s MAD. Step Increases and Pay Increments: For positions in pay ranges 26 and below, each range is comprised of steps “A” to “F” and increments “J” to “Z”. Steps (B), (C), (D), (E), and (F) of the pay range shall be used at twelve (12) month intervals for merit increases where an employee has demonstrated satisfactory service of a progressively greater value to the Authority. Once at Step F, pay increment increases will be every two years (24 months) and every two years after that based upon the Authority’s evaluation of an employee's performance. Exceptions to step increases and pay increments are at the discretion of the Executive Director. The merit anniversary date does not change when a merit increase is withheld. If the employee's standard of performance reaches acceptable levels later in the year, the step or pay increment 24 increase may be granted effective the first day of the pay period following the acceptable performance level. When an employee's level of work performance becomes less than "Acceptable," an interim performance evaluation may be prepared. When such an evaluation is prepared, and the level of performance does not reach "Acceptable" within the subsequent thirty (30) calendar day period, one (1) salary step may be withdrawn on the first day of the pay period following completion of the thirty (30) calendar day period, provided the employee's salary is other than the entry step of the salary range. Continued issues of less than “Acceptable” performance may lead to disciplinary actions, up to and including termination. Merit increases do not change the employee’s status as an “at will” employee. Even though an employee may receive a merit increase or a series of merit increases, all employees remain “at will” employees whose employment is subject to termination by the Authority at any time, with or without cause. Cell Phone Reimbursement: Employees that require a cell phone, smart phone, or tablet will be eligible for an allowance as set out in set out in AAM 320.340. If issued an Authority owned device (cell phone, smart phone or tablet) no allowance will be provided. 25 Part III: SECTION 2: COMPENSATION 2. HOURS OF WORK Scheduled Hours of Work: Supervisors, with the prior approval of their Directors, shall establish the scheduled hours of work for employees under their supervision within the Authority’s parameters. Minimum Work Week: 37.5 hours of actual, authorized duty between Sunday midnight to the following Sunday at midnight (Monday 12:00 am through the following Sunday 11:59 pm), shall constitute the minimum work week for full-time employees, with recognition for authorized holidays and personal leave. Normal Work Week: The normal work week shall consist of five consecutive work days, Monday through Friday. Normal Work Day: The normal work day shall consist of seven and one-half (7.5) hours, with an unpaid lunch break. A lunch break of not less than thirty (30) minutes or more than one (1) hour will be required for hourly employees, approximately midway during each shift. Based on the needs of the Authority, the time scheduled for the lunch break may be modified from time to time. Overtime Hours: For employees paid on an hourly basis, overtime must be approved in advance by the employee’s supervisor. All hours of work performed by hourly/overtime eligible employees that fall between Monday 12:00 am through Sunday 11:59 pm each week, are to be reported on the employee’s timesheet. Working extended periods of time without a break becomes a health and safety issue. In most circumstances, overtime of more than four hours a day will not be approved. Timesheets: Timesheets are completed on a bi-weekly cycle (every two weeks), and must be fully completed, accurate, and physically or digitally signed by the employee and approved by the supervisor. For employees who do not work on Saturday or Sunday, timesheets must be completed and submitted to your supervisor for review by the end of the day on the Friday before the end of the pay cycle on Sunday. Supervisors must review and either reject or approve timesheets on or before the Monday following the end of the pay cycle, by 10:00 am or by the deadline determined by the Authority department responsible for overseeing the timesheet process. All leave slips and jury duty papers from the court must accompany the timesheet. Timesheet falsification is grounds for termination. Work Performed on a Holiday: Prior approval is required before working on a holiday for all employees. For hourly/overtime eligible employees, all hours worked on a holiday will be paid at the holiday premium rate of straight time holiday pay in addition to seven and one-half (7.5) hours regular holiday pay. Hours that an employee works and for which the employee is compensated at the holiday premium rate will be considered hours worked for purposes of computing straight time overtime as well as 1.5 overtime eligibility. 26 For salaried/overtime ineligible employees who work on a holiday, all hours worked on a holiday will be recorded as regular hours worked; however, the employee will be credited the equivalent in personal leave, up to 7.5 hours, if the entire holiday was spent working. Office Closures: Authority offices will be closed only at the direction of the Governor or the Governor’s designee or the Executive Director or the Executive Director’s designee. No other State agency can independently make this determination. The Commissioner of the Department of Transportation and Public Facilities (DOTPF) shall be responsible for communicating decisions on office closures to the rest of State government, the media, and the public. For employees with an approved telework agreement, please refer to the policy and agreement for details on how office closures and severe weather emergencies relate to work expectations. During an office closure or early release event due to a deemed emergency such as inclement weather or uninhabitable facilities, employees will report time worked using the 100 (regular hours) payroll code and then use 100W (office closure) payroll code to report the regular hours they were unable to work due to the office closure. For overtime eligible employees, hours recorded under 100W (office closure) payroll code do not count towards the overtime threshold. Since the Authority uses project codes in conjunction with payroll codes, please follow the table below regarding the project codes that are applicable to your position: Agency Project Code Project Name Stage Code AEA-Direct 300001 REG ADMIN – AEA Rural Energy Ops 28 – SOA Office Closure Authority Shared Services Agency Project Code Project Name Stage Code Shared-Undes 900000 Shared – 50/50 undesignated AIDEA/AEA 28 – SOA Office Closure An office closure/early release event does not alter leave requests for employees who were on scheduled leave for this time (i.e. out on vacation, due to illness, or general personal leave). In this case, leave slips for the absence should still be submitted and reported on the timesheet. Employees who are ineligible for leave (temporary) are only paid for hours actually worked and are not paid for an office closure/early release event. For additional details, please refer to the State of Alaska website on time reporting and office closures: http://doa.alaska.gov/dof/payroll/officeclosure.html Returning to Duty: Upon an office closure, all employees who are normally scheduled to work on-site are expected to be ready, willing, and able to return to work upon direction to do so; immediate supervisors should maintain a list of contact numbers. When the office of the Authority is closed, full-time 27 employees not on leave initiated prior to the closure, will be compensated for scheduled work time. Leave slips will not be adjusted for employees already on leave. Flex Time: Flex time may be authorized to allow for the execution of duties outside an employee's normal work day. Flex time will be considered on a case-by-case basis and must be approved in advance by the employee's immediate supervisor. Telework: After a minimum of six (6) months of employment with the Authority, an employee may be eligible to work a portion of their duties remotely. Refer to the full telework policy and agreement requirements available in Appendix A. Telework requests will be considered on a case-by-case basis and must be approved in advance by the employee's immediate supervisor/the Director and the Executive Director. Other Employment: No employee shall engage in any outside employment or volunteer work, either public, private, or self-employment, which conflicts with the Authority’s interest or that adversely affects the employee's availability and usefulness as an employee of the Authority. An employee may use leave time to engage in outside employment if approved in advance by the employee's supervisor. Any employee engaging in outside employment shall notify the Executive Director, or the Executive Director’s designee. Notification will occur in writing by completing the required ethics disclosure form indicating the nature and extent of such employment prior to commencing such work or immediately upon hire. The ethics disclosure form will be updated and submitted annually. The Executive Director or the Executive Director’s designee shall make a determination as to whether or not a conflict exists and shall promptly notify the employee of the decision. Volunteer activities, including service on boards, must also be disclosed. For more information, see AS 39.52, Alaska Executive Branch Ethics Act. 28 Part III: Section 2: COMPENSATION 3. TRAVEL As an employee of the Authority, you may need to travel in connection with your position. The Authority follows certain internal processes regarding approving travel; however, the travel policies of the State of Alaska are adopted by the Commissioner of the Department of Administration in accordance with AS 39.20.160. The travel policy addresses how reimbursement for actual and necessary expenses are handled and the limits imposed. To review the State’s Travel Policy, go to Appendix D.14 in this manual. For information on the Authority’s internal processes, please refer to Appendix D.14.1 or reach out to your designated travel coordinator or the Executive Assistant for guidance. 29 Part III: Section 3 EMPLOYMENT LAWS, ADMINISTRATIVE ORDERS, AND RELATED POLICIES This section covers: • Alcohol and Drug Free Workplace • Americans with Disabilities Act • Business Use Acceptable Use Policy (Personal Use of Office Technology Policy) o AI Guidance Summary • Discrimination and Diversity in the Workplace • Effects of Violation of Federal or State Law • Employment of Immediate Family • Equal Employment Opportunity • Information Technology, Public Records and Record Retention • Prohibitions and Penalties • Return to Work After Retirement • Separations, Suspensions and Demotions • Sexual Harassment and other Discriminatory Harassment • Travel Policy • Whistleblower Act 30 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 1. ALCOHOL AND DRUG-FREE WORKPLACE It is the Authority’s policy to provide an alcohol and drug-free workplace. Any employee who unlawfully manufactures, distributes, uses, or dispenses a controlled substance or alcohol at the workplace or during working hours is subject to discipline including immediate dismissal. Any employee under the influence of illegal drugs or alcohol while on Authority premises or while on Authority business is subject to disciplinary action up to and including termination. An employee who has been convicted of an offense involving alcohol or a controlled substance must report that conviction to the Authority within two working days. An employee who fails to make this report is subject to disciplinary action up to and including termination. Upon hire, each employee acknowledged that a failure to adhere to the provisions of the SOA Alcohol and Drug Free Workplace policy may result in disciplinary action, up to and including, termination from employment. For further details on the SOA policy, please refer to Appendix D.1 31 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 2. AMERICAN WITH DISABILITIES ACT Below is an introduction to Administrative Order No. 129. You are encouraged to read the entire Order located in Appendix D.2. Administrative Order No. 129 In 1990 the President of the United States signed into law the Americans with Disabilities Act (42 U.S.C. Sec. 12101 et seq.) mandating the elimination of discrimination against individuals with disabilities and requiring state and local governments, among other affected entities, to begin complying with the Act in 1992. It has also been the policy of the State of Alaska, as expressed in the Alaska Human Rights Act (AS 18.80) and reflected in a number of other statutes, including • AS 11.76.130 (making it a crime to interfere with persons with disabilities) • AS 09.20.010 (permitting disabled people to serve as jurors) • AS 35.10.015 (regarding accessibility of public buildings), • AS 36.30.040(b)(16) (requiring procurement regulations to prohibit discrimination), • AS 39.25.150(21) (requiring the personnel rules to grant employment preference in state service to severely handicapped persons), • AS 44.21.500 -.509 (establishing a mechanism for dealing with complaints of employment discrimination in state government), and • AS 47.80 (governing programs for people with disabilities) to eliminate and prevent discrimination because of physical or mental disability in employment, in credit and financing practices, in places of public accommodation, in the sale, lease, or rental of real property, and in government policies, practices, and services. In addition AS 18.80.200(b) makes it the policy of the state to encourage and enable physically and mentally disabled persons to participate fully in the social and economic life of the state and to engage in remunerative employment. For the full details on this Administrative Order, please refer to Appendix D.2 32 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 3. BUSINESS USE-ACCEPTABLE USE POLICIES Below is a summary of the Business Use/Acceptable use policy located in Appendix D.3. You are encouraged to read the entire policy to ensure a full understanding of the policy. The purpose of this policy is to outline acceptable use and clarify the protection of State of Alaska (SOA) information assets and technology resources. Unacceptable use exposes SOA to unwarranted risk (e.g., virus attacks, compromised network systems, services and legal issues associated with data tampering, data theft and privacy). This policy applies to employees, partners, contractors, consultants, temporaries, other SOA/Authority workers and workers affiliated with third parties or anyone having access to SOA/Authority information that is not directly accessible to the general public from a non- SOA/Authority network (e.g., Internet). Employees, partners, etc. must use SOA/Authority networks and associated systems for authorized business purposes only. They must not access information, programs, or systems when such access is not required for an authorized business purpose. Furthermore, employees, etc. must not use personal computing equipment (e.g., laptops, PC, workstations, servers, external hard drive, USB devices, smartphone or other networking equipment) within the SOA wide area network (WAN) or local area networks (LANs) for SOA/Authority or personal business. [For clarification, devices that store or process Authority data shall be provided by the Authority’s IT department, unless it is a smartphone that has been approved for incidental use by the IT department and the supervisor. Personal PC accessories may be used if approved by the Authority IT Department.] Authorized users are responsible for the security of their passwords and accounts. System level passwords should be changed regularly. Employees must use extreme caution when opening files that have been sent to or received either electronically or on removable media Unacceptable Use: Under no circumstances are employees of the SOA/Authority authorized to engage in any activity that is illegal or in violation of local, State, federal or international law, or Alaska Administrative Code. Prohibited email, communication activities, system and network activities, as well as prohibited system and network activities are listed in the full policy located in Appendix D.3 33 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 3.1 Artificial Intelligence Guidance Summary As a State of Alaska (SOA) employee, the use of Artificial Intelligence (AI) may be allowable provided you adhere to SOA Information Security Policies (ISPs) and receive authorization from the Authority. Although current ISPs do not directly address the general term of Artificial Intelligence, many of the security principals in the current ISPs hold true when applied generally to AI. Until policies are developed to specifically address the use of Artificial Intelligence to accomplish or augment work performed on behalf of the Authority or the State of Alaska, this overview and the AI Guidance located in Appendix D.3.1 will serve as the starting point on whether incorporating AI into your position is appropriate. When used appropriately, AI technologies offer powerful tools to augment existing operations by enhancing the capabilities of our workforce through innovation and automation. When used inappropriately, these same powerful tools can reduce privacy, accuracy of information, and legal compliance. For example, “Publicly available AI platforms such as Chat-GPT can be helpful for content creation and state business based on public information but are not suitable for confidential or compliance regulated data. Personnel shall exercise discretion and not share or expose confidential, or compliance regulated data on these unregulated platforms.” When appropriate, the Authority may pre-approve certain Generative AI Platforms for the employees to use. If uncertain if pre-approval has been granted, please reach out to your direct supervisor or the Authority’s Information Technology Department for clarification. Regardless if a broad pre-approval or specific approval has been granted, by using Generative AI or any SOA IT resource you continue to agree to use it responsibly and in compliance with SOA ISPs. You will not use the AI system to create or distribute any content that is defamatory, discriminatory, malicious, deceptive, or that infringes upon the rights of others. Any misuse of an SOA IT system that may or may not include AI may result in the termination of access. The state reserves the right to monitor and moderate the usage of the AI system to ensure compliance with current ISPs. Adaptive AI Adaptive AI remembers the data entered and the response to that data. Because Adaptive AI not only consumes data, but has the potential to retain it, it is very important that data only be entered that meets SOA compliance requirements for security and retention within the acceptable use policy, SOA ISPs, department policies, federal and state statutes, and regulations. There is an inherent risk that inputs may influence the outcomes of Adaptive AI systems. Automated responses with no human oversight may result in unintended outcomes normally not present with such oversight is present. A current risk assessment and management plan for any Adaptive system that may pose a risk 34 for use or interfaces with confidential data or is a critical application is required. Additionally, AI models incorporated into SOA/Authority systems should be tested and reviewed for quality control, ensuring proper validation of any work product or automated processes. Until otherwise approved, the general use of AI platforms is restricted to platforms or systems verified as hosted within the United States. Low risk exceptions requires coordination through the State Security Office. Each employee is encourage to read the entire AI Guidance located in Appendix D.3.1 to ensure a better understanding of whether the use of AI is appropriate for your position. 35 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 4. DISCRIMINATION and DIVERSITY IN THE WORKPLACE The Authority prohibits discrimination in compliance with Title VI and complies with the State of Alaska’s Executive Branch policies prohibiting discrimination, harassment, and sexual harassment and other discriminatory practices (Administrative Order No. 195). Copies of the policies are posted on site. For more details, please refer to Appendix D.4. Below is a summary of Administrative Order No. 195, Diversity in the Workplace. Alaska is one of the most ethnically diverse states in the nation. As Alaskans, we cherish our freedoms and civil rights. As a nation and a state dedicated to democracy and civil liberties, we, as individuals, employers, employees, and communities must do all we can to eliminate discrimination and intolerance from our society and celebrate our diversity. While tolerance and respect for all peoples inherently is the responsibility of each individual, those in leadership and institutional roles should lead this effort and teach by example. As an employee, public servant, and institution, the State of Alaska can take steps to improve our workplaces and customer service to reflect the diversity of our state and our respect for all peoples. It is the continued goal of the executive branch to eliminate discrimination and harassment in the contexts of the state as an employer and service provider; to assure timely response to discrimination and harassment complaints concerning state personnel or services; to prohibit and prevent discriminatory behavior in the state workplace based on race, sex, color, religion, physical or mental disability, sexual orientation, or economic status, to assure that all Alaskans have the opportunity to compete fairly for state jobs; and to assure that state personnel serve all Alaskans with respect. To review the full Administrative Order, please refer to Appendix D.4. 36 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 5. EFFECTS OF VIOLATIONS OF FEDERAL OR STATE LAW 2 AAC 07.416. Effects of violations of federal or state law. (a) An employee who receives a citation requiring a court appearance, or who is arrested or convicted for a misdemeanor or felony, must report the citation, arrest, or conviction to the employee's division director [the Executive Director] by the end of the following working day. An employee who fails to report a citation, arrest or conviction may be subject to disciplinary action, up to and including dismissal. (b) An employee who violates a federal or state law or regulation may be subject to disciplinary action up to and including dismissal if there is a clear nexus between the offense and the employee's duties or if the violation impairs the employee's ability to perform the duties of the employee's position. 37 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 6. EMPLOYMENT OF IMMEDIATE FAMILY General: Applications for employment from immediate family will be considered with other qualified applications when vacancies occur. Some restrictions in job placement will apply to help prevent problems of supervision, safety, security or morale. Policy: 1. Immediate family will not be hired into a position where the person will directly or indirectly supervise or be supervised by another family member. 2. Immediate family will not be placed in positions where the person will have access to sensitive or confidential information regarding other immediate family. 3. If employees become related after employment and a conflict such as described in paragraph 1 or 2 exists, or, if a reorganization creates such a conflict, reasonable time will be provided to resolve the matter voluntarily or by transfer of one of the employees or some other method. 4. The Authority will abide by the restrictions set out in AAM 100.050 and 2 AAC 07.950. 38 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 7. EQUAL EMPLOYMENT OPPORTUNITY: ADMINISTRATIVE ORDER NO. 75 It is the policy of the Executive Branch of Alaska State Government that all employees and applicants for employment shall be afforded equal opportunity in all aspects of personnel management. To insure equal opportunity there shall be no unlawful discriminatory treatment concerning any individual or group because of race, religion, color, or national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. By virtue of the authority vested in me as Governor, I hereby direct that this order be implemented in accordance with the attached Procedures for Implementing Administrative Order No. 75. This Order takes effect on April 8, 1983. DATED at Juneau, Alaska, this 7th day of April, 1983.S/S Bill Sheffield Bill Sheffield Governor of the State of Alaska To view the entire policy go to: https://gov.alaska.gov/admin-orders/administrative-order-no- 075/ 39 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 8. INFORMATION TECHNOLOGY, PUBLIC RECORDS AND RECORD RETENTION General: As a result of your employment with the Authority, the work you perform and the documents, reports, etc. that you produce may qualify as a public record and/or may require retention for either public review or for general compliance purposes. To ensure an understanding of the requirements regarding public records, record retention, and naming of electronic files and folders, Appendix D includes the policies adopted by the State of Alaska. Policy: As employees of the State of Alaska, the following policies apply to Authority employees: • Email Retention Policy (Appendix D.6) • How to name Electronic files and folders (Appendix D.7) • Record Retention and Disposition schedule (Appendix D.8) • Retention of Public Records (Appendix D.9) The Authority may read an employee’s email, listen to voice mail, review browser history and otherwise routinely monitor usage of the Authority’s office technologies. No employee shall be entitled to any personal privacy rights in the use of the Authority’s office technologies. Without consulting with the employee or obtaining the employee’s consent, the Authority may give law enforcement officers, auditors, investigators, or others the right to access any information or data that is part of the Authority’s office technologies. 40 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 9. PROHIBITIONS AND PENALTIES Code of Ethics: The Alaska Executive Branch Ethics Act (AS 39.52.010 – 39.52.965) applies to all current and former executive branch public employees and members of statutorily created boards and commissions. Accordingly, this Act and the regulations adopted under it apply to all Authority employees. The Act does not discourage independent pursuits, as long as those activities are arranged so that employees do not benefit financially or personally from their actions as public employees. Employees are required to carefully review the Act and the regulations promulgated under it. If an employee is involved in outside employment or activities that may appear to be in conflict with the public trust, contact the Department of Law, 1031 West 4th Avenue, Suite 200, Anchorage, AK 99501-1994, 907-269-5100 for more information. (The general headings covered in the Code of Ethics include misuse of official position; improper gifts; improper use or disclosure of information; improper influence in state grants, contracts, leases or loans; improper representation; outside employment restricted; and, restrictions on employment after leaving state service.) Information on the Act is available in Appendix D.13 and on the Alaska Department of Law’s website, https://www.law.alaska.gov/doclibrary/ethics.html. The website includes a video, self- guided training, disclosure forms, and guidance on particular issues. Outside Employment: An employee must complete, submit, and have an approved Ethics Disclosure Form available from the Human Resources Department prior to accepting or engaging in paid or unpaid private employment or rendering services for private interests. Approval for outside employment and services is at the discretion of the Executive Director or the Executive Director's designee. Disclosure of outside employment must be re-submitted annually. Securing of Positions: No person may give, render, pay for, offer, solicit, or accept any money, service, gift or other object of value in connection with any Authority employment decision or condition. Party Assessments: No person may require any assessment, subscription, contribution, or service for any political party from any Authority employee. Party Endorsement: State employees are prohibited from using state funds, equipment, facilities, or other government resources for partisan political purposes, including activities intended to benefit or harm a candidate, political party, or group. They also may not display or distribute partisan political materials while on state time or coerce subordinates to engage in activities for personal or political gain. Post Authority Employment: Any employee who leaves Authority service may not, for two years after leaving, represent, advise, or assist a person or firm for compensation regarding a matter that was under consideration 41 by the Authority and in which the employee participated personally and substantially through the exercise of the employee’s work duties. See AS 39.52.180 for additional information on restrictions after leaving Authority employment. Nomination and Candidacy: Any employee who seeks nomination or becomes a candidate for any statewide elective political office (other than a non-partisan office in a local governmental unit) shall immediately resign the employee's position. Misrepresentation: No employee shall knowingly make false statements, certificate, mark, rating or report with regard to any test, certification, employment decision, or other official Authority action. Rights of Others: An employee shall not defeat, deceive, or obstruct any other Authority employee or other individual’s right to examination, eligibility, certification, appointment, or promotion under these guidelines. Investments: An employee shall not own, or invest, or hold any investment directly or indirectly in a financial, business, commercial or private entity or transaction in which the employee’s duties with the Authority may include taking or withholding official action related to the business, entity or transactions. Use of Information: No employee shall use information peculiarly within the employee’s knowledge or purview concerning the property, government or affairs of the Authority to advance the financial or other private interest of the individual or others. Use of Office Technologies: The Authority provides various office technologies, including but not limited to voice mail, email, and internet access, to enable employees to further the Authority’s interest. Personal use of office technology shall be kept to a minimum. All employees must adhere to the State of Alaska’s Business Use-Acceptable Use Policies (ISP-172). The full policy is located in Appendix D.3. The Authority may restrict access to certain internet sites and may change the sites to which access is permitted. Gifts and Favors: No employee shall accept any form of salary, payment, gift, loan, or any gratuity for the performance of the employee’s duties, other than the salary paid by the Authority. The cumulative value of gifts (whether in the form of money, service, loan, travel, entertainment, hospitality, employment, promise or any other form) an employee may accept in any calendar year shall not exceed $500 from any individual, organization or combination of individuals and organizations representing identical or similar interests, upon whom the employee may take or withhold action. Employees may not accept a gift with a value in excess of $150 from a giver, upon whom the employee may take or withhold action, if the gift benefits the employee’s personal or financial interests and is given under circumstances in which it could reasonably be inferred that the gift is intended to influence the performance of official duties, actions or judgment. All gifts over 42 $150 must be disclosed to the Executive Director or designee on an Ethics Disclosure Form within 30 days after receipt. Purchases of Commodities and Services: No employee may be a party to the purchase of or influence the purchase of goods or services by the Authority from any person, company or business in which they have a substantial financial interest unless approved in advance by the Executive Director. Such approval shall be in written form and be open to inspection by the public. Legal Counsel: No employee may retain private legal counsel at the expense of the Authority for advice or defense in any matters regarding the employee’s job performance or exercise of official duties without the prior approval of the Executive Director and the Attorney General. 43 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 10. RETURN TO WORK AFTER RETIREMENT An employee who separates employment and is receiving Public Employees Retirement System (PERS) benefits is require to fulfill the requirements set forth in the PERS statues and regulations before being allowed to return to work for a PERS qualified employer. Below are the basic requirements for returning retirees; for specifics related to your situation, please visit the Alaska Division of Retirement and Benefits: Return to work after retirement means returning to a position covered by the Public Employees Retirement System (PERS). The PERS plan requires cessation of pension benefits during re-employment in a position covered by the same retirement system (AS 39.35.152; AS 14.25.043). Federal law similarly restricts re- employment into positions which are not covered by the retirement systems, such as temporary, non-permanent positions or independent contractors if the positions are with the same employer from which the person retired. Therefore, to protect the retirement system and members, before a retiree can return to work, the person must meet the following requirements: • Demonstrate a “bona fide separation from service”. For retirees under age 62, a minimum of six (6) months is requires. For retirees 62 and older, a minimum of 60 days break in service is required; • Certify that no pre-arrangement to return to work occurred prior to retirement; and • Agree to repay the retirement system for all retirement benefits received if a pre- arrangement for reemployment is discovered. To have a bona fide separation from service, a member cannot retire from service with his/her employer, but also have a prearranged agreement to be rehired by the same employer. Under Federal law, a “bona fide separation from service” includes the prohibition of a returning employee in an independent contractor’s role, consultant’s role, leased employee role, etc. To review the State policy on Retiree Return to Work, please see Appendix D10. 44 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 11. SEPARATIONS, SUSPENSION AND DEMOTION The Authority adheres to the implied covenant of good faith and fair dealing inherent to employment relationships in Alaska. Authority employees may be separated from employment due to retirement, resignation, layoff, or dismissal. Retirement: Employees who are eligible for retirement in accordance with applicable statutes and regulations of the Public Employees’ Retirement System. Resignation: Employees are normally required to give the Authority written notice at least 14 calendar days prior to the effective date of their resignation. Resignations may be rescinded with the approval of the Executive Director. Additionally, the Authority will consider an employee to have resigned if the employee does either of the following: 1. Does not return from an approved leave of absence on the date specified by the Authority; or 2. Fails to report to work or fails to call in for three or more consecutive work days. Layoff: The Authority may lay off an employee if positions are eliminated, if there is a shortage of work or funds, or for other reasons outside the employee's control that do not reflect discredit on the services of the employee. Layoff decisions are not based on seniority but rather on the needs of the Authority. The Executive Director will attempt to provide at least a 10 working day written notice of layoff to affected employees. A thirty (30) calendar day notice may be provided at the discretion of the Executive Director. Layoff notices will be in writing and state the reason for layoff. This is a separation from employment, and laid off employees are not granted any recall or bumping rights. Dismissal: An employee may be dismissed at any time with the approval of the Human Resources Director and the Executive Director. When appropriate, the Human Resources Director and Executive Director may approve a suspension and/or a demotion in lieu of other separation options. Suspension: The Authority, with the approval of the Human Resources Director and the Executive Director, may suspend any employee by putting the employee on leave without pay status. The employee will be notified prior to suspension. Leave accrual will be proportionately reduced while an employee is suspended without pay. Demotion: An employee may be demoted because of an inability to satisfactorily perform the employee’s work or for any other job-related reason, with the approval of the Executive Director and the Human Resources Director. 45 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 12. SEXUAL HARASSMENT AND OTHER DISCRIMINATORY HARASSMENT The Authority complies with Administrative Order No. 81 Below is the introduction to this policy. For the full details on this policy, refer to Appendix D.12. The Executive Branch of the State of Alaska, as an employer, will not tolerate, condone or permit any kind of harassment of employees or applicants for employment on the basis of their sex, color, race, religion, national origin, age, handicap, marital status, changes in marital status, pregnancy or parenthood. Such harassment is in direct violation of Federal and State law and is inconsistent with the State’s policy on equal employment opportunity. Persons who knowingly engage in or instigate such harassment will be subject to disciplinary actions which may lead to suspension and discharge. Additionally, managers and supervisors who knowingly permit harassment activity to occur without further action will be subject to disciplinary action. Where such prohibited activity is perpetrated by a non-employee, the State will take available and appropriate disciplinary action which may include, by way of example, loss of contract. 46 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 13. TRAVEL POLICY SUMMARY (AAM 60) Below are key elements from the State of Alaska Travel Policy. The full policy is located in Appendix D.14. Additionally, AEA’s internal travel procedures are located in Appendix D.14.1. All travel shall be approved in advance. Additionally, preapproval for a rental car, travel advance, and/or reimbursement of actual lodging costs require approval. Following completion of travel, actual travel expenses must be documented using the form required by the State/Authority. Contact the designated travel coordinator for the appropriate form. Duty Station: The duty station of a traveler includes the city, town, or village within 50 miles of where the traveler spends the major portion of their working time, or the place to which the traveler returns to duty on completion of special assignments. On a case-by-case basis, the Executive Director/Commissioner or designee may identify a radius or commuting area that is broader than 50 miles within which per diem will not be allowed for travel within one calendar day. A traveler that performs official state business duties within their defined duty station is not eligible for privately owned vehicle mileage reimbursement. The Executive Director/ Commissioner or designee may approve exceptions on a case-by-case basis based on documented circumstances or unique business requirements. See AAM 60.140 for details on taxability of such an allowance. Lodging Allowance: Lodging allowance is the portion of per diem that covers lodging, generally the actual cost of the traveler’s hotel room. Meals and Incidental Expense (M&IE): M&IE allowance is the portion of per diem that reimburses travelers for the cost of meals and incidental expenses including discretionary tips. Non-Commercial Lodging Facility: A non-commercial lodging facility may include, but is not limited to, a public facility in a rural setting such as a community building or school, motor home, or private home. Such facilities will generally lack amenities such as shower, kitchen, and bedroom/sleeping quarters. Per Diem: A per diem allowance is a daily payment instead of reimbursement for actual lodging and meal expenses. It is separate from transportation and other miscellaneous expenses. Residence: The residence of a traveler is the location, or within 50 miles thereof, where the traveler maintains the primary dwelling. If a traveler maintains multiple residences, the residence that bears the most logical relationship to the traveler's duty station may be deemed as the traveler's primary residence. Mileage incurred for commuting between an employee’s residence and normal work location is not reimbursable. 47 Ticket Class: Coach ticket class on a regularly scheduled airplane, ship, or train that is the most direct route to accomplish the business purpose of the travel. Travel Expenses: • Transportation expenses consist of commercial carrier fares, vehicle mileage allowances, taxi fares, bus fares, and other essential transportation expenses while on official state business. • The Per Diem consists of two parts, meals and incidental expenses, and lodging. • Other expenses consist of charges for business telephone calls, internet, parking fees, Emergency purchases of supplies, and other charges necessary to conduct official business. Travel Status: Travelers shall be considered in travel status from the time an authorized trip begins until it ends. An "authorized trip" is a trip that has been approved in accordance with internal Authority procedures and/or the SOA administrative manual guidelines and where a traveler travels outside the boundaries of the duty station. An authorized trip begins when a traveler is leaving the duty station and: • A Traveler leaves the normal work location during normal work hours; or • A Traveler leaves the residence outside normal work hours. An authorized trip ends when: • A traveler returns to the normal work location during normal work hours; or • A traveler returns to the residence if the trip ends outside normal work hours; or • A traveler accepts voluntary denied boarding compensation. Refer to AAM 60.080 Interruption or Deviation of Travel for Traveler Convenience. A traveler is not in travel status for local travel or day trips. 48 Part III: Section 3: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES 14. WHISTLEBLOWER ACT Authority employees who wish to report certain matters of public concern involving the Authority, or any other State agency (including a violation of a State, federal, or municipal law, regulation, or ordinance; a danger to public health or safety; gross mismanagement, a substantial waste of funds, or a clear abuse of authority) may be afforded protection under the Alaska Whistleblower Act. The provisions of this Act are found at AS 39.90.100 – 39.90.150. In general, the Act requires an employee to first report the matter in writing to the employee's supervisor, unless the employee's supervisor is the source of the concern; in that case, the matter should be reported to the Human Resources Director. 49 Part III: Section 4: OFFICE AND EMPLOYEE CONDUCT This section covers: • Complaint Procedure • Confidentiality and Employment Records • Dress Code • Delegation of Authority • Expenses: Food, Entertainment, and Gifts • External Communications • Meeting Rooms and Recording Meetings • Office Conduct • Public Records Request Procedure for AEA • Social Media • Smoking • Vehicle Parking, Vehicle Usage and Seat Belts • Visitors in the Workplace 50 Part III: Section 4: OFFICE AND EMPLOYEE CONDUCT 1. COMPLAINT PROCEDURE Any employee who has a complaint over which the Authority may lawfully exercise discretion should attempt to communicate with the employee’s supervisor or co-workers to resolve the problem or issue. If this is not possible due to the nature of the complaint, then the employee should speak with the Human Resources Director. There shall be no retaliation for good faith complaints made by an employee. 51 Part III: Section 4: OFFICE AND EMPLOYEE CONDUCT 2. CONFIDENTIALITY AND EMPLOYMENT RECORDS Confidentiality As an employee of the Authority, you understand that, in performing your duties, you may have access to confidential information about other Authority employees or entities that do business with us. As a result of such access, you are instructed to not discuss, disclose, or cause the disclosure of any such confidential information to anyone who does not have a business need and a legal right to know the information. Furthermore, you are required to handle and store confidential information with due care. Failure to do so may result in disciplinary action, including discharge from the Authority’s employment, and, in certain circumstances, face criminal penalties for revealing confidential information to someone who does not have both a business need and a legal right to know the information, or for misusing confidential information. I understand it is my obligation to seek guidance from my supervisor if I do not know whether a person requesting confidential information is entitled to receive the information. For a complete copy of the Confidentiality policy signed upon hire, please refer to Appendix C. Employment Records Changes in Status: All changes of legal name, address and/or telephone number must be reported immediately to the Human Resources Department and DOPLR. Personnel Files: Personnel files are the property of the Authority and contain records approved by the Authority. Access to personnel files is restricted to the employee, the employee’s designated legal representative, the Executive Director, Human Resources and others on a strict “need to know” basis. It is the business practice of the Authority to keep personnel files confidential, but the Authority reserves the right to release information upon a lawful request. Official personnel files are maintained by the State of Alaska Employee Call Center and employees are encouraged to reach out to them for copies of their files. Information Request and Employment References: Requests for information from employee files received from outside the Authority, including requests for references of former employees, will be directed to the State of Alaska Employee Call Center. Supervisors and other employees are prohibited from providing personal or employment references for ex-employees or current employees. 1. Telephone Inquiries. Information will be verified by the Human Resources Department via telephone, but will be limited to the following: • date of hire and date of separation • most recent job title • salary 52 2. References with written approval. With written approval of the employee or ex-employee, job chronology and performance information may be released in writing only. Please contact the State of Alaska Employee Call Center Release and Examination of Personnel Records: Authority personnel records are confidential and generally are not open to public inspection. The Authority reserves the right to release information upon a lawful request. Per Alaska Statute 39.25.080 and 2 AAC 07.910, the following information is generally available for public inspection during office hours: 1. The names and position titles of all Authority employees; 2. Employment applications of Authority employees; 3. The position held by an Authority employee; 4. Prior positions held by an Authority employee; 5. The dates of appointment and separation of an Authority employee; and 6. The compensation authorized for an Authority employee. Additionally, if the public’s interest in accessing records outweighs any individual privacy interest, then records otherwise determined to be confidential may be released under the advice of the department of law. An Authority employee has the right to examine their own personnel file and may designate legal representatives to examine those files. 53 Part III: Section 4: OFFICE AND EMPLOYEE CONDUCT 3. DRESS CODE Employees contribute to the corporate culture and reputation of the Authority in the way they present themselves. A professional appearance is essential to a favorable impression with our customers, visitors, and the public. It is impossible and undesirable to define an absolute code for dress. However, some basic essentials include attire that is clean, in good taste, good repair, and appropriate for a business office setting. An employee unsure of what is appropriate should check with their supervisor or the Human Resources department. Employees who do not meet a professional standard may be sent home to change and will not be paid for the time off to do so. Casual dress is the standard for the Authority. Casual means a standard just below business casual that is appropriate to conduct Authority business in a professional manner. Shorts, tank tops, t-shirts, halter-tops, flip-flops, sweats or yoga pants, shirts without a collar on men, ripped jeans, or any extreme in dress or accessory are examples of inappropriate choices. Dress sweaters without collars are acceptable for both women and men. Casual dress will be suspended in lieu of business casual attire due to meetings with external parties and at Board meetings. 54 Part III: Section 4: OFFICE AND EMPLOYEE CONDUCT 4. DELEGATION OF AUTHORITY Approval authority delegates to an employee permission to approve transactions for execution. It often involves committing funds or other resources or approving expenditures for a specific project or program. It also includes signing documents such as Procurement Requests (PR), Notices to Proceed (NTP), contracts and amendments, or approving invoices. Employees with approval authority must have a signed Delegation of Signing Authority Form on file with the Finance Department. It is the responsibility of an employee with approval authority to: • Ensure the action is within the power and limitation of the delegation. • Ensure the employee has followed all relevant procurement and obligation policies and procedures. • Ensure the expenditure is necessary to carry out the purposes of AEA or its programs as defined by the terms and conditions of the appropriation or other funding source. • Ensure funds have been made available through budgetary authorizations and the source of funds is appropriate for the obligation being created. • Confirm that equipment or services have been received per the contract, invoice, or other agreement. • Communicate with the employee’s supervisor as directed regarding status of the project or program. • Invoice Approval authority shall be the same dollar amount as an individual's Purchase Request authority. Invoices greater than this amount must be approved by the appropriate Director. Invoice Approval authority of the Director is limited to their Purchase Request authority. Invoices greater than this amount must be approved by the Executive Director. Delegation of Procurement Authority Procurement authority means that permission is delegated to an employee to solicit and create certain obligations such as contracts, contract amendments, NTPs, credit card procurements, or other financial obligation transactions on behalf of the Authority. Employees with this authority must be certified by the Department of Administration (DOA), the Department of Transportation and Public Facilities (DOT&PF), or be given that responsibility in statute, or the Authority bylaws, or by written delegation. Written evidence of the delegation of procurement authority and current training certifications in accordance with DOA or DOT&PF requirements must be on file in the Finance Department. It is the responsibility of an employee with procurement authority to: • Ensure that the action is within the power and limitation of the delegation; • Ensure contracts, subcontracts, NTPs and DO's, are issued in accordance with applicable state statutes, Authority regulations, policies and procedures; • Ensure that all necessary approvals have been obtained; and • Ensure that funds are available and are authorized for the procurement. 55 Violations of Procurement Regulations and Delegations of Authority Employee actions related to procurement violations will be handled in accordance with the procedures in this section. 1. Reporting Suspected Violations: If an individual suspects an Authority employee may have violated the Authority’s procurement regulations, 3 AAC 100, or the employee’s Delegation of Authority, the individual should report the situation to the supervisor, the Chief Procurement Officer, or the Human Resources Director. 2. Investigations: Upon receipt of the initial report, the matter will be investigated by the Chief Procurement Officer (CPO), or designee, unless the suspected violation involves the CPO or other procurement staff. In the alternative, the Human Resources Director, after consultation with the Attorney General, may investigate the matter if the Human Resources Director believes it may be in the best interest of the Authority to appoint an individual other than the CPO or the CPO’s designee to conduct the investigation. The investigator will first contact the individual reporting the violation to understand the nature of the violation and will review available documents pertaining to the alleged violation to determine if the violation was inadvertent or intentional. An inadvertent violation could be the result of administrative error, lack of knowledge, or simple carelessness. In these cases, the investigator may recommend to management changes in procedures, employee training, or disciplinary action. If a violation is deemed intentional, the employee will be subject to disciplinary actions, up to and including termination of employment. 56 Part III: Section 4: OFFICE AND EMPLOYEE CONDUCT 5. EXPENSES: FOOD, ENTERTAINMENT, GIFTS POLICY The Executive Director will approve all purchases and payments related to food, entertainment and gifts. An employee, other than the Executive Director or Board Chairman, must receive prior approval before making such purchases. For the full details on this policy, please refer to Appendix F.1. 57 Part III: Section 4: OFFICE AND EMPLOYEE CONDUCT 6. EXTERNAL COMMUNICATIONS Purpose The objective of this procedure is to ensure that communications across the Authority is well coordinated, effectively managed, and responsive to the diverse information needs of the public. Scope This procedure applies to all Authority employees. In general, management needs to know what is being said/provided to the press, elected public officials (including Legislators, Offices of the Governor and Lieutenant Governor), or their staff before it is said/provided. Individual employees are not permitted to speak on behalf of the Authority without prior authorization. Authorized Spokespersons Only an authorized spokesperson designated by the Executive Director may engage in discussions about the Authority with Third Parties. All other employees should refer inquiries (phone calls, emails, voicemails, in-person requests, etc.) to one of the designated spokespersons as instructed below. Procedures For the purpose of these procedures, the term “Communication Director” will be used to reference the designated spokesperson. If you are unable to determine who the Communication Director is based off the organizational chart, please seek clarification from the Executive Director. The guidelines to effectively handle external requests or inquiries from the press, elected public officials (including Legislators, Offices of the Governor and Lieutenant Governor), or their staff are as follows: 1. Do not respond, instead alert the Communication Director. 2. If the Communication Director is not available, please notify the Executive Director. 3. If neither of these contacts are readily available, transfer the caller to the Communication Director so the caller can leave a message. If your interactions are in person, please notify the person(s) you would be happy to connect them to the Communication Director who would be able to assist them. 4. If the requests comes in the form of an email or some other form of written communication, forward the request to the Communication Director/Executive Director for recording and responding to the request for information. We have adopted these procedures for consistency, policy purposes, and to avoid the confusion that can result from multiple people responding to a request or inquiry. If you inadvertently provided a response, let the Communication Director know what occurred. Describe anything that may need a follow-up or other items of note. Please summarize the response/conversation by email or a brief phone message to the Communication Director and your supervisor. If you were at a conference and had an opportunity to discuss agency issues with elected officials or their staff, please let us know of any topics or inquiries that may result in additional follow-up. 58 Are there exceptions? Yes, occasionally there are exceptions. If the press, Governor’s Office, Congressional Delegation, Legislator or their staff is looking for general information, for example, information that is readily available on our website, you may provide that information. If in doubt, please follow the procedures as outlined above. Unless you have been granted a specific exemption from these procedures, the default practice is no exceptions. Please do not speak to the media, the Governor’s office, Congressional Delegation, Legislators, or any of their staff without explicit permission to do so. 59 Part III: Section 4: OFFICE AND EMPLOYEE CONDUCT 7. MEETING ROOMS AND RECORDING MEETINGS Meeting Rooms The use of the Authority's meeting rooms is restricted to Authority business use during regular work hours 8:00 a.m. to 5:00 p.m. Business use is defined as a meeting with an employee or hired consultant in attendance dealing directly with Authority business. The Authority Board meeting will take precedence over any meeting that may be scheduled in the board room. For further details on this policy, please refer to Appendix F.2 Recording Meetings In order for the Authority to function effectively, we encourage candid communications. A frank and candid expression of views may be chilled if employees are concerned that conversations with other employees are being recorded. In light of these considerations, the Authority prohibit the recording of conversations without prior authorization. Prior authorization must first be received from a member of the Executive Management Team, or their direct reports, if delegated such authority. Additionally, consent must be received from all parties to the conversation before recording is allowed. For further details on this policy, please refer to Appendix F.3 60 Part III: Section 4: OFFICE AND EMPLOYEE CONDUCT 8. OFFICE CONDUCT Employees shall conduct themselves in a courteous, organized and professional manner, including, but not limited to: 1. Keeping to a minimum, personal phone calls/texting/social media interactions and in-person visitations; such activities must not interfere with the employee's ability to accomplish assigned duties, meet deadlines, and must not hinder the work performance of fellow employees in the execution of their duties. 2. Attending scheduled meeting(s) unless excused by the employee’s direct supervisor. 3. For the safety of the employees and to ensure an accurate report needed for emergencies, swiping your issued key fob each time upon entering the building. Swiping your key fob each time is required even when following another employee into the building. 4. Exercising due care when handling confidential information and retaining required records. Each employee has a responsibility to respect the confidentiality of sensitive information by not disclosing such information to others not approved to receive such information (Appendix C) and to understand what Authority records must be retained for public inspection by following the record retention policy developed by the State of Alaska. The General Administrative Record Retention Schedule can be found in Appendices D6 - D.9. In general, work products of employees are considered work products of the State of Alaska and therefore may be open to inspection by the general public. Records and their proper maintenance are a matter of law and fact. Alaska Statute 40.21 (State Records Management Act) and 4 AAC 59 (Archives & Records Management Services) provide the necessary legal framework for the administration of the State of Alaska’s records. Each employee has a responsibility to retain required records for public inspection whether those records are paper documents, magnetic tape, compact discs, DVD's, flash drives, hard drives, floppy disks, microfiche, microfilm, maps and all other recorded information, regardless of medium or characteristics as defined in AS 40.21.150 (6). Additional resources on record retention and destruction are available at the Records and Information Management System (RIMS) website: https://archives.alaska.gov/rims/. 61 Part III: Section 4: OFFICE AND EMPLOYEE CONDUCT 9. PUBLIC RECORDS REQUEST 62 63 Part III: Section 4: OFFICE AND EMPLOYEE CONDUCT 10. SOCIAL MEDIA Below is a brief overview of AEA’s Social Media policy. You are encourage to read the full policy located in Appendix F.4. The Authority uses social media is to provide information to the public and to engage the public in a civil dialogue regarding information about the Authority. Therefore, this policy applies to all uses of social media by all Authority employees, including any social media platforms currently in use by the Authority, unless an exception is made by the Executive Director. The Communications Director for the Authority will serve as the administrator of the Authority’s social media needs and will be responsible for account creation, account management and compliance. Only those employees with prior approval from the Executive Director/ Communications Director may create and administer pages for the purpose of making posts or receiving comments (i.e., as opposed to making comments on or gathering information from the social media pages of other individuals or entities). Additionally, only AEA employees who are authorized, in writing, by the Executive Director/Communications Director, to comment on behalf of the Authority may do so. Record Retention Posts, comments, and responses to comments are records under AS 40.21.150(6). Therefore, the Authority must retain posts, comments (including removed contents), and responses in compliance with the SOA Retention of Public Records, which can be found in Appendix D, of this manual. Security The Authority’s use of social media must comply with the State of Alaska’s policies on Business Use/Acceptable Use (ISP-172) (see Appendix D.3) and the requirement to use strong passwords. The Communications Department lead must change passwords, remove profiles, or both whenever a person should no longer have access to a social media account or page. A current State or Authority network password must not be used as a password for any social media site. Personal Use of Social Media This policy addresses the work-related use of social media, not its off-duty, personal use. Nothing in this policy prevents employees from using their personal social media accounts to communicate an opinion on a matter of public concern; to engage in concerted activities for mutual aid or protection; or to exercise their right to file a complaint of discrimination or other workplace misconduct. However, you should be mindful that even your personal use of social media must comply with all applicable laws and policies, such as the Alaska Executive Branch Ethics Act (AS 39.52) and its implementing regulations, and the Office of Information Technology's Business Use/ Acceptable Use Policy (ISP-172), included in Appendix D.3. Enforcement Violation of this policy may result in disciplinary action, up to, and including, dismissal. 64 Part III: Section 4: OFFICE AND EMPLOYEE CONDUCT 11. SMOKING Smoking/vaping is only permitted in designated areas outside the Authority building, office or warehouse. 65 Part III: Section 4: OFFICE AND EMPLOYEE CONDUCT 12. VEHICLE PARKING, USAGE, AND SEAT BELTS Employee Parking: Employee vehicles may be parked in designated locations identified as Authority parking with the exception of reserved and special purpose parking spots. Reserved parking spots are for those granted authorization from the Executive Director. Special purpose parking spots require a State Department of Motor Vehicles issued disability parking permit. Personal Vehicle Use for State Business: AS 09.50.253(h)(1) provides the legal definition of when an employee is acting within the scope of the employee's office or employment. For personal vehicle use for State business this typically extends to driving for a specific business errand, from one State office to another, or travel done in the performance of field work. It does not extend to routine travel between the employee’s workplace and home. Travel between a residence and an airport may be considered State business if the purpose of the air travel was State business. Per AAM 60.020, an employee “that performs official state business duties within their defined Duty Station is not eligible for privately owned vehicle mileage reimbursement.” An employee’s duty station includes the city, town, or village within 50 miles of where the employee spends the majority portion of their working time (i.e. buildings owned or leased by the Authority). Reimbursement for use of a privately owned vehicle beyond 50 miles of the employee’s Duty Station will comply with AAM 60.140. Insurance: 1. Liability. Alaska law (AS 28.20.440) requires all vehicle owners to maintain auto liability insurance and establishes minimum amounts of coverage. Anyone using his or her personal vehicle on Authority business must carry auto liability insurance. In the event of an accident, the employee’s personal auto liability insurance will cover damages and medical expenses to any third party up to the maximum limit of the employee’s policy. The State will usually cover any liability exposure in excess of the employee’s own liability coverage, except when the Attorney General determines the employee was not acting within the scope of the employee's office or employment at the time of the incident out of which the claim arose (AS 09.50.253) (e.g., driving while intoxicated). Most insurance companies include incidental business use of a personal vehicle within their standard policy form. Considerable or frequent business use may require an endorsement to an employee’s policy. Employees should consult with their insurance company for more information. 2. Collision. The employee’s own collision insurance, if any, covers physical damage to the employee’s own vehicle while on Authority business. The State does not insure any physical damage to an employee’s vehicle while on Authority business. If another party is at fault, the employee may be able to recover damages through legal action brought by the employee or the insurance company on the employee’s behalf. The Authority will not participate in any legal action brought to recover physical damages as a result of an accident involving an employee’s personal vehicle while on Authority business. 3. Workers’ Compensation. An injury resulting in lost work time or medical expenses to an employee of the Authority driving or riding as a passenger while on official Authority business 66 will be handled as a routine workers’ compensation claim. 4. Riders. Employees are not to allow riders who are not State employees in a State vehicle while traveling on Authority business. 5. Notification of Claims or Accident. Employees are required by State law to notify the Department of Public Safety of any accident involving personal injury or damage totaling $500 or more. In addition, if an employee has an auto accident while on Authority business, employees are required to complete State Form 02-919, Liability Accident Notice, and forward it to the Division of Risk Management. Seat Belt Requirement: As a State of Alaska employee, you are required to abide by Administrative Order 85, which requires the driver and passenger in motor vehicles used to conduct State business, including privately owned vehicles used in the conduct of State business, to wear safety belts. Please refer Appendix D.11 or to https://gov.alaska.gov/admin-orders/administrative-order-no- 85/ for the entire Administrative Order. 67 Part III: Section 4: OFFICE AND EMPLOYEE CONDUCT 13. VISITORS IN THE WORKPLACE Policy: The Authority is committed to protecting the safety and security of all persons accessing its facilities and premises and have adopted the following policy to maintain safety standards and protect corporate and personal assets against theft and misuse. This policy also limits potential distractions and disturbances in the workplace. Scope This policy applies to all individuals seeking access to the Authority's work areas, specifically including employees, contractors, clients, and employees' acquaintances, friends and family members, regardless of whether the purpose of the visit is for business or personal reasons. Visitors Visitors must be escorted by either an employee or a contractor with escort privileges (requires Executive Director approval). Employees are responsible for their visitor(s), staying with them the entire time while they remain within work areas, ensuring safe evacuation during any emergency situation or drill, and making sure the visitor complies with the Authority’s policies and guidelines. Personal visits for employees is a privilege. The presence of an employee's personal visitor(s) must be non-invasive and non-distracting to other employees, and their access in the building should be limited to appropriate areas where sensitive or confidential information is not visible, and in most instances this means the lobby. Lobby visits with personal guests are limited to 15 minutes. Contractors Certain contractors used on a regular basis may be issued more lenient building access by an Executive Director. In those instances, the contractor's photo will be displayed on the Authority’s intranet. Office Events Periodic employee events are generally for employees and business associates only. When specifically identified by management, an employee event may be open to spouses/significant others and families. 68 Part III: Section 5: PERFORMANCE MANAGEMENT This section covers: • Performance Management (Evaluations) • Tuition Assistance and Training 69 Part III: Section 5: PERFORMANCE MANAGEMENT 1. PERFORMANCE MANAGEMENT The Authority has adopted a Performance Management and Learning and Development Plan (PMLD) to better support employees with clear performance expectations and concrete learning and development opportunities. The annual PMLD cycle will cover the period from December 1st to November 30th each year and approved merit increases will coincide with an employee’s merit anniversary date (MAD). The PMLD form is designed to be collaborative, completed jointly by an employee and their supervisor during both the Planning and Evaluation process. During the planning phase only the first four sections need to be filled out: I. Employee Information II. Performance Expectations III. Performance Goals (SMART goals) IV. Learning and Development Objectives I. Employee Information This section is where the supervisor or employee can enter the employee's information and define the review period, which in most cases will be one full year. II. Performance Expectations In the second section, the supervisor and employee will work together to collectively develop and document the employee’s performance expectations for the upcoming year. Setting clear expectations is essential to a productive workforce. Performance expectations should be based on established work/tasks identified in the employee’s position description. The number of performance expectations created for each position will vary based on the complexity of each position. It is recommended that the supervisor collaborate with the employee to develop a minimum of five performance expectations. Effective performance expectations may be quantitative, qualitative, or time-based, or they may be general “rules of the road” (i.e., shows professionalism toward colleagues, follows chain of command). They should always be: • Observable (an action or behavior you can see) • Position-related (tied to their position description) • Results-oriented (centered around a particular outcome) At the end of the intended review cycle, the supervisor will determine whether the employee met each expectation during the review period. There are two options on the form to ensure objectivity: • Met Expectations • Did Not Meet Expectations 70 III. S.M.A.R.T. Goals In the third section of the form, the employee (and supervisor) will document one or more SMART goals that they would like to meet in the coming year. SMART goals are valuable motivators. Where performance expectations set out to answer the question, “Is this employee performing at the level expected of them?” SMART Goals give employees something concrete to strive toward. For a goal to meet the SMART criteria, it must be: • Specific: The goal should be narrowly focused and empower the employee to plan out their year. • Measurable: The goal should have a quantifiable component (e.g., length of time, dollar amount), if possible. • Attainable: The goal should be achievable, but still a stretch. This helps motivate employees. • Relevant: The goal should be relevant to the employee’s position and the department or division’s strategic objectives. • Time-Bound: The goal should make it clear when the employee is to start and by when they should be finished. Examples of Effective SMART Goals: • Research and implement three improvements that will shorten wait times by the end of the fiscal year. • Reduce employee turnover in the division from 12% to 8% by the end of this calendar year. • Create a new revenue report template by the end of March. At the end of the intended review cycle, the supervisor will determine whether the employee met the goals. There are two options on the form to ensure objectivity: • Met Goal • Did Not Meet Goal IV. Learning and Development Plan Every supervisor should take the time to consider how they might help employees grow professionally through learning and development opportunities. This can feel challenging, but this is still possible! The State's learning management system, AspireAlaska, is a great place to find a vast array of training. You may also want to seek out other learning opportunities through free online webinars, employee shadowing, targeted mentoring, or perusing the State library. The Performance Evaluation process begins with planning. All employees should have clear performance expectations, SMART goals, and learning objectives in their Performance Management & Learning and Development Plans. Employees should clearly understand the 71 important role they play in the organization and how their efforts directly contribute to the success of their divisions and departments. At the end of the review period, supervisors and employees will review the progress they have made and a performance evaluation will be completed. Remember to regularly check in to discuss how things are going through out each year. Click here for Performance Management and Learning Development forms and resources. Favorable performance evaluations do not change the employee’s status as an “at will” employee. Even though an employee may receive positive performance evaluations, all employees remain “at will” employees whose employment is subject to termination by the Authority at any time, with or without cause. 72 Part III: Section 5: PERFORMANCE MANAGEMENT 2. TUITION ASSISTANCE AND TRAINING Reimbursement for Educational Costs*: The Authority offers tuition reimbursement benefits to encourage self-development by providing financial assistance for certain education-related expenses. This benefit is intended to encourage professionalism and assist employees in increasing effectiveness in their current position, preparing employees for possible advancement, and/or increasing an employee’s adaptability to new ideas and change. *Funding levels for tuition reimbursement are contingent upon Authority budgetary constraints. As such, the program may be discontinued and/or the amount available for reimbursement may be reduced. For reimbursement guidelines and requirements, please refer to the Authority’s Tuition Reimbursement Guidelines and the Authority’s Tuition Reimbursement Recovery Agreement located in Appendix B or from Human Resources. 73 Part III: Section 6: DEFINITIONS Unless the context requires otherwise, the following definitions govern the construction of these guidelines. AAC means the Alaska Administrative Code. AAM means the Alaska Administrative Manual. AEA Employee means any person in the Authority’s service who is paid a salary or wage and who is subject to these guidelines and reports either directly or indirectly to the AEA Executive Director. Authority means the Alaska Energy Authority. Complaint means an employee's written (preferably) or verbal expression to the employee’s immediate supervisor or the Human Resources Department of dissatisfaction with (1) working conditions or environment; (2) relationships with supervisors or other Authority employees; or (3) employment decisions. Complaint Procedure is the mechanism available to employees for handling complaints or problems that arise while acting within an employee’s scope of employment. If complaints or problems exist, all employees should attempt to get them resolved using the process outlined in Section 4 of these guidelines. Current Rate of Pay means the salary or hourly wage received by an employee for hours of work. Demotion means the involuntary change of an employee from a position in one pay range to a position in a lower pay range. Dismissal means the termination of an employee from the Authority for reasons other than resignation, retirement or layoff. The terms “dismissal” and “termination” are used interchangeably throughout this manual. DOPLR means the Division of Personnel and Labor Relations. Employment At Will is the employment status of all Authority employees. This means either the employee or the Authority can choose to end the employment relationship for any lawful reason, at any time, with or without cause. Executive Director means the individual duly appointed as Executive Director of AEA or that individual duly delegated by the Executive Director to act in that capacity in the Executive Director’s absence. Exempt Employee is the terminology used to define every Authority employee, as provided by 74 AS 39.25.110(11)(C). Exempt employees are not subject to the provisions of AS 39.25, known as the Personnel Act, or the provisions of 2 AAC 07, known as the Personnel Rules. Full-time Employee means an employee who works a minimum of 37.5 hours per week. Human Resources Director means the Authority designated Director for resolving employee- related matters (for example, compensation, benefit questions and complaints). Immediate Family means father/step-father, mother/step-mother, husband, wife, mother-in- law/father-in-law, son/step-son, daughter/step-daughter, brother/step-brother and sister/step-sister. Immediate Supervisor or Supervisor means the person responsible for supervising a specific employee within the Authority. Layoff means the separation of an employee because of insufficient funds, the elimination of a position, or for another reason not reflecting discredit on the employee. Leave Cash Value means the number of hours accrued during a pay period multiplied by the annualized hourly rate of pay for that pay period, added to the value of untaken leave from all previous pay cycles. Leave of Absence means an approved absence from the official performance of duties, with or without pay. Leave Year is January 1st through December 31st Officers means the corporate officers duly appointed by resolution of the Authority. Part-time Employee means an employee whose workday and workweek is less than the normal workday and/or normal workweek (as defined in Section 2). Pay Increments means pay beyond the F step on the pay range assigned to the position, which are J – Z. Pay increments are intended to recognize longevity when an employee receives a review of acceptable performance. Pay Plan means a schedule of pay that provides guidance and covers the Authority’s positions. The Authority has adopted the exempt pay scale used by the State of Alaska for exempt employees – “Unit Designation EX – Partially Exempt and Exempt Executive Branch, N00.” Pay Period means a bi-weekly period based on a two week time frame starting on Monday at 12:00 am and ending on a Sunday at 11:59 pm 14 days later. Payday means a bi-weekly basis every other Friday. If payday falls on a holiday, the last working day before the designated holiday will be payday. All checks postmarked or deposited by payday shall be considered timely. Per Diem means the amount, over and above the employee's wages, authorized for payment to cover the cost of an employee's lodging and meals while on preapproved Authority travel. Performance Management and Learning and Development Plan (PMLD) (formally known as the Performance Evaluation Report) means a systematic and periodic appraisal in writing of an 75 employee's work performance and goals on the State of Alaska’s designated evaluation form. Promotion means the movement of an employee from a position in a lower pay range to a position in a higher pay range. Position means paid employment in the Authority’s service composed of specific duties and requiring the full-time or part-time services of an employee. Position Control Number (or PCN) is the number assigned to identify a position. Range means the pay range assigned to each position on the basis of the duties, responsibilities and qualifications required for the position. Reassignment is a change of position or duties and is not considered a demotion under these guidelines. Re-evaluation means the action taken to place an existing position in another pay range due to changes in the requirements for the position. This does not change the merit anniversary date of the individual. Resignation means the voluntary separation of employment by an employee. Retirement means the voluntary separation of employment after the completion of a period of employment service or upon reaching a certain age as defined by the Public Employees Retirement System (PERS) applicable statutes and regulations. Return to work after retirement means returning to a position covered by PERS. Refer to Appendix D.10 for details on the restrictions regarding the return to work. Separation means the end of employment. There are two types of separation: 1. Voluntary Separation: • Retirement • Resignation 2. Involuntary Separation • Layoff • Termination/Dismissal State means the State of Alaska. Step means the beginning portion of the pay schedule and are identified by the letters A, B, C, D, E, and F. Pay at this level is intended to incent an employee for skill mastery and increased capacity to perform the job assignment. Suspension means an enforced leave of absence for disciplinary purposes or pending investigation, which may be with or without pay based on the circumstances involved. Temporary Position means a position established with an anticipated duration of less than six months. Termination means the termination of an employee from the Authority for reasons other than resignation, retirement or layoff. The terms “termination” and “dismissal” are used interchangeably 76 throughout this manual. Transfer means the movement to a new PCN (Authority position) at the same range or a lower range PCN provided the transfer was voluntary and initiated by the employee. Movement to another PCN outside of the Authority may be identified differently by the receiving agency. Unlawful Discrimination means discrimination prohibited by State or federal statute. 77 PART IV: APPENDIX This section covers: • Appendix A: Telework Policy and Agreement o A.1 AEA Telework Policy and Guidelines o A.2 AEA Telework Request and Work Agreement • Appendix B: Tuition Reimbursement and Training o B.1 In-Person/Online Training Request o B.2 University Tuition Reimbursement Agreement o B.3 AEA Tuition Reimbursement Guidelines o B.4 AEA Tuition Reimbursement Recovery Agreement • Appendix C: Confidentiality • Appendix D: Employment Laws, Admin Orders & Related Policies o D.1 Alcohol and Drug-Free Workplace o D.2 Americans with Disabilities (AO 129) o D.3 Business Use/Acceptable Use Policy (ISP 172) D.3.1 Artificial Intelligence Guidance o D.4 Discrimination and Diversity in the Workplace (AO 195) o D.5 Family and Medical Leave Act and the Alaska Family Leave Act o D.6 Email Retention Policy o D.7 How to Name Electronic Files and Folders o D.8 Record Retention and Disposition Schedule o D.9 Retention of Public Records o D.10 Retiree Return to Work Policy o D.11 Seat Belt Policy (AO 85) o D.12 Sexual Harassment and Other Discriminatory Harassment o D.13 SOA Ethics Information o D.14 Travel Policy (AAM 60) D.14.1 AEA Travel Procedures • Appendix F: Office and Employee Conduct o F.1 Expenses: Food, Entertainment, Gifts o F.2 Meeting Room Policy o F.3 Recording Meetings Policy o F.4 Social Media Policy 78 Part IV: APPENDIX A A: TELEWORK This Appendix includes the following: • A.1 Teleworking Policy and Guidelines • A.2 Telework Request and Work Agreement (TWA) Form 79 APPENDIX A.1 AEA Teleworking Policy & Guidelines I. Policy Teleworking is an arrangement for employees to perform their job duties at an alternate work location in accordance with a Teleworking Work Agreement (TWA) (refer to appendix C for the agreement) and established first and foremost to accomplish work deliverables. The Authority may allow participation in teleworking to the greatest extent possible without diminished services or employee performance. This policy provides direction and guidance for employee teleworking arrangements and applies to Authority employees. Please note, as an exempt agency, AEA is encouraged to follow the guidance set forth in the State of Alaska (SOA) Telework policy. As such, while similar, this policy differs from the policy the SOA has adopted. Teleworking arrangements must conform to all State laws, regulations, and policies regarding State/AEA employment. Teleworking assignments do not change the conditions of employment or required compliance with policies. Supervisors and employees must understand that adherence to this policy is an essential requirement of the telework program. Teleworking is not an employee benefit or right. Employee participation in teleworking is voluntary and requires pre-approval by Authority management. This policy shall not be interpreted as an employment contract between the State/AEA and its employees. Teleworking arrangements may be authorized when practicable; full-time telework is not ideal and will only be approved as a last resort to ensure minimal disruption to the mission of the Authority. As authorized, AEA has the sole discretion to designate groups, positions, and individual employees suitable for teleworking. The expectation is there will be no disruption of service or decline in the quality and timeliness of internal and external services provided by the teleworking employee or the Authority. II. Guidelines A. Teleworking is available to employees when approved by supervisors and the Executive Director. These guidelines do not apply to employees who telework as a temporary or permanent reasonable accommodation approved by Human Resource staff under the Americans with Disabilities Act (ADA). B. Teleworking generally falls into one of two categories: 1. Routine: Routine teleworking is when the arrangement occurs as part of a regular and ongoing schedule. Generally, Authority employees are eligible to apply for a TWA up to two (2) workdays per week following six months of employment in their current position. 2. Situational: Situational teleworking is approved on a case-by-case basis, where the hours worked were not part of a previously approved, ongoing and regular telework schedule. Examples of situational teleworking include for reasons such as inclement weather, pandemic health crisis, special work assignments, convalescence from injury or illness, primary work site is inaccessible or uninhabitable, or other natural or human-caused disaster. These agreements may also be referred to as episodic, intermittent, unscheduled, or ad hoc teleworking. These types of agreements only require supervisor 80 approval and do not require a Telework Request and Teleworking Work Agreement Form (TWA). C. Teleworking arrangements may be on a part-time or full-time basis. Initial teleworking arrangements may be approved for an initial period of up to twelve (12) months, and then must be reviewed again prior to extending. Once an arrangement has been shown to be successful, it may be approved for up to twelve (12) months at a time. Per section III, Authority management may cancel the telework agreement at any time. Any change in the agreed upon schedule must be approved by the supervisor, and when permanent, documented and appended to the TWA. D. Employees must have an approved TWA prior to beginning a telework arrangement. Employees engaged in routine telework must have an approved TWA prior to beginning a telework arrangement. Continuing to telework long-term after beginning a situational telework arrangement requires the employee to establish a TWA. E. Employees must have approval from the Authority Executive Director to telework away from their established telework address. F. Management retains the right to approve or deny requests based on established criteria. Teleworking should only be considered if mutually beneficial for the Authority and the employee. In deciding whether to approve an employee’s request for teleworking, the supervisor shall consider the following factors: 1. The position’s suitability for teleworking (See section II R); 2. The employee’s suitability for teleworking (See section II R); and 3. The mutual benefits to the Authority and the employee. G. Managers will monitor employee compliance with the TWA; relevant State/AEA policies; performance standards; expectations for work products; productivity; and time accountability. H. Employees must be available during work hours established in their TWA. Employees must be available and accessible by email, phone, or other online technology during their agreed upon work schedule. Absences (including unavailability during work hours) must be pre- approved. Employees must account for all time worked and use leave, as appropriate, with prior supervisory approval. If an employee becomes ill on a scheduled telework day, the employee shall follow the AEA Employee Policies and Guidelines manual for reporting absences. The employee may be called in to the main worksite when necessary to meet operational needs. The supervisor should provide reasonable notice whenever possible. However, the employee may be required to report to the worksite without advance notice, as needed. When an employee is required to travel to the central office/worksite on a normally schedule telework day, an alternate telework day will not be granted. I. Managers are responsible for providing employees clear direction on assignment and project expectations. Supervisors will provide clear expectations to the employee relating to performance, assignments to be completed, timely response to e-mail and phone calls, etc. 81 For additional guidance, resources, and tools on how to manage remote employees please review the SOA DOPLR Telework Resources page at: https://doa.alaska.gov/dop/Recruitment/telecommuteFAQ/ J. Supervisors must ensure adequate office coverage (if applicable). Supervisors will assess what work requires public or internal contact or needs to be done at the worksite. Absences due to leave, training, and holidays must be addressed when participants and supervisors arrange TWA plans to ensure adequate office coverage. Supervisors are responsible for ensuring their departments have coverage during any applicable core hours. Consideration should be given to the employees' workload and the type of work performed. These issues must be considered prior to approving any request for a telework schedule. K. Teleworking is not intended to be a substitute for dependent care. Employees shall continue to make arrangements for child/dependent care to the same extent as if the employee was in the workplace. However, having a dependent at home will not necessarily prohibit an employee teleworking. Requests will be reviewed on a case-by-case basis. Supervisors can suspend TWAs for employees who use them to enable child/dependent care. L. Travel to and from the teleworking location to attend work-related meetings and events on teleworking days is not reimbursable. M. The telework location will require adequate workspace, light, telephone service, power, and temperature control. The employee will provide telework worksite ergonomic furniture and equipment and should maintain a clean and safe workspace. Expenses incurred as a result of working a telework schedule will not be paid or reimbursed by the State/Authority including, but not limited to, the following: usage fees for privately owned computers; maintenance or operating costs of the telework site; utility costs associated with the use of telephone, computer or occupation of the home (i.e. internet); or travel to the central office/work site if required to come in on a telework day. Please note: IT technical support for teleworking staff will only be available during standard business hours. N. The employee is responsible for protecting State/Authority equipment from damage and unauthorized use. The employee shall be responsible for notifying their supervisor immediately of any damage, theft or loss of any issued State/Authority property. In the event of theft of the equipment, the employee shall be responsible for immediately reporting the theft to local law enforcement. Any State/Authority provided equipment will be used only by the employee to complete State/Authority work. It is not for personal use by the employee or the employee’s family members. All use will comply with the State of Alaska OIT policy. O. The State/Authority are not responsible for loss, damage, repair, replacement, or wear of personal property or equipment. The employee will be liable for any loss or damage to State/Authority property. The State/Authority retains the right to inspect the worksite. Generally, no additional equipment will be provided to employees to work at alternative worksites. Any exceptions must be approved by the employee’s department Director and the Executive Director. 82 P. It is the responsibility of the teleworker to determine any income tax implications of maintaining a home office area. The State/Authority will not provide tax guidance nor will the State/Authority assume any additional tax liabilities. Q. Teleworking from out of state or from within Alaska outside of a commutable distance from Anchorage will generally not be permitted. If the employee changes their primary residence to another city (i.e. moves) while on a TWA, they must notify the Authority’s HR Director, DOPLR Payroll, and the Division of Finance (DOF) due to potential salary and tax withholdings changes. R. Position Suitability: The Authority may consider allowing teleworking for certain positions which would lead to efficiencies and effectiveness in daily operations. However, not all positions may be appropriate for teleworking. The Authority shall consider the following factors when determining which positions may be eligible for teleworking: 1. A high percentage of work can be conducted individually; 2. Collaboration and communication with colleagues can be conducted virtually; 3. Work does not require frequent in-person or ad hoc collaboration; 4. Work output and quality is not impacted by location (e.g. quality of services provided); 5. Performance of the work is not dependent on specialty equipment, tools/materials and settings (e.g. laboratory) that cannot be reasonably accommodated remotely; 6. Work does not depend on frequent handling of secure materials. S. Employee Eligibility: Teleworking shall be considered an option at the exclusive discretion of Authority management, not an employee benefit or right. Authority management has the right to initiate, terminate or suspend a teleworking arrangement for an individual employee or group of employees at any time. Management may designate any group or department of employees ineligible for teleworking at any time. Management shall utilize the following criteria in evaluating if an individual employee or group of employees may be eligible for TWAs: 1. Performance metrics are established and measurable. Expectations are clearly communicated and work performance can be tracked. 2. Whether the employee consistently demonstrates work habits that are well-suited to teleworking, including but not limited to: self-motivation, self-discipline, the ability to work independently, manage distractions, meet deadlines, and a demonstrated record of meeting established performance expectations; 3. Whether the employee has a consistent telework location and knows who would potentially have access to that location; and 4. Whether the employee has the technical capacity to work remotely, including consistent internet connection, electricity, phone reception, ability to keep sensitive or confidential materials secure, etc. An employee may not be eligible to participate in remote work (pursuant to Authority discretion) if: 1. The employee has received formal discipline for performance or conduct or a Performance Improvement Plan (PIP), during the previous 12 months; or 83 2. The employee has not been adequately trained in their current position. This requirement can be waived with approval from the Executive Director. T. Teleworking employees will report any work injuries to their supervisor immediately. An employee injured at his or her teleworking location during teleworking hours while performing work duties will need to complete the Notice of Occupational Illness or Injury Form as soon as possible, but not later than ten (10) days after the injury. U. Weather and Safety Considerations 1. If severe weather is predicted, employees must prepare to work from their alternate worksite on a day when unscheduled telework is authorized, including taking their State/Authority laptop and cell phone home with them, if applicable. 2. The teleworking location(s) will be unaffected by emergencies that lead to office closings. If work can proceed at the teleworking worksite(s), then the employee may not be excused from duty even if other employees ineligible for telework elsewhere have been released or excused from reporting. 3. If the teleworking location is affected by an emergency (e.g. local power outage) which does not lead to the Authority offices closing and the employee is unable to perform work, the teleworker must either take leave or report to the worksite. In such cases, the employee will not be authorize an alternate telework day. V. Exceptions to any of these guidelines are subject to Authority’s discretion on a case-by-case basis. III. Procedures Written requests for teleworking arrangements shall be submitted to the Executive Director. Requests can be submitted electronically or in paper form. The Executive Director will be responsible for approving all teleworking requests. The teleworking agreement contains an acknowledgement by the employee that Authority management has the right to initiate, amend, terminate, or suspend a teleworking arrangement at any time. The teleworking agreement also contains an acknowledgement by the employee that supervisors can suspend TWAs for employees who use them to enable child/dependent care. A. The Teleworking Request and Agreement Form contains the following information: 1. Employee information 2. Reason for request 3. Benefits to the Authority and employee 4. Location(s) from which employee anticipates working 5. Expected duration 6. Standard work schedule for employee 7. Equipment to be used 8. Duties to be performed 9. Method of assessing performance 10. Position’s suitability for teleworking 11. Employee’s suitability for teleworking 84 B. Approval Flow for Teleworking: 1. Employee initiates the Authority Telework Request and Agreement (TWA) Form and Employee and Supervisor complete the applicable TWA sections. 2. The employee signs the completed TWA form. 3. Supervisor reviews and signs; if the supervisor approves the request, it is submitted to the Executive Director. 4. If the Executive Director approves the request, the approved TWA form is forwarded to the Authority’s HR Department. The HR Department will be responsible for providing electronic copies of the approval to the supervisor and employee. 6. If approved: The Authority’s HR Department will notify Payroll Services. 7. The supervisor and employee review the TWA at twelve (12) months to evaluate the employee’s performance while teleworking. If the employee is meeting expectations while teleworking, the TWA can be extended for up to one year at a time. C. Contents of the TWA The TWA sets out the specifics for the individual circumstance of the teleworking arrangement including State/Authority and personal equipment to be used, days/hours of work, location of work, general duties to be performed and method(s) of assessing teleworking performance. D. Renewing the TWA 1. The TWA must be discussed and renewed at least annually, or whenever there is a major change in job duties. 2. The TWA may be canceled by the employee with fifteen (15) calendar days written notice; or sooner with approval from the supervisor. 3. The supervisor may cancel this agreement and instruct the employee to resume working at the duty location at any time, at the discretion of the supervisor, for reasons that include, but are not limited to, exceptional and verifiable needs of the department; change in the employee's work function, non-satisfactory employee performance, or non- compliance with the telework policy. If the employee is teleworking from a location outside their normal duty station, the supervisor shall give fifteen (15) calendar days’ notice when cancelling the agreement. 85 APPENDIX A.2 AEA Telework Request and Work Agreement (TWA) Form State of Alaska/AEA Telework Request and Work Agreement (TWA) Form New Agreement: ☐ Renewal Request: ☐ . Employee Information Name: EE Name. Employee ID: Employee ID Job Title: Job Title Position # (PCN): XX-XXXX Department: Commerce, Community and Economic Development Division: AEA Supervisors and Employees: Please fit responses into the form fields below by being as concise as possible. If you need more space, include a summary response in the respective form field along with “see attachment for more detail” and include the additional information on an attachment. Telework Request (Information to be filled out by the Employee and Supervisor as noted). Reason for Request (Employee): Reason for request. Benefits to Authority and employee (Employee): Benefits to authority and employee. Position’s suitability for teleworking as defined in the Telework Policy II.R (Supervisor): Position suitability Employee’s suitability for teleworking as defined in the Telework Policy II.S (Supervisor): Employee suitability. Telework Agreement (Information to be filled out by the Employee and Supervisor as noted). Note: Telework requests for out of state telework will generally not be considered. Main Worksite Address (Employee): Workplace Address. Telework Address (Employee): Telework address 86 Supervisor’s Name: Supervisor’s Name. Supervisor’s Title: Supervisor’s Title. The employee volunteers to participate in the teleworking program and to follow the applicable guidelines per the Telework Policy. The Authority agrees to the employee’s participation. This agreement is effective from From Date. to To Date. (Effective from date is dependent on approval of the request by the Executive Director). Employees may request termination of their telework agreement by notifying their supervisor in writing with fifteen (15) calendar days’ notice; or less notice upon approval from the supervisor. The Authority shall arrange for the employee to return to work at the main worksite within a reasonable time after receipt of the written request. Authority management may cancel this agreement and instruct the employee to resume working at the main worksite at any time. Work Site: The main worksite and the telework address are designated above. The employee agrees to work at the main worksite or teleworking work location and not from another unapproved site. Dependent Care: The employee will continue to make arrangements for dependent care to the same extent as if the employee was working at the main worksite. However, having a dependent at home will not necessarily prohibit an employee teleworking. Requests will be reviewed on a case-by-case basis. Work Hours: Standard work hours and location are to be specified below; all pay, leave and travel entitlement will be based on the employee’s main worksite. Employees currently on an approved Compressed Work Week (CWW) are not eligible to participate in a TWA. Note: Based on necessity of business, the supervisor may require the employee to alternate days and/or report to the main worksite on a scheduled teleworking day. In such cases, the employee will not be authorized an alternate telework day. (Employee to provide information below) Work Days Schedule Start Time Schedule End Time Total Hours Telework Work Hours Main Worksite Work Hours Monday 00:00. 00:00. 00:00. 00:00. 00:00. Tuesday 00:00. 00:00. 00:00. 00:00. 00:00. Wednesday 00:00. 00:00. 00:00. 00:00. 00:00. Thursday 00:00. 00:00. 00:00. 00:00. 00:00. Friday 00:00. 00:00. 00:00. 00:00. 00:00. Saturday 00:00. 00:00. 00:00. 00:00. 00:00. Sunday 00:00. 00:00. 00:00. 00:00. 00:00. 87 Meal break: A meal break of not less than 30 minutes will be allowed approximately midway of each shift. Leave: Employees must obtain supervisory approval before taking leave in accordance with established Authority procedures. The employee agrees to follow established procedures for requesting and obtaining approval of leave. Equipment: The State/AEA is not required to provide equipment for the telework location; however, with the approval of the supervisor, the employee may be provided State/AEA owned equipment necessary to perform work assignments. State/AEA owned equipment to be provided (Employee): Equipment Property Tag Number Serial Number Equipment Type. Tag Number. Serial Number. Equipment Type. Tag Number. Serial Number. Equipment Type. Tag Number. Serial Number. Equipment Type. Tag Number. Serial Number. Equipment Type. Tag Number. Serial Number. Personal Equipment to be Used (Employee): Personal equipment to be used. State/AEA provided equipment will be used only by the employee to complete State/AEA work. It is not for personal use by the employee or the employee’s family members. All use will comply with the SOA OIT policy. Maintenance of Equipment: Equipment provided by the employer must be protected against damage and unauthorized use. Employer-owned equipment will be serviced and maintained by the employer. Equipment provided by the employee will be at no cost to the Authority and will be maintained by the employee. If equipment malfunctions, the employee must notify his/her supervisor immediately. All repairs to State/AEA equipment must be conducted at the central worksite or a State/AEA approved facility. The employee is responsible for returning malfunctioning equipment to the central worksite for repair. If the malfunction precludes the employee from performing work assignments, the employee will be assigned to a different project or required to return to the main worksite. Costs: The State/AEA will not be responsible for operating costs, home maintenance, personal cell/home telephone expenses, Internet fees/rates, or any other incidental costs (e.g., utilities), associated with the use of the employee’s residence/alternative work site. The employee does not waive entitlement to reimbursement for authorized expenses incurred while conducting official business for the employer. 88 Liability: The State/AEA is not responsible for loss, damage, repair, replacement, or wear of personal property or equipment. The employee will be liable for any loss or damage to State/AEA property. The State/AEA retains the right to inspect the worksite. Generally, additional equipment will not be provided to employees to work at alternative work sites. Exceptions must be approved by the employee’s department Director and the Executive Director. Additional equipment requested as an ADA accommodation are to be reviewed in consultation with the /AEA HR Department and IT/Office of Information Technology, when appropriate. The employee shall return all State/AEA equipment in good working condition, normal wear and tear excluded. The employee is responsible for notifying their supervisor immediately, within 24 hours, of any damage, theft or loss of any issued State/AEA property and will be liable for that loss. In the event of theft of the equipment, the employee shall be responsible for reporting the theft to local law enforcement and providing a copy of that report to their department Director. Verification of Home Safety: In signing this agreement, the employee verifies that the telework location provides work space that is free from safety and fire hazards. Work Assignments: The employee will meet with the supervisor to receive assignments and to review completed work at least once a week. The employee will complete all assigned work according to procedures mutually agreed upon with the supervisor. Work Plan: Provide a description of the duties to be performed and how work deliverables will be assessed for performance. Duties to be Performed (Supervisor): Duties to be performed. Method of Assessing Performance (Supervisor): Method of assessing performance. Evaluation: The evaluation of the employee’s job performance will be based on established standards. Performance must remain satisfactory in order to remain teleworking. Employee Approval I agree to abide by this Work Agreement and all requirements of the Teleworking Policy. I understand that teleworking is voluntary, and I may stop teleworking at any time with 15 calendar days written notice. I understand that management has the right to initiate, amend, terminate, or suspend this agreement at any time. I understand that my supervisor can suspend this Agreement if it is being used to enable child/dependent care. I understand that failure to comply with the provisions of this Agreement and the Teleworking Policy may result in termination of the agreement, and/or other appropriate disciplinary action. I understand that regardless of my work location, as a public employee I am bound by the high standards set forth in the Alaska Executive Branch Ethics Act and my oath to serve Alaskans. 89 Signing below I confirm that I understand the nature of this Agreement and confirm all statements listed above. I also understand that this agreement is not finalized until it is approved by my Supervisor and Executive Director. Employee Signature: Date: Employee: Any attachments? Yes ☐ No ☐ 90 Supervisor Approval Has the position description been reviewed for accuracy? Yes ☐ No ☐ Is the employee adequately trained in their duties? Yes ☐ No ☐ Request approved: YES ☐ NO ☐ If not approved, please provide the rejection reason below: Rejection Reason. My approval certifies that I understand and will ensure compliance with the provisions of the Agreement. Supervisor Signature: Date: Name: Title: Supervisor: Any attachments? Yes ☐ No ☐ Executive Director(s) Approval – Shared Services requires both EDs to approve. Request approved: YES ☐ NO ☐ If not approved, please provide the rejection reason below: Rejection Reason. Signature: Date: Name: Request approved: YES ☐ NO ☐ If not approved, please provide the rejection reason below: Rejection Reason. Signature: Date: Name: cc: /AEA HR Director 91 Part IV: APPENDIX B B: TUITION REIMBURSEMENT AND TRAINING This Appendix includes the following: • B.1 In-Person/Online Training Request form • B.2 University Tuition Reimbursement Agreement form • B.3 Authority Tuition Reimbursement Guidelines • B.4 Authority Tuition Reimbursement Recovery Agreement This information and forms are also available on SharePoint and from Human Resources. Questions regarding the form should be directed to Human Resources. 92 APPENDIX B.1 In-Person/Online Training Request form IN-PERSON/ONLINE TRAINING REQUEST NAME: SUPERVISOR: TITLE: SUPERVISOR TITLE: The employee and/or supervisor named above is requesting the following in-person/online training course(s) be approved and authorized for payment. This form is not for the approval of college/university course(s). If the in-person/on-line course(s) is approved, payment will be made by the Authority in advance of the course(s). Upon this request, the employees agrees that he/she may be required to reimburse the Authority if he/she fails to attend the event and the Authority is unable to obtain a refund. Check one box from each column that apply to this request: ☐ Local or on-line ☐ Job Required/Related ☐ In-State (not within driving distance) ☐ Continuing Ed requirement to maintain cert./license ☐ Out-of-State ☐ Job Enhancement Course Title Institution Begin Date End Date Course Title Registration Costs/Fees Required Books/Materials Total $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total $0.00 $0.00 $0.00 EMPLOYEE SIGNATURE: DEPT HEAD APPROVAL: Funding Information/Training charged to: APPROVED BY: Title: Executive Director Distribution: Original: HR Copy: Finance and Employee Date: Date: Title: Fund G/L AR Cont Project/Program Stage Dept Date: 93 APPENDIX B.2 University Tuition Reimbursement Request form TUITION REIMBURSEMENT AGREEMENT NAME: SUPERVISOR: TITLE: SUPERVISOR TITLE: The employee and/or supervisor named above is requesting the following college/university course(s) be approved and authorized for reimbursement. A Tuition Reimbursement Recovery Agreement, signed by the employee is included with this request. The employee understands, if approved, reimbursement will be made by the Authority upon proof of satisfactory course(s) completion and submission of receipts. Courses providing grades will require at least a “C” for satisfactory completion. Courses with pass/fail require proof of passing for reimbursement. Fees not directly related to the course will not be reimbursed. Check one box: ☐ Job Required (Reimbursable at 100%) ☐ Job Related (Reimbursable up to 100%) ☐ Job Enhancement (Reimbursable up to 50%) Course Title Institution Begin Date End Date Course Title Tuition & Fees Required Books/Materials Total $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total $0.00 $0.00 $0.00 DEPT HEAD APPROVAL: Funding Information/Training charged to: APPROVED BY: Title: Executive Director Distribution: Original: HR Copy: Finance and Employee Date: Title: Fund G/L AR Cont Project/Program Stage Dept Date: 94 APPENDIX B.3 AEA Tuition Reimbursement Guidelines 1. A Tuition Recovery Agreement is required for all Tuition Reimbursement Requests. 2. Requests for tuition reimbursement must be made by the following dates: Spring Semester – February 1 Summer Semester – May 1 Fall Semester – August 1 3. Tuition for those seeking degrees will not be approved for out of state colleges or Universities. 4. The calendar year maximum in tuition reimbursement that may be requested is $5,250. Funding levels for tuition reimbursement are contingent upon Authority budgetary constraints. As such, the program may be discontinued and/or the amount available for reimbursement may be reduced. 5. Tuition for courses offered on a regular basis through a University will be paid initially by the employee unless the employee is directed by the supervisor to take the course. In such cases, AEA will pay in advance of attendance, all costs associated with the course. All course materials become the property of AEA. 6. The following schedule will be used to determine the amount for tuition and continuing education reimbursement requests: Job Required (Reimbursable at 100%) Job Related (Reimbursable up to 100%) Job Enhancement (Reimbursable up to 50%) 7. To be eligible for tuition reimbursement requests, an employee must receive prior written approval and receive a passing grade of C or better. There will be no tuition reimbursement for classes audited. Courses with pass/fail require proof of passing for reimbursement to be granted. 8. Upon completion of the course, the employee may request reimbursement by submitting all receipts (not a cancelled check) indicating the completion of the course with a passing grade of C or better, and the previously approved request for reimbursement to the Department Director or designee. Requests for reimbursement must be made within 60 days of completion of the course. 9. AEA may reimburse the cost of tuition and directly related course fees (i.e. books). Fees not directly related to the course will not be reimbursed. 10. AEA will only consider requests for tuition reimbursement that are not already paid for or otherwise subsidized through a third-party (such as state/federal grants or other such aid). I acknowledge I have read these guidelines: Employee Name (signature): ______________________________________ Print Name: _____________________________ Date: ___________________________________ 95 APPENDIX B.4 AEA Tuition Reimbursement Recovery Agreement TUITION REIMBURSEMENT RECOVERY AGREEMENT (Agreement required for all College/University Tuition Reimbursement Requests) NAME: SUPERVISOR: TITLE: SUPERVISOR TITLE: It is agreed upon that if employment with the Authority/State of Alaska is terminated in less than one year, unless the termination is a result of death, prolonged illness, disability, or layoff, the employee will reimburse the Authority/State for tuition, other fees, and course materials that exceed $500.00 in total in accordance with the following schedule: a) 100% if termination occurs before completing six (6) months, b) 50% if termination occurs after six (6) months or before twelve (12) months, c) 0% if termination occurs after twelve (12) months. Termination for reasons due to misconduct or delinquency on the part of the applicant or employee, or to false statements on appointment documents, either prior to, or subsequent to employment will be considered as termination for reasons within the control of the applicant or employee. Courses providing grades will require at least a “C” for satisfactory completion. Courses with pass/fail grading will require proof of passing for reimbursement. It is agreed that the employee may be required to reimburse the department if he/she fails to attend the event and the department or employee is unable to obtain a refund. It is further agreed that the State of Alaska shall have the right to deduct from the undersigned employee’s final paycheck any monies owing to the State in accordance with the above schedule or to recover such monies by other legal means. Course Title Institution Begin Date End Date Course Title Tuition & Fees Required Books/Materials Total $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total $0.00 $0.00 $0.00 Employee Signature Date HR Director Signature Date Distribution: Original: HR Copy: Finance and Employee 96 Part IV: APPENDIX C C: CONFIDENTALITY Confidentiality of Information Acknowledgment In performing their duties, many employees have access to confidential personal or financial information concerning other Alaska Energy Authority (AEA) employees or entities that do business with AEA. It is important that employees with access to confidential information understand their duty to maintain the confidentiality of that information. All employees must read and sign this form. This form will be filed in the employee’s personnel file 1. I am an employee of the Alaska Energy Authority (AEA). I understand that, in performing my duties, I may have access to confidential information about other AEA employees or entities that do business with AEA. I agree that I will not discuss, disclose, or cause disclosure of any such confidential information to anyone who does not have a business need and a legal right to know the information. 2. I will handle and store confidential information in accordance with AEA policy. 3. I acknowledge that I could suffer disciplinary action, including discharge from AEA employment, and, in certain circumstances, face criminal penalties for revealing confidential information to someone who does not have both a business need and a legal right to know the information, or for misusing confidential information. If I do not know whether a person requesting confidential information is entitled to receive the information, I will consult my supervisor. Examples of confidential information covered by this acknowledgement: Employee information as well as information such as social security numbers, birth dates, home addresses/phone numbers, leave balances, employee actions, investigations, grievances, applications, appeals, or any other employee matter, and other AEA business that is confidential under statute, including AS 39.25.080. All information that is confidential by law, including but not limited to tax matters and beneficiary programs. Information that by its nature must be secured to prevent harm to AEA or their business partners, including but not limited to credit card information and vendor tax information. Questions about this category of information should be directed to AEA Finance. Certification Statement: By signing below I acknowledge that I have read and understand the information provided on page one and two. _______________________ _____________________________ Date: Employee Printed Name Employee Signature 97 Alaska Statute 39.25.080 Sec. 39.25.080. Personnel records confidential; exceptions. (a) State personnel records, including employment applications and examination and other assessment materials, are confidential and are not open to public inspection except as provided in this section. (b) The following information is available for public inspection, subject to reasonable regulations on the time and manner of inspection: (1) The names and position titles of all state employees; (2) The position held by a state employee; (3) Prior positions held by a state employee; (4) Whether a state employee is in the classified, partially exempt, or exempt service; (5) The dates of appointment and separation of a state employee; (6) The compensation authorized for a state employee; and (7) Whether a state employee has been dismissed or disciplined for a violation of AS 39.25.160 (l) (interference or failure to cooperate with the Legislative Budget and Audit Committee). (c) A state employee has the right to examine the employee's own personnel files and may authorize others to examine those files. (d) An applicant for state employment who appeals an examination score may review written examination questions relating to the examination unless the questions are to be used in future examinations. (e) In addition to any access to state personnel records authorized under (b) of this section, state personnel records shall promptly be made available to the child support services agency created in AS 25.27.010 or the child support enforcement agency of another state. If the record is prepared or maintained in an electronic data base, it may be supplied by providing the requesting agency with access to the data base or a copy of the information in the data base and a statement certifying its contents. The agency receiving information under this subsection may use the information only for child support purposes authorized under law. Alaska Statute 39.25.900 Sec. 39.25.900. Penalties. (a) A person who willfully violates a provision of this chapter or of the personnel rules adopted under this chapter is guilty of a misdemeanor. (b) A state employee who is convicted of a misdemeanor under this chapter or the personnel rules adopted under this chapter immediately forfeits the employee's office or position. The Alaska Whistleblower Act The Alaska Whistleblowers Act (AS 39.90.100 – 39.90.150) prohibits public employers from discharging, threatening, or otherwise discriminating against employees for reporting matters of public concern to a public body. The whistleblower protection extends to those who have made — or are about to make — reports on matters of public concern, as well as those who participate in court actions, investigations, hearings, or inquiries on matters of public concern. A "matter of public concern" means a violation of State, federal, or municipal law, regulation, or ordinance; a danger to public health or safety; gross mismanagement, substantial waste of funds, or clear abuse of authority; a matter that the office of the ombudsman has accepted for 98 investigation; or interference or failure to cooperate with the Legislative Budget and Audit Committee. A "public body" means an officer or agency of the federal government, State, a political subdivision of State, a public or quasi-public corporation or authority established by law, or the University of Alaska. Consequently, whistleblower protection could apply to a State employee's report to his or her own employer. Whistleblower protection applies only when the reporting person reasonably believes that the information reported is or is about to become a matter of public concern and the person reports the matter in good faith. The protection does not apply if the matter of public concern is the result of the reporting person's own conduct, unless the reporting person's employer required that conduct. 99 Part IV: APPENDIX D D: EMPLOYMENT LAWS, ADMIN ORDERS & RELATED POLICIES This Appendix includes the following: D.1 Alcohol and Drug-Free Workplace D.2 Americans with Disabilities (AO 129) D.3 Business Use/Acceptable Use Policy (ISP 172) • D.3.1 Artificial Intelligence Guidance D.4 Discrimination and Diversity in the Workplace (AO 195) D.5 Family and Medical Leave Act and the Alaska Family Leave Act D.6 Email Retention Policy D.7 How to Name Electronic Files and Folders D.8 Record Retention and Disposition Schedule D.9 Retention of Public Records D.10 Retire Return to Work Policy D.11 Seat Belt Policy (AO 85) D.12 Sexual Harassment and Other Discriminatory Harassment D.13 SOA Ethics Information D.14 Travel Policy (AAM 60) • D.14.1 AEA Travel Procedures 100 D.1: ALCOHOL AND DRUG FREE WORKPLACE 101 D.2: AMERICAN WITH DISABILITIES ACT Administrative Order No. 129 April 22, 1992 In 1990 the President of the United States signed into law the Americans with Disabilities Act (42 U.S.C. Sec. 12101 et seq.) mandating the elimination of discrimination against individuals with disabilities and requiring state and local governments, among other affected entities, to begin complying with the Act in 1992. It has also been the policy of the State of Alaska, as expressed in the Alaska Human Rights Act (AS 18.80) and reflected in a number of other statutes, including • AS 11.76.130 (making it a crime to interfere with persons with disabilities) • AS 09.20.010 (permitting disabled people to serve as jurors) • AS 35.10.015 (regarding accessibility of public buildings), • AS 36.30.040(b)(16) (requiring procurement regulations to prohibit discrimination), • AS 39.25.150(21) (requiring the personnel rules to grant employment preference in state service to severely handicapped persons), • AS 44.21.500 -.509 (establishing a mechanism for dealing with complaints of employment discrimination in state government), and • AS 47.80 (governing programs for people with disabilities) to eliminate and prevent discrimination because of physical or mental disability in employment, in credit and financing practices, in places of public accommodation, in the sale, lease, or rental of real property, and in government policies, practices, and services. In addition AS 18.80.200(b) makes it the policy of the state to encourage and enable physically and mentally disabled persons to participate fully in the social and economic life of the state and to engage in remunerative employment. Therefore, in furtherance of the State of Alaska’s long standing commitment to human rights and equal opportunity for people with disabilities and to ensure compliance with title I and title II of the Americans with Disabilities Act of 1990, I, Walter J. Hickel, Governor of the State of Alaska, under the authority granted by article III, section 1, of the Alaska Constitution and by AS 44.17.060, hereby order the following as the policy of the executive branch of state government for the provision of services to and employment of people with disabilities and establish the Americans with Disabilities Act compliance program for the executive branch of Alaska state government. AMERICANS WITH DISABILITIES ACT COMPLIANCE PROGRAM Section I. Purpose II. Policy III. Supplement to Earlier Orders IV. Roles and Responsibilities V. Department Compliance Programs 102 VI. Technical Guidance and Assistance VII. Training VIII. Annual ADA Compliance Program Audit Report X. Policy Dissemination XI. Recordkeeping XII. Definitions XIII. Effective Date I. PURPOSE: It is the purpose of this order and the Americans with Disabilities Act compliance program: A. To prevent and eliminate discrimination against individuals with disabilities in employment and public services within state government; B. To establish policies, guidelines and procedures for state agencies to follow to ensure compliance with title I and title II of the Americans with Disabilities Act of 1990, as amended, and their implementing regulations. II. POLICY: It is the policy of the state that: A. No qualified individual with a disability shall be excluded, by reason of such disability, from participation in or be denied the benefits of the services, programs, or activities of a state agency, or be subjected to discrimination by any such agency. B. No agency shall discriminate against a qualified individual with a disability because of the disability of such individual in regard to job application procedures, the hiring, advancement, or discharge of employees, employee compensation, job training, and any other term, condition, and privilege of employment. C. Each agency shall operate each of its services, programs, and activities so that a service, program, or activity, when viewed in its entirety, is readily accessible to and usable by individuals with disabilities. III. SUPPLEMENT TO EARLIER ORDERS: This order supplements Administrative Order No. 18, dated November 22, 1972; Administrative Order No. 59, dated June 20, 1980; Administrative Order No. 75, dated April 8, 1983; Administrative Order No. 76, dated May 23, 1983; Administrative Order No. 81, dated October 25, 1984; Administrative Order No. 86, dated March 4, 1986; Administrative Order No. 93, dated March 4, 1987; and Administrative Order No. 109, dated May 13, 1988, by setting the controlling policies in regard to disability issues. IV. ROLES AND RESPONSIBILITIES: A. The Office of the Governor will retain overall responsibility for the coordination of the state’s efforts to comply with and carry out its responsibilities under this order and the Americans 103 with Disabilities Act. The governor shall appoint an official from within the state to serve as the State ADA Coordinator and make available to the public and state agencies the name, title, office address, and telephone number of the selected official. B. The State ADA Coordinator will: (1) Coordinate and direct the activities of agencies under this order and the efforts of state agencies to comply with title I and title II of the Americans with Disabilities Act; (2) Serve as the state’s primary contact and liaison with the public and agencies on compliance issues regarding the Americans with Disabilities Act and the state’s ADA compliance program; (3) Ensure compliance with the order; (4) Communicate to the public and interested individuals information regarding the ADA compliance program and the names, office addresses, and telephone numbers of agency ADA coordinators appointed under this order; (5) Convene and facilitate meetings of the ADA taskforce assigned in this order with interdepartmental responsibilities for providing technical guidance and assistance; (6) Serve as the primary point of service for and the overall coordinator of the state’s responses to all complaints filed against state agencies with federal and state compliance agencies under the title II compliance procedures (28 C.F.R. 35.170) where the allegations are that the state discriminated in its services, policies, or practices, or failed to comply with the Americans with Disabilities Act. C. Each commissioner is responsible for ensuring the effective implementation of this order within her or his department and ensuring compliance with the Americans with Disabilities Act. Each commissioner shall designate an official within the department to serve as the Department ADA Coordinator and the overall administrator of the department’s ADA compliance program. Each commissioner shall make available to the public, the State ADA Coordinator, and department employees the name, title, office address and telephone number of the selected official. The Department ADA Coordinator shall receive guidance and direction from the department commissioner and the State ADA Coordinator on matters dealing with the Americans with Disabilities Act and is responsible for assuring timely and adequate requests for appropriations to implement the department’s ADA compliance program. D. The Department ADA Coordinator will: (1) Coordinate the department’s efforts to comply with and carry out its responsibilities under title I and title II of the Americans with Disabilities Act; (2) Serve as the department’s primary liaison between the department, the public, and other agencies on issues with the Americans with Disabilities Act and this order; (3) Supervise the preparation and drafting of the department’s title II self-evaluation required 104 under 28 C.F.R. 35.105 and any transition plans developed under 28 C.F.R. 35.150; (4) Maintain the department’s self-evaluation on file and make it available for public inspection as required by 28 C.F.R. 35.105 and the State ADA Compliance Program; (5) Supervise the department’s title II complaint procedure, as required by 28 C.F.R. 35.107, and ensure that, for any complaint communicated to the department alleging noncompliance with the Americans with Disabilities Act or alleging any actions that would be prohibited by the Act or its implementing regulations, an investigation is conducted and the complaint is resolved promptly and equitably; (6) Develop a training plan in consultation and cooperation with the Productivity Improvement Center in the Division of Personnel and Office of Equal Employment Opportunity, Department of Administration for department employees to ensure that managers, supervisors, and employees who provide direct services to the public are aware of their responsibilities under the Americans with Disabilities Act, the state policy, and this order, and are sensitized to the needs of people with disabilities; (7) Direct the activities of the division directors and ADA coordinators within the department in complying with this order and with the Americans with Disabilities Act. E. Each division director is responsible for ensuring the effective implementation of the department ADA compliance program within her or his division and ensuring compliance with the Americans with Disabilities Act. Directors of divisions with 50 or more employees shall appoint a Division ADA Coordinator to administer the division’s ADA compliance program and shall make available to the public, the Department ADA Coordinator, the State ADA Coordinator, and division employees the name, title, office address, and telephone number of the selected employee. F. The director in smaller divisions and the Division ADA Coordinator in divisions with 50 or more employees will, under the guidance and review of the Department ADA Coordinator: (1) Coordinate the division’s efforts to comply with and carry out its responsibilities under title I and title II of the Americans with Disabilities Act, this order, and department directives; (2) Serve as the division’s primary liaison between the division, the public, and other agencies on issues regarding the Americans with Disabilities Act and this order; (3) Oversee and coordinate the preparation of the division’s title II self-evaluation required under 28 C.F.R. 35.105 and assist in the preparation of any transitional plans developed under 28 C.F.R. 35.150; (4) Serve as the coordinator for ADA complaints within the division; (5) Ensure that notice is given to applicants, participants, beneficiaries, and other interested persons on information regarding the Americans with Disabilities Act as required in 28 C.F.R. 35.106. V. DEPARTMENT COMPLIANCE PROGRAMS: 105 Each department will implement a program to ensure that it is in compliance with title I and title II of the Americans with Disabilities Act. The department ADA compliance program must include the following components and measures: A. The appointment of a Department ADA Coordinator and division ADA coordinators for divisions with 50 or more employees by May 1, 1992 and as needed thereafter to fill vacancies; B. An evaluation of the department’s current services, policies, and practices, as required in 28 C.F.R. 35.105, to be completed initially for public comment by June 15, 1992, finalized by January 26, 1993, updated through June 30, 1993; and updated annually thereafter; C. A plan of action, including a timetable, for making the necessary modifications to current services, policies, and practices, and the effects thereof, that do not or may not meet the requirements of the Americans with Disabilities Act and its implementing regulations, to be completed initially by January 26, 1993, updated through June 30, 1993, and updated annually thereafter; D. Transition plans, as required in 28 C.F.R. 35.150, in the event that structural changes to facilities will be undertaken to achieve program accessibility, to be completed initially by July 26, 1992, updated through June 30, 1993, and updated annually thereafter; E. An interim complaint procedure adopted under paragraphs IX.B. and IX.C., meeting the standards imposed by 28 C.F.R. 35.107, to be employed until the regulations referred to in paragraph IX.A. below have been adopted in accordance with the Administrative Procedure Act and have taken effect. Such an interim procedure must provide for prompt and equitable resolution of complaints alleging any action that would be prohibited by title II of the Americans with Disabilities Act; F. A plan for providing notice to applicants, participants, beneficiaries, and other interested persons on the provisions of title II of the Americans with Disabilities Act and its implementing regulations as required by 28 C.F.R. 35.106, to be completed by July 26, 1992; C. A plan for training managers, supervisors, and employees who provide direct services to the public in their responsibilities under the Americans with Disabilities Act and sensitizing them to the needs of people with disabilities to be completed by September 1, 1992, updated through June 30, 1993, and updated annually thereafter. VI. TECHNICAL GUIDANCE AND ASSISTANCE: A. The Division of Personnel and Office of Equal Employment Opportunity in the Department of Administration will provide technical guidance and assistance to agencies on how to comply with the employment provisions of title I and title II of the Americans with Disabilities Act. B. The Division of Engineering and Operations in the Department of Transportation and Public Facilities will provide technical guidance and assistance to state agencies on developing transition plans and making structural changes to state-owned facilities to achieve program accessibility, and on providing appropriate signage on buildings and other facilities. 106 C. The Division of General Services in the Department of Administration will provide technical guidance and assistance to agencies on procurement of assistive technologies and on issues where structural changes are required on state-leased facilities to achieve program accessibility. D. The Division of Information Services in the Department of Administration will provide technical guidance and assistance to agencies on telecommunication devices for the deaf and other issues having to do with making telecommunications accessible within the state; E. The Division of Vocational Rehabilitation in the Department of Education will provide technical advice to agencies on the nature of a disability and reasonable accommodations. VII. TRAINING: A. Each department will ensure that program managers, supervisors, and staff providing direct services to the public receive appropriate training to perform their duties under the Americans with Disabilities Act. B. The Division of Personnel and Office of Equal Employment Opportunity’s Productivity Improvement Center will provide advice and assistance to agencies in developing training plans and meeting training needs. Agencies shall submit the ADA training plans required under paragraph V.E. of this order and requests for training to the Productivity Improvement Center. Agencies will be responsible for training costs. VIII. ANNUAL ADA COMPLIANCE PROGRAM AUDIT REPORT: The Division of Audit and Management Services in the Office of Management and Budget, Office of the Governor shall conduct an annual performance audit of the State ADA Compliance Program, corresponding with the state fiscal year, and submit an audit report to the Governor and the State ADA Coordinator by September 30, 1993 and annually thereafter. IX. COMPLAINT PROCEDURES: A. Within 90 days of the date of this order, the State ADA Coordinator will prepare for adoption under AS 44.62.020 – 44.62.290 regulations setting out a complaint procedure meeting the requirements of 28 C.F.R. 35.107 which provide for prompt and equitable resolution of complaints alleging any action which would be prohibited by title II of the Americans with Disabilities Act. Public hearings under AS 44.62.210 may be conducted under the auspices of the Governor’s Council for the Handicapped and Gifted. The regulations shall be adopted by the Governor and enforced as provided in the regulations. B. Until the foregoing regulations are adopted1 agencies shall follow the complaint procedures established under Administrative Order No. 81 for resolving complaints alleging violations of title II of the Americans with Disabilities Act. C. For internal complaints of employment discrimination, and for employment discrimination complaints filed with federal or state compliance agencies under 29 C.F.R. 1630, 28 C.F.R. 35.170, or AS 128.80.220, agencies shall follow the procedures established under AS 44.21.505 by the Division of Personnel and Office of Equal Employment Opportunity in the 107 Department of Administration. X. POLICY DISSEMINATION: A. Each agency shall post the state policy in Section II of this order in the form provided by the State ADA Coordinator on all bulletin boards and at every facility and office. B. Each commissioner and division director shall ensure that copies of this order are disseminated to all managers and supervisors and that copies of the policy are included in all employee handbooks and department operating policies and procedures manuals. C. The director of the Division of Personnel and Office of Equal Employment Opportunity shall ensure that a copy of this order is provided to all recruitment resources and to labor unions representing state employees. XI. RECORDKEEPING: A. An agency, as required by 29 C.F.R. 1602, shall maintain employee records, including applications, employee files, and agency anecdotal employee records, for a minimum of one year or, if an employment discrimination complaint has been filed, until the complaint is finally resolved, whichever is longer. B. An agency, as required by 28 C.F.R. 35.105(c), shall maintain on file and make available for public inspection for at least three years following completion of its self-evaluation: (1) A list of the interested persons consulted in preparing the agency’s self-evaluation and transition plans; (2) A description of areas examined and any problems identified; and, (3) A description of any actions taken and modifications made. XII. DEFINITIONS: Unless the context indicates otherwise, in this order (1) “ADA” means the Americans with Disabilities Act; (2) “agency” or “state agency” means a department, office, agency, public corporation, board, commission, authority, or other organizational unit of the executive branch of state government excluding the University of Alaska and the Alaska Railroad Corporation; (3) “commissioner” means the chief executive officer of an executive department or other agency with cabinet-level reporting status; (4) “department” means one of the principal departments of the executive branch or any other agency approved by the State ADA Coordinator to function as a department under this order; (5) “disability” means, with respect to an individual, a physical or mental impairment that 108 substantially limits one or more of the major life activities of such individual; a record of such an impairment; or being regarded as having such an impairment, as defined for title I of ADA in 29 C.F.R. 1630.2(g) and for title II of ADA in 28 C.F.R. 35.104; (6) “qualified individual with a disability” means with respect to employment, as defined in 29 C.F.R. 1630.2(m), an individual with a disability who satisfies the requisite skill, experience, education and other job-related requirements of the employment position such individual holds or desires and who, with or without reasonable accommodation, can perform the essential functions of the position; For purposes of programs and services other than employment, “qualified individual with a disability”, as defined in 28 C.F.R. 35.104, means an individual with a disability who, with or without reasonable modifications to rules, policies, or practices, the removal of architectural, communication, or transportation barriers, or the provision of auxiliary aids and services, meets the essential eligibility requirements for the receipt of services or the participation in programs or activities provided by a public entity; (7) “order” means Administrative Order No.129; (8) “state” means the executive branch of Alaska state government. XIII. EFFECTIVE DATE: This order takes effect immediately. DATED at Juneau, Alaska this 22 day of April, 1992. By: S/S Walter J. Hickel Walter J. Hickel Governor of the State of Alaska 109 D.3: BUSINESS USE/ACCEPTABLE USE POLICIES State of Alaska Effective: 8/13/2010 Information Security Policies Last Review: 11/1/2010 Title: Business Use/Acceptable Use Next Review: Quarterly Number: ISP-172 Version: 1.1 Approved by: CIO Pages 5 Distribution: SOA 1. Purpose To outline acceptable use and clarify the protection of State of Alaska (SOA) information assets and technology resources. Unacceptable use exposes SOA to unwarranted risk (e.g., virus attacks, compromised network systems, services and legal issues associated with data tampering, data theft and privacy). 2. Statutory Authority Alaska Statute 44.21 designates the Commissioner of the Department of Administration (DOA) with the responsibility for oversight of all SOA executive branch information technology, fulfilling the role of the Chief Information Officer (CIO) for the State. The roles and responsibilities for statewide information security have been delegated to the Chief Security Officer (CSO) through the Enterprise Technology Services (ETS) division director, by the CIO. Records owned by the Departments are subject to oversight as designated by the Commissioner of the department under AS 44.17. Record retention requirements are subject to State archivist statutes under AS 40.21. 3. Policy Scope This policy is applicable to all SOA branches, departments, divisions, corporations, commissions or other related entities which will be referred to as Department(s). 4. Definitions Terms in this document are defined in the SOA policy ISP-002 Information Security Glossary. 5. Policy Statement This policy stipulates: • Acceptable Use. 5.1 Acceptable Use 5.1.1 Access for Authorized Purposes Acceptable use applies to all personnel (e.g., employees, partners, contractors, consultants, temporaries, other SOA workers and workers affiliated with third parties or anyone having access to SOA information that is not directly accessible to the general public from a non- SOA network (e.g., Internet)) and the use of all information processing equipment, including but not limited to computer equipment, software, operating system, storage media, and network accounts providing electronic mail, World Wide Web 110 (www) browsing, file transfer protocol (FTP), Windows © mobile devices, Smartphones, personal digital assistants (PDAs), etc. and further applies to resources owned, leased, or managed by SOA or its designees and to non-SOA resources used at SOA facilities in the conduct of SOA business. Personnel must use SOA networks and associated systems for authorized business purposes only. Personnel must not access information, programs, or systems when such access is not required for an authorized business purpose. This includes system administrators who must have system access rights due to their job responsibilities. Administrators must not view or otherwise access SOA user information without the express consent of the user, Executive Management or the Division of Personnel and Labor Relations (DOPLR). SSO personnel will monitor equipment, systems, and network traffic at any time, for the purpose of security and network maintenance. 5.1.2 Personal Computing Equipment Prohibited Use Personnel must not use personal computing equipment (e.g., laptops, PC, workstations, servers, external hard drive, USB devices, Smartphone or other networking equipment) within the SOA wide area network (WAN) or local area networks (LANs) for SOA or personal business. Personnel who connect a personal device to an SOA network or device in violation of this policy are exposing the device and all information on the device to potential monitoring, collection and public disclosure. 5.1.3 Contractors Computing Equipment Authorization Contractors may use their personal or company owned devices within the SOA WAN or LANs, but these devices must be subject to all SOA policies when connecting to the SOA networks and will be monitored, reported and audited for security proposes. Contractors forfeit any right to privacy. Contractors who connect personal or company owned devices to the SOA network acknowledge that all materials and information on each device are subject to monitoring, review, collection and public disclosure by State or federal statute, regulations, administrative order, policy or directive. 5.1.4 Application of Passwords Authorized users are responsible for the security of their passwords and accounts. System level passwords should be changed regularly. Personnel must use passwords of strength, specific criteria and control to access and protect the SOA WAN and LANs and must adhere to what is defined in SOA policy ISP-178 Password Management. With the exception of public-access terminals or by SOA SSO written authorization, all non- mainframe computers (e.g., servers, workstations, terminals and laptop computers) must be secured with a password-protected screensaver with the automatic activation feature set at 10 minutes or less. When personnel leave a computer unattended this password-protected screensaver feature must be manually activated or the computer must be turned off. 5.1.5 Posting of SOA Sponsored Accounts 111 SOA sponsored accounts to news groups or web forums shall contain a disclaimer which states the opinions expressed are strictly the poster’s own and not necessarily those of the SOA, unless posting is in the course of business duties. 5.1.6 Use of Issued Credentials Personnel must use only the user IDs, network addresses, and network connections defined by the SOA or department information technology administration staff to access SOA networks and associated systems. 5.1.7 Unauthorized Security Tools Personnel must not download, install, or execute any security program or utility (e.g., password cracker, network sniffer, vulnerability scanner) designed to reveal weaknesses in the security of a system without explicit authorization from the State Security Office (SSO). 5.1.8 Execution of Electronic Information Personnel must use extreme caution when opening files that have been sent to or received either electronically or on removable media (e.g., floppy disk, CD/DVD, USB Flash drive). Examples of such files are email attachments received from unknown senders, files downloaded from the www or FTP sites, seemingly innocuous commercial files, etc. Any and all of these items can contain viruses, e-mail bombs, trojan-horse code, spyware/ad- ware, BOT net, other malware, or inappropriate material and should be suspected. If personnel experience unusual computer symptoms when opening unknown files, they must report these to their department IT staff immediately. If contractors with SOA business suspect any of the above listed items they shall disconnect from SOA network and notify their client supervisor immediately for remediation in all efforts to protect SOA information assets. 5.1.9 Unacceptable Use Under no circumstances are personnel of the SOA authorized to engage in any activity that is illegal or in violation of local, State, federal or international law, or Alaska Administrative Code. Prohibited email, communication activities, system and network activities are listed below. Personnel may be exempted from some of these restrictions during the course of their valid job responsibilities (e.g., systems administration staff may have a need to disable the network access of a host if that host is disrupting production services or the requirement of a law enforcement investigation) however, cautious and meticulous adherence must be followed by all users. 5.1.9.1 E-mail and Communications Prohibited Activities: • Any illegal activity. • Intentionally sending unsolicited e-mail messages, including the sending of "junk mail" or other advertising material to individuals who did not specifically request such material. • Any form of harassment via email, instant messaging, telephone, paging, or other electronic means, whether through language, frequency, or size of messages. • Unauthorized use, or forging, of email header information. • Solicitation of email for any other email address, other than that of the poster's account, with the intent to harass or to collect replies. 112 • Creating or forwarding "chain letters", "Ponzi" or other "pyramid" schemes of any type. • Use of unsolicited email originating from within SOA networks or other Internet/Intranet/Extranet service providers on behalf of, or to advertise, any service hosted by SOA or connected via the State's network. • Posting the same or similar non-business-related messages to Usenet news groups or web forums. • Use for access to or distribution of indecent or obscene material, including child pornography. • Use for commercial activities, including advertising, unless specific to charter, mission, or duties of the government agency. • Use for fundraising, political campaign or partisan activities, or public relations activities not specifically related to SOA government activities. • Use of SOA information technology resources for personal gain. 5.1.9.2 System and Network Prohibited Activities: • Violations of the rights of any person or company protected by copyright “©”, or trade mark “™” or registered “®”, or trade secret, patent or other intellectual property, or similar laws or regulations, including, but not limited to, the installation or distribution of "pirated" or other software products that are not appropriately licensed for use by the SOA. • Unauthorized copying of Copyright Material “©” including, but not limited to, digitization and distribution of photographs from magazines, books or other copyright sources, copyright music, and the installation of any copyright software for which the SOA or the end user does not have an active license is strictly prohibited. • Exporting software, technical information, encryption software or technology, in violation of international or regional export control laws, is illegal. Intentional introduction of malicious programs into SOA information technology resources (e.g., introducing viruses, worms, Trojan horses, e-mail bombs, etc. into the SOA network or individual SOA computing devices). • Revealing account information to others or allowing use of a personal account by others. This includes family and other household members when work is being done at home. • Using SOA computing assets to actively engage in procuring or transmitting material that is in violation of sexual harassment or hostile workplace laws. • Making fraudulent offers of products, items, or services originating from any SOA account. • Intentionally causing security breaches or disruptions of network communication. Security breaches include, but are not limited to, accessing data of which the employee is not an intended recipient or logging into a server or account that the employee is not expressly authorized to access. For purposes of this section, "disruption" includes, but is not limited to, network sniffing, ping floods, packet spoofing, denial of service, and forging route information for malicious purposes. • Network vulnerability testing, security scanning, virus or Trojan horse testing or executing any form of network monitoring, which will intercept data not intended for the user's host. • Any activity, application or service that disables, tampers with, circumvents security solutions, services, controls, user authentication, security of any host, 113 network or account, or interfering with or denying service to any authorized user or service is prohibited and strictly enforced. (e.g., URL filtering, network monitoring, remote access requirements through SOA virtual private network, SOA ingress/egress access control requirements, Cisco Security Agent, and other security solution, service, or control, intentionally evading a security solution or process, or creating a denial of service to a user, applications, host, network, or other SOA process). • Using any program/script/command, or sending messages of any kind, with the intent to interfere with or disable another user's terminal session via any means, locally or via the Internet/intranet/extranet. • Providing information about or lists of SOA personnel to any outside parties, without a business case or SSO approval. • Personal use of or divulging of private or confidential information regarding any individual obtained by any personnel, as a result of performance of job duties or as a result of their employment with the SOA. • Use of encryption (at rest or in transit) without an approved business case justification and written approval from the ISO Designee and the SSO. • Uses of peer-to-peer (P2P) file transfer solutions (e.g., Gnutella, BitTorrent, etc.) without an approved business case justification and written approval from the Department Information Security Officer (ISO) and the SSO. • Use of non-standard, non-SOA provided instant messaging technologies (e.g., Skype, MSN, AOL, Googletalk, etc.) or other similar technologies without an approved business case justification and written approval from the Department Information Security Officer (ISO) and the SSO. • Use of non-standard remote control technologies (e.g., GoToMyPC, Dameware, Radmin, etc.) or other similar technologies. • Use of non-operating system standard screen saver or other similar technologies. • Use of any external proxy systems or other similar technologies. • Use of any program or application that performs off-site document or file indexing (e.g., Google Desktop) or other similar technologies. • Use of any streaming media technologies (e.g., Radio, YouTube, etc.) without an approved business case justification and written approval from the Department Information Security Officer (ISO) and the SSO. 5.1.10 Least Privilege Personnel tasked with network user administration must ensure that network and system access controls are configured to limit the privileges extended to users to the least necessary to accomplish authorized business purposes. 5.1.11 Applicable Statutes and Enforcement The Executive Branch Ethics Act states a public employee may not "use state time, property, equipment, or other facilities to benefit personal or financial interests" (AS 39.52.120(b)(3)). Further, "standards of ethical conduct for members of the executive branch need to distinguish between those minor and inconsequential conflicts ... and those conflicts of interests that are substantial and material." (AS 39.52.110(a)(3)). The Executive Management acknowledges that incidental personal use may be unavoidable in today’s electronic environment. In cases where SOA office technology incidental personal use occurs, users must be aware that there is no right to privacy 114 regarding these occurrences. Applicable Statutes, Administrative Orders and Codes include, but are not limited to: AS 39.52, Alaska Executive Branch Ethics Act; Administrative Order #81, Nondiscrimination and Non-Harassment; Administrative Code 9 AAC 52, Alaska Executive Branch Code of Ethics; AS 39.25.160, Alaska Little Hatch Act; AS 24.60, Legislature Standards of Conduct. Personnel found to have violated this policy are subject to discipline up to and including dismissal. 115 D.3.1: ARTIFICIAL INTELLIGENCE GUIDANCE 116 117 118 119 120 D.4: DISCRIMINATION AND DIVERSITY IN THE WORKPLACE AEA TITLE VI POLICY STATEMENT It is the policy of the Alaska Energy Authority (AEA or the Authority), in accordance with 49 CFR Part 21 (Department of Transportation Regulations for the Implementation of Title VI of the Civil Rights Act of 1964 and the Civil Rights Restoration Act of 1987 (P.L. 100.259), and 23 CFR Part 200 (Title VI Program and Related Statutes—Implementation and Review Procedures), Executive Order 12250, 23 USC 324 (Prohibition of Discrimination on the Basis of Sex), Title VIII of the Civil Rights Act of 1964, 23 U.S.C. 109(h), DOT Order 1050.2, the Civil Rights Restoration Act of 1987, and Executive Order 12898-Environmental Justice, that no person in the State of Alaska shall, on the grounds of race, color, sex, or national origin be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which the Authority receives federal assistance from the U.S. Department of Transportation, include the Federal Transit Administration (FTA). Administrative Order No. 195 March 5, 2002 Findings I, Tony Knowles, Governor of the State of Alaska, make the following findings: 1. Alaska is one of the most ethnically diverse states in the nation. According to the 2000 Census, 15.6 percent of Alaskans identify themselves as Alaska Native; 4.1 percent as Hispanic or Latino; 4 percent as Asian; 3.5 percent as African American; 5.4 percent as “mixed,” and 69.3 percent as white. 2. As Alaskans, we cherish our freedoms and civil rights. The first act of the Territorial Legislature in 1913 gave women the right to vote–seven years before the rest of the nation. Civil rights legislation championed by Elizabeth Peratrovich and the Alaska Native Brotherhood and Sisterhood passed in 1945, two decades before the United States Civil Rights Act. 3. Alaskans have made great strides in overcoming discrimination and injustice, but recent events and findings of the Governor’s Commission on Tolerance make it clear that levels of intolerance and discrimination continue to exist in our state. 4. As a nation and a state dedicated to democracy and civil liberties, we, as individuals, employers, employees, and communities must do all we can to eliminate discrimination and intolerance from our society and celebrate our diversity. 121 5. While tolerance and respect for all peoples inherently is the responsibility of each individual, those in leadership and institutional roles should lead this effort and teach by example. 6. As an employee, public servant, and institution, the State of Alaska can take steps to improve our workplaces and customer service to reflect the diversity of our state and our respect for all peoples. Order I, Tony Knowles, Governor of the State of Alaska, under the authority vested in me by art. III, secs. 1, 16, and 24, of the Alaska Constitution, and in recognition of the findings concerning perceived institutional intolerance in state agencies set out in the final report of the Governor’s Commission on Tolerance, renew the state’s commitment to diversity in the state workplace free from discrimination and harassment. I declare that it is the continued goal of the executive branch to eliminate discrimination and harassment in the contexts of the state as an employer and service provider; to assure timely response to discrimination and harassment complaints concerning state personnel or services; to prohibit and prevent discriminatory behavior in the state workplace based on race, sex, color, religion, physical or mental disability, sexual orientation, or economic status, to assure that all Alaskans have the opportunity to compete fairly for state jobs; and to assure that state personnel serve all Alaskans with respect. This Order fosters policies contained in AS 18.80.010 – 18.80.300, AS 39.25.010 – 39.25.995, AS 44.19.450 – 44.19.458, in related regulations adopted under those statutes, and in Administrative Orders No. 189, 129, 109, 93, 86, 81, 76, 75, 59, 35, 24, and 18 on this subject. To promote these policies, I order all of the state agencies of the executive branch to: 1. Implement within the head office of each state agency an early intervention process for discrimination and harassment complaints concerning state personnel. The Department of Administration shall establish this informal harassment and discrimination complaint process to be implemented by all state agencies consistent with collective bargaining agreements and law. The Department of Administration shall publicize the process to all state personnel through training, orientation, and educational materials. The Department of Administration shall facilitate training for supervisors and other state managers on how to recognize complaints of discrimination or harassment and the appropriate initial response to those complaints. The state agency head shall assign an internal complaint officer within the agency head’s office to be responsible for the implementation and operation of the internal, informal complaint process within each state agency. Implement standardized orientation for new hires to the state workforce and provide diversity training for all state personnel. The Department of Administration shall standardize new hire orientation to assure that new state personnel are advised of their rights and responsibilities with respect to human rights, equal employment opportunity, and civil rights law and of their responsibility for contributing to a positive workplace for all state workers. In addition to the currently offered curriculum on “Respectful Workplace,” the Department of Administration shall embark on a statewide diversity training initiative for all state employees. This training shall emphasize a broad definition of diversity. The course shall be available through the division of personnel, Department of Administration, as a regularly scheduled class in Anchorage, Fairbanks, Juneau, and other communities as necessary, and on request as a customized course for state staff units throughout Alaska. With the 122 approval of the Department of Administration, each state agency may adapt the training to specific needs and circumstances of that agency and may use current, successful training programs to avoid duplication with the statewide program, with the understanding that all agency training must include all essential elements of the statewide program. To the maximum extent possible, all state employees currently serving in a supervisory position must complete a diversity training course described in this provision within one year after the effective date of this Order and state employees hired for a supervisory position after the effective date of this Order must complete the training course within one year after hire. 2. Increase recruitment outreach, improve training for hiring managers, and broaden the high school and college internship programs to ensure the widest diversity of opportunity for all Alaskans. Each state agency shall engage in active recruitment outreach activities, including job fairs that reach more diverse segments of Alaska’s population and cooperative efforts with Alaska Native and other ethnic organizations to provide training on how to apply for state jobs. The Division of Personnel, Department of Administration, shall assure that basic Workplace Alaska training for hiring managers emphasizes the importance of fair treatment for all minorities throughout the state recruitment process. Training for managers shall include techniques for interviewing diverse applicants to assure absence of bias. The division of personnel, Department of Administration, shall work with public school and University of Alaska administrators to develop and advertise a statewide high school and college internship program that is open to all Alaska students. 3. Implement customer service training for all state agency employees who deal with the public on a day-to-day basis and an informal public service complaint process within each state agency. Each state agency shall establish an open and publicized complaint process through which the public can make their concerns known to the state agency regarding perceived discrimination in state service delivery. Each state agency shall report to the Governor annually, no later than December 31 of each year, on the number and type of complaints and their response to each. State employees who interact with the public will attend training offered by the division of personnel, Department of Administration, stressing the importance of treating all citizens with respect regardless of the citizen’s background, origin, or life style. The training will develop skills for providing service to a diverse public and will take into consideration the specific needs of each state agency based on the customers it serves. This Order takes effect immediately. Dated at Juneau, Alaska this 5th day of March 2002. By: S/S Tony Knowles Tony Knowles Governor 123 D.5: FAMILY AND MEDICAL LEAVE ACT AND ALASKA FAMILY LEAVE ACT Department of Administration DIVISION OF PERSONNEL AND LABOR RELATIONS PAYROLL SERVICES 801 W. 10th Street, Suite B OR 550 W. 7th Avenue, Suite 1660 Juneau, Alaska 99801 Anchorage, AK 99501 YOUR RIGHTS AND RESPONSIBILITIES UNDER THE FAMILY AND MEDICAL LEAVE ACT OF 1993 and ALASKA FAMILY LEAVE ACT OF 1992 THE FAMILY AND MEDICAL LEAVE ACT (FMLA) requires covered employers to provide up to 12 weeks in a 12 month period of paid or unpaid, job-protected leave to eligible employees for qualifying family and medical reasons (the State of Alaska is a covered employer). Employees are eligible if they have worked for a covered employer for at least one year, and for 1,250 hours over the previous 12 months, and if there are at least 50 employees within 75 miles (see the policy below concerning the number of employees within a given radius). THE ALASKA FAMILY LEAVE ACT (AFLA) requires covered public employers to provide up to 18 weeks in a 12 or 24 month period of paid or unpaid, job-protected leave to eligible employees for qualifying family and medical reasons. Employees are eligible if they have been employed by a covered employer for at least 35 hours a week for at least six consecutive months or for at least 17.5 hours a week for at least 12 consecutive months immediately preceding the leave, and if there have been at least 21 employees within 50 road miles during any period of 20 consecutive workweeks in the preceding two calendar years (see the policy below concerning the number of employees within a given radius). MILITARY FAMILY LEAVE (MFL) is a FMLA amendment, which includes 2008 and 2010 provisions, that has the same eligibility requirements and job protection provided by FMLA. This amendment allows an employee to take up to 12 weeks of leave in a 12 month period for “any qualifying exigency” of a military member who is on covered active duty and is a qualified family member. This amendment also allows an employee to take up to 26 weeks of leave in a 12 month period to care for a covered servicemember (qualified family member) recovering from a serious illness or injury sustained in the line of duty while on active duty. A “covered servicemember” is defined as a member in the Armed Forces (including the National Guard or Reserves) or a veteran who was active in the Armed Forces within the last five years. POLICY: The State of Alaska has elected to substitute paid leave for unpaid leave for use in a family leave qualifying condition when it is available to the employee through accruals, donations, or other means authorized by collective bargaining agreements or state statutes. The State of Alaska has chosen to have the 12 or 24 month family leave entitlement start when an employee first takes leave for the qualifying condition. The State of Alaska has adopted a more generous policy that allows employees who meet the employment and hours worked thresholds to be eligible for family leave regardless of the number of employees within a given radius. REASONS FOR TAKING LEAVE: Either or both of these leave entitlements require an absence 124 to be granted for any of the following reasons: o to care for the employee's child after birth, or placement for adoption or foster care; or o to care for the employee's spouse, son or daughter, or parent (in-law, step, or who stood in loco parentis) who has a serious health condition; or º for a serious health condition that requires the employee to be absent from the employee's job; or o for an employee whose family member is a military member who has a qualifying exigency or a serious illness or injury. ADVANCE NOTICE AND MEDICAL CERTIFICATION: The employee may be required to provide advance leave notice and medical certification. Taking of leave may be denied if requirements are not met. o The employee ordinarily must provide 30 days advance notice when the leave is foreseeable (notification can be provided by a family member or spokesperson when necessary). o When leave is not foreseeable, the employee must provide notice as soon as reasonably possible. o An employer may require medical certification to support a request for leave because of a serious health condition, and may require second or third opinions (at the employer's expense), periodic updates, and/or a fitness for duty report to return to work. JOB BENEFITS AND PROTECTION: o For the duration of FMLA leave, the employer must maintain the employee's health coverage under any group plan. There is no similar requirement under AFLA. o Upon return from FMLA or AFLA leave, most employees must be restored to their original or equivalent positions with equivalent pay, benefits, and other employment terms. o For the use of family leave, an employee cannot realize the loss of any employment benefit that accrued prior to the start of an employee's leave. EMPLOYEE RESPONSIBILITIES: o When medical certification is required, the employee must return the completed form to Payroll Services within 15 days of receiving notice from employer. If the certification is not received, the employee may be denied coverage under the family leave acts. o The employee is responsible for their portion of premium payments for health insurance and other optional benefits. Premiums are taken as payroll deductions but if funds become insufficient the employee will need to make arrangements to pay premiums. Note: Certain optional benefits will stop if there are insufficient funds for payroll deductions. Contact Payroll Services for more information. o When an employee takes leave, associated with the covered condition(s), notification must be given to the supervisor and “family leave” must be noted on the leave slip. o The employee must follow the agency’s leave notification requirements including established call-in procedures. o All leave designated as family leave will count against the employee’s family leave entitlements. o When a fitness for duty report is required, it must be provided as requested prior to the employee returning to work. o With rare exception, an employee who does not return to work for at least 30 days will be required to reimburse the State of Alaska’s portion of the health insurance premiums for the period of time the employee was on family leave. 125 UNLAWFUL ACTS BY EMPLOYERS: The Family Leave Acts makes it unlawful for any employer to: o interfere with, restrain, or deny the exercise of any right provided under the Acts. o discharge or discriminate against any person for opposing any practice made unlawful by the Acts or for involvement in any proceeding under or relating to the Acts. ENFORCEMENT: o Employees covered by a collective bargaining agreement may follow the complaint procedure set out in their respective agreements. o The U.S. Department of Labor is authorized to investigate and resolve complaints of violations of FMLA. The Alaska Department of Labor is authorized to investigate and resolve complaints of violations of AFLA. o An eligible employee may bring civil action against an employer for violations of either family leave Act. The Acts do not affect any Federal or State law prohibiting discrimination, or supersede any State or local law or collective bargaining agreement which provides greater family or medical leave rights. FOR ADDITIONAL INFORMATION: Contact your agency Human Resource Office, Payroll Services or the nearest office of the Wage and Hour Division, listed in most telephone directories under U.S. Government, Department of Labor. Links to Additional Information: o Absence Management Contact - soa.absence.management@alaska.gov o Family Leave Information for State of Alaska Employees – http://doa.alaska.gov/dop/AbsenceManagement/familyLeave/ 126 D.6: EMAIL RETENTION POLICY 127 128 129 D.7: HOW TO NAME ELECTRONIC FILES AND FOLDERS 130 D.8: RECORD RETENTION AND DISPOSITION SCHEDULE 131 132 133 134 D.9: RETENTION OF PUBLIC RECORDS http://www.archives.state.ak.us/records_management/records_management.html 135 The purpose of General Administrative Records Retention Schedule #100.3 is to list and describe common records series that many State agencies administer; and, prescribe mandatory minimum retention periods for those records. These records include paper documents, magnetic tape, compact discs, DVDs, flash drives, hard drives, floppy disks, microfiche, microfilm, maps and all other recorded information, regardless of medium or characteristics as defined in AS 40.21.150 (6). Commissioner Office staff should refer to the Commissioner General Records Retention Schedule for guidance. Records and their proper maintenance are a matter of law and fact. Alaska Statute 40.21 (State Records Management Act) and 4 AAC 59 (Archives & Records Management Services) provide the necessary legal framework for the administration of the State of Alaska’s records. As records constitute a risk that must be managed properly to minimize the liability to the State, Alaska has established an archives and records management program within the Division of Libraries, Archives & Museums to assist state agencies in mitigating this risk. 4 AAC 59.020 (c) requires agencies to follow general records retention schedules that Archives & Records Management establishes. This general schedule enables offices to further comply with AS 40.21.060 (2), which mandates each agency chief executive officer to establish and maintain an active continuing program for the efficient management of its records and to apply the provisions of approved records retention schedules to ensure the orderly disposition of state records. Records Management developed the General Administrative Records Retention Schedule using the knowledge, skills and abilities of subject matter experts. The following individuals assisted with this publication: Victor Leamer, Division of General Services Sylvia Watson, Office of the Governor Frank Hurt, Division of Personnel & Labor Relations Deborah Behr, Attorney General's Office Kim Garrett, Division of Personnel & Labor Relations Kim Garnero, Division of Finance Margie Vandor, Attorney General's Office Judy Bockmon, Attorney General's Office Craig Tillery, Attorney General's Office Gail Voigtlander, Attorney General's Office AUTHORIZATION & APPROVAL Under the authority of AS 40.21 and 4 AAC 59 the records listed on General Administrative Records Retention Schedule #100.3 are approved for retention and disposition as indicated. /for/ Commissioner of Administration Kim Garnero /s/ Date 1/8/09 /for/ Attorney General Craig Tillery /s/ Date 12/29/08 State Archivist Glenn Cook /s/ Date 12/12/08 State Records Manager D. Dawson, CRM /s/ Date 12/12/08 i GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 AUTHORIZATION & APPROVAL 136 Benefits of Utilizing the General Records Schedule Locate the right information quickly Reduce Volume of records stored in paper-based and electronic systems Improve storage and retrieval systems Increase Efficiency of office operations Reduce Costs for equipment, supplies, space, and personnel Identify and Protect vital and confidential records Improve customer relations and accountability of public funds Reduce Risk and Liability Ensure Compliance with applicable laws, rules, and regulations Disposition of State Records—General Rule The suggested timeframes for retaining common records series must be followed by all state agencies, unless the agency has a program records retention schedule that stipulates a longer retention period. Offices that dispose of unscheduled records must dispose of them in accordance with 4 AAC 59.025. Whenever the records contractor or other vendor in Juneau or Anchorage performs destruction services for scheduled, unscheduled or confidential records, the agency must complete a Records Disposition Authorization form. The Division Director, Records Officer and State Archivist must sign this document to fully authorize the destruction. Duplicate copies of documents may be disposed after all administrative and management need is met. In the event you become aware of a public records request under 2 AAC 96, actual or threatened litigation, audit or investigation that may concern a group of records, Do Not Dispose of records until authorized to do so by the Division Director or the Attorney General's Office. ii GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL INFORMATION & INSTRUCTIONS 137 The General Schedule & Electronic Records This General Administrative Records Retention Schedule applies to records regardless of their physical format. Therefore, records created or maintained as the Record Copy in electronic format must be retained in accordance with the minimum retention requirements presented on this schedule. Definition of Record AS 40.21.150 (6) defines "record" to mean “any document, paper, book, letter, drawing, map, plat, photo, photographic file, motion picture film, microfilm, microphotograph, exhibit, magnetic or paper tape, punched card, electronic record, or other document of any other material, regardless of physical form or characteristic, developed or received under law or in connection with the transaction of official business and preserved or appropriate for preservation by an agency or a political subdivision, as evidence of the organization, function, policies, decisions, procedures, operations, or other activities of the state or political subdivision or because of the informational value in them.” Definition of Electronic Record AS 40.21.150 (4) defines “electronic record” to mean “any information that is recorded in machine readable form.” Refer to 4 AAC 59.005 regarding requirements for the retention and preservation of electronic records. “Record” Electronic-Mail [E-mail] The State of Alaska runs on e-mail. E-mail is created, received, and transmitted on an electronic mail system. E- mail that constitutes a “record” as defined above in AS 40.21.150 (6), including attachments that are transmitted with the e-mail, are subject to this General Records Schedule and individual agency records retention schedules. Record e-mail, which also may include text and instant messages (text messages in real-time), shall be retained for the same period of time as the records series that most closely matches the subject matter contained within the e-mail. If there is no entry that resembles or matches the subject matter of the e-mail, the agency retention schedule must be updated to include the entry as a separate series. E-mail that is declared a record shall be archived in retention folders or buckets within the Enterprise E-mail Archive System [or other system approved by the State Archivist]. E-mail that is listed as Permanent on a records schedule shall be archived in a 99-year retention bucket and printed out for transfer to the Alaska State Archives in accordance with the appropriate schedule. Non-Record E-mail E-mail, attachments, text and instant messages that are not “records” as defined in AS 40.21.150 (6) may be destroyed immediately. Non-record communications include those of a transitory nature primarily generated for informal transmission of information, not the perpetuation or formalization of knowledge. [Refer also to Item 76, Transitory & Miscellaneous Administrative Information.] Personal messages constitute non-records as they are not "accounts" or "writings" "developed or received by a public agency," and are not "preserved for their informational value or as evidence of the organization or operation of the public agency" under AS 40.25.110. iii GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL INFORMATION & INSTRUCTIONS 138 Other Relevant Statutory References AS 40.25.110. Provides in part that unless specifically provided otherwise, the public records of all public agencies are open to inspection by the public under reasonable rules during regular office hours. AS 40.25.120. Every person has a right to inspect a public record in the state, including public records in recorders’ offices… [Exceptions are provided in law.] AS 40.25.122. A public record that is subject to disclosure and copying under AS 40.25.110 - 40.25.120 remains a public record subject to disclosure and copying even if the record is used for, included in, or relevant to litigation, including law enforcement proceedings, involving a public agency, except that with respect to a person involved in litigation, the records sought shall be disclosed in accordance with the rules of procedure applicable in a court or an administrative adjudication. AS 40.25.220 (3) "public records" means books, papers, files, accounts, writings, including drafts and memorializations of conversations, and other items, regardless of format or physical characteristics, that are developed or received by a public agency, or by a private contractor for a public agency, and that are preserved for their informational value or as evidence of the organization or operation of the public agency; "public records" does not include proprietary software programs. AS 09.80.195. Uniform Electronic Transactions Act—Use of electronic records and electronic signatures; retention of electronic records. AS 45.48. Breaches of security involving personal information, credit report and credit score security freezes, consumer credit monitoring, credit accuracy, protection of social security numbers, care of records, disposal of records, identity theft, furnishing consumer credit header information, credit cards, and debit cards. AS 40.17. Recording of documents by the Recorder's Office, Department of Natural Resources. Abbreviations Used on this Records Schedule AAC: Alaska Administrative Code EEO: Equal Employment Opportunity AKSAS: Alaska State Accounting System ESD: Employment Security Division APSIN: Alaska Public Safety Information Network FMLA: Family & Medical Leave Act AS: Alaska Statutes IT: Information Technology ADA: Americans with Disabilities Act MOA: Memoranda of Agreement AFLA: Alaska Family Leave Act NCIC: National Crime Information Center CD: Compact Disk OMB: Office of Management & Budget CFR: Code of Federal Regulations OSHA: Occupational Safety & Health Admin. DGS: Division of General Services RSA: Reimbursable Services Agreement DAS: Division of Administrative Services SEF: Statewide Equipment Fleet DOF: Division of Finance URL: Uniform Resource Locator DOPLR: Division of Personnel & Labor Relations VPN: Virtual Private Network iv GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL INFORMATION & INSTRUCTIONS 139 BUDGET PREPARATION RECORDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1 Item No. 1 Agency Budget Request (Final Submission) 2 Agency Budget Workpapers (Original Preparation File) 3 Program Unit Budget Request Files (Working File) GENERAL ACCOUNTING RECORDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 2 - 6 Item No. 20 Disbursement Accounting (AKSAS Original Document File) 21 Payroll Accounting (Automated Payroll Reports) 22 Payroll Accounting (Pay/Leave Records) 23 Reimbursable Services Agreements 24 Travel Accounting 25 Vendor Files 26 Adjusting Entries 27 Accounting Reports 28 Revenue Accounting 29 Banking Records 30 Reconciliation Workpapers 31 Redeemed Warrants 32 Forgery & Fraud Investigation Case Files GRANT MANAGEMENT RECORDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 7 - 8 Item No. 40 Grant Administration Files (State Issued) 41 Grant Administration Files (State Received) 42 Grant Solicitation Files 43 Applications & Responses (Not Awarded) 44 Evaluations & Recommendations of Responses PROCUREMENT, LEASING & PROPERTY RECORDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 9 - 11 Item No. 50 Procurement Files 51 Lease Administration Files 52 State Equipment Records 53 Automotive Management (Major) 54 Automotive Management (Minor) 55 Property Control Records 56 Property (Land & Buildings) v GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE 100.3 TABLE OF CONTENTS 140 GENERAL ADMINISTRATIVE RECORDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Pages 12 - 21 Item No. 60 Administrative Systems Studies & Operational Plans 61 Program History Files 62 General Correspondence Files & Central Files 63 Legal Opinions 64 Legislation & Regulation Working Files 65 Minutes & Meeting Files—Major Policy Making 66 Minutes & Meeting Files—Non-Policy Making 67 Program Policies & Procedures--Major 68 Program Policies & Procedures—Routine 69 Advertisements: Legal 70 Public Records Log & Requests for Information 71 Reading Files 72 Records & Information Management Files 73 Reports—Staff 74 Reports—Annual 75 Reports—Audit 76 Transitory & Miscellaneous Administrative Information 77 Technical Reference Files 78 Special Projects 79 Functional Forms Files 80 Numerical Forms Files 81 Forms Management Reports 82 Emergency Response, Disaster Prevention & Recovery Plans 83 Disaster Preparedness Drills 84 Drafts & Working Papers 85 Incident & Unusual Occurrence Reports 86 Inspection Records 87 Key & Badge Issuance Records 88 Supply Records 89 Security Recordings 90 Visitor Logs 91 Complaints: Citizen/Consumer/Employee 92 Training Materials 93 Mail & Telephone Records 94 Postage Records 95 Parking Decal/Permit Records 96 Memoranda of Understanding/Agreement 97 Lost & Found Records 98 Web Site Content, Management & Operations Records vi GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE 100.3 TABLE OF CONTENTS 141 PERSONNEL ADMINISTRATION RECORDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 24 - 34 Item No. 100 Individual Personnel Files—Classified, Partially Exempt & Non-Permanent 101 Individual Personnel Files--Exempt 102 Recruitment, Selection & Appointment Records 103 Unsolicited Employment Inquiries 104 Position Control Number Files 105 Employee Training Records—Hazardous/Toxic Substances & Blood-Borne Pathogens 106 Hazard Communication & Material Safety Data Sheets 107 Employee Medical Records 107a Employee Medical Records --Report of Occupational Injury or Illness 107b Employee Medical Records --ADA Accommodation Records 107c Employee Medical Records --FMLA/AFLA Files 107d Employee Medical Records --Drug Test Records 108 EEO & Affirmative Action Complaints 109 Grievance Case Files 110 Background/Security Checks 111 Ethics Disclosure Forms 112 Ethics Files 113 Ethics Reports INFORMATION TECHNOLOGY RECORDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 35 - 38 Item No. 120 Feasibility Study Reports 121 Systems Analysis & Design Documentation 122 Testing Data 123 Program Source Code & Programmer Documentation 124 Program (User) Documentation & Training Materials 125 IT General Documentation File 126 Post Implementation Evaluation Review & Reports 127 IT Asset Audits (Inventories) 128 IT Access Authorizations 129 Change, Configuration & Release Management Records ALPHABETIC INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 39 – 43 vii GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE 100.3 TABLE OF CONTENTS 142 Item No. Records Series & Description Retention & Disposition Remarks 1 Agency Budget Request (Final Submission): This records series constitutes the Department’s copy of its final budget request submitted to Office of Management & Budget (OMB). May include: amendments; revised programs; supplemental requests; personal services information, including expenditure data; component financial summaries; supplies, equipment and contractual detail; data relating to interagency transfers (RSA’s) of both operating and capital funds; correspondence; and, other component supporting documentation. Record Copy: OMB retains. Retentions vary. Agency Copy: Retain 3 years after current fiscal year. Record Copy of budget requests, budget amendments, supplemental requests and revised programs are maintained permanently by OMB in most cases. Agency administers Record Copy of Reimbursable Services Agreements (RSA’s) that do not require OMB approval for 3 years after closeout (refer to Item #23). 2 Agency Budget Workpapers (Original Preparation File): This series consists of the working papers of department budget analysts and line staff used for the preparation of the fiscal year budget submission to OMB. Includes the following types of documents: budget instructions, operating and capital budget submissions, cost allocations, amendments, revised programs, supplementals, correspondence, and other supporting backup. Record Copy: OMB or State Archives retains permanently. Agency Copy: Retain 3 years after current fiscal year. 3 Program Unit Budget Request Files (Working File): This fileset includes documents created and used by program managers to develop budget requests including cost statements, estimates, justifications, and supporting backup. The program budget request is submitted to department budget analyst and maintained as part of Item #1. Record Copy: Retain 1 year after current fiscal year. Agency administers Record Copy. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE 100.3 BUDGET PREPARATION RECORDS 143 Item No. Records Series & Description Retention & Disposition Remarks 20 Disbursement Accounting (AKSAS Original Document File): These records are payment documents prepared by agencies and include payments related to accounts payable, petty cash, and vendors. Record Copy: retain current fiscal year plus 3 years. Agency administers Record Copy. AKSAS: Alaska State Accounting System 21 PAYROLL ACCOUNTING Automated Payroll Reports: These records document payroll related transactions input to the payroll system. Records set includes, but is not limited to: 1. Cash Value of Leave 2. Leave Activity Report Record Copy: DOF retains. Retentions vary. Agency Copy: Retain current fiscal year plus 3 years. The Division of Finance (DOF) administers Record Copy of Automated Payroll Reports under Records Schedule #29000. DOF retains Employee Payroll Files for 75 years. 22 PAYROLL ACCOUNTING Pay/Leave Records (Originals): These records document payroll related transactions input to the payroll system. Records set includes, but is not limited to: 1. Timesheets 2. Leave Request/Report (Form 02-035) 3. Adjustments to timesheets 4. Retroactive pay worksheets 5. Taxable moving, mileage, and per diem payment documentation. Record Copy: DOPLR retains current calendar year plus 3 years. Agency Copy: Retain 1 year. The Division of Personnel & Labor Relations (DOPLR) administers Record Copy of Pay/Leave Records. Retention Authority: AS 23.05.080 (Employer’s Records); AS 23.10.100 (Employer to Keep Records); 2 AAC 08.030 (Leave Accounting). GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL ACCOUNTING RECORDS 144 Item No. Records Series & Description Retention & Disposition Remarks 23 Reimbursable Services Agreements: This records series documents interagency transfers for both operating and capital project funds. Refer also to Item #1, Agency Budget Request (Final Submission.) Agency & Record Copy: Retain until RSA closed out plus 3 years. Record Copy administered by OMB, unless OMB approval not required in which case both servicing and requesting agencies maintain record copy. Closeout may be at end of fiscal year or end of project. 24 Travel Accounting: These records document travel approvals, per diem, transportation, etc. Record Copy: DAS retains current fiscal year plus 3 years. Agency Copy: Retain current fiscal year plus 3 years. The Division of Administrative Services (DAS) within each Department administers the Record Copy. Alaska Administrative Manual 60 sets forth travel policies for state employees. 25 Vendor Files: This records series documents the purchase of commodities and services and includes: copies of financial transaction registers, delivery orders, purchase orders, logs, supply requisitions, advertising orders, invoices, confirmation of delivery receipts, container shipment records, bills of lading, and postage meter receipts. Record Copy: DAS retains current fiscal year plus 3 years. Agency Copy: Retain current fiscal year plus 3 years. Refer also to Procurement Records, pages 9 - 11. The Division of Administrative Services (DAS) within each Department administers the Record Copy. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL ACCOUNTING RECORDS 145 Item No. Records Series & Description Retention & Disposition Remarks 26 Adjusting Entries (AJE’s) AKSAS Document File: Documents include the Financial Transaction Reports and backup for adjusting journal entries and journal entry logs. Record Copy: DAS retains current fiscal year plus 3 years. The Division of Administrative Services (DAS) within each Department administers the Record Copy. Agency Copy: Retain current fiscal year plus 3 years. 27 Accounting Reports: This records series consists of routine balancing and status reports output from AKSAS reflecting expenditures and receipts of an agency and includes, but is not limited to, these informational reports: Record Copy: DAS retains current fiscal year plus 3 years. 1. Financial Transaction Reports (FTR) 2. Documents Outstanding File (DOF) 3. Audit Trail 4. Cash Availability 5. Field Warrant Agency Copy: Retain current fiscal year plus 3 years. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL ACCOUNTING RECORDS 146 Item No. Records Series & Description Retention & Disposition Remarks 28 Revenue Accounting (As Part of AKSAS Documentation): Source Documentation related to: billing, cash receipt records, daily cash transaction records, deposit slips, FTP’s, write-off's/bad debt, paid damages, etc. Accounts Receivable Records & Ledgers Includes: bank returned items held for collection, along with correspondence, and backup. Record Copy: Retain source documentation current fiscal year plus 3 years. Retain accounts receivable records current fiscal year plus 3 years. Agency administers Record Copy. 29 Banking Records (As Part of AKSAS Documentation): Records of bank transactions for revenue and payments including uncollectible checks; deposit slips; transmittal of receipts; and, other filesets related to routine payments, revenue, or collected monies of an agency. Original Bank Statements: Record Copy: Retain current fiscal year plus 3 years. Retain original bank statements current fiscal year plus 7 years. Agency administers Record Copy. Refer to Item #28 for documents being held for collection. 30 Reconciliation Workpapers: Intermediate fiscal records of receipts and disbursements used to reconcile accounts, including spreadsheets, proof sheets or trial balance worksheets, abstracts of receipts, disbursements or claims, warrant reconciliation sheets, and other supporting documents. Agency Copy: Retain current fiscal year plus 3 years. Agency administers Record Copy. Workpapers are used for audit purposes. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL ACCOUNTING RECORDS 147 Item No. Records Series & Description Retention & Disposition Remarks 31 Redeemed Warrants: Warrants are scanned (both sides) by the bank on a daily basis as they are redeemed. A master CD of redeemed general warrants is sent to the Department of Revenue; a master CD of redeemed benefits warrants is sent the Department of Labor & Workforce Development each month. Some agencies also receive CD's that contain images for a specific warrant class. Record Copy: Treasury retains 7 years; ESD retains 5 years. Agency Copy: Retain until administrative need is met. The bank retains the original redeemed warrants or a scanned image for 45 days, at which point the originals are destroyed. The Treasury Division retains the Record Copy of Warrants for 7 years. The Employment Security Division (ESD) retains the Record Copy of Benefits Warrants for 5 years. 32 Forgery & Fraud Investigation Case Files: This records series documents formal investigation of suspected forgery and fraud and may consist of investigator’s request for warrants, copies of warrants, agency response, and other notes and materials. Record Copy: Retain until case is closed plus 3 years. Agency administers Record Copy. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL ACCOUNTING RECORDS 148 Item No. Records Series & Description Retention & Disposition Remarks 40 Grant Administration Files (State Issued—Grantor Agency): This records series consists of financial, management and any other related material that is generated subsequent to application for and/or expenditure of grant funds to an entity by a state agency. Includes the following: applications and copy of notification of grant award; agreements/contracts; special conditions; fiscal reports; correspondence; monitoring data; closeout documents; copy of audit report; reports prepared by grantee regarding status, progress, or compliance with grant agreement; and, other supporting documentation. Record Copy: Retain 6 years after grant closeout. Agency administers Record Copy. If any litigation, claim, audit or dispute is started before the expiration of the 6 year period, retain records until all issues involving the records have been resolved and final action taken. Under AS 09.10.120 the statute of limitation for contract actions brought in the name of the State is 6 years from the date of accrual of the cause of action. For fraud: limitation commences from the time of discovery by the aggrieved party. 41 Grant Administration Files (State Received—Recipient): This records series consists of financial, management and any other related material that is generated subsequent to application for and/or expenditure of grant funds received by the State. Includes: copies of RSA’s, grant pass-thru documentation, and agency reports (status, progress, compliance, performance). Record Copy: Retain until federal audit is completed; or, 6 years after grant closeout, whichever is later. Agency administers Record Copy. If any litigation, claim, audit or dispute is started before the expiration of the 6 year period, retain records until all issues involving the records have been resolved and final action taken. Under AS 09.10.120 the statute of limitation for contract actions brought in the name of the State is 6 years from the date of accrual of the cause of action. For fraud: limitation commences from the time of discovery by the aggrieved party. 42 Grant Solicitation Files: Documents created in developing a request for services or in soliciting proposals from applicants for grant funds. Record Copy: Retain until grant close-out. Agency administers Record Copy. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GRANT MANAGEMENT RECORDS 149 Item Records Series & Description Retention & Disposition Remarks No. 43 Applications & Responses: (Not Awarded) This records series consists of rejected applications received in response to state issued grant solicitation documents. May include: initial proposal, pre-screening documents, cover sheets, reasons for rejection, etc. Refer to Item #40 for awarded grants. Record Copy: Retain 1 year. Agency administers Record Copy. 44 Evaluations & Recommendations of Responses: This records series documents evaluation criteria used and recommendations for state issued grant awards. Record Copy: Retain 1 year. Agency administers Record Copy. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GRANT MANAGEMENT RECORDS 150 Item No. Records Series & Description Retention & Disposition Remarks 50 Procurement Files: These records document agency procurement of supplies, services and professional services, including the solicitation, selection, award, and administration of contracts. May include the following: vendor contacts and responses, purchase/delivery orders, invoices, price quotations, ITB, RFQ, RFP, RAP backup, public notices, bid correction or withdrawal documents, bid totals, protests, final decisions, written determinations, Notice of Intent to Award, procurement reports, evaluation criteria, and score sheets. Also consists of original contract and amendments/renewals, special conditions, payment logs, reports (fiscal, progress, final), appropriation data, bond verification (bid security), transcripts, audio tapes, and correspondence. Record Copy: Retain formal contracts for life of contract plus 6 years. Record Copy: Retain all other files for current fiscal year plus 3 years. Record Copy may be maintained by the Administrative Services Division in the Department, the Division of General Services (DGS) or delegated Agency. Authority: AS 36.30 State Procurement Code, 2 AAC 12 Under AS 09.10.120 statute of limitation for contract actions brought in the name of the State is 6 years. Under AS 09.10.053 statute of limitation for contract cases is 3 years. Certain technical information, proprietary data, and trade secrets submitted by actual or prospective bidders or offerors may be confidential. ITB: Invitation to Bid RFQ: Request for Quotation RFP: Request for Proposal RAP: Request for Alternate Procurement 51 Lease Administration Files: This records series documents administration of State leases and includes: notification of award, original lease and any amendments or renewals, special conditions, fiscal reports, payment logs, correspondence, and/or reports. Record Copy: DGS retains master lease for 6 years after lease expires. Agency Copy: Retain leases for 3 years after lease expires. The Division of General Services, Leasing Section administers the Master Lease Record Copy. Retain all other documents for 3 years. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PROCUREMENT, LEASING & PROPERTY RECORDS 151 Item No. Records Series & Description Retention & Disposition Remarks 52 Equipment Records—Originals: May include the following: warranty information, repair/maintenance history, instruction/operating manuals, preventive maintenance logs, portable fire extinguisher tests, and daily boiler inspection logs/reports. Equipment Records—Copies: Includes: delivery order, correspondence, general/preventative maintenance records, and inventory lists. Record Copy: Retain for the life of the equipment plus 4 years. Agency Copy: Retain 3 years. Agency administers Record Copy with one exception: the Statewide Equipment Fleet administers Vehicle Documentation. JUSTIFICATION FOR RETENTION: Most torts carry a two-year statute of limitations; some have three. The Department of Law doesn't always get brought into a case immediately upon expiration of the statute of limitations. Retaining warranty data, manuals and repair/maintenance history records for the life of the equipment plus four years will protect the State in 99% of its cases. 53 Automotive Management (Major Records): Includes copies of the following: Motor Vehicle Accident Reports, Certification of Insurance, Lost-Stolen-Damaged Property Reviews, inspection reports, maintenance records (parts, service, repair estimates, work orders) Liability Accident Notices, registrations, and titles. Record Copy: SEF retains 2 years after vehicle is disposed. Agency Copy: Retain 3 years. SEF: Statewide Equipment Fleet. The SEF is responsible for procuring, maintaining, and disposing of vehicles equipment owned/operated by the State. The Division of Risk Management administers Claim Files Record Copy. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PROCUREMENT, LEASING & PROPERTY RECORDS 152 Item No. Records Series & Description Retention & Disposition Remarks 54 Automotive Management (Minor Records): Includes copies of the following: credit card usage reports, fuel/lubricant receipts, monthly travel/mileage logs, sign-out logs regarding acceptance/receipt of vehicles for use, vehicle assignment records which documents the long- term or permanent use of vehicle to specific individuals or agencies. Record Copy: Retain 3 years. Agency or SEF administers Record Copy. 55 Property Control Records: Agency copies of controlled property management reports, property tag register, excess property reports, interdepartmental property transfer documents, Lost-Stolen- Damaged Property Reviews, Property Destruction Authorizations, and correspondence. Record Copy: DGS retains 5 years. Agency Copy: Retain for 3 years or until audit is completed, whichever comes first. The Division of General Services, Property Management Section administers the Record Copy. Maintain reports on any federally funded property until audit is completed. 56 Property (Land & Buildings): These files support total costs of property acquisition or improvement and include, but is not necessarily limited to: purchase orders, claim schedules, invoices, contracts, deeds, titles, plat maps, as-builts, easements, surveys, patents, site plans, classification orders, conveyance documents, covenants, checks, worksheets, statements, and correspondence. Property records are active as long as the State of Alaska owns the land or building. Record Copy: The State Recorder retains public property ownership records permanently. Agency Copy: Retain until the State no longer has an interest in the property plus 4 years. This retention meets federal requirements for real property acquired with federal funds (34 CFR 74.53). Note For Files Having Potential Litigation: AS 46.03.822 relates to "strict liability for the release of hazardous substances" and impacts retention requirements for property documents. Liability, current or future, pertaining to the release of hazardous substances, attaches to property owners. Contact the Attorney General regarding disposition of records for real property with known or suspected contamination. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PROCUREMENT, LEASING & PROPERTY RECORDS 153 Item No. Records Series & Description Retention & Disposition Remarks 60 Administrative Systems Studies & Operational Plans—Major & Minor: Consists of studies, plans, synopses, detailed reports and special projects of a Commissioner, Director, Board or Commission that assess the need for administrative systems improvements in the area of information management. Contents include: business process reengineering documents, workflow schematics, workload and organizational data; logs; time studies; interviews; questionnaires; final report; correspondence; and, authorized actions. Record Copy: Retain one year after system terminated; or, when no longer needed for reference, whichever is later. Agency administers Record Copy. Contact the State Archives regarding appraisal of Major Studies that may have historical significance. Recommend review every five years. 61 Program History Files: These records document function, organizational structure, history, activities and accomplishments of a state agency. Includes: media releases, public information files, photographs (digital, prints, negatives), videotapes/discs, scrapbooks, clipping files, audio tapes/cd’s, speeches by program manager, written histories, strategic plans, monographs, and other publications (brochures/leaflets/pamphlets) related to the statutory functions for which the agency is responsible. Record Copy: Retain until administrative or management need is met; then, transfer to the State Archives. Agency administers Record Copy. Recommend review/transfer every five years. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL OFFICE ADMINISTRATION RECORDS 154 Item No. Records Series & Description Retention & Disposition Remarks 62 General Correspondence & Central Files: Consists of original incoming and copies of outgoing letters and memoranda related to the general administration and operation of the agency, often arranged topically according to a file classification system. Includes the following types of correspondence: intra/inter- departmental, legislative, professional association, steering committee, and public. Also may consist of conference/training notes, organizational charts, delegations of authority, share campaign, inventories/logs, studies, etc. Record Copy: Retain 3 years. Agency administers Record Copy. 63 Legal Opinions: Series may consist of opinions received from the Attorney General’s Office, correspondence, and backup. Record Copy: DOL retains permanently. Agency Copy: Retain until administrative or management need is met. DOL: Department of Law. 64 Legislation & Regulation Working Files: These records consist of copies of bills/regulations, proposed legislation, review letters, fiscal notes, departmental analyses, public comments, mailing lists, copies of documents from other states, attorney notes, and impact statements. Record Copy: DOL retains Permanently. **Agency Copy: Retain until administrative or management need is met. **Regulations: Retain Public Comments [AS 44.62.215] and Mailing Lists until repealed or defunct as there is no statute of limitation on challenging the validity of a regulation. Contact the Department of Law Regulations Section for legal questions regarding whether the management need of a regulation has been met. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PROCUREMENT, LEASING & PROPERTY RECORDS 155 Item No. Records Series & Description Retention & Disposition Remarks 65 Minutes & Meeting Files— Major Policy Making: Documents all state boards, commissions, advisory councils, task forces, special committees and major policy making group activities. Includes the following: agenda, information packets, reports, notes, transcripts, media releases, meeting summaries, public testimony statements, and questionnaires. Record Copy: Retain until administrative or management need is met; then, transfer to the State Archives. Agency administers Record Copy. These records document the policies, decisions and historical activities of state- funded entities. 66 Minutes & Meeting Files— Non-Policy Making: For all general staff, routine and operational meetings that do not result in changes to state positions or procedures. Consists of agenda, minutes, notes, and other backup. Record Copy: Retain for 3 years. Agency administers Record Copy. 67 Program Policies & Procedures—Major: Substantive and binding agency issued policies, procedures, directives, decisions, orders, rules, guidance, agreements, understandings, and manuals that address mission essential functions for which the agency is statutorily responsible. These records document agency functions and have archival research value. Record Copy: Retain for 3 years after policy is obsolete or superseded, then transfer to the State Archives. Agency administers Record Copy. Policy: a governing principle established at the executive level, which mandates or constrains action and has enterprise-wide application. Procedure: a set of effective and logical interrelated steps that implement a policy. 68 Program Policies & Procedures—Routine: Routine agency issued policies, procedures, directives, decisions, rules, organizational charts, and manuals that address internal functions and operating procedures. Record Copy: Retain for 3 years after policy is obsolete or superseded. Agency administers Record Copy. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL OFFICE ADMINISTRATION RECORDS 156 Item No. Records Series & Description Retention & Disposition Remarks 69 Advertisements: Legal This records series consists of agency advertisements which have been posted on the Online Public Notice System, appeared in newspapers, or other periodical of general circulation. Public notices may regard: teleconferences, invitations to bid, new/updated regulations, hearings/meetings, competitive lease sales, water rights, utility tariff filings, etc. Record Copy: Lt. Governor retains permanently. Agency Copy: Retain 3 years after posted. The Lt. Governor's Office approves all online public notices/hearings postings. The Office of the Governor Division of Administrative Services administers the Online Public Notice System. 70 Public Records Log & Requests for Public Information: Unless a request is governed by 2 AAC 96.300, under 2 AAC 96.320 a public agency shall maintain a log of each written request for public records that it receives. The log must include date of request, requestor name, and tracking information. Record Copy: Retain 1 year. Agency administers Record Copy. Retention Authority: 2 AAC 96 2 AAC 96.300 pertains to records prepared for routine public distribution including pamphlets, maps, press releases, forms, applications, etc. 71 Reading Files: Copies of outgoing letters, memoranda, and messages. Maintained as a discrete records series, these files are used for various administrative purposes. Arranged chronologically. Record Copy: Retain 3 years. Agency administers Record Copy. Copy often placed in General Correspondence & Central Files, Item #62. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL OFFICE ADMINISTRATION RECORDS 157 Item No. Records Series & Description Retention & Disposition 72 Records & Information Management Files: Consists of file plans/system outlines; records retention schedules; records transfer lists, records disposition notices; transmittal/receipts; records audit forms; records management policies and procedures; correspondence with agencies, records contractor and records manager; accounting, holdings, and billing information Record Copy: Records schedules, transfer lists, disposition notices, transmittal/receipt and cumulative holdings information are retained by Archives & Records Management. Agency Copy: Retain File Plans, Records Schedules and Policies & Procedures until superseded. Retain transfer lists until last box on list is disposed. Retain Disposition Notices, Audit Forms, Correspondence & Account data for 3 years. 73 Reports—Staff: Consists of agency produced monthly, quarterly, activity, routine management; and travel reports. Record Copy: Retain 3 Years. Agency administers Record Copy. 74 Reports—Annual: Reports and publications issued by state agencies that describe responsibilities, functions, activities, and events. Record Copy: Retain 5 Years; then, transfer to the State Archives. Agency administers Record Copy. Under AS 14.56.120 each agency must provide four copies of its state publications to the State Publications Program; or, provide a publications link for web- based monographs. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL OFFICE ADMINISTRATION RECORDS 158 Item No. Records Series & Description Retention & Disposition Remarks 75 Reports—Audit: Audit reports authored by Legislative Audit, the Office of Management & Budget (OMB), internal auditors and contractors documenting the financial accountability and statutory/regulatory compliance of the agency. Record Copy: Retentions vary. Agency Copy: Retain until administrative or management need is met. Legislative Audit administers Audit Reports permanently and are confidential until the report has been approved for release under AS 24.20.311. OMB retains Performance Audits 5 years. The Division of Finance administers Record Copy of State and Federal Single Audit Reports 5 years. 76 Transitory & Miscellaneous Administrative Information: This records series consists of documents that are created primarily for the communication of information, as opposed to communications designed for the perpetuation of knowledge. Transitory messages do not set policy, establish guidelines or procedures, certify a transaction, or become a receipt. Includes: e-mail, voice mail, and text messages with short-lived or no administrative value (including messages received on cell/smart phones and personal digital assistants), self-adhesive notes, data input documents, appointment books/calendars, invitations, intra-office correspondence tracking logs, word processing files, suspense files, temporary instructions, publication bulletins, notary certificates (copies) meeting notices, announcements, and training flyers. Record Copy: Retain until administrative need is met. Agency administers Record Copy. Microsoft Outlook Calendar Items are retained for five years. 77 Technical Reference Files: Consists of technical studies, publications, consultant reports, internet printouts from any source related to program administration, and functions. Record Copy: Retain until administrative or management need is met. Agency administers Record Copy. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL OFFICE ADMINISTRATION RECORDS 159 Item No. Records Series & Description Retention & Disposition Remarks 78 Special Projects: Includes the following information related to the special projects of an Agency: goals; objectives; meeting agendas/minutes; reports; correspondence; budget; Gantt Charts and other schedules; and, project management, task assignments, tracking, and resource allocation data. Agency Copy: Retain until administrative or management need is met. Agency administers Record Copy. Offer special projects of historical significance to the State Archives for permanent retention. Refer to Item #60 regarding Administrative Systems Studies (IT) and Item #129 (Change Management). 79 Functional Forms Files: Collection of current forms used for control precedent, comparison, and general reference. Record Copy: Destroy after discontinued, superseded, revised or replaced. Agency administers Record Copy. 80 Numerical Forms Files: Request for approval of forms, or similar documents, submitted by office of primary responsibility for the form, and all revisions; latest printing specifications; latest review of form, showing status of form; records about the form; final draft/master or a copy of the current edition; and, a copy of each printed edition of the form. Record Copy: Retain 1 year After Obsolescence. Agency administers Record Copy. 81 Forms Management Reports: Reports of forms management activities, progress, status, and costs. Record Copy: Retain 3 years. Agency administers Record Copy. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL OFFICE ADMINISTRATION RECORDS 160 Item No. Records Series & Description Retention & Disposition Remarks 82 Emergency Response, Disaster Prevention & Recovery Plans: This records series consists of emergency response plans, disaster preparedness, and/or recovery documentation. Record Copy: Retain until plan is superseded. Agency administers Record Copy. The Division of Emergency Services may also have Record Copy. 83 Disaster Preparedness Drills: This records series consists of the results of disaster preparedness exercises and the supporting documents including scenarios, location of safety related drills, timetables, response times, probable outcomes, areas of difficulties, description of how difficulties were resolved, and areas for improvement. Types of drills include: fire, earthquake, safety, and chemical spills. Record Copy: Retain 3 years Agency administers Record Copy. 84 Drafts & Working Papers: This series contains documents, correspondence, reports, memoranda, and other materials in preliminary or developmental form before their iteration as a final product. Drafts may include copies of materials circulated for review for grammar, spelling and content. Working papers may include notes and miscellaneous documents used in compiling and assembling the final product. Record Copy: Retain until obsolete, superseded or administrative or management need is met. Agency administers Record Copy. May be confidential under statute, regulation, attorney client privilege, deliberative process privilege, or other rule, directive or guidance. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL OFFICE ADMINISTRATION RECORDS 161 Item No. Records Series & Description Retention & Disposition Remarks 85 Incident & Unusual Occurrence Reports: This records series consists of reports of strange occurrences or incidents which occur at an agency owned/leased property and may include: alarm or lock malfunctions, security breaches, documentation of hostile actions by employees or the public, suspicious persons, maintenance problems, or any other circumstance that should be noted for future reference or follow-up. Types of data listed: name of reporting staff member, date/time/location of the incident, persons involved or witnesses, the extent of the problem, emergency response, supervisors notified, and general outcome. Record Copy: Retain 4 years. Agency administers Record Copy. 86 Inspection Records: Fire, security and safety inspection reports, checklists, and remedial/corrective action documentation. Record Copy: Retain 3 years. Agency administers Record Copy. 87 Key & Badge Issuance Records: This records series consists of the key control system which includes receipts for keys and security or identification badges issued by employees. Record Copy: Retain until employee terminates. Agency administers Record Copy. 88 Supply Records: This records series consists of documentation of consumable supplies located in a central supply office for use by agency staff. Includes a listing of all available supplies which is distributed periodically or upon request. Record Copy: Retain 3 years. Agency administers Record Copy. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL OFFICE ADMINISTRATION RECORDS 162 Item No. Records Series & Description Retention & Disposition Remarks 89 Security Recordings: This records series consists of surveillance video and digital recordings created to monitor activities occurring both within and outside of state facilities. Record Copy: Retain 30 days, then erase & reuse, provided any necessary images are saved. Agency administers Record Copy. Agency should create an internal management policy regarding preservation of images necessary for prosecution or disciplinary actions. If a recording has evidentiary value, retain until legal action is completed. 90 Visitor Logs: This records series consists of records documenting employees’ and visitors’ entrance into an agency building during and/or after office hours. Logs may require time, date, signature, reason for visit, and location or person visited. Record Copy: Retain 3 years. Agency administers Record Copy. Civil litigation for personal injuries statute of limitations is 2 years to file a lawsuit. Oftentimes the lawsuit is not served for another 90 days or more after filing. Visitor logs are helpful to establish potential witnesses or to corroborate the presence of witnesses. 91 Complaints: Citizen/Consumer/Employee: This records series consists of individual complaints from citizens, consumers or employees and may include: name, address, date, telephone number, narrative of complaint, to whom referred and date, action taken, and signature of person taking the action. Record Copy: Retain 1 year after resolution provided applicable audits have been released. Agency administers Record Copy. Does not include claims of harassment or discrimination among employees. Refer to Personnel Records, Item #109, Grievance Case Files. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL OFFICE ADMINISTRATION RECORDS 163 Item No. Records Series & Description Retention & Disposition Remarks 92 Training Materials: This records series consists of materials used in training, such as films, compact disks, electronic files, slides, commentaries, manuals, workbooks, and other related items. Record Copy: Retain until obsolete, superseded or administrative need is met Agency administers Record Copy. Contact the State Archives regarding appraisal of Training Materials that may have historical significance. Refer to Items #100 & #101 for employee training records. 93 Mail & Telephone Records: Consists of mail files or logs that document transmittal/posting of United States Post Office materials and returned/undeliverable first class mail. Also includes: telephone logs, message books, and phone number lists. Record Copy: Retain 1 year. Agency administers Record Copy. 94 Postage Records: Consists of a detailed listing showing the amount of postage used, date, unused balance and purpose. Record of a United Parcel Service, DHL or Federal Express package sent by your agency to another would also fit within this series. Record Copy: Retain 3 years or after audit, whichever comes first. Agency administers Record Copy. 95 Parking Decal/Permit Records: This records series consists of copies of parking applications for motor vehicles authorized to park on State owned/leased lots. Record Copy: DGS retains 3 years after expiration. Agency Copy: Retain 1 year. DGS: Division of General Services. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL OFFICE ADMINISTRATION RECORDS 164 Item Records Series & Description Retention & Disposition Remarks No. 96 Memoranda of Understanding/Agreement: MOU express mutual accord on an issue between the State and two or more parties. MOU may be legally binding, based on the rights and obligations addressed in them. Also called letter of intent. MOA establish an agency's scope of association with another entity and mutual responsibilities. Record Copy: Retain 6 years after expiration. Agency administers Record Copy. MOU/A: Memoranda of Understanding/Agreement Under AS 09.10.120 statute of limitation for contract actions brought in the name of the State is 6 years. 97 Lost & Found Records: Consists of who, what, when, where, why-type documents related to lost/found objects. Record Copy: Retain 1 year. Agency administers Record Copy. 98 Web Site Content, Management & Operations Records: This records series consists of agency internet and intranet web site content documentation. May include: web master policies; procedures; notes; content pages that compose the site, inclusive of the HTML markup; records generated when a user interacts with a site; lists of URL's referenced in the site's hyperlinks; web site design records; records addressing usage of copyrighted material; software applications used to operate the site; web snapshots; site maps depicting directory structure saved after substantive site changes have been implemented; server environment configuration specifications; and, correspondence. Record Copy: **Retain 5 years or until obsolete, superseded or administrative need is met, whichever comes later. Agency administers Record Copy. **Contact the State Archives regarding web site records that may have historical value. Back-end programmatic databases for which a web page serves as the interface should be listed on the agency program records schedule. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 GENERAL OFFICE ADMINISTRATION RECORDS 165 Item Records Series & Description Retention & Disposition Remarks No. 100 Individual Personnel Files—Classified, Partially Exempt & Non-Permanent: Agency copies of non-medical personnel employment history records that must include date of hire, rehire documentation, date and cause of termination or suspension. May include the following: applicant profiles, applicant certifications, job qualification summaries, job service referral cards, union notifications, Vocational Rehabilitation referrals, resume, personnel actions, performance evaluations, declaration of familial relationships and nepotism waivers, confidentiality statements, applications for insurance and benefits, kudos/accolades, disciplinary actions, memos for approved leaves/absences, ethics disclosures, conflicts of interest, and training course completion notices. The Master DOPLR file may also include employment eligibility verifications (Form I-9), Drug Free Workplace Act forms and the following signed statewide policies: EEO, Harassment, ADA, Diversity, Use of Office Technology, Ethics Disclosures, and Statewide Policy Acknowledgements. Refer to Payroll Accounting (General Accounting Section) for Employee Time & Attendance Records; Item #107 for Employee Medical Records; and, Item #'s 111-113 for Ethics Records. Record Copy: DOPLR retains 50 years after employee terminates. Agency Copy: Retain 1 year after employee terminates. DOPLR: Division of Personnel & Labor Relations DOPLR, Employee Planning & Information Center administers Record Copy. Federal form I-9 retained under 8 CFR 274a.2. Confidential under AS 39.25.080 & 2 AAC 7.910(c). Retention Authority: 8 AAC 85.020 requires hire & termination documentation. EEO: Equal Employment Opportunity ADA: Americans with Disabilities Act of 1990 GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PERSONNEL ADMINISTRATION RECORDS 166 Item Records Series & Description Retention & Disposition Remarks No. 101 Individual Personnel Files—Exempt: Official non-medical employment history for exempt personnel. Refer to records series description in Item #100 for list of document types. Refer to Payroll Accounting (General Accounting Section) for Employee Time & Attendance Records; and, Item #107 for Employee Medical Records. Record Copy: DOPLR retains 50 years after employee terminates. Agency Copy: Retain 1 year after employee terminates. Record Copy located in the Payroll Section of the Human Resource Service Center within the DOPLR. I-9 form retained under 8 CFR 274a.2. Confidential under AS 39.25.080 & 2 AAC 7.910(c). 8 AAC 85.020 requires hire and termination documentation. 102 Recruitment, Selection & Appointment Records: Departments may have the authority to recruit and examine certain classes of positions directly. This records series may include: applications, transcripts, position vacancy announcements, and hiring approvals. Letters of introduction, test answer sheets, examination papers, records of ratings of applicants, selection criteria, interview questions and notes, and correspondence must also be retained. Record Copy: Retain 2 years from date of hire. Agency Copy: Retain 6 months. Record Copy may be maintained by the DOPLR or by authorized hiring agency. Confidential under AS 39.25.080. Retention Authority: 2 AAC 07.113 6 AAC 30.840 (Human Rights Commission) requires 2-year retention of recruitment records. If EEO action is initiated, retain agency copies 1 year after settlement. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PERSONNEL ADMINISTRATION RECORDS 167 Item No. Records Series & Description Retention & Disposition Remarks 103 Unsolicited Employment Inquiries: This records series consists of inquiry communications (letter/e-mail), resumes, and applications from individuals interested in state employment. May include agency response. Record Copy: Retain 6 months. Agency administers Record Copy. 104 Position Control Number (PCN) Files: PCNs are assigned by the DOPLR for the classified and partially-exempt service. This records series includes: job/position descriptions, classification actions, requests for reclassification, allocation memos, flex training plans, correspondence, and other historical accounts of PCN's and job classes. Record Copy: DOPLR retains for classified, partially exempt, & exempt positions 10 years after PCN is no longer valid. Record Copy of PCN Files is administered by DOPLR. The Employee Planning & Information Center administers Record Copy for classified and partially exempt position records not in the electronic Online Position Description System. DOPLR Service Centers administer Record Copy for exempt positions. Agencies do not maintain copies of PCN files. These files do not contain confidential information. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PERSONNEL ADMINISTRATION RECORDS 168 Item No. Records Series & Description Retention & Disposition Remarks 105 Employee Training Records— Hazardous/Toxic Substances & Blood-Borne Pathogens: Includes: training material, attendance records, correspondence, and documentation of training in proper use and handling of hazardous substances. Refer to appropriate Code of Federal Regulations (CFR) section for documentation required to meet compliance standards. Note: Agency maintains list of employees who handle hazardous substances. Record Copy: Retain 10 years after employee terminates. Record Copy is maintained by agency. When medical conditions are at issue in workers' compensation or personal injury lawsuits, the discovery rule often applies. This rule provides that rather than the standard 2 year statute of limitations, the rule is 2 years from the date when a person reasonably should be on notice that they have a potential claim. This rule operates to extend the statute of limitations considerably. AS 18.60.066 [Employee Safety Education Programs] 29 CFR 1910.1001 [Asbestos] 29 CFR 1910.1030 [Blood-borne Pathogens] 29 CFR 1910.1200 [Employee Training] 106 Hazard Communication & Material Safety Data Sheets: This records series documents compliance with OSHA regulations regarding hazardous chemicals received by an agency. Consists of information relating to comprehensive hazard communication programs, including container labeling/warning information; and, material safety data sheets, which list chemical name, description, composition, intended use, flash point, transportation, hazards, safe handling, extinguishing methods, and related documentation. Material Safety Data Sheets document usage of a hazardous chemical in the workplace and must be readily accessible to staff during each work shift. [Refer to Item #107 for Records Pertaining to Actual Exposure of Employees to Hazardous Substances.] Record Copy: Retain 30 years. Record Copy maintained by agency receiving chemicals. 29 CFR 1910.1200 [Hazard Communication Standard] 29 CFR 1910.1450 [Hazardous Chemicals] Under 29 CFR 1910.1020c(5) material safety data sheets constitute an “employee exposure record.” Under 8 AAC 61.1110 (Additional Hazard Communication Standards), each employer shall have a data sheet for each physical agent present in the employer's workplace GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PERSONNEL ADMINISTRATION RECORDS 169 Item Records Series & Description Retention & Disposition Remarks No. 107 Employee Medical Records: This records series consists of medical records of employees who may have or did come into contact with blood or other potentially hazardous materials (e.g. asbestos). Documents include: copy of on-the-job accident or illness reports, medical reports, hepatitis B vaccination status, results of examinations, a copy of the healthcare professional’s written opinion, a list of complaints which may be related to the exposure, Workers' Compensation forms/correspondence, Certification of Health Provider, a copy of information transmitted to healthcare professional, and other information regarding an employee's medical history. May also consist of data relating to the exposure or possible exposure of an employee to a blood- borne pathogen, contagion, radiation and chemicals above acceptable limits or dosage including: statistical analyses, incident reports, material safety data sheets, copies of reports, risk management assessments, and other necessary data to support the possibility of exposure. Refer also to: #107a: Report of Occupational Injury or Illness #107b: ADA Accommodation Records #107c: FMLA/AFLA Files #107d: Drug Test Records Record Copy: DOPLR retains 30 years after employee terminates. Agency Copy [classified, partially exempt, & non-permanent employees]: Retain 1 year after employee terminates. DOPLR Service Center maintains Record Copy medical files for current employees. DOPLR Employee Planning & Information Center maintains Record Copy for separated classified and partially exempt employees for 30 years after employee terminates employment. DOPLR Service Center maintains Record Copy for separated exempt staff for 30 years after employee terminates employment. These records are administered separately from an employee's employment history file. Confidential under AS 39.25.080. Retention Authority: 29 USC 657 [OSHA Recordkeeping]: 29 CFR 1904.2 [OSHA Recording & Reporting Occupational Injuries & Illnesses]; 29 CFR 1910.1020 [Occupational Safety & Health Standards] GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PERSONNEL ADMINISTRATION RECORDS 170 Item No. Records Series & Description Retention & Disposition Remarks 107a EMPLOYEE MEDICAL RECORDS Report of Occupational Injury or Illness: Reports for on-the-job accidents or illnesses that are forwarded to Statewide HR Operations in the DOPLR and the state insurance fund for workers’ compensation or disability benefits claims. Refer to Item #107, Employee Medical Records related to hazardous substance exposures. Record Copy: Division of Workers' Compensation & Division of Risk Management. Agency Copy: Retain 1 year after employee terminates. The Division of Risk Management administers Record Copy Claim Files for 7 years after claim is settled and all legal issues are resolved. The Division of Worker's Compensation administers Record Copy Case Files for 40 years. Note: Do not file copies in employee's personnel file; copies should be placed in the employee medical file. 107b EMPLOYEE MEDICAL RECORDS ADA Accommodation Records: This records series documents the agency's reasonable accommodation and provisions for its employees with disabilities in compliance with the ADA. Includes: employee requests, medical information, engineering and design plans, complaint and labor relations documentation, and related correspondence. Record Copy: DOPLR retains 6 years after employee terminates. Agency Copy: Retain 3 years. ADA: Americans with Disabilities Act of 1990 DOPLR Service Center maintains Record Copy ADA files for current employees. Under 29 CFR 1602.14 these records must be retained for one year from date record made or personnel action taken, whichever is later. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PERSONNEL ADMINISTRATION RECORDS 171 Item No. Records Series & Description Retention & Disposition Remarks 107c EMPLOYEE MEDICAL RECORDS FMLA/AFLA Files: The FMLA and AFLA are designed to assist employees balance the demands of their jobs and the needs of their families. This records series consists of basic payroll and identifying employee data, pay documentation, dates FMLA leave is taken, copies of Family Leave qualification determinations, dispute data, medical certifications, written statements, correspondence, and other backup material. FMLA: Family & Medical Leave Act of 1993 AFLA: Alaska Family Leave Act Confidential under AS 39.25.080. Record Copy: DOPLR retains 30 years after employee terminates. Agency Copy: Retain 3 years after employee terminates. DOPLR Service Center maintains Record Copy FMLA/AFLA files for current employees. DOPLR Employee Planning & Information Center maintains Record Copy for separated classified and partially exempt employees for 30 years after medical leave use or after employee terminates employment. DOPLR Service Center maintains Record Copy for separated exempt staff for 30 years after medical leave use or after employee terminates employment. These records are administered separately from an employee's employment history file. Although 29 CFR 825.500 stipulates a 3 year retention, the DOPLR will administer 30 years along with the rest of the medical files. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PERSONNEL ADMINISTRATION RECORDS 172 Item Records Series & Description Retention & Disposition Remarks No. 107d EMPLOYEE MEDICAL RECORDS Drug Test Records: This records series consists of the positive or negative results of a drug test under the Drug Free Workforce Act or as required for a Commercial Driver License (CDL) or other drivers under USDOT regulations. Includes: pre-employment screening and background checks, copy of signed acknowledgement form for CDL employees, copies of required medical cards, documents generated in decisions to administer reasonable suspicion or post-accident testing and verifying medical data; employer’s copy of alcohol test form, including the results of the test; a copy of the controlled substances test chain of custody control form; notice to report for testing; affidavit signed by the employee regarding any prescription drug or over the counter medication usage; work clearance forms; and, correspondence related to employee refusal to take or submit samples for an alcohol and/or controlled substance test. Record Copy: DOPLR retains 5 years. Agency Copy: Retain 1 year after employee terminates. The DOPLR Service Center administers current Record Copy. Transferred to Employee Planning & Information Center after employee terminates. Retention Authority: 49 CFR 382.401 (Controlled Substances & Alcohol Use/Testing) Confidential under the Alaska Constitution, Article 1, Section 22. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PERSONNEL ADMINISTRATION RECORDS 173 Item Records Series & Description Retention & Disposition Remarks No. 108 EEO & Affirmative Action Complaint Files: Consists of EEO and affirmative action complaints, departmental actions, correspondence, and investigative materials. Record Copy: DOPLR retains for 10 years after case is closed Agency Copy: Retain 5 years after complaint has been closed DOPLR Office of Equal Employment Opportunity administers the Record copy of Complaint Case Files for 10 years after the case is closed. Confidential under AS 18.80.115. 109 Grievance Case Files (Agency Level): Consists of grievances filed by employees against an agency which are responded at the agency level. Resolution documentation includes: investigative notes, reports, correspondence, and decisions. Agency Copy: Retain 5 years after resolution & execution of any stipulations. Agency administers Record Copy. Confidential under AS 39.25.080; AS 23.40.245. Copies of all written contract grievances are forwarded to DOPLR; however, Labor Relations does not maintain records of grievances resolved at the Agency level. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PERSONNEL ADMINISTRATION RECORDS 174 Item Records Series & Description Retention & Disposition Remarks No. 110 Background/Security Checks: This records series consists of background/security checks for potential new hires and promotions. These checks include: background and driver’s license screening, reference check, APSIN/NCIC checks, verification of academic standing, notices of not being hired based on the outcome of a security check and rebuttal documentation, fingerprint cards, copy of driver’s license, copy of transcript release form, and returned form reference letters. Record Copy: Retain 3 years after employee terminates. Agency Copy: Retain 3 years after employee terminates. The DOPLR Special Recruitment Unit processes backgrounds for the Departments of Corrections and Public Safety. The Alaska Police Standards Council retains background forms (F-3) and related data for 20 years. Civil litigation for personal injuries statute of limitations is 2 years to file a lawsuit. Oftentimes the lawsuit is not served for another 90 days or more after filing. Background/Security Checks information is important if an unsuccessful applicant or an applicant given a conditional offer of employment challenges the employment decision in a lawsuit. Confidential under the Alaska Constitution, Article 1, Section 22. 111 Ethics Disclosure Forms: Consists of certain disclosures required by the Alaska Executive Branch Ethics Act, AS 39.52. All public officers must disclose certain gifts and interests in grants, contracts, leases and loans awarded, executed or administered by the agency the officer serves. Public employees must disclose compensated outside employment and services and any volunteer activities that may conflict with official duties. Each designated ethics supervisor reviews and approves or disapproves the disclosure. Record Copy: DOPLR retains original ethics disclosure form for 50 years. Ethics Supervisors: Retain copy of ethics disclosure form and related determination for 3 years. Original forwarded to the DOPLR for placement in the Individual Personnel File. Refer to Items 100/101. Disclosure provisions: AS 39.52.130, .150, .170. Board or commission member disclosures, ethics files and reports may be maintained by the executive director or other support personnel. Regulatory Authority: 9 AAC 52, Executive Branch Code of Ethics. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PERSONNEL ADMINISTRATION RECORDS 175 Item Records Series & Description Retention & Disposition Remarks No. 112 Ethics Files: Consists of ethics supervisors general files containing formal or informal notification of potential violations and requests for ethics determinations, investigation materials, if any, and related determinations for advice. Also includes: requests for advisory opinions to the Attorney General and the related advisory opinions request, requests for waivers and decisions, complaint and hearing documentation. Record Copy: Ethics supervisors retain ethics files for 5 years. Retain records related to complaints referred by the attorney general for 5 years after the matter has been resolved. Regulatory Authority: 9 AAC 52.110. Under (b) designated supervisors shall segregate confidential material from other ethics file material that is available for public inspection. Confidentiality may be provided under AS 39.52.240, .260, .340 & 9 AAC 52.140, .160. 113 Ethics Reports: Consists of quarterly reports and statistical summaries submitted to the Attorney General. Record Copy: Ethics supervisors retain ethics reports for 3 years. Retention Authority: Required by AS 39.52.260. Confidential under AS 39.52.260(c). The Department of Law also retains Record Copy. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 PERSONNEL ADMINISTRATION RECORDS 176 Item No. Records Series & Description Retention & Disposition Remarks 120 Feasibility Study Reports: These reports document the analysis of information management problems to determine effective operational, economical and technical solutions and include data collection material such as: logs, time studies, interview notes, questionnaires, computer printouts, requirements analysis documents, and related correspondence. Record Copy: Retain for 4 years after successful implementation or following an audit, whichever is later. Agency administers Record Copy. 121 Systems Analysis & Design Documentation: This records series documents the examination of an IT problem and the creation of its solution. Includes: logs, time studies, interview notes, questionnaires, computer printouts, diagrams, wiring schemas, workflow documents, computations, correspondence, and other documents related to systems analysis and design. Record Copy: Retain for 5 years after successful implementation. Agency administers Record Copy. 122 Testing Data: These filesets document programmer and user testing processes created prior to implementation of a new or revised application. Contains a sample of every category of valid data as well as many invalid conditions as possible and includes: test programs/scripts with their results, instructions, routines, validity checking and verification data, user acceptance tests, and other test documentation. Record Copy: Retain for 1 year after successful implementation. Agency administers Record Copy. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 INFORMATION TECHNOLOGY RECORDS 177 Item No. Records Series & Description Retention & Disposition Remarks 123 Program Source Code & Programmer Documentation: This records series consists of programming statements and instructions that are written by a programmer, and convertible into machine language by compilers, assemblers or interpreters; and, other documentation the programmer utilizes for application implementation. May also include: data systems/file specifications, codebooks, file layouts, and output specifications. Record Copy: Retain for 2 years after successful implementation. Agency administers Record Copy. 124 Program (User) Documentation & Training Materials: Includes: user guides, notes, computations, reports, computer printouts, data systems/file specifications, codebooks, file layouts, output specifications, brochures, and other end user material regarding the use of an application. Record Copy: Retain for 1 year after the system is no longer operational. As materials are updated, retain previous version for 1 year following update. Agency administers Record Copy. 125 IT General Documentation File: Documentation includes: usage/inventory reports, application software licenses/agreements, security information, disaster recovery/backup procedures; and, Worldwide Web page data, statistics, and other development materials utilized in the creation and maintenance of Agency Internet site. Record Copy: Retain until documentation is obsolete, superseded or administrative need is met. Retain application software licenses and agreements for six years after termination. Agency administers Record Copy. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 INFORMATION TECHNOLOGY RECORDS 178 Item No. Records Series & Description Retention & Disposition Remarks 126 Post Implementation Evaluation Reviews & Reports: Assessments conducted following the completion of each IT project that address operational problems (whether the project met proposed objectives, was completed within the anticipated time and budgetary constraints, and achieved the proposed benefits). Includes: surveys, gap analysis checklists, third party recommendations, and auditor comments. Record Copy: Retain for 5 years after successful implementation. Agency administers Record Copy. 127 IT Asset Audits (Inventories): Consists of information used to accurately locate and monitor software assets of the agency, including: analyses, reports, reviews, listings, logs, risk assessment documents, and other software-audit tool outputs. Record Copy: Retain for 4 years, the inventory is superseded, or the asset is no longer operational/owned by the Agency, whichever is later. Agency administers Record Copy. 128 IT Access Authorizations: Records documenting the issuance or selection of passwords, personal identity management, security administration, and monitoring of an agency network. Consists of network administration/user passwords, VPN requests, user/customer acknowledgements, computer change requests, remote access agreements, web filtering waivers (request for blocked internet sites), temporary/permanent firewall access requests, and profiles. Forms contain appropriate Department sign-offs. Record Copy: Retain 4 years after employee no longer has access. Agency administers Record Copy. Enterprise Technology Services may also administer Record Copy. VPN: Virtual Private Network GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 INFORMATION TECHNOLOGY RECORDS 179 Item No. Records Series & Description Retention & Disposition Remarks 129 Change, Configuration & Release Management Records: These records documents the steps project teams complete to assess and address impacts on users of changes brought about by new systems. As agencies implement new tools, technologies and business processes, it is important that minimal disruption to ongoing operations occurs. Includes: objectives; committee meeting agendas/minutes; request for change submittals; change log; cost/benefit analyses; process flow diagrams; service level agreements; release package; authorizations; and, planning, tracking, budgetary, milestone, and post- implementation backup. Record Copy: Retain for 5 years after successful implementation. Agency administers Record Copy. GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 INFORMATION TECHNOLOGY RECORDS 180 Item No. Records Series Title Page No. A 128 Access Authorizations, IT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 27 Accounting Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 26 Adjusting Journal Entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 60 Administrative Systems Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 69 Advertisements: Legal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 108 Affirmative Action Complaints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 1 Agency Budget Request (Final Submission) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Agency Budget Workpapers (Original) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 107c Alaska Family Leave Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 74 Annual Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 102 Appointment Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 53-54 Automotive Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-11 B 87 Badge Issuance Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 110 Background Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 29 Banking Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 C 62 Central Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 129 Change Management Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 91 Complaints: Citizen/Consumer/Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 128 Computer Change Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 100 Confidentiality Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 100, 111 Conflicts of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24, 33 62 Correspondence, General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 D 25 Delivery Orders & Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 83 Disaster Preparedness Drills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 82 Disaster Preparedness Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 20 Disbursement Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 100, 115 Disclosure Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24, 31 84 Drafts & Working Papers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 113 Drug Test Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 ALPHABETIC INDEX 181 Item No. Records Series Title Page No. E 108 Equal Employment Opportunity Complaints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 52 Equipment Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 82 Emergency Response Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 100-101 Employee Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24-25 103 Employment Inquiries, Unsolicited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 111-113 Ethics Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33-34 F 107c Family & Medical Leave Act Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 120 Feasibility Study Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 128 Firewall Access Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 32 Forgery & Fraud Investigation Case Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 79 Forms, Functional Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 80 Forms, Numerical Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 G 40 Grant Administration Files (State Issued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 41 Grant Administration Files (State Received) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 43 Grant Applications & Responses (Not Awarded) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 44 Grant Evaluations & Recommendations of Responses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 42 Grant Solicitation Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 109 Grievance Case Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 H 106 Hazard Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 I 85 Incident Reports, General Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 107a Incident Reports (Accident/Illness) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 107 Incident Reports (Personnel Medical) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 127 Information Technology Asset Audits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 125 Information Technology, General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 85 Inspection Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 ALPHABETIC INDEX 182 Item No. Records Series Title Page No K 87 Key Issuance Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 L 51 Lease Administration Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 63 Legal Opinions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 64 Legislation Working Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 96 Letter of Intent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 90 Logs, Visitor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 97 Lost & Found Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 M 93 Mail Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 106 Material Safety Data Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 107 Medical Records, Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 96 Memoranda of Understanding/Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 65 Minutes & Meeting Files, Major Policy Making . . . . . . . . . . . . . . . . . . . . . . . . . . 14 66 Minutes & Meeting Files, Non-Policy Making . . . . . . . . . . . . . . . . . . . . . . . . . . 14 N 100 Nepotism Waivers . . . . . . . . . . . . . . . . . . . . . . . . . . 24 O 107a Occupational Injury or Illness Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 60 Operational Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 ALPHABETIC INDEX 183 Item No. Records Series Title Page No. P 95 Parking Decal/Permit Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 128 Passwords, User & Network Admin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 21 Payroll Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 128 Personal Identity Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 100 Personnel Files, Individual—Classified, Partially Exempt & Non-Permanent ........................ 24 101 Personnel Files, Individual—Exempt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 60 Plans, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 104 Position Control Number Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 126 Post Implementation Evaluations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 94 Postage Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 50 Procurement Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 61 Program History Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 67 Program Policies & Procedures, Major . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 68 Program Policies & Procedures, Routine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 123 Program Source Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 3 Program Unit Budget Request Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 124 Program (User) Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 123 Programmer Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 55 Property Control Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 78 Project Management Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 56 Property (Land & Buildings) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 70 Public Records Log . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 70 Public Information Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 R 71 Reading Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 30 Reconciliation Workpapers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 72 Records & Information Management Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 102 Recruitment Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 31 Redeemed Warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 64 Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 23 Reimbursable Service Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 74 Reports, Annual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 75 Reports, Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 73 Reports, Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 120 Reports, Feasibility Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 81 Reports, Forms Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 85 Reports, Incident . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 70 Requests for Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 28 Revenue Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 ALPHABETIC INDEX 184 Item No. Records Series Title Page No S 102 Selection Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 110 Security Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 89 Security Recordings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 129 Service Level Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 78 Special Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 61 Strategic Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 88 Supply Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 121 Systems Analysis & Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 T 77 Technical Reference Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 93 Telephone Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 122 Testing Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 92 Training Material Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 105 Training Records, Employee—Hazardous Substances & Blood-Borne Pathogens . . . . . . 27 76 Transitory & Miscellaneous Administrative Information . . . . . . . . . . . . . . . . . . . . . . . . . 17 24 Travel Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 U 85 Unusual Occurrence Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 V 25 Vendor Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 89 Video Tapes, Surveillance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 128 Virtual Private Network (VPN) Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 90 Visitor Logs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 W 31 Warrants, Redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 128 Web Filtering Waiver Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 GENERAL ADMINISTRATIVE RECORDS RETENTION SCHEDULE #100.3 ALPHABETIC INDEX 185 D.10: RETIREE RETURN TO WORK POLICY 186 187 D.11: SEAT BELT POLICY (AO 85) As State of Alaska employees, the following Administrative Order applies to all Authority employees: Administrative Order No. 85 October 14, 1985 WHEREAS, this State Administrative Order requires the driver and passenger in motor vehicles used in the conduct of State business, including privately owned vehicles used in the conduct of State business, to wear safety belts; and WHEREAS, this State Administrative Order also requires persons transporting young children in motor vehicles in the conduct of State business to utilize approved child safety devices as required by AS 28.05.095; and WHEREAS, the term “motor vehicle” as used in this order is defined as a motor vehicle operated or driven on a highway or vehicular way and equipped with safety belts (i.e. typical street automobiles and trucks); and WHEREAS, surveys indicate that less than one-third of motor vehicle occupants in Alaska routinely wear safety belts; and WHEREAS, a major cause of injury and death from motor vehicle accidents is the failure of drivers and passengers to wear safety belts; and WHEREAS, during the past two years approximately 57 State employees were injured while driving on State business; and WHEREAS, lost employee time and workers’ compensation payments represent a significant loss to the State of Alaska; and WHEREAS, safety belts have been proven effective in reducing traffic deaths and the severity of traffic injuries, when used; NOW, THEREFORE, I Bill Sheffield, Governor of the State of Alaska, by virtue of the power and authority vested in me by the Constitution and Statutes of the State of Alaska, do hereby issue this Administrative Order to become effective immediately: 1. All State agencies, departments, boards, commissions, and offices, subject to the mandatory authority of the Governor, shall develop and implement a published safety belt use policy for persons in motor vehicles while on State business. 2. Every safety belt use policy shall include a plan for achieving compliance which shall contain a requirement that employees attest to having read and understood the provisions of the Administrative Order. 3. The State Highway Safety Planning Agency shall arrange to distribute when needed to every State department, office, or authority, safety belt information materials. 4. All State entities exempt from the mandatory authority of the Governor are hereby 188 requested to implement voluntarily the provisions of this Order. 5. Safety belt information materials shall be made available at all new employee orientation meetings and at such other times as are appropriate for carrying out the safety belt use policy. 6. All State employees are requested to voluntarily wear safety belts in motor vehicles when they are not traveling on State business, and encouraged to obey the requirements of the child safety device law under AS 28.05.095. Dated at Juneau, Alaska, this 14 day of October, 1985. S/S Bill Sheffield Bill Sheffield Governor of the State of Alaska Please refer to https://gov.alaska.gov/admin-orders/administrative-order-no-85/ for the entire Administrative Order. 189 D.12: SEXUAL HARRASSMENT AND OTHER DISCRIMINATORY HARASSMENT Administrative Order No. 81 October 25, 1984 In furtherance of the State of Alaska’s commitment to human rights and equal employment opportunity, I, Bill Sheffield, Governor of the State of Alaska, under the authority granted by Article III of the Alaska Constitution and by Alaska Statute 44.17.060, hereby order the following as the policy and guidelines for the Executive Branch of Alaska State Government on discriminatory harassment and more specifically on sexual harassment. This Order amends and supplements Administrative Order No.75, the general policy on equal employment opportunity. 1. STATEMENT OF POLICY 1.1 The Executive Branch of the State of Alaska, as an employer, will not tolerate, condone or permit any kind of harassment of employees or applicants for employment on the basis of their sex, color, race, religion, national origin, age, handicap, marital status, changes in marital status, pregnancy or parenthood. Such harassment is in direct violation of Federal and State law and is inconsistent with the State’s policy on equal employment opportunity. 1.2 Persons who knowingly engage in or instigate such harassment will be subject to disciplinary actions which may lead to suspension and discharge. Additionally, managers and supervisors who knowingly permit harassment activity to occur without further action will be subject to disciplinary action. Where such prohibited activity is perpetrated by a non-employee, the State will take available and appropriate disciplinary action which may include, by way of example, loss of contract. 2. GENERAL PROVISIONS 2.1 Scope: The policy and guidelines herein apply to all agencies, employees and applicants for employment within the Executive Branch of Alaska State Government. 2.2 Frivolous or Malicious Accusations: Persons making frivolous or malicious accusations of harassment may be subjected to disciplinary actions. 2.3 Management Activities: This Order is not intended to restrict bonafide activities such as reprimands, disciplinary actions and employee performance evaluations which are clearly within the scope of a supervisor’s duties and responsibilities, and which serve a legitimate management purpose. 3. DEFINITIONS 3.1 Harassment: Unwanted communication and/or conduct by a supervisor, co- worker or non- employee in the workplace which adversely affects the employment relationship or working environment for the employee or applicant for employment and is based on the sex, race, religion, national origin, age, handicap, marital status, changes in marital status, pregnancy or parenthood of that individual. Harassment may include slurs, abusive language, threats, derogatory comments, unwelcome jokes, teasing and other such verbal or physical conduct. 190 3.2 Sexual harassment: Addressed and defined by the U.S. Equal Employment Opportunity Commission in the Federal Guidelines on Discrimination Because of Sex published on November 10, 1980, and codified as 29 CFR Section 1604.11, sexual harassment is defined as follows: “(a) Harassment on the basis of sex is violation of Sec. 703 of Title VII. Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when (1) submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment, (2) submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual, or (3) such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive work environment.” 4. GUIDELINES FOR THE IMPLEMENTATION OF POLICY 4.1 Responsibility for implementation: (a) Overall responsibility for the administration of this order is delegated to the Director of the Division of Equal Employment Opportunity. (b) All agency heads, managers and supervisors within the Executive Branch of State Government are responsible for taking immediate and appropriate corrective action where they have any knowledge of such prohibited practices. Such corrective actions should be taken only after consultation with the State Division of Equal Employment Opportunity. 4.2 Complaints: (a) Employees believing they have been subjected to harassment should contact their department or agency’s Equal Employment Opportunity Representative or the State Division of Equal Employment Opportunity. (b) A complaint may be formally filed on the “Complaint of Discrimination Form” available through agency personnel offices and the State Division of Equal Employment Opportunity. (c) The Division of Equal Employment Opportunity shall develop the appropriate administrative process to resolve harassment complaints. (d) Any form of retaliation, reprisal or adverse action taken against an employee for complaining about, reporting, or cooperating in the investigation of such harassment is prohibited and will be dealt with severely. Such disciplinary action may include suspension and dismissal. 4.3 Dissemination of Policy: (a) The policy is to be posted in the form provided in this order on all bulletin boards and at every facility and office within each department. 191 (b) It will be the responsibility of each agency head to ensure that copies of this policy are disseminated to all supervisory staff and that copies of this policy are included in all agency policy manuals and employee handbooks. This Order takes effect October 25, 1984. Dated at Anchorage, Alaska October 25 S/S Bill Sheffield Bill Sheffield Governor of the State of Alaska 192 D.13: SOA ETHICS INFORMATION Ethics Information for Public Employees (AS 39.52) Introduction This is an introduction to AS 39.52, the Alaska Executive Branch Ethics Act. This guide is not a substitute for reading the law and its regulations. State employees who have further questions should contact the "designated ethics supervisor" in their agency. The Ethics Act applies to all current and former executive branch public employees and members of statutorily created boards and commissions. Scope of Ethics Act (AS 39.52.110) Service in a public office is a public trust. The Ethics Act prohibits substantial and material conflicts of interest. Further, public employees, and their immediate family, may not improperly benefit, financially or personally, from their actions as public employees. The Act does not, however, discourage independent pursuits and it recognizes that minor and inconsequential conflicts of interest are unavoidable. Misuse of Official Position (AS 39.52.120) Public employees may not use their positions for personal gain or to give an unwarranted benefit or treatment to any person. For example, public employees may not: • use their official positions to secure employment or contracts; • accept compensation from anyone other than the State for performing official duties; • use State time, equipment, property or facilities for their own personal or financial benefit or for partisan political purposes; • take or withhold official action on a matter in which they have a personal or financial interest; or • coerce subordinates for their personal or financial benefit; • attempt to influence the outcome of an administrative hearing by privately contacting the hearing officer. Improper Gifts (AS 39.52.130) A public employee may not solicit or accept gifts if a person could reasonably infer from the circumstances that the gift is intended to influence the public employee's action or judgment. "Gifts" include money, items of value, services, loans, travel, entertainment, hospitality, and employment. All gifts from registered lobbyists are presumed to be improper, unless the giver is immediate family of the person receiving the gift. A gift worth more than $150 given to a public employee or the employee's immediate family must be reported within 30 days if: • the public employee can take official action that can affect the giver, or 193 • the gift is given to the public employee because he or she is a public employee. The receipt of a gift worth less than $150 may be prohibited if a person could reasonably infer from the circumstances that the gift is intended to influence the public employee's action or judgment. Receipt of such a gift should be disclosed. Any gift received from another government, regardless of value, must be reported; the public employee will be advised as to the disposition of this gift. A form for reporting gifts is available at www.law.alaska.gov/doclibrary/ethics or from the ethics supervisor. This restriction on gifts does not apply to lawful campaign contributions. Improper Use or Disclosure of Information (AS 39.52.140) No former or current public employee may use or disclose any information acquired from State employment if that use or disclosure could result in a financial or personal benefit to the public employee (or immediate family), unless that information has already been disseminated to the public. Improper Influence in State Grants, Contracts, Leases or Loans (AS 39.52.150) A public employee, or immediate family, may not apply for, or have an interest in a State grant, contract, lease, or loan, if the public employee has authority to affect the award or administration of that State grant, contract, lease, or loan. A public employee (or immediate family) may apply for or be a party to a competitively solicited State grant, contract or lease, if the public employee does not serve in the same administrative unit awarding or administering the grant, contract, or lease and so long as the public employee does not take official action in the award or administration of the grant, contract, or lease. A public employee (or immediate family) may apply for and receive a State loan that is generally available to the public and has fixed eligibility standards, so long as the public employee does not take (or withhold) official action affecting the loan's award or administration. Public employees must report to their designated ethics supervisor any personal or financial interest (or that of immediate family) in a State grant, contract, lease or loan that is awarded or administered by the agency the public employee serves. A form for this purpose is available at www.law.alaska.gov/doclibrary/ethics or from the designated ethics supervisor. Improper Representation (AS 39.52.160) A public employee may not represent, advise, or assist a person in matters pending before the employee's administrative unit for compensation or if the representation benefits the employee's personal or financial interest. This section does not allow a public employee to engage in any conduct that would violate a different section of the Ethics Act. This prohibition does not apply to collective bargaining matters. 194 Outside Employment (AS 39.52.170) State employees may not work (paid or unpaid) for a person or organization or provide services that benefit their own interests in addition to their State job, if that outside work or service is incompatible or in conflict with the proper discharge of their official State duties. A public employee must report outside employment or service for which he or she is paid to the designated ethics supervisor. Volunteer service must be disclosed only if it is a potential conflict with State duties or if the employee receives any compensation, including travel or meals. Changes in paid outside employment or services must be reported as they occur. A form for this purpose is available at www.law.alaska.gov/doclibrary/ethics or from the ethics supervisor. Restriction on Employment After Leaving State Service (AS 39.52.180) For two years after leaving State service, a former public employee may not provide advice or work for compensation on any matter in which the former public employee personally and substantially participated while employed by the State. This prohibition applies to cases, proceedings, applications, contracts, legislative bills, regulations, and similar matters. This section does not prohibit a State agency from contracting directly with a former public employee. With the approval of the Attorney General, the Executive Director may waive this prohibition if the Executive Director determines that the public interest is not jeopardized. Some senior public officers are also prohibited from working as registered lobbyists or for companies they were involved with while in State service for one year. See AS 39.52.180(d) and (e) for positions affected by these restrictions. Aiding a Violation Prohibited (AS 39.52.190) Aiding another public officer to violate the Ethics Act is also prohibited. Disclosure Procedures Notification of Potential Ethical Violations (AS 39.52.210) When a public employee is involved in a situation that may violate AS 39.52.110-190, the public employee must not take official action related to that situation and must immediately disclose the matter in writing to their designated ethics supervisor and the Attorney General. A form for this purpose is available from the ethics supervisor or at www.law.alaska.gov/doclibrary/ethics. The designated ethics supervisor will determine whether a violation may or does exist and advise the public employee and the Attorney General in writing. The supervisor may reassign the public employee's duties to avoid the violation (where feasible), or direct the public employee to remove the conflicting personal or financial interest, or find another solution. Reports by Third Parties (AS 39.52.230) A third party may report a suspected violation of the Ethics Act by a public officer in writing and under oath to the public officer's designated ethics supervisor. The designated ethics supervisor 195 will give a copy to the public employee and to the Attorney General and review the report to determine whether a violation may or does exist. If the designated ethics supervisor determines a violation exists, the public employee's duties may be reassigned (where feasible), the public employee may be directed to remove the conflicting personal or financial interest, or another solution may be found. The ethics supervisor may also refer the matter to the Attorney General. Attorney General's Advice (AS 39.52.240-250) Ethics supervisors may request a written advisory opinion from the Attorney General interpreting the Ethics Act. A former public employee may also request written advice from the Attorney General. These opinions are confidential. Versions of opinions without identifying information may be made available to the public. Complaints, Hearings, and Enforcement Complaints (AS 39.52.310-330) Any person may file a complaint with the Attorney General about the conduct of a current or former public employee. Complaints must be written and signed under oath. The Attorney General may also initiate complaints from information provided by designated ethics supervisors. A copy of the complaint will be sent to the public employee who is the subject and to the Personnel Board. All complaints are reviewed by the Attorney General, except for those alleging violations by the Governor, Lieutenant Governor or the Attorney General, which are handled by independent counsel appointed by the Personnel Board. If the Attorney General determines that a complaint does not warrant investigation, the complainant and the public employee will be notified of the dismissal. The Attorney General may refer a complaint to the public employee's designated ethics supervisor for resolution. After investigation, the Attorney General may dismiss a complaint for lack of probable cause to believe a violation occurred or recommend corrective action. The complainant and public employee will be promptly notified of this decision. Alternatively, if probable cause exists, the Attorney General may initiate formal proceedings by serving the public employee with an accusation alleging a violation of the Ethics Act. Complaints or accusations may also be resolved by settlement with the subject. Confidentiality (AS 39.52.340) Complaints and investigations prior to formal proceedings are confidential. If the Attorney General finds evidence of probable criminal activity, the appropriate law enforcement agency shall be notified. If there is evidence of a probable violation of AS 15.13, the Alaska Public Offices Commission will be contacted. Hearings (AS 39.52.350-360) An accusation by the Attorney General of an alleged violation may result in a hearing. An administrative law judge from the state's Office of Administrative Hearings serves as hearing 196 officer and determines the time, place and other matters. The parties to the proceeding are the Attorney General, acting as prosecutor, and the accused public employee, who may be represented by an attorney. Within 30 days after the hearing, the hearing officer files a report with the Personnel Board and provides a copy to the parties. Personnel Board Action (AS 39.52.370) The Personnel Board reviews the hearing officer's report and is responsible for determining whether a violation occurred and for imposing penalties. An appeal may be filed by the public employee in the Superior Court. Penalties (AS 39.52.410-460) All penalties under the Ethics Act are in addition to discipline that may be imposed by the employee's agency. The Personnel Board may order a public employee, who is violating the Ethics Act, to stop engaging in actions related to the complaint. It may order divestiture, establishment of a blind trust, restitution or forfeiture, and may recommend disciplinary action. If the Personnel Board finds that a former public employee violated the Ethics Act, the Personnel Board will issue a public statement about the case and will ask the Attorney General to pursue appropriate additional legal remedies. The Personnel Board will report to the President of the Senate a violation of the Ethics Act by a public officer who is removable from office only by impeachment. State grants, contracts, and leases awarded in violation of the Ethics Act are voidable. Loans issued in violation of the Act may be made immediately payable. Fees, gifts, or compensation received in violation of the Ethics Act may be recovered by the Attorney General. The Personnel Board may impose a fine of up to $5,000 for each violation of the Ethics Act. In addition, a public employee may be required to pay up to twice the financial benefit received in violation of the Act. Criminal penalties are in addition to the civil penalties listed above. Definitions (AS 39.52.960) Please keep the following definitions in mind: Administrative Unit - a division or other official subcategory of an agency. Agency - a State department, a public corporation, the University of Alaska, the Alaska Railroad Corporation, and all statutorily created boards and commissions. Benefit - anything that is to a person's advantage regardless of financial interest or from which a 197 person hopes to gain in any way. Designated Ethics Supervisor - for employees of a department, the commissioner or the commissioner's designee; for staff of boards or commissions, the executive director of the board or commission. Financial Interest - any property, ownership, management, professional, or private interest from which the employee or a member of the employee's immediate family receives or expects to receive a financial benefit. Holding a position in a business, such as officer, director, partner, or employee, also creates a financial interest in a business. Immediate Family - spouse; another person cohabiting with the person in a conjugal relationship that is not a legal marriage; a child, including a stepchild and an adoptive child; a parent, sibling, grandparent, aunt, or uncle of the person; and a parent or sibling of the person's spouse. Official Action - advice, participation, or assistance, including, for example, a recommendation, decision, approval, disapproval, vote, or other similar action, including inaction, by a public officer. Personal Interest - the interest or involvement of an employee (or immediate family) in any organization or political party from which a person or organization receives a benefit. For further information and disclosure forms, visit our Executive Branch Ethics web site or please contact: State Ethics Attorney Alaska Department of Law 1031 West 4th Avenue, Suite 200 Anchorage, Alaska 99501-5903 (907) 269-5100 attorney.general@alaska.gov 198 D.14: TRAVEL POLICY (AAM 60) AAM 60. TRAVEL (Note: AEA internal travel procedures are located at D.14.1) 60.010 Introduction to Travel 04/13 60.020 Travel Definitions 11/22 60.030 E-Travel 04/14 60.040 Travel Approvals 08/20 60.050 Travel Purchase Policies 10/15 60.060 Payment Methods for Transportation and Expenses 10/19 60.065 Taxes Related to Travel 01/11 60.070 Travel Advances 06/18 60.080 Interruption or Deviation of Travel for Traveler Convenience 01/21 60.090 Unused Transportation and Accommodations 07/14 60.100 Airline Delays, Rescheduling, and Overheading 01/07 60.110 Excess Baggage 04/05 60.120 Rental Cars 10/15 60.130 Airport Shuttle, Courtesy Van, and Taxi Service 10/15 60.140 Privately Owned Vehicles 10/16 60.150 Privately Owned Aircraft 11/22 60.160 Charters and Group Transportation 01/10 60.170 Alternatives to Travel 04/05 60.180 Boards and Commissions 01/07 60.190 Health and Safety of Travelers 01/10 60.200 Travel Related to Contracts 10/08 60.210 Traveler Reimbursement 11/22 60.220 Travel Expenses - Required Receipts and 10/15 Documentation 60.230 Third Party Reimbursements 01/24 60.240 Lodging Types and Rates 09/23 60.250 Meal and Incidental Expense Allowances 07/24 60.260 Contracting for Subsistence 07/05 AAM 60.010 Introduction to Travel (04-13) The travel policies of the State of Alaska are adopted by the Commissioner of the Department of Administration in accordance with AS 39.20.160. State agencies and Travelers are required to comply with these policies whenever traveling on state business and are prohibited from adopting their own policies that differ from statewide policies without the approval of the Commissioner of Administration. Commissioners or designee may approve policy exceptions on a trip-by- trip basis for subordinate personnel within their agency based on documented circumstances or unique business requirements. Policy exceptions for commissioners must be 199 approved by the Commissioner of the Department of Administration. Policy exceptions for the Department of Administration must be approved by the Governor's Chief of Staff. The purpose of the travel policies is to provide approval to travel on state business, and to provide reimbursement for actual and necessary expenses incurred by Travelers while traveling on state business. The policies apply uniformly to all Travelers unless otherwise provided for by a collective bargaining agreement. When there is a conflict between these policies and a collective bargaining agreement, the relevant provisions of the collective bargaining agreement supersede. State agencies may not impose more restrictive rules than set forth in the travel policies or in collective bargaining agreements. Commercial Lodging Facility A Commercial Lodging Facility is a licensed entity that is in the business of selling lodging to the general public and includes hotels, inns, motels, apartments, and campgrounds. Travel Administrator Travel Administrators are agency personnel responsible for maintaining the travel profiles for their agency. They may or may not also be the Travel Coordinator. Travel Coordinator Employee designated within an agency to oversee the travel function. Travel Coordinators assist and train travel planners, monitor travel operations, and make recommendations on statewide travel policy. Duty Station The Duty Station of a Traveler includes the city, town, or village within 50 miles of where the Traveler spends the major portion of their working time, or the place to which the Traveler returns to duty on completion of special assignments. On a case-by-case basis, commissioners or designee may identify a radius or commuting area that is broader than 50 miles within which Per Diem will not be allowed for travel within one calendar day. A Traveler that performs official state business duties within their defined Duty Station is not eligible for privately owned vehicle mileage reimbursement. Commissioners or designee may approve exceptions on a case- by-case basis based on documented circumstances or unique business requirements. See AAM 60.140 for details on taxability of such an allowance. Emergency An Emergency is defined as an unforeseen set of circumstances that calls for immediate action. Emergencies include those that are the result of business-related occurrences, as well as personal situations. Personal emergencies generally do not affect Travel Status, except in the following cases: • Traveler suffers a serious health condition [as defined by AS 39.20.550(5)] while in Travel Status • Death of an immediate family member [as defined by 2 AAC 08.999(c)] occurs while Traveler is in Travel Status AAM 60.020 Travel Definitions (11-22) 200 • Other situations deemed by agency management as severe enough to affect Travel Status E-Travel Managed travel program for the State of Alaska Executive Branch. E-Travel Management Team Comprised of the State Travel Manager, as well as others from the Division of Finance that support this program. E-Travel Online Online booking tool used for travel arrangements provided by the travel management contractor. Lodging Allowance Lodging Allowance is the portion of Per Diem that covers lodging, generally the actual cost of the Traveler’s hotel room, unless otherwise stated in individual bargaining unit agreements. M&IE Meals and Incidental Expense allowance is the portion of Per Diem that reimburses Travelers for the cost of meals and incidental expenses including discretionary tips. Non-Commercial Lodging Facility A Non-Commercial Lodging Facility may include, but is not limited to, a public facility in a rural setting such as a community building or school, motor home, or private home. Such facilities will generally lack amenities such as shower, kitchen, and bedroom/sleeping quarters. Per Diem Per Diem allowance is a daily payment instead of reimbursement for actual lodging and meal expenses. It is separate from transportation and other miscellaneous expenses. Residence The Residence of a Traveler is the location, or within 50 miles thereof, where the Traveler maintains the primary dwelling. If a Traveler maintains multiple residences, the commissioner of the agency shall designate the residence that bears the most logical relationship to the Traveler's Duty Station as the Traveler's primary residence. Factors to be considered in determining the primary residence include: the time ordinarily spent performing duties at each location; the degree of business activity at each location; the relative amount of state wages earned at each location. Agencies may also contact the Division of Finance for assistance. Ticket Class 201 Lowest [coach] ticket class on a regularly scheduled airplane, ship, or train that is the most direct route to accomplish the business purpose of the travel. Travel Planners Individuals within each agency that support Travelers by making travel arrangements, explaining policies, ensuring travel is approved prior to purchase, and ensuring reimbursement occurs timely after travel is complete. Traveler Throughout these policies, Traveler usually means a state official or a person employed by a state agency. At times, an agency may require board or commission members, volunteers, wards of the state, or other nonemployees to travel on state business. The agency must generally apply the same travel policies for nonemployees, except when travel reimbursement terms under a professional service contract differ as discussed in AAM 60.200. Travel Authorization A form approved by the Department of Administration used to document pre-travel approval and final travel related expenses. Travel Expenses • Transportation expenses consist of commercial carrier fares, vehicle mileage allowances, taxi fares, bus fares, and other essential transportation expenses while on official state business. • The Per Diem consists of two parts, meals and incidental expenses, and lodging. • Other expenses consist of charges for business telephone calls, internet, parking fees, Emergency purchases of supplies, and other charges necessary to conduct official business. Travel Status Travelers shall be considered in Travel Status from the time an authorized trip begins until it ends. An "authorized trip" is a trip approved in accordance with administrative manual guidelines and where a Traveler travels outside the boundaries of the Duty Station. An authorized trip begins when a Traveler is leaving the Duty Station and: • A Traveler leaves the normal work location during normal work hours; or • A Traveler leaves the residence outside normal work hours. An authorized trip ends when: • A Traveler returns to the normal work location during normal work hours; or • A Traveler returns to the residence if the trip ends outside normal work hours; or • A Traveler accepts voluntary denied boarding compensation. Refer to AAM 60.080 Interruption or Deviation of Travel for Traveler Convenience. Refer to: 202 http://doa.alaska.gov/dop/ppdb/SOP/Ch08TravelasTimeWorked/traveltimeworkSOPrev1.pdf for policies on compensation for travel as time worked. Travel Status is either short-term or long-term and Per Diem allowances vary according to status. The determination of short-term or long-term is based upon the duration and type of lodging facility provided to the employee. See AAM 60.240 for further guidance. A brief return of the employee to their Duty Station for business or personal convenience does not disrupt the long-term status of the trip. A Traveler is not in Travel Status for local travel or day trips. The following are some examples of Travelers who would not be considered in Travel Status under the local travel or day trip provision: • A state trooper while on patrol in his/her assigned territory. • A safety inspector whose normal duties include driving from his/her normal Duty Station to a construction site for purposes of conducting an inspection. • A health inspector whose normal duties include driving from his/her normal Duty Station to various communities to inspect facilities. A mileage reimbursement form or suitable documentation must be used to reimburse transportation costs when the Traveler has met Travel Status by performing official state business duties outside their defined Duty Station. The Department of Administration has established E-Travel as the managed travel program serving the State of Alaska Executive Branch, including employees, members of boards and commissions, inmates, witnesses, and other individuals that travel on official State business. E-Travel is comprised of: • Travel policies contained in AAM 60. • E-Travel Online, which is the online booking tool configured for State of Alaska travel policies used for researching and purchasing travel. • Travel management contractor. • Other contracts with vendors in the travel industry including airlines, hotels, and rental car agencies. • E-Travel Management Team. • Travel Coordinators, Travel Administrators, and Travel Planners within each agency. • Employees and others traveling on official State business. Travel Management Contract All travel paid by a State of Alaska Executive Branch agency must use the travel management contractor unless it is listed as optional under the service standards for performance on the Division of Finance travel web site, or a waiver has been granted by the Department of Administration. All contracted travel personnel are required to sign and adhere to a confidentiality agreement. The confidentiality agreement prohibits contracted personnel from discussing state travel arrangements with anyone that does not have a valid State of Alaska-related business need to know. The agreement includes a liquidated damage clause for breach of confidentiality. AAM 60.030 E-Travel (10-19) 203 Traveler Profile An electronic Traveler profile is required for booking travel. As a general rule, employees who will travel as part of their jobs should have individual Traveler profiles. The state information in these profiles is maintained by Travel Administrators. Optional information such as mileage number or seat preference may be entered by the Traveler. Traveler profile instructions are available on the Division of Finance travel web site. Agency Travel Policies Within the confines of this section, agencies may establish more specific, but not more restrictive travel policies. Travel Purchase Process Travel may be purchased using E-Travel Online or by calling the travel management contractor for agent assist services. Travel Planners should confirm the details of the itinerary before purchasing. After purchase, the agency is responsible for the carrier’s change fee and any additional service fees to cancel and reissue the ticket. The Traveler is personally responsible for the change fee when the change is for personal convenience. Travel purchases must include the name of the approving official authorizing the purchase. Fare Increases Fares may increase before purchase. The state agency pays the increased fare unless it is a travel management contractor delay, in which case the contractor will absorb the fare increase. Refunds Agencies may request a refund for a refundable ticket at any time by replying to the final itinerary asking the contractor to refund the ticket. Any unused refundable ticket will be refunded 30 days after the return date on the ticket by the travel management contractor and the state agency will be notified. Pre-trip Approvals All travel shall be approved in advance. Travel included on an agency's commissioner approved travel plan for the fiscal year submitted on the designated template meets the pre-trip approval requirement. Requests for travel approval not included on the commissioner approved travel plan shall be in writing and must document essentials of the travel including purpose, destination, departure and return dates, a total not-to-exceed amount, and whether a personal deviation is requested, with any related leave requests. Other aspects necessary for planning travel include whether a rental car, travel advance, or reimbursement of actual lodging costs are requested by the Traveler. Approval of financial coding for the trip may be required in advance at the agency's discretion. The approval required depends on the location of the travel: AAM 60.040 Travel Approvals (08-20) 204 • Travel within Alaska - Prior approval is required by the agency and the department's commissioner or designee. • Travel to the Contiguous United States, Hawaii, British Columbia, and Yukon Territory - Prior approval is required by the agency, by the department’s commissioner or designee, and by the Governor's Office. • Travel Outside the United States - Prior approval is required by the agency, the department’s commissioner or designee, and the Governor’s Office. Post-travel Expense Approvals Following completion of travel, actual travel expenses must be documented for approval in the Travel Authorization Form. General Travel Approval Policies • All state travel shall be work-related and essential for state business. • Agencies may document pre-approval for certain types of travel that does not fit the specific trip-by-trip approval process. • Personal travel plans of the Traveler shall not influence the approval of state-funded travel. Refer to AAM 60.080 Interruption or Deviation of Travel for Traveler Convenience. • Travel Status should be confined to the minimum amount of time required to conduct the business of the state. As a rule, a Traveler may travel the day prior if the only available scheduled flights depart prior to 7:00 a.m. and a Traveler may stay an extra night if the only available scheduled flights arrive after 10:00 p.m. Supervisors may approve exceptions to these travel times when circumstances justify. • When the required travel period exceeds 15 consecutive days, division directors may authorize employees to return home on days off at state expense. Such trips shall not curtail productive work time, and shall be limited to no more than one per month. Authorized costs for such trips are limited to the amount of avoided Per Diem and rental car expense. • Whenever a Traveler and the state opt to share the cost of business travel, the agreement will be documented in advance, including the duration of state business within the travel period. For bargaining unit members, such agreements require the concurrence of the union and must be authorized by the Division of Labor Relations. Alaska Statute 39.20.140(b) requires that the state pay no more than “the lowest ticket class fare for the most direct route” unless specific exemptions are met: • lowest ticket class accommodation is not available; • waiting for lowest ticket class accommodation would cause a delay harmful to the state; or • Department of Administration finds that travel by lowest ticket class accommodation is not in the best interest of the state, and authorizes other accommodation. First or business class is allowed if it is offered to the Traveler on a complimentary basis because of frequent flyer status and upgraded by the airline involved, except when acting as an escort. The statutes require purchasing the best fare for the most direct route that meets the state’s business needs. This requirement also applies to contractors traveling on behalf of the state, regardless of whether the state is AAM 60.050 Travel Purchase Policies (10-15) 205 paying the travel expenses directly or reimbursing the contractor. The best fare does not require the purchase of nonrefundable tickets; agencies should make this business decision based on the nature of the travel. Federally funded or reimbursed Travelers are required by 49 U.S.C. 40118, commonly referred to as the "Fly America Act," to use U.S. flag air carrier service for all air travel. However, an exception to this requirement is transportation provided under a bilateral or multilateral air transportation agreement to which the United States government and the government of a foreign country are parties, and which the Department of Transportation has determined meets the requirements of the Fly America Act. These agreements are called "Open Skies" agreements. Any international travel being reimbursed by the federal government should be booked accordingly. Failure to follow these regulations can affect travel reimbursement by the federal government. Travelers and approvers are required to document reasons for declining savings where the lowest available airfare is not purchased. Variances from State of Alaska travel policy may be reported to the agency for analysis. Electronic ticketing is the method preferred by the state. Paper tickets will be issued only when necessary. Travel planners must confirm the name on the Traveler’s government- issued ID before an airline ticket is issued using a generic profile. The airline ticket must be issued in the name on the government-issued ID. All air and ferry travel must be ticketed using E-Travel except as noted in the service standards. Travelers are generally required to use State of Alaska contracted / preferred travel providers to ensure we obtain the best fares, rates, and insurance coverage. The Department of Administration, Division of General Services has negotiated travel contracts, some of which are mandatory. All contracts are listed in the Contract Award Manual, and terms, including allowable exclusions, should be reviewed and understood before travel is purchased. State contract airfares are not available for travel by consultants and contractors, even if their travel is reimbursed by the state. If an airline lowers a fare and a state-purchased ticket is reissued to a lower fare, the difference in fare belongs to the state. Airlines sometimes issue a nonrefundable electronic discount code credit (e-certificate) in lieu of refunding the form of payment used to purchase the original ticket. This e-certificate belongs to the state. Travelers are not allowed to use these e- certificates for personal travel, even if deposited in their personal account by the airline. The e-certificate number must be given to the Traveler’s agency to be used for future state travel. Excess costs, circuitous routes, delays, or luxury accommodations unnecessary or unjustified in the performance of official state business travel are not acceptable. The Traveler will not be reimbursed for any additional costs that result from unauthorized travel arrangements. 206 The State of Alaska uses two primary methods to purchase transportation for individuals traveling on official state business: 1. One Card Alaska Corporate Charge Card (Card) – Agencies shall issue corporate charge cards to employees who travel. Corporate charge cards include One Cards and Managed Spend (declining balance) Cards. Employees with Cards are required to use them for purchases when the state pays actual costs, as in the case of transportation and actual lodging expenses. 2. Central Travel System (CTS) Accounts - The State of Alaska has established CTSs, which are used to purchase airfares and pay for rental cars for Travelers without Cards. CTSs are ghost accounts for which plastic cards are not issued. There may be occasions when neither the Card nor the CTS can be used to purchase transportation. In these cases, it should be purchased using EFT or a state warrant. Alaska Marine Highway Transportation on state ferries may be authorized when in the best interest of the state. All ferry transportation will be paid by the employee using their Card, or by the agency through use of the CTS or an interdepartmental billing. Staterooms may be paid in advance utilizing the Card only if the appropriate authorization has been obtained in advance. Meals are to be paid directly by the Traveler. The Traveler may be eligible for reimbursement of lodging expenses and/or M&IE in accordance with AAM 60.240 and AAM 60.250. Lodging Frequent Travelers should use their Card to pay for lodging. When the Card is not available, agencies may choose to use direct billing as the method of payment. Meals and Incidental Expenses For meals and discretionary tips, the Traveler receives a meals and incidental expense allowance as described in AAM 60.250. Personal expenses for meals, phone calls, movie rental, and entertainment must not be commingled with purchases for lodging expenses on the state Card. AAM 60.060 Payment Methods for Transportation and Expenses (10-19) AAM 60.065 Taxes Related to Travel (01-11) 207 The travel policies of the state are generally intended to be in compliance with current IRS regulations as an accountable plan. See AAM 320 for tax implications related to state travel reimbursement policies. Travel purchases are expenditures of the state and are generally tax- exempt under local Alaska tax ordinances when purchased with the Card or other means of direct payment by the state. The state is subject to the taxes of other states or localities outside Alaska, and many federal fees and taxes. State employees are ultimately responsible for making sure state or local sales taxes are not charged if using a state charge card to purchase services or products in Alaska. Vendors should not be held responsible when Travelers fail to identify themselves as state employees, and some judgment based on cost/benefit criteria should be applied when determining when to call the vendor for credits/refunds for small amounts of taxes on state purchases after the fact. State agencies should reflect any action taken to retrieve taxes on the Travel Authorization. Taxes resulting from purchasing with the Traveler’s personal form of payment are the responsibility of the Traveler unless state payment methods were not available to the Traveler. Lodging Hotel charges paid directly by the state are generally exempt from local taxes within Alaska. State exemption from hotel taxes does not extend to lodging while staying at a hotel during a personal deviation. It is a Traveler's responsibility to review the hotel bill prior to signing and ask that taxes, if any, be removed. If the hotel does not remove the taxes immediately, report this issue to the agency Travel Coordinator. This policy does not apply to lodging purchased by employees who are reimbursed a Per Diem allowance for lodging per the terms of their collective bargaining agreement. This lodging is a purchase of the employee, not a direct state purchase, and is therefore subject to hotel and sales tax under local ordinances. Meals and Incidental Expenses The actual costs for meals and other out-of-pocket expenses, as described in AAM 60.250, are purchases of the Traveler, and are therefore taxable transactions under local tax ordinances. The Card should not be used for meals and incidental expenses to ensure proper tax treatment. Ground Transportation 208 The state does not pay taxes on ground transportation within Alaska, but is responsible to pay other states' taxes and fees. Travelers must identify themselves as state employees when presenting a state form of payment for tax exemption within Alaska. The Traveler should circle the fare amount and write that amount on the total charge line of the receipt. Tips should not be included with the fare for state payment. Once the taxes are included they cannot be removed due to local city, borough, or municipality regulations. It is the Traveler's responsibility to pay any taxes not removed prior to issuance of receipt. Travel advances are limited to payments made prior to travel commencing, and are generally calculated at 80% of estimated meals and incidental expenses. Agencies may authorize higher advances when circumstances warrant. Agencies may choose to pay travel advances using either EDI, or through use of the Card at an ATM. All travel advances require employee notification that any monies owed the State of Alaska by the Traveler may be deducted from the employee’s paycheck. The Travel Advance Authorization form, available on the Division of Finance web site, needs to be signed only once by a Traveler for recovering all subsequent advances through payroll deductions. These forms should be kept on file by travel planners. A Traveler shall not receive an additional travel advance until the previous travel advance and trip has been reconciled and closed out. A Traveler shall not receive travel advances for same day travel. These payments are taxable and must be paid through payroll. Agencies may make exceptions to policies in this section when circumstances justify. Any interruption or deviation from the most direct and efficient means of travel for Traveler convenience requires prior approval at the agency level by the appropriate supervisor or designee. Such approvals must weigh the interests of the state as Travelers are not automatically entitled to deviations for personal convenience. Any additional time or expense resulting from an interruption or deviation for Traveler convenience shall be borne solely by the Traveler. Travelers are responsible for researching and purchasing air, car, and lodging for the personal portion of the travel on their own time. This is not a work function, and travel planners cannot research or purchase travel outside of the AAM 60.070 Travel Advances (06-18) AAM 60.080 Interruption or Deviation of Travel for Traveler Convenience (01-21) 209 minimum itinerary required to conduct state business. The business itinerary must be documented in a state-authorized fare quote (see 3 below) when the travel is approved. Travelers should be aware that personal deviations from the state- authorized itinerary may negate workers’ compensation coverage. The greater the personal deviation, the more likely the departure from the course of employment, and thereby workers’ compensation coverage. When a Traveler interrupts business travel for personal reasons, the following apply: 1. Per Diem, travel allowances, and reimbursements are calculated for the minimum itinerary that is required to conduct state business without regard for the actual itinerary that includes the deviation for personal convenience. For example, a Traveler (Anchorage Duty Station) is traveling on state business (in Seattle) and the business is concluded at noon on Wednesday. For personal reasons the Traveler will not return to the Duty Station until the following Monday. In this example, the Traveler's entitlement to Per Diem, mileage, and other travel reimbursements ends an hour after the first flight that would get the Traveler home Wednesday evening is scheduled to land. This entitlement is not increased if the Wednesday evening flight does not operate as scheduled, as Travelers relinquish their right to reimbursement for flight delays once they choose to deviate from the business itinerary. See Personal Travel FAQs for other examples. 2. A Traveler requesting approved personal air travel deviation for an alternate routing, personal discount coupons to purchase companion travel, or travel that increases airfare, will make the transportation arrangements for the entire trip on their own time. These arrangements will be purchased by the Traveler using a personal form of payment instead of a state form of payment. Personal travel segments cannot be purchased at state-contracted rates. Exception: If the only deviation is an extension of dates on either end of the state- authorized dates, agencies may opt to pay for the combined airfare when purchased if the personal portion can be recovered from the Traveler’s reimbursement after travel is complete. 3. A state-authorized fare quote must be obtained before personal travel is booked or at the time the travel is approved, whichever is later, for a price comparison to determine Traveler reimbursement. To ensure contract rates are applied the fare quote (air, car, and hotel) must be obtained in E-Travel Online by capturing the business itinerary and fare on the purchase page (no fee), or by calling the contracted travel agency (fee applies). After travel is complete, the Traveler must present a copy of the ticket receipt or itinerary showing payment and the state-authorized fare quote to obtain reimbursement. The state will reimburse the lesser amount of either the deviated ticket purchased or the state-authorized fare quote. If the Traveler cannot produce a state-authorized fare quote as instructed above, the Traveler will be eligible for a maximum allowance of $200 for a round-trip or multi-destination itinerary or $100 for a one-way itinerary, plus the authorized car and hotel expenses. The state will reimburse the lesser amount of either the deviated ticket purchased or the predetermined allowance. 210 4. Rental cars obtained for official state business are authorized only for the minimum business itinerary. The rental period may not extend to the personal travel. See AAM 60.140 for clarification on personal travel involving privately owned vehicles. 5. Any additional time that reduces the Traveler’s work week related to indirect travel will be charged to annual leave, personal leave, or leave without pay. In the example 1 above, the employee’s leave status would begin Thursday morning when the Traveler could have returned to work based on the scheduled flights for the minimum business itinerary. Leave in conjunction with business travel must be documented in prior approval and supervisors are responsible for ensuring that leave is reported appropriately for Travelers they supervise. 6. Per Diem is allowed when a Traveler is granted leave due to illness. However, the Per Diem allowance shall not be authorized for a period of illness exceeding three calendar days in any one period of absence. Per Diem is not authorized if the Traveler is hospitalized or otherwise has no actual and necessary business expenses requiring reimbursement. 7. Agencies must ensure that employees combining business and personal travel are well- informed and cautioned that airfares may result in a liability to the employee, should the reason for the business travel be cancelled. Employees leaving on vacation in conjunction with the business event will become responsible for all costs should the business event be cancelled. Employees opting not to travel if the business event is cancelled will be responsible for the cost of travel that the state cannot recover that was attributable to the personal portion of the airfare. The employee may be reimbursed, at the agency's option, for the business portion of unused tickets. The business portion of unused tickets paid to employees must be monitored by the agency as state assets until they are used or expire. Employees leaving the agency prior to the expiration of such a ticket are required to return the state payment for any business portion that is still available for use by the employee. 8. Voluntary denied boarding compensation where the Traveler voluntarily vacates his/her seat and takes a later flight may be retained by a Traveler (viewed as an insignificant personal travel credit under ethics rules). A Traveler cannot volunteer for denied boarding on an outbound flight unless the Traveler has previously approved personal travel for the beginning of the travel period. Nor may a Traveler volunteer for denied boarding if it may cause a delay in return to work. By accepting a voluntary bump on the return portion, the Traveler puts himself on personal travel rather than state business. Travel Status ends, no further Per Diem is allowed, and all state insurance coverage ceases for the duration of the trip. The Traveler is responsible for any additional travel expenses caused by the voluntary action. When Travelers’ plans change, Travelers shall release air, car, and hotel reservations within the required time limits. Travelers may contact vendors directly or contact the travel management AAM 60.090 Unused Transportation and Accommodations (07-14) 211 contractor to cancel reservations. The state shall not reimburse Travelers for charges incurred as a result of failure to release reservations. Travelers shall submit any unused portion of air or ferry tickets with the Travel Authorization. Travel planners may forward unused tickets to the travel management contractor to process refunds or the agency may retain them for reissuing later. Any unused refundable ticket will be automatically refunded 30 days after the return date on the ticket by the travel management contactor and the state agency will be notified. When an airline assumes the cost of a Traveler's lodging and/or meals due to airline delays or overheading, the Traveler shall be paid a Per Diem allowance up to the originally scheduled arrival time. When the airline does not assume the cost of a Traveler's lodging and/or meals, the Traveler shall be paid the Per Diem allowance that applies for the actual trip. Involuntary denied boarding compensation is payable to the state, not to the individual employee. If a Traveler is performing official travel and a carrier denies a confirmed reserved seat on a plane, the Traveler must submit to the agency any payment received for liquidated damages. The Traveler must ensure the carrier shows the “State of Alaska” as payee on the compensation. Any such compensation must be submitted with the Travel Authorization. The state will only pay for excess personal and state baggage necessary to carry out official state business. Such baggage shall be transported by the most economical method (checked as excess baggage, shipped via airfreight, etc.). When necessary, the rental of a car may be authorized for Travelers in Travel Status and should be included as part of the request for Travel Authorization approval. The cost and intended use of the car must be considered in determining the size and type of car to rent. As a rule, a mid- size or less car should be rented, however a larger than mid-size car may be allowed when several Travelers are traveling together or circumstances require the use of a larger car. Such situations must also be documented on the completed Travel Authorization. • All car rentals must be reserved using E-Travel. • Travelers are generally not authorized to upgrade their rental cars at the airport. If a car upgrade is required for business or safety reasons, the reason must be documented on the AAM 60.100 Airline Delays, Rescheduling, and Overheading (01-07) AAM 60.110 Excess Baggage (04-05) AAM 60.120 Rental Cars (10-15) 212 Travel Authorization when it is finalized. • Travelers are responsible for refueling rental cars prior to returning them to the rental car companies. If the rental car company refuels the vehicle, a justifiable business purpose must be provided for incurring the additional cost. By most state laws, auto liability insurance (covering third party damage or injury claims) is provided by the car-rental company as owner of the vehicle. Excess auto liability coverage is provided through Risk Management for authorized business travel. All liability insurance offered by car rental companies must be declined by Travelers. Collision or Physical Damage Waiver for any damage to a rental car (collision, comprehensive coverage, and related loss of use claims) is often offered by the car rental company at the time of hire and must be declined by Travelers when hiring from a state contracted rental car company. Risk Management will respond to any physical damage claims to rental cars while used on state business related travel. If an agency elects not to use a contracted rental car company where available, the agency accepts responsibility to cover any physical damage to the rental car should it occur. Rental cars may be driven on state business only, and Risk Management self-insurance coverage applies only where the car is used on state business. State business includes usual travel related activity (restaurants, hotels, etc.), but does not extend to any personal deviations for individual Traveler convenience. Refer to AAM 60.080 Interruption or Deviation of Travel for Traveler Convenience. If there is damage to any rental car: • Travelers are cautioned to never accept responsibility or admit liability. • If the lessor requests information or payment, advise the lessor to contact the Department of Administration, Division of Risk Management. • If there is personal injury or an accident, telephone the Division of Risk Management as soon as possible. During the deviated portion of a trip, or when family members are accompanying a Traveler, rental vehicles must be purchased by the Traveler. The Traveler must possess the appropriate insurance coverage that meets State of Alaska laws or purchase the insurance coverage from the rental car company. Reimbursement of rental cars may be received at the lesser of the state's daily contract rate or actual rental rate upon agency approval and based on a business need. All invoices, contracts, and receipts must accompany the Travel Authorization expense report. See AAM 60.350 for use of rental cars connected with an employee move. AAM 60.130 Airport Shuttle, Courtesy Van, and Taxi Service (10-15) 213 When a Traveler in Travel Status requires transportation either to or from an airport or ferry terminal, an airport shuttle, courtesy van, taxi or limousine service is allowed. When departing/returning on state travel, if a Traveler uses a privately owned vehicle for transportation to or from an airport or ferry terminal, the Traveler is allowed mileage and up to seven days of parking reimbursement. Parking reimbursement for more than seven days must be included on the request for Travel Authorization and approved prior to travel. Additional days of parking may be reimbursed when state business related itinerary changes occurred during Travel Status that prevented pre-approval. A Traveler may receive mileage reimbursement for using a privately owned vehicle, such as auto, snowmobile, motorcycle, or boat when it is in the best interest of the state and their official state business duties are outside their defined Duty Station. The approving official shall be responsible for substantiating that use of a privately owned vehicle is in the state's best interest. The Traveler shall receive a mileage reimbursement equal to the miles entered in the mileage form and the established rates published on the Division of Finance web site at: http://doa.alaska.gov/dof/travel/resource/POV_Rate_Table.pdf. When a Traveler uses a privately owned vehicle, the amount of reimbursement shall be limited to what the lowest available commercial alternative would have cost. Per Diem, actual hotel expenses and meal allowances, or other travel reimbursements shall not exceed the amounts that would have been incurred had the Traveler used common carrier transportation. Only mileage incurred while engaged in official state business is reimbursable. Mileage incurred for commuting between an employee’s residence and normal work location is not reimbursable. If approval under section 60.020 is obtained, mileage incurred for commuting to/from a temporary worksite is reimbursable to the extent that it exceeds the distance from the employee’s residence to the normal work location. Any additional regularly scheduled work time away from the Duty Station required as a result of using a privately owned vehicle for personal convenience will be charged to annual leave, personal leave, or leave without pay. When two or more Travelers that are traveling in the same direction, and it is possible to share a privately owned vehicle or airplane, the state will reimburse the total mileage only once (AS 39.20.130). AAM 60.140 Privately Owned Vehicles (10-16) AAM 60.150 Privately Owned Aircraft (11-22) 214 When a state employee who is a qualified pilot rents an aircraft or uses a privately owned aircraft for state business, the following items must be filed with the Department of Administration/Risk Management if the employee does not have an insurance policy meeting the required limits. Otherwise, the items must be filed with the agency Administrative Officer before using the aircraft: • A copy of a valid pilot's license. • A copy of current medical certification. • Proof of aircraft liability insurance with limits not less than $1,000,000 combined single limit for bodily injury and property damage per occurrence/annual aggregate. It is the responsibility of each agency to ensure these documents are on file before authorizing or reimbursing a Traveler for the use of a privately owned aircraft. No passengers are permitted to accompany a pilot except other state employees who are also traveling on state business to the same destination. For Travelers who do not have the required $1,000,000 aircraft liability insurance coverage, the Division of Risk Management has an insurance policy to provide the required coverage for Travelers who meet certain minimum pilot qualifications. This coverage is a separate aircraft liability policy for $1,000,000 combined single limit liability, for bodily injury and property and may be purchased on a per-flight basis with individual coupons. In the event the aircraft owner has liability insurance, the state policy applies as excess insurance over any other valid and collectible policies. To obtain individual trip coupons for this per-flight, aircraft liability insurance, contact Risk Management at: Division of Risk Management Department of Administration P.O. Box 110218 Juneau, AK 99811-0218 Phone (907) 465-2180 Fax (907) 465-3690 The cost is $50 per aircraft per round trip flight. The first order for coupons must be accompanied by a copy of the Pilot Qualification Certification (note minimum flight hour requirements on this form), a copy of the pilot's license, and current medical certification. The coupons may be purchased by the Traveler pilot or through a request to transfer the funds via an interdepartmental billing (Journal Entry). The original completed coupon shall be attached to the Travel Authorization. A copy of the coupon must be returned to Risk Management to comply with insurance policy requirements. 215 The reimbursement rate for privately owned aircraft is the lesser of the state-published rate on the Division of Finance website at: http://doa.alaska.gov/dof/travel/resource/POV_Rate_Table.pdf or the common carrier rate to the same destination. Bargaining unit agreements may supersede this rate. When it is necessary to hire a boat, aircraft, or other special conveyance, an explanation stating the facts constituting the necessity must be included with the Travel Authorization. When two or more Travelers travel as a group or with a group, the names and business relationship of each member of the group shall be included with the Travel Authorization of each Traveler. All charters must be handled in compliance with the policies and provisions of AS 36.30, purchasing regulations 2 AAC 12, and the agency's delegation of purchasing authority. E-Travel may be used for chartering transportation. Agencies are to develop and implement alternatives to travel, as well as less expensive means of travel. These methods should include, but are not limited to: • Teleconferencing and video conferencing. • Video recordings and published reports. • Reduced frequency of regularly scheduled out of town meetings. • Restrictions on the number of staff traveling to the same destination. • Coordinating between agencies for joint travel arrangements when more than one agency is involved. If an agency determines that a seminar, workshop, or training program is essential to staff development for five or more employees, the agency will investigate the option of bringing the trainer on-site instead of authorizing employees to travel to an off-site location. The agency will document the comparative cost of an on-site session and retain such documentation on file with the agency’s travel records. The agency must also explore the practicality of fulfilling the desired staff development goals through use of video teleconferencing or web-based conferencing where these options may be more cost-effective. AAM 60.160 Charters and Group Transportation (01-10) AAM 60.180 Boards and Commissions (01-07) AAM 60.170 Alternatives to Travel (04-05) 216 Except for those board and commission members specifically covered in statute, each state board and commission member is entitled to the same reimbursement for lodging and M&IE allowances as provided to state officials and employees in this section of the administrative manual. When the meeting or other business takes place in the vicinity of the member’s residences (see definition at AAM 60.020), members are not in Travel Status and are not entitled to reimbursement or a Per Diem for lodging. However, the commissioner of the department with oversight authority of the board may authorize reimbursement of such lodging expenses when deemed necessary and in the best interests of the state. For example, it might be authorized if the travel home would present a hardship due to the age and health of the board member. When such payments are authorized, approval must be noted on the Travel Authorization. A board or commission member, who is not a state employee, attending a board or commission meeting is entitled to a prorated M&IE if meals are not provided. To be eligible for each meal period allowance requires the member to be in attendance for at least three consecutive hours within that meal period as defined in AAM 60.250. See AAM 320 for when this allowance may be taxable to board and commission members. State employees serving as board or commission members as part of their official duties are not entitled to an M&IE allowance or reimbursement for lodging expenses when the board or commission meeting is in the vicinity of their residence and/or Duty Station. (AS 39.20.180, AS 39.20.185) The health and safety of Travelers is a top priority in the conduct of state travel related activities. It is advantageous to the state for agencies to establish and alter travel plans and itineraries with consideration of hazardous weather and other situations that could threaten the health and safety of state personnel. When this occurs, Travelers should note the reason for any additional expense on the Travel Authorization. Travelers with Physical and Medical Conditions The impact of the medical conditions of Travelers on state travel should be considered on a case- by-case basis. For Travelers weighing over 300 pounds, the state can pay for two seats in coach class or one first class ticket, whichever costs less. Similar accommodations can be made for Travelers weighing less than 300 pounds if the airline requires the purchase of a second seat. Compliance with the Americans with Disabilities Act (ADA) is mandatory. Each agency has the authority to provide reasonable accommodations during state travel for Travelers with disabilities. Decisions regarding specific situations not addressed by policy shall be made and AAM 60.190 Health and Safety of Travelers (01-10) 217 documented by the agency, conferring with the Division of Personnel and Labor Relations as necessary. All state personnel are to be afforded equal opportunity to perform travel for official state business even if the travel costs for disabled Travelers will exceed what would normally be most economical to the state. For example: • When a Traveler uses a wheelchair and it is necessary to pay more for an airline ticket so the Traveler can fly on a larger airplane that can accommodate the wheelchair. • When a Traveler has hearing or vision impairments and there is a cost of providing auxiliary aids and services to enable the Traveler to successfully accomplish the purpose of the travel. All special needs of Travelers should be documented in their travel profile. The extra travel costs required to comply with the ADA shall be documented and reviewed by the Division of Personnel and Labor Relations. ADA supporting documentation should remain confidential with no details on the Travel Authorization beyond a statement added indicating the agency file location. Agencies are encouraged to require the policies of AAM 60 in the terms of their professional service contracts which include travel. When the state reimburses a contractor for travel under these policies, the travel account codes in the financial system may be used because the travel reimbursements are excludable under the rules governing IRS accountable plan. When contract terms for travel reimbursement differ from the policies of AAM 60, or the contractor does not account to the state for travel costs, the services account codes must be used to ensure that travel reimbursements are reported as taxable income to the contractor. All travel expenses incurred by State of Alaska employees will be reimbursed based upon collective bargaining contracts, Alaska Statutes, and this section of the Alaska Administrative Manual. Failure to follow State of Alaska travel policies may result in non-reimbursement or delayed reimbursement. If, in an emergency situation, it is necessary for a Traveler to deviate from travel policy (examples: booking outside of E-Travel or First Class fares) then a memo should accompany the travel packet explaining the circumstance. Within five business days after travel is complete, the Traveler, or someone acting on behalf of the Traveler, is required to submit a completed travel packet including final trip receipts, AAM 60.200 Travel Related to Contracts (10-08) AAM 60.210 Traveler Reimbursement (11-22) 218 evidence of pre- approval, and trip details to the financial entity responsible for processing final reimbursements. • If the final amount to be reimbursed is $.49 or less, no reimbursement will be processed. If the final amount to be reimbursed is $.50 or more, the amount to be paid will be rounded up to $1.00. • Any monies owed the state by the Traveler may be deducted from employee paychecks. Travelers can alternatively give a personal check or money order to the agency's fiscal office and a copy of the payment must accompany the travel packet. If the Traveler is due an additional amount, final payment shall be certified within fifteen business days from when the financial entity responsible for processing final reimbursements receives a properly completed Travel Authorization expense report or final travel packet. Travel packets containing errors may delay travel reimbursements. Travel reimbursements are not subject to penalty pay or short pay provisions. Depending on how the reimbursement is processed by the responsible financial entity, the Traveler will receive their travel reimbursement via their paycheck or direct deposit unless the Traveler chooses non-electronic payment, in which case a warrant will be mailed to the Traveler's personal address on file in the statewide financial system. The following shall be attached to the Travel Authorization expense report when submitted for final payment: • Final itinerary. • Itemized Commercial Lodging Facility receipts (short-term Per Diem). • Receipts for expenses exceeding $50. • ATM receipt for any cash advances on state charge cards. • Rental car agreement. Though receipts for expenses of $50 or less are not required, total reimbursement for which receipts are not available shall not exceed a cumulative total of $75 per trip. Receipts are strongly encouraged. All expenses claimed are subject to review and reimbursement of unsupported expenses may be disallowed. Fraudulent claims will be subject to disciplinary action. The following travel-related expenses are not reimbursable: • Lost or stolen articles. AAM 60.220 Travel Expenses – Required Receipts and Documentation (10-15) 219 • Alcoholic beverages. • Damage to personal cars, clothing, or other items. • Services to gain entry to a locked car. • Movies charged to hotel bills. • All expenses related to the personal negligence of the Traveler, such as fines, parking tickets and traffic citations. • Entertainment expenses. • Tips and gratuities. • Towing charges. • Expenses for children, spouses, and companions while in Travel Status. • Personal phone calls or faxes. The above list is not all-inclusive. Occasionally a third party (outside entity) may agree to pay all or a part of a Traveler's travel expenses. In such cases, the Travel Authorization will indicate the third party's involvement in the trip. The Traveler is only entitled to reimbursement for travel expenses, Per Diem or other expense allowances, etc., in accordance with state policies and is to be paid by the state agency for which they are traveling and/or employed. If a third party reimbursement is higher than what is allowed per state policies, the overpayment needs to be returned to the third party. Travelers may not accept honorariums as long as they are traveling for and representing the state. The third party should be instructed to reimburse the state directly for the travel expenses to reduce potential tax consequences to the Traveler. When this is not possible, any third party reimbursement made directly to the Traveler for travel expenses, Per Diem, and/or meal allowances shall be turned over to the Traveler's state agency for deposit into the state treasury. Payments by a third party for state agency travel expenses must be recorded appropriately in the state financial system. If the travel is material to the agency’s travel budget and is part of the agency’s regular duties or is connected with carrying out the purpose of the agency, the costs must be recorded as an expenditure with an offset recorded as a revenue. If the state incurs the expenditure and is reimbursed by the third party, the reimbursement is to be recorded as revenue. However, if the travel is not directly related to the state agency’s program, is not a recurring event, or is immaterial to the agency’s travel budget, this transaction does not need to be recorded as an expenditure and a revenue of the state agency. If the state incurs the expenditure and is reimbursed by the third party, the reimbursement may be recorded as an abatement. If the third party pays directly for state expenses, such as purchasing the airline ticket for the AAM 60.230 Third Party Reimbursements (01-24) 220 Traveler, these expenses do not need to be recorded. However, any receipts obtained by the Traveler showing the cost of the airline ticket or lodging must be attached to the Travel Authorization expense report. Any time a third party is paying for a Traveler's travel expenses, the state agency must avoid the appearance of or the fact of any conflict of interest. The agency should also ensure the transaction does not violate the code of ethics and if there is any question, the Department of Law should be consulted on the matter. Travelers are permitted actual costs or an allowance for lodging and an allowance for meal and incidental expenses (M&IE). Refer to AAM 60.250 for policies on M&IE. The combined costs for lodging and M&IE are referred to as the Per Diem allowance. Where applicable, travel provisions of collective bargaining agreements supersede AAM Per Diem allowance policies and rates. A Traveler is not entitled to a Lodging Allowance when provided lodging by the state or a third party with whom the state is conducting business. Travelers are not entitled to a Lodging Allowance when staying in their own residence(s). The term of a stay (short- or long-term), type of lodging facility, and location of overnight lodging determine applicable lodging types and rates. Agencies should take into consideration the length of stay in one location in determining the type of lodging accommodations. For current lodging rates, refer to the State of Alaska Per Diem Rates published on the Division of Finance web site at: http://doa.alaska.gov/dof/travel/trav_acct.html. In- and Out-of-State, Short-Term Lodging (Actuals or Allowance) Travelers on short-term Travel Status in or outside of Alaska are eligible for reimbursement of actual lodging expenses. Actual costs for short-term lodging are authorized for moderately priced commercial lodging. Each agency must ensure that lodging costs are reasonable and necessary and that government or other discount rates are used. Travelers must submit original or scanned itemized commercial lodging receipts with their Travel Authorization expense report. Actual lodging expenses that exceed $400 room rate per night, excluding taxes, must be approved in advance by commissioners or designee. All requests shall include justification that clearly demonstrates the lodging is a government rate and cannot be acquired for less than $400 per night. Quotes from a least three moderately priced hotels in the same vicinity should be included with the justification. AAM 60.240 Lodging Types and Rates (09-23) 221 Travelers on short-term Travel Status in- and out-of-State are eligible for a daily noncommercial allowance: • When the Traveler is required to stay in a community or location where Commercial Lodging Facilities and state- or vendor- provided facilities are not available. • When the Traveler chooses noncommercial lodging in situations where Commercial Lodging Facilities are available. In-State, Long-Term Lodging (Allowance) Agencies should provide in-state long-term lodging accommodations when the assignment is expected to be longer than 30 days at any one location. • The long-term commercial Lodging Allowance rate is authorized when a Traveler stays in Commercial Lodging Facilities. • The long-term noncommercial Lodging Allowance rate is authorized when a Traveler is required to stay in a community or location where Commercial Lodging Facilities and state- or vendor-provided facilities are not available. These rates apply beginning the first day of Travel Status. Brief interruptions for business or personal convenience do not change the status from long-term. Out-of-State, Long-Term Lodging (55% of Federal Lodging Allowance) The long-term lodging rate outside Alaska is 55 percent of the federal Lodging Allowance. A link to the federal Per Diem rates is located on the Division of Finance web site at: http://doa.alaska.gov/dof/travel/trav_acct.html. Required Approvals for Short- and Long-Term Travel Assignments The short-term Lodging Allowance rate may not be used after a Traveler’s 30th consecutive day in one location unless a continuation has been approved in advance by the director of the Division of Finance. When in-state Travel Status is expected to extend beyond six consecutive months in one location or out-of-state travel is expected to be 30 days or longer, the Traveler’s agency must receive advanced approvals for the assignment and for use of the long-term lodging rate from the agency's administrative services division and the director of the Division of Finance. The approvals are requested on the Long-Term Travel Assignment form which has specific information required for the approvals. Particularly, continued Travel Status that extends beyond a year and requires the requestor(s) to justify why it is in the state’s best interest to pay Per Diem rather than move the Traveler to the project location. This form is published on the Division of Finance web site at: 222 http://doa.alaska.gov/dof/forms/resource/longterm.pdf. See AAM 320 for a summary of tax implications related to state travel reimbursement policies. Meal and incidental expense (M&IE) allowances and prorated M&IE allowances are provided to the Traveler to cover the cost of meals and incidental expenses such as discretionary tips. Where applicable, travel provisions of collective bargaining agreements supersede AAM M&IE allowance policies and rates. There are two types of M&IE allowances, short-term and long- term/noncommercial. The appropriate M&IE allowance rate for a day is the rate established for the community in which the Traveler is required to obtain overnight lodging. On the day of return, a Traveler is entitled to the M&IE allowance rate applicable for the preceding day. When travel involves crossing the International Date Line, the M&IE allowance shall be calculated based on the total number of hours in flight. For current M&IE allowances, refer to the state Per Diem rates published on the Division of Finance web site at: http://doa.alaska.gov/dof/travel/trav_acct.html. A link to the federal Per Diem rates is located on the Division of Finance web site at: http://doa.alaska.gov/dof/travel/trav_acct.html. Short-Term M&IE (Allowance) Travelers on short-term Travel Status in Alaska are eligible for a daily state M&IE rate. Travelers on short-term Travel Status outside of Alaska, including travel to Hawaii and foreign destinations, are eligible for the daily federal M&IE rate for the location. A Traveler is eligible for the short-term M&IE allowance rate in two circumstances: when a Traveler in short-term Travel Status is expected to incur expenses from dining at commercial establishments; and when a Traveler in long-term Travel Status will incur expenses from dining at commercial establishments because the Traveler is required to stay in a lodging facility that does not provide cooking facilities to its guests. Long-Term M&IE (Allowance) Travelers on long-term Travel Status in Alaska are eligible for a daily state M&IE rate. Travelers on long-term Travel Status outside of Alaska, including travel to Hawaii and foreign destinations, are eligible for 55% of the daily federal M&IE rate for the location. AAM 60.250 Meals and Incidental Expense Allowances (07-24) 223 A Traveler is eligible for a long-term M&IE allowance in two circumstances: when a Traveler in long-term Travel Status, is expected to prepare meals; and when a Traveler is in short-term Travel Status in a location where there are no commercial dining establishments and they are expected to provide their own meals. M&IE Rules for Specific Situations Whenever a Traveler is in Travel Status and is entitled to reimbursement for lodging under both the short-term and long-term/noncommercial Per Diem rules, the Traveler is entitled to only the M&IE allowance that applies to the location where the Traveler is staying. Travelers are entitled to the entire incidentals portion of the rate for each day or partial day in Travel Status unless all meals are provided. If a Traveler maintains a dwelling at their destination and it is available to them, they will be entitled to only an M&IE allowance for normal workdays. An M&IE allowance for other than normal workdays is not allowed. If a Traveler is temporarily returned to the Traveler’s Duty Station while on a long-term assignment and is continuing to receive a long-term lodging Per Diem, the Traveler is not entitled to any M&IE allowance while at the Duty Station. Prorated M&IE Allowances On the initial day of departure and final day of arrival, the Traveler receives 75% of the daily M&IE allowance for the travel destination. The prorated M&IE allowance is applied to both meals and incidental expenses. Travel Status Less Than 24 Hours, More Than 12 Hours Travelers who are in Travel Status less than 24 hours but more than 12 hours and who return to their residence and/or Duty Station rather than obtaining overnight lodging at their travel destination, are entitled to 75% of the daily M&IE allowance for the travel destination. Travelers who are normally scheduled to work more than 10 hours per day must be in Travel Status at least 2 hours more than their regular scheduled workday to be eligible for 75% of the daily M&IE allowance for the travel destination. See AAM 320 for details on taxability of such an allowance. Meals Provided to Travelers Occasionally, a Traveler is provided a meal while at a conference, training, seminar, etc., or as part of a lodging package such as at bed and breakfast inns (where the state is paying for actual 224 lodging costs). It is the Travelers responsibility to accurately report consumed meals on the Travel Authorization expense report submitted for M&IE allowance. The signature of the Traveler certifies the facts on the Travel Authorization form and is sufficient to process the claim for payment. Excluding the initial day of departure and final day of arrival the M&IE allowance must be reduced by the consumed meals reported by the Traveler on the Travel Authorization form. The prorated meal rates are published on the Division of Finance web site at http://doa.alaska.gov/dof/travel/resource/rates.pdf. The state may enter into agreements with restaurants, hotels, and lodging houses to furnish subsistence to a Traveler or groups of Travelers when in the best interest of the state (AS 36.30). A contract for subsistence must comply with appropriate procurement regulations. Such agreements require the vendor to provide itemized invoices for services. AAM 60.260 Contracting for Subsistence (07-05) 225 D.14.1: AEA TRAVEL PROCEDURE 226 227 228 Part IV: APPENDIX F F: OFFICE AND EMPLOYEE CONDUCT POLICIES This Appendix includes the following: F.1 Expenses: Food, Entertainment, Gifts F.2 Meeting Rooms Policy F.3 Recording Meetings Policy F.4 Social Media 229 F.1 EXPENSES: FOOD, ENTERTAINMENT, GIFTS POLICY Policy Authority staff or board members may incur expenses for food, entertainment, and gifts to further the Authority's mission. The expenditures must not exceed a reasonable amount for the circumstances. This policy applies to the following: 1. Board Meetings 2. Authority’s participation in external community relations events like Chamber of Commerce, Economic Development Council, Alaska Municipal League, etc. 3. Business meeting meals when hosted by an employee or board member and to which non-employees and business associates are invited. 4. Internal Employee meals hosted in conjunction with staff meetings and business. 5. Gifts should be of nominal value and given only when it is customary and appropriate under specific circumstances. [i.e., visiting foreign delegations] 6. In compliance with the State of Alaska Drug-Free Workplace Act of 1988, the purchase of alcoholic beverages will not be approved or reimbursed Procedure The Executive Director will approve all purchases and payments under this policy. An employee, other than the Executive Director or Board Chairman, must receive prior approval to make purchases under this policy. Approval from the Executive Director should be attached to the original receipts with a brief, written explanation of purpose and submitted to Finance [using the petty cash reimbursement form, a check request, or small procurement request form]. 230 F.2 MEETING ROOMS POLICY Policy The use of the Authority's meeting rooms is restricted to Authority business use during regular work hours 8:00 a.m. to 5:00 p.m. Business use is defined as a meeting with an employee or hired consultant in attendance dealing directly with Authority business. The Authority Board meeting will take precedence over any meeting that may be scheduled in the board room. If there is a conflict, the organizer of the meeting to be moved will be contacted by an Authority Executive Assistant and asked to reschedule or move to another available room. Authority business meeting organizers are responsible for making arrangements for the room to be cleaned up after a meeting: shut down electronic equipment properly, wipe off the white boards, remove coffee cups, dishes, lunch items, and turn off the lights. Personal use of meeting rooms is considered incidental and available for staff on a case by case basis outside of business hours and with prior approval by the appropriate Executive Director. The building cannot be used at any time for political or personal business purposes. An employee of the Authority must be in attendance and is responsible for cleaning the room after the meeting, coffee pots and lights are turned off and ensuring the front doors are locked. Long distance telephone calls are prohibited. Coffee is not provided and therefore groups should bring their own. 231 F.3 RECORDING MEETINGS POLICY Policy This policy applies to all meetings, with the exception of public meetings (Board, BPMC, EETFAC, IMC, REFAC1) where meeting minutes are required for public disclosure and record keeping. This policy applies to in-person, virtual, and/or teleconference meetings, or any combination of thereof, where Authority employees are present and the topic includes Authority business. Authority business includes, but is not limited to, department meetings, performance meetings, coaching and/or disciplinary meetings, or any other meeting deemed by management to include Authority business. In order for the Authority to function effectively, we encourage candid communications. A frank and candid expression of views may be chilled if employees are concerned that conversations with other employees are being recorded. In light of these considerations, the Authority prohibit the recording of conversations without prior authorization. Prior authorization must first be received from a member of the Executive Management Team, or their direct reports, if delegated such authority. Additionally, consent must be received from all parties to the conversation before recording is allowed. It is the responsibility of the meeting organizer to notify the participants of the intention to record the meeting. Likewise, it is the responsibility of the meeting leader to obtain consent of all the actual participants before the recording starts, and during the meeting for those who join at a point after the recording has started. From time to time, communications in the workplace may include confidential or privileged information. Oral communications, once taped, will constitute a public record and may be subject to a Public Records Act request or be construed as evidence subject to a litigation hold. Meetings* that are not good candidates for recording include, but are not limited to, the following: 232 • Meetings that include deliberative and privileged information; • Meetings where negotiation tactics may be discussed; • Meetings that contain confidential business information protected from disclosure per AS 44.88.215 *This policy is not intended to prevent employees from engaging in lawful concerted activities. It is a requirement of this policy, for any meeting that is important enough to be recorded, that the minutes of the meeting be transcribed and retained in compliance with the record retention requirements. Violation of this policy may lead to disciplinary action, up to and including dismissal. Employees with any questions regarding this policy should see Human Resources. 1 including but not limited to: • Board – Authority Board Meetings • BPMC – Bradley Project Management Committee • EETFAC – Emerging Energy Technology Fund Advisory Committee • IMC – Intertie Management Committee • REFAC – Renewable Energy Fund Advisory Committee 233 F.4 SOCIAL MEDIA The Authority use social media is to provide information to the public and to engage the public in a civil dialogue regarding information about the Authority. Therefore, this policy applies to all uses of social media by all Authority employees, including any social media platforms currently in use by the Authority, unless an exception is made by the Executive Director. The personal use of social media is covered later in this policy. Administrators The Communications Director for the Authority will serve as the administrator of the Authority’s social media needs and will be responsible for account creation, account management and compliance. The Authority’s Human Resources department will serve as a repository for account names, passwords, etc. serving only as an alternative during times of transition. 1. The administrator will be responsible for obtaining approval from the Executive Director prior to opening a new business/Authority social media account and only with those providers that comply with State and Federal laws. A list of social media sites in use by other State of Alaska agencies can be found at https://www.alaska.gov/socialmedia.html. 2. The administrator will be responsible for reviewing each request to create a social media account and will be responsible for discussing such request with the Executive Director. The approval from Executive Director is required prior to the creation of an account, or the request to use a personal account for Authority business (i.e. job postings). 3. Whenever possible, only Authority owned accounts should be used. 4. The administrators will keep a record of the names, user names, and passwords of the accounts used on behalf of the Authority. 5. The administrators will ensure each has administrative access to every page maintained by the Authority; 6. The administrator will ensure that any staff responsible for Authority authorized social media accounts follow the social media related legal requirements and the State of Alaska/Authority related policies on social media. 7. For each approved account, the following applies: A. In creating business accounts, each employee must use their official job title, their work email address, and their contact information. B. The Authority, not the employee who creates or administers the business account, retains all rights regarding the account. Upon separation from employment with the Authority, or a change in job responsibilities, the employee must immediately stop administering the Authority's account. C. Not create multiple accounts if doing so would violate the provider’s terms of service. D. If a social media provider allows only one account per individual to use that social media provider's site, an employee with an existing personal account must use that personal account to create a business page or to otherwise use the site. E. Prior approval from the Communications Director/Executive Director is required before converting a business account to a personal account. F. Prior approval from the Communications Director/Executive Director is required before 234 deleting inactive business accounts. Creation and Management of Approved Social Media Pages 1. Only those employees with prior approval from the Executive Director/ Communications Director may create and administer pages for the purpose of making posts or receiving comments (i.e., as opposed to making comments on or gathering information from the social media pages of other individuals or entities). 2. Each page creation requires approval before the page is created. 3. In creating a page, the employee must ensure the following: A. Each page displays the Authority’s name, the Authority’s general office contact information, and the Authority’s general email address; B. prominently state on each page that the page is maintained by the Authority; C. whenever possible, prominently state the following on each page: "For more information about the Authority, please visit [URL]"; D. as soon as a page is created, notify the Communications Director that the page was created; and E. obtain approval from the Communications Director/Executive Director prior to deleting an inactive page. 4. The Authority, not the individual employee, retains all rights regarding the page. Upon the separation from employment with the Authority, or a change in job responsibilities, the employee must immediately stop administering the page. 5. The Authority webmaster and/or the Communications Director must maintain on the Authority’s Internet site a directory of active Authority social media pages. Page Content Employees who are authorized to create and/or monitor social media content must: 1. Monitor all comments and if possible, screen comments for prohibited content (addressed in the next section of this policy) before comments are posted. 2. While on leave, ensure that another authorized employee monitors all comments. 3. Allow all comments except ones that contain prohibited content; otherwise, disable all comments. If doubt exists regarding whether a comment contains prohibited content, consult with the Authority’s General Counsel for guidance. If the Authority’s General Counsel is not available, confirm with the Executive Director before reaching out to the Department of Law for guidance. 4. If the social media platform allows, universally and promptly remove entire comments (i.e., do not edit or hide comments) that contain prohibited content (addressed in the next section of this policy), but retain the removed comments in accordance with the SOA Retention of Public Records, which can be found in Appendix D of this manual. 5. If using filters to identify potentially prohibited content, promptly review the automatically flagged, hidden, or removed content to determine whether the flagged content should be removed, hidden content should be restored or removed, and removed content should be restored. 6. If reasonable under the circumstances, when a comment is removed, post the following or a substantially similar statement: "[USER NAME]'s comment was removed for containing content prohibited under the Notice." 235 7. Except to block spam, obtain the Authority’s General Counsel’s approval before blocking a commenter for including prohibited content. If the Authority’s General Counsel is not available, confirm with the Executive Director before reaching out to the Department of Law for guidance. 8. Retain posts and comments in accordance with the SOA Retention of Public Records, which can be found in Appendix D of this manual. 9. Only post content that is authorized. For example, do not post content, such as a seal or a logo that might affect a proprietary right, such as a copyright or trademark, of the State, the Authority, or any other person without the Communications Director's approval. 10. As appropriate, post on the Authority's website new content posted on a social media site. 11. Post a correction (as soon as possible) upon learning that a post contains incorrect or misleading content. 12. And comply with the Commenting section below. Posted Notice If a page allows comments, prominently post the notice below: NOTICE OF PROHIBITED CONTENT The sole purpose of the Alaska Energy Authority’s (AEA) use of social media is to provide information to the public and to engage the public in a civil dialogue regarding only that information. AEA may remove any comment that wholly or partially does not relate to its post; contains obscene, indecent, or profane language; may compromise safety or public welfare; may violate a State or Federal law, including laws that protect privacy, proprietary, reputational or other rights; or contains a link or attachment that may compromise a system or equipment. If your comment includes prohibited content, the Authority may temporarily or permanently block you from commenting on the page. This platform and any messaging system on this platform will not be recognized by AEA as a means for submitting any request, notice, or comment that AEA is legally obligated to consider or respond to; visit AEA’s website for contact information. The following link contains other critical information concerning your use of this page, including your potential liabilities: http://doa.alaska.gov/ resources/socialMediaPolicy.html. Commenting Only AEA employees who are authorized, in writing, by the Executive Director/ Communications Director, to comment on behalf of the Authority may do so. They may comment only on the sites expressly authorized to comment and must: • Identify themselves as an Authority employee. • Use their official titles and contact information. • Comply with all State and Federal laws. • Comply with this policy, including the Prohibited Content provision of the Notice above, and all other applicable Authority and State policies. • Comply with the social media provider's most current terms of service. • Be professional, considerate, and respectful. 236 • Ensure all of their statements are factually accurate and not misleading. • Not express personal opinions. • Use only Authority authorized accounts and pages for Authority business. • And not provide personal information (e.g., home phone numbers) about any individual. Record Retention Posts, comments, and responses to comments are records under AS 40.21.150(6). Therefore, the Authority must retain posts, comments (including removed contents), and responses in compliance with the SOA Retention of Public Records, which can be found in Appendix D, of this manual. Security The Authority’s use of social media must comply with the State of Alaska’s policies on Business Use/Acceptable Use (ISP-172) (see Appendix D.3) and the requirement to use strong passwords. The Communications Director must change passwords, remove profiles, or both whenever a person should no longer have access to a social media account or page. A current State or Authority network password must not be used as a password for any social media site. Personal Use of Social Media This policy addresses the work-related use of social media, not its off-duty, personal use. Nothing in this policy prevents employees from using their personal social media accounts to communicate an opinion on a matter of public concern; to engage in concerted activities for mutual aid or protection; or to exercise their right to file a complaint of discrimination or other workplace misconduct. However, you should be mindful that even your personal use of social media must comply with all applicable laws and policies, such as the Alaska Executive Branch Ethics Act (AS 39.52) and its implementing regulations, and the Office of Information Technology's Business Use/ Acceptable Use Policy (ISP-172), included in Appendix D.3. For example, an employee should not use an Authority or state email address when using social media in a personal capacity. Additionally, in using any social media for a personal purpose, there are circumstances when a reasonable person might mistake your statements or actions (e.g., "likes" or retweets) as statements or actions on behalf of the Authority, such as when you identify yourself as an employee of the Authority on the social media platform. You should consider including a disclaimer in these circumstances that clarifies that your statements and actions (1) are your own and (2) do not necessarily represent the State's positions. The Ethics Act further prohibits state employees from sending messages through social media that advocates for a political party or candidate for partisan public office while on duty or in an Authority/State building. Engaging in such activity may result in disciplinary action. There is no 237 distinction regarding the amount of political content, nor regarding the number of people receiving the message. Employees who telework, regularly or periodically, are considered to have the same on-duty status as if they were at the office or regular work location. Employees who work irregular hours are considered to be on-duty any time they are performing official duties. Employees may not engage in monetized personal social media activity that would conflict with their official duties. Employees are required to notify the Authority/Human Resources of any outside employment so a determination can be made if such employment results in an ethics violation. This policy is not intended to prevent employees from discussing or sharing Authority information that is publicly available. Employees may not, however, accept compensation for statements or communications made over social media that relate to their official duties. If you have any questions about this section of the policy or about any other off-duty activity and whether the activity could relate to your job, contact Human Resources. Enforcement Violation of this policy may result in disciplinary action, up to, and including, dismissal. Definitions Communications Director – The department Director unless another position is designated by the Executive Director. Comment - Content, including attachments and links, in response to a post. Page - The location of an individual's or entity's presence on a social media site. Post - Initial content, including attachments and links. Record- "Record" as defined in AS 40.21.150(6). Social Media Provider - Entity that hosts a social media site. Social Media - Communication on Internet sites. Examples of locations where social media occurs include the following: • blogs and microblogs; • wikis; • forums; • social networking sites (e.g., Facebook, LinkedIn, and Twitter/X); • social hosting sites (e.g., for document, photo, audio or video sharing, or for social bookmarking); • real-time web communication sites (e.g., chat rooms); 238 • widgets; and • interactive areas of any Internet sites, such as where comments are posted on news media sites. Spam - Obvious electronic junk. Terms of Service - A social media provider's rules governing the use of its site. 239 BACK COVER ALASKA ENERGY AUTHORITY RESOLUTION NO. 2025-01 RESOLUTION OF THE ALASKA ENERGY AUTHORITY RATIFYING GOVERNORS’ SUBMISSION OF FY26 OPERATING BUDGET & CAPITAL BUDGET WHEREAS, the operating and capital budget of the Alaska Energy Authority (“the Authority”) are subject to the Executive Budget Act; WHEREAS, the FY26 operating and capital budget submissions for the Authority are included in the Governor’s State operating and capital budget submissions to the Alaska State Legislature (“the Legislature”) and are set out in Attachment A; WHEREAS, the Governor’s State operating and capital budget submissions, including the Authority’s operating and capital budget submissions, are subject to appropriation by the Legislature; and WHEREAS, the Board provides oversight for the Authority and its finances. NOW, THEREFORE, BE IT RESOLVED BY THE ALASKA ENERGY AUTHORITY AS FOLLOWS: Section 1. The Authority’s FY26 operating and capital budget submissions are ratified by the Board. The final FY26 operating and capital budget are subject to approval and appropriation by the Legislature. Dated at Anchorage, Alaska, this 30th day of January. ____________________________________ Clay Koplin, Chair ______________________________________ Curtis W. Thayer, Secretary $$$ in Thousands (000's) AEA Receipts Federal Receipts General Fund (UGF) I/A Receipts (Other) CIP ReceiptsPPF (DGF) SDPR (Other)GF Program Receipts(DGF)PCE Renew Energy (DGF)FY25 (GovAuthorized)1,199.0 1,208.6 3,017.6 286.8 8,310.0 996.4 150.0 50.0 381.8 1,401.2FY26 (GovProposed)1,199.0 535.1 3,406.6 1,982.9 11,342.5 1,039.9 150.0 50.0 1,106.3 1,464.10.01,000.02,000.03,000.04,000.05,000.06,000.07,000.08,000.09,000.010,000.011,000.012,000.0$$$ in Thousands (000's)Alaska Energy Authority Operating Budget FY2025 (Gov Authorized) vs. FY2026 (Gov Proposed)FY25 (Gov Authorized)FY26 (Gov Proposed)PCE FY2025 = $47,694.8 PCE FY2026 = $47,694.8 AEA Receipts, 1,199.0 , 5%Federal Receipts, 535.1 , 2%General Fund (UGF), 3,406.6 , 15%I/A Receipts (Other), 1,982.9 , 9%CIP Receipts, 11,342.5 , 51%PPF (DGF), 1,039.9 , 5%SDPR (Other), 150.0 , 1%PCE, 1,106.3 , 5%Renew Energy (DGF), 1,464.1 , 7%Alaska Energy AuthorityFY2026 Governor's Proposed Operating Budget$$$ in Thousands (000's) IIJA, $14,900,000 Bulk Fuel, $4,000,000 **Electrical Emergency Response , $234,500 Renewable Energy Grant Fund Program, $6,315,000 Greenhouse Gas Reduction Fund - Solar for All, $42,450,000 Rural Power Systems Upgrades , $5,000,000 Whittier Cruise Ship Terminal Port Electrification, $4,400,000 Dixon Diversion Project - Optimize Bradley Lake Project, $6,500,000 Alaska Energy Authority FY2026 Governor's Proposed Capital Budget - $83,799,500 (**Inc FY2025 Supplemental) $128,097.3 $75,176.6 $59,060.5 $44,568.6 $20,492.3 $20,632.1 $5,000.0 -$4,400.0 - $20,000.0 $40,000.0 $60,000.0 $80,000.0 $100,000.0 $120,000.0 $140,000.0 FY2024 FY2025 FY2026 (Gov Proposed)$$$ in Thousands (000's) Alaska Energy Authority - 3 Year Capital Budget Compare FY2024-FY2025 (FY2026 Gov Proposed) Federal State Other FY2026 AEA Operating Budget RequestsDepartment of Commerce, Community, and Economic DevelopmentTitle DescripƟon FY265 Request FY26 Gov CommentsWorking Capital for the Alaska Energy Authority OperationsAEA is requesting an appropriation of working capital for $3.5 million from the State of Alaska to replace the current borrowing agreement with AIDEA. (UGF)$3,500.0 $0.0AIDEA to provide AEA $3.5 million working capital through FY26. Interest earned on deposited funds remitted to AIDEA quarterly.Replace funding for Three Positions to Meet Circuit Rider Program RequirementsThis request is to fund three Circuit Rider positions from the Power Cost Equalization (PCE) Endowment Fund for the Circuit Rider Program, which provides assistance to all PCE-eligible communities. (PCE Endowment Fund)$710.0 $710.0 PCE Endowment FundData Library Administration, Hosting, Expansion, and DigitizationAEA is requesting an operating budget appropriation to continue funding library administration, hosting, and expansion. To date, AEA has scanned over 11,000 documents providing essential historical data for publically accessible energy databases. Reappropriation$225.0 $225.0 ReappropriationLeased Warehouse Roof ReplacementThe Alaska Energy Authority (AEA) is currently utilizing warehouse space owned by the Department of Natural Resources for rural project and program support. The lease space is currently provided at a zero cost to AEA. However, the repairs are an AEA expense. The roof is in disrepair and needs to be replaced. Reappropriation$100.0 $0.0 Reappropriation Warehouse Operations and MaintenanceThe Alaska Energy Authority (AEA) is currently utilizing warehouse space owned by the Department of Natural Resources for rural project and program support. AEA currently leases the space for no fee. However, annual operating costs are approximately $80,000 to maintain and upgrade security. (UGF) $80.0 $0.0If this funding is approved, no need for roof replacement for the leased warehouse and a reduced amount could be used for one time moving expenses.Shared Facilities Rent, Operations, and MaintenanceAEA is currently housed in Alaska Industrial Development Export Authority (AIDEA) office space and has historically not paid rent or reimbursed AIDEA for O & M costs. AIDEA's current operating cost is $608,000. To offset costs, AIDEA requested that AEA include in the FY2026 budget development a $304,000 operating budget increment, or find similar space elsewhere. (UGF) $304.0 $304.0$4,919.0 $1,239.0AEA Supplemental Budget (FY2025)AEA accounting's software requires a significant upgrade prior to October 2025 when Microsoft no longer supports the current software version. Mandatory upgrades are required to maintain adequate security and accounting operations. The project will take place during FY2025 and FY2026. ReappropriationNavision Accounting System Upgrade - $448,000Phone System - $56,000Konica Minolta Copier Five-Year Lease - $90,000Warehouse Server Hardware Refresh - $30,0001Department: $ in thousandsPriority RankingReappropriation23456Administrative Systems Updates$624.0 $0.0 FY2026 AEA Capital Budget Requests Department of Commerce, Community, and Economic Development Title Description FY26 Request FY26 Gov Comments Grid Resilience and Innovation Partnership Grant In FY2024, AEA was selected to receive $206.5 million from the U.S. Department of Energy for a Grid Resilience and Innovation Partnership (GRIP) Grant Project. Match of $206.5 million is required over the eight-year term of the grant. Request - $1.5 Million (AEA bonding will provide $30 million in FY2026)1,500.0$ 1,500.0$ AEA Bonds provide $20M in FY25 and $30M in FY26. A total of $50M. State $12.7 in FY 25. Outstanding need $143.8 million Dixon Diversion Project (Optimize the Bradley Lake Hydroelectric Project) AEA continued its field work and preliminary design in FY2024 on the Dixon Diversion project, which would raise Bradley Lake's annual energy production by 50% and displace 1.5 billion cubic feet of natural gas starting in 2030. Funding supports the remaining studies, design, and final FERC license and application to be filed in January 2026. Request - $6.5 Million (Possibly qualify for federal tax credits $100-150 million; credits expire in 2032)6,500.0$ 6,500.0$ Use AEA Bond interest of $6.5M pending legal review, AEA Board approval and Bond holder approval. Bulk Fuel Upgrades AEA upgrades non-compliant bulk fuel tank farms in rural communities to reduce or eliminate fuel loss from leaks, spills, or catastrophic failure. The average cost of a bulk fuel facility is $11 million. In FY2025 $4 million was provided from UGF. Request - $4 Million Federal: $2 Million; State: $2 Million 4,000.0$ 4,000.0$ Funding at FY2025 Level Rural Power Systems Upgrades AEA invests in new power systems designed to meet accepted utility standards for safety, reliability, and environmental protection. The average powerhouse upgrade project costs $6 million. In FY2025, 2.5 million was provided from Federal Funds. Request - $5 Million (Federal: $2.5 Million; State: $2.5 Million)5,000.0$ 5,000.0$ Funding at FY2025 Level Statewide Grid Resilience and Reliability- IIJA Formula Under this federal program, to leverage the remaining $12.1 million federal funds, a state match of $1.8 million is requested. Request - $13.4 Million ($12,110 Federal Receipt Authority and $1.8 million in UGF) 13,400.0$ 13,400.0$ Over the past 4 years, $9M State Funding leveraged $60M in Federal Receipts. Round 17 Renewable Energy Project Grants For the Renewable Energy Fund Round 17, AEA will submit 18 projects as recommended by the Renewable Energy Fund Advisory Committee. In FY2025, $10,521,836 was provided in support of five projects. Request - $5 Million 5,000.0$ 6,315.0$ Funding 6 projects in the communities of Pelican, Naknek, Skagway, Kwethluk, Quinhagak, Nenana. Greenhouse Gas Reduction Fund - Solar for All Competition AEA was selected to receive a $62,450,000 federal grant from the U.S. Environmental Protection Agency Greenhouse Gas Reduction Fund Solar for All Program. AEA received $20,000,000 in FY25 receipt authority and this request is for the balance. Request - $42,450,000 (Federal Receipt Authority; no State match)42,450.0$ 42,450.0$ Federal Receipt Authority Whittier Cruise Ship Terminal Port Electrification Funding will complete the $15.5 million Whittier-Cruise Ship Terminal Electrification Project, which will upgrade the cruise ship dock in Whittier, Alaska to provide shore power directly to cruise ships and allow the engines to be shut down while docked. Request - $3.5 Million (Cruise Ship Passenger Tax) 3,500.0$ 4,400.0$ Holland America & Princess Cruises have committed $6M to the project. Federal Tax Credits AEA will apply for tax credits for projects funded by AEA, and will apply revenue from tax credits received toward renewable energy projects or as matching funds for federal programs. Request - $0.00 -$ -$ Budget Language Interest Earned on Matching Funds and Other Federal Funds AEA holds all corporation funds in interest-bearing accounts. Interest earned on federal grant funds and matching funds appropriated to AEA will be appropriated to AEA as matching funds that will hedge against inflation. Request - $0.00 -$ -$ Budget Language Total $81,350.0 $83,565.0 AEA Supplemental Budget (FY2025) Electrical Emergencies Program Rural communities rely on AEA's Electrical Emergencies Program when their electric utility loses or will lose its ability to transmit power to its customers and condition is threat to life, health and/or property. Funding provides the program's current level of technical support. Request - $234,500 (Reappropriation)234.5$ 234.5$ Reappropriation 1 Department: $ in thousands Priority Ranking 2 3 4 5 6 7 8 9 10 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Alaska Energy Authority Owned Facilities (2599)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NP***************************************** Changes From FY2025 Enrolled To FY2025 Authorized ***************************************** FY2025 EnrolledEnrolled 1,199.0 0.0 47.5 1,128.5 18.0 5.0 0.0 0.00001107 AEA Rcpts 1,199.0Subtotal 1,199.0 0.0 47.5 1,128.5 18.0 5.0 0.0 0.0000***************************************** Changes From FY2025 Authorized To FY2025 Management Plan ***************************************** Align Authority with Anticipated ExpendituresLIT 0.0 0.0 4.6 -4.6 0.0 0.0 0.0 0.0000Aligning authority in travel to match anticipated expenditures approved in the FY2025 Travel Plan.Subtotal 1,199.0 0.0 52.1 1,123.9 18.0 5.0 0.0 0.0000***************************************** Changes From FY2025 Management Plan To FY2026 Governor Adjusted Base ***************************************** Reverse Add Authority for Senior Staff Accountant to Support Operation and Maintenance of Owned Facilities (FY25-FY26)OTI -167.7 0.0 0.0 -157.7 -10.0 0.0 0.0 0.00001107 AEA Rcpts -167.7The Alaska Energy Authority (AEA) owns multiple facilities in Alaska: the Bradley Lake Hydroelectric Project, the Alaska Intertie, and the Railbelt TransmissionLine and Battery Energy Storage Systems. Operation and maintenance for these assets is funded by reimbursement from Railbelt utilities and received as AEACorporate Receipts.Managing the financial operations of the assets and the associated revenue recovery from the utilities is complex and requires additional staff support. Positionsin support of the AEA are budgeted in the Alaska Industrial Development and Export Authority (AIDEA) and funded through an annual reimbursable servicesagreement. The position and authority for the full-time Senior Accountant (08#146), range 18/20, in Anchorage, is added to the AEA. This request includes$25.0 for annual statewide core services costs and $10.0 for one-time startup commodity costs. Restore Authority for Senior Staff Accountant to Support Operation and Maintenance of Owned Facilities (FY2025-FY2026)IncT 167.7 0.0 0.0 157.7 10.0 0.0 0.0 0.00001107 AEA Rcpts 167.7The Alaska Energy Authority (AEA) owns multiple facilities in Alaska: the Bradley Lake Hydroelectric Project, the Alaska Intertie, and the Railbelt TransmissionLine and Battery Energy Storage Systems. Operation and maintenance for these assets is funded by reimbursement from Railbelt utilities and received as AEACorporate Receipts.Managing the financial operations of the assets and the associated revenue recovery from the utilities is complex and requires additional staff support. Positionsin support of the AEA have historically been budgeted in the Alaska Industrial Development and Export Authority (AIDEA) and funded through an annualreimbursable services agreement (RSA). In FY2025, AEA positions are budgeted in AEA and the RSA is with AEA Rural Energy Assistance. This authority willprovide for the costs associated with the full-time Senior Accountant (08X225), range 18/20, in Anchorage.Subtotal 1,199.0 0.0 52.1 1,123.9 18.0 5.0 0.0 0.0000Page 47 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Alaska Energy Authority Owned Facilities (2599)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NP***************************************** Changes From FY2026 Governor Adjusted Base To FY2026 Governor ***************************************** Totals 1,199.0 0.0 52.1 1,123.9 18.0 5.0 0.0 0.0000Page 48 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Alaska Energy Authority Rural Energy Assistance (2600)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NP***************************************** Changes From FY2025 Enrolled To FY2025 Authorized ***************************************** FY2025 EnrolledEnrolled 8,257.2 0.0 172.3 7,806.9 168.0 10.0 100.0 0.00001002 Fed Rcpts 1,208.61004 Gen Fund 1,369.21005 GF/Prgm 50.01007 I/A Rcpts 124.31061 CIP Rcpts 3,976.91062 Power Proj 996.41108 Stat Desig 150.01169 PCE Endow 381.8 Alaska Housing Finance Corporation:Sustain Energy Ch25 SLA2024 (HB154 passed as HB273)(Sec2 Ch07 SLA2024 P47 L7 (HB268))FisNot 162.5 0.0 0.0 152.5 10.0 0.0 0.0 0.00001007 I/A Rcpts 162.5The bill gives the Alaska Housing Finance Corporation (AHFC) the authority to contract with Alaska Energy Authority (AEA) for the provision of technical review,energy infrastructure expertise, or analysis of proposed sustainable energy development loans. The AHFC is anticipated to transfer revenue from the newAlaska Energy Independence Fund to the Alaska Energy Authority through a reimbursable services agreement.The Alaska Industrial Development and Export Authority (AIDEA) provides all personal service support for the AEA programs and is reimbursed via areimbursable services agreement with the AEA. The AEA will require one Assistant Project Manager to provide the AHFC with required technical expertise andsupport. This position is reflected in a fiscal note by the AIDEA.Contractual costs for the AEA include authorization to pay for the position that will be housed in the AIDEA:Services:Assistant Project Manager, range 18, in Anchorage $127.5 annuallyOn-going support services for analyst position $25.0 annuallyCommodities:One-time start up costs for Assistant Project Manager $10.0 in FY2025 Compensation for Certain State Employees Ch5 SLA2024 (SB259) (Sec2 Ch7 SLA2024 P52 L06 (HB268))FisNot 412.5 0.0 0.0 412.5 0.0 0.0 0.0 0.00001004 Gen Fund 412.5Five percent cost of living adjustment for employees not covered by a collective bargaining unit.: $716.7 Compensation for Certain State Employees Ch5 SLA2024 (SB259) (Sec2 Ch7 SLA2024 P52 L06 (HB268))FisNot 292.4 0.0 0.0 292.4 0.0 0.0 0.0 0.00001004 Gen Fund 292.4Page 49 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Alaska Energy Authority Rural Energy Assistance (2600)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NPOne salary step adjustment for employees not covered by a collective bargaining agreement.: $507.9Subtotal 9,124.6 0.0 172.3 8,664.3 178.0 10.0 100.0 0.0000***************************************** Changes From FY2025 Authorized To FY2025 Management Plan ***************************************** Transfer Positions from the Alaska Industrial Development Export AuthorityTrin 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 45 0 0Previously the Alaska Industrial Development and Export Authority (AIDEA) provided staff support for the Alaska Energy Authority (AEA). Positions were locatedin the AIDEA and funded by the AEA through a reimbursable services agreement. The passage of House Bill 307 in 2024 included statutory authorization forexempt employees for the AEA, along with establishing a separate board for the AEA. In FY2025, 45 permanent full-time positions are transferred from theAIDEA to the AEA Rural Energy Assistance. The position transfers will occur in fall 2024. Transfer Authority from Alaska Energy Authority Statewide Project Development and Alternative EnergyTrin 2,344.7 0.0 80.0 2,244.7 20.0 0.0 0.0 0.00001004 Gen Fund 943.51210 Ren Energy 1,401.2Transfer renewable energy grant fund authority and general funds from the Alaska Energy Authority (AEA) Statewide Project Development and AlternativeEnergy to the AEA Rural Energy Assistance to appropriately align funding.Renewable energy grant funds support the administration of grants from the fund. General funds were added in FY2025 in support of the Railbelt TransmissionOrganization. Transfer Capital Improvement Project Receipts to Statewide Project Development, Alternative Energy and EfficiencyTrout -2,000.0 0.0 0.0 -2,000.0 0.0 0.0 0.0 0.00001061 CIP Rcpts -2,000.0Transfer capital improvement project (CIP) receipts from the Alaska Energy Authority (AEA) Rural Energy Assistance to Statewide Project Development,Alternative Energy and Efficiency.These receipts have historically been used in the AEA to support personal services for positions working on capital projects. After the passage of House Bill 307in 2024, the AEA has statutory authorization for exempt positions. This authorization will be used to support personal services costs for positions working oncapital projects in Statewide Project Development, Alternative Energy and Efficiency. Align Authority with Anticipated ExpendituresLIT 0.0 8,500.0 0.0 -8,500.0 0.0 0.0 0.0 0.0000Align authority to meet projected personal service needs.Previously the Alaska Industrial Development and Export Authority (AIDEA) provided staff support for the Alaska Energy Authority (AEA). Positions were locatedin the AIDEA and funded by the AEA through a reimbursable services agreement. The passage of House Bill 307 in 2024 included statutory authorization forexempt employees for the AEA, along with establishing a separate board for the AEA. In FY2025, 45 permanent full-time positions are transferred from theAIDEA to the AEA Rural Energy Assistance. The position transfers will occur in fall 2024. This transfer aligns authority to support the transferred positions.Page 50 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Alaska Energy Authority Rural Energy Assistance (2600)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NPSubtotal 9,469.3 8,500.0 252.3 409.0 198.0 10.0 100.0 0.0 45 0 0***************************************** Changes From FY2025 Management Plan To FY2026 Governor Adjusted Base ***************************************** Reduce Year Two of AK Housing Finance Corp: Sustain Energy Ch25 SLA2024 (HB273) (Sec2 Ch7 SLA2024 P47 L6 (HB268))OTI -10.0 0.0 0.0 0.0 -10.0 0.0 0.0 0.00001007 I/A Rcpts -10.0The bill gives the Alaska Housing Finance Corporation (AHFC) the authority to contract with the Alaska Energy Authority (AEA) for the provision of technicalreview, energy infrastructure expertise, or analysis of proposed sustainable energy development loans.Reverses one-time start up commodities costs. Reverse Administration and Management of Alaska Energy Authority Data LibraryOTI -200.0 0.0 0.0 -200.0 0.0 0.0 0.0 0.00001061 CIP Rcpts -200.0The Alaska Energy Authority (AEA) is in the process of updating and revising the online document library. This library includes information about the AEA itself,as well as project and program fact sheets. The library will eventually contain research and documentation on projects funded by the AEA. This will allow theresearch, data, and information on these projects to be available to the public. The increase in availability and transparency of projects -- both successful andunsuccessful - will help support and advance other affordable or renewable energy projects in the state.Prior work on the project was funded by federal funds. This funding will support continued digitization of the AEA records to be added to the online repositorythrough direct personal services and contractual support, as well as hosting and administration costs. Reverse Year Two Integrated Transmission Systems Ch24 SLA2024 (SB217 passed as HB307) (Sec2 Ch7 SLA2024 P51 L12 (HB268))OTI -20.0 0.0 0.0 0.0 -20.0 0.0 0.0 0.00001004 Gen Fund -20.0This legislation creates the Railbelt Transmission Organization (RTO) within the Alaska Energy Authority (AEA). The AEA and the Regulatory Commission ofAlaska (RCA) will develop a methodology for the filing of an “open access transmission” tariff, subject to RCA-approval, which would serve as the “revenuemechanism” as required by statute, which would serve to ensure the reliability and sufficient capacity of the backbone transmission system to support andpromote state and regional energy policies and a rigorous, dynamic economy.These additional duties will increase AEA’s operational costs in the short term until a revenue mechanism methodology for the RTO is developed, approved bythe RCA, and eventually, upon the RCA approval, recovered in the tariff rate and such costs passed-through in utility rates. The regulatory compliance costs areestimated to be $500.0 annually in addition to two full-time permanent positions and their associated costs, housed within the AEA.The Alaska Industrial Development and Export Authority (AIDEA) provides all staff support for the AEA programs and is reimbursed via a reimbursable servicesagreement from the AEA. This fiscal note reflects the personal services costs associated with this fiscal note for these two new positions and initial legal,regulatory/tariff consultants, and engineering firm in the services line.Contractual costs for the AEA include authorization to pay for the positions that will be housed in the AIDEA:Page 51 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Alaska Energy Authority Rural Energy Assistance (2600)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NPServices:Program Manager, range 26, in Anchorage $197.9 annuallySenior Accountant, range 20, in Anchorage $145.6 annually$50.0 statewide and department core services for both positions annually$500.0 contractual services for establishment of the RTO within the AEA and development and establishment of a backbone transmission revenue mechanismmethodology for the required filing of the RCA-approved “open access transmission” tariff as required per AS 44.83.700 – 44.83.720.Commodities:$20.0 one-time start-up costs for both positionsThis bill also separates the board of directors of the AEA from the board of directors of the AIDEA. It provides that the directors of the AEA are the commissionerof Commerce, Community, and Economic Development, the commissioner of Revenue, and six public members appointed by the Governor with expertiserelevant to the mission of the AEA.Travel:$30.0 for four of the eight board members to travel to the 10 board meetings held in Anchorage annually. Restore Authority for Senior Staff Accountant for Owned Facilities (FY2025-FY2026)IncT 142.7 117.7 0.0 25.0 0.0 0.0 0.0 0.00001007 I/A Rcpts 142.7The Alaska Energy Authority (AEA) owns multiple facilities in Alaska: the Bradley Lake Hydroelectric Project, the Alaska Intertie, and the Railbelt TransmissionLine and Battery Energy Storage Systems. Operation and maintenance for these assets is funded by reimbursement from Railbelt utilities and received as theAEA Corporate Receipts.Managing the financial operations of the assets and the associated revenue recovery from the utilities is complex and requires additional staff support. Thisposition was previously located in the Alaska Industrial Development and Export Authority (AIDEA) and funded through an annual reimbursable servicesagreement (RSA); in FY2025 and beyond, the AEA positions are budgeted in the AEA. This authority will allow AEA Rural Energy Assistance to budget for theRSA for a full-time Senior Accountant (08X225), range 18/20, in Anchorage. FY2026 Salary, Health Insurance, and Retirement IncreasesSalAdj 380.2 380.2 0.0 0.0 0.0 0.0 0.0 0.00001002 Fed Rcpts 36.51004 Gen Fund 105.01007 I/A Rcpts 63.41061 CIP Rcpts 54.41062 Power Proj 43.51169 PCE Endow 14.51210 Ren Energy 62.9Salary, health and retirement increases: $380.2AlaskaCare increase from $1908 to $2030.11 per member per month: $64.3Page 52 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Alaska Energy Authority Rural Energy Assistance (2600)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NPFY2026 3% cost of living adjustment for employees not covered by a collective bargaining agreement: $227.1FY2026 PERS rate adjustment from 26.76% to 28.33%: $88.8 Interagency Receipts for Alaska Energy Authority Staff SupportTrin 1,500.0 1,300.0 0.0 200.0 0.0 0.0 0.0 0.00001007 I/A Rcpts 1,500.0House Bill 307 passed in 2024 and provided the statutory authority for exempt employees for the Alaska Energy Authority (AEA). Positions were transferred tothe AEA in FY2025 Management Plan, and unbudgeted interagency and unbudgeted capital improvement project receipts were used to fund positions inFY2025. In FY2026, interagency receipt authority previously used to support these positions in the Alaska Industrial Development and Export Authority istransferred to the AEA Rural Energy Assistance. This interagency receipt authority will be used to collect revenue from the AEA Owned Facilities and the AEAPower Cost Equalization to support position costs. Align Authority with Anticipated ExpendituresLIT 0.0 -4,474.0 0.0 4,474.0 0.0 0.0 0.0 0.0000Align authority to address service's needs. The remaining authority is sufficient to support projected personal service expenditures.Subtotal 11,262.2 5,823.9 252.3 4,908.0 168.0 10.0 100.0 0.0 45 0 0***************************************** Changes From FY2026 Governor Adjusted Base To FY2026 Governor ***************************************** Shared Facilities Rent, Operations, and MaintenanceInc 304.0 0.0 0.0 304.0 0.0 0.0 0.0 0.00001004 Gen Fund 304.0The Alaska Energy Authority (AEA) is currently housed in the office space owned by the Alaska Industrial Development and Export Authority (AIDEA).Historically, the AIDEA paid for the annual facility operations and maintenance costs. Projected costs for the facility for FY2025 are $608.0, including capitalimprovements.Beginning in FY2026, the AEA will contribute half of the building operations and maintenance cost ($304.0). In the upcoming year, both agencies will analyze theallocation of shared space and costs to determine appropriate allocations or alternative space options. Capital Improvement Project Receipts to Align with Experienced and Projected ExpensesInc 3,100.0 3,100.0 0.0 0.0 0.0 0.0 0.0 0.00001061 CIP Rcpts 3,100.0House Bill 307 passed in 2024 and provided the statutory authority for exempt employees for the Alaska Energy Authority (AEA). Previously, positions werehoused in the Alaska Industrial Development Export Authority. Positions were transferred to the AEA in FY2025 Management Plan, and unbudgeted interagencyand capital improvement project receipts were used to fund positions in FY2025. In FY2026, positions are located in the AEA Rural Energy Assistance. Thisadjustment provides capital improvement project receipt authority to collect revenue from capital projects to support these personal service expenses. Replace Funding for Three Positions to Meet Circuit Rider Program RequirementsPage 53 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Alaska Energy Authority Rural Energy Assistance (2600)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NPFndChg 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.00001002 Fed Rcpts -710.01169 PCE Endow 710.0The Circuit Rider Program, established under Alaska Statute 42.45.900 and administrative code 3 AAC 108.200 – 3 AAC 108.220, provides on-site Operationsand Maintenance training to eligible rural utilities to enhance the efficiency, safety, and reliability of their power systems, while reducing the risk and severity ofemergency situations. Additionally, the circuit riders provide real-time remote technical assistance to rural operators, troubleshooting power system issues viaphone or electronic communication. The Circuit Rider Program is vital for communities and acts as the first and last lines of defense for rural powerinfrastructure.The Alaska Energy Authority (AEA) is responsible for training and providing technical assistance to over 100 rural utilities. Currently, AEA has three circuit riderpositions. However, with more than 100 utilities and only three circuit rider positions, the program is forced to be reactive rather than proactive, responding toproblems instead of following a rotating schedule to provide training and required maintenance that could prevent emergencies. This limitation is primarily due toa decline in available federal funding.The Circuit Rider Program has historically been funded by the Denali Commission. Current funding levels are not adequate to support the authority’s statutoryobligations for assistance to rural utilities and funding for the Circuit Rider Program has consistently decreased over time. Federally funded in FY2021 at $300.0;in FY2022 at $300.0; in FY2023 at $150.0; in FY2024 at $75.0; and in FY2025 at $75.0.Shifting to the Power Cost Equalization (PCE) Endowment Fund will fully fund the three circuit rider positions for the Circuit Rider Program, which providesassistance to all PCE eligible communities. Totals 14,666.2 8,923.9 252.3 5,212.0 168.0 10.0 100.0 0.0 45 0 0Page 54 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Alaska Energy Authority Power Cost Equalization (2602)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NP***************************************** Changes From FY2025 Enrolled To FY2025 Authorized ***************************************** FY2025 EnrolledEnrolled 233.9 0.0 2.2 231.7 0.0 0.0 0.0 0.00001169 PCE Endow 233.9 FY2025 Alaska Energy Authority Power Cost Equalization Allocation Sec35(d) Ch7 SLA2024 P102 L30 (HB268) (Language) Enrol(L) 48,049.8 0.0 0.0 355.0 0.0 0.0 47,694.8 0.00001169 PCE Endow 48,049.8* Sec. 35. DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT.(d) The amount necessary for the purposes specified in AS 42.45.085(a), estimated to be $48,049,800, not to exceed the amount determined under AS42.45.080(c)(1), is appropriated from the power cost equalization endowment fund (AS 42.45.070(a)) to the Department of Commerce, Community, andEconomic Development, Alaska Energy Authority, power cost equalization allocation, for the fiscal year ending June 30, 2025.Subtotal 48,283.7 0.0 2.2 586.7 0.0 0.0 47,694.8 0.0000***************************************** Changes From FY2025 Authorized To FY2025 Management Plan ***************************************** Align Authority with Anticipated ExpendituresLIT 0.0 0.0 3.2 -3.2 0.0 0.0 0.0 0.0000Aligning authority in travel to match anticipated expenditures approved in the FY2025 Travel Plan.Subtotal 48,283.7 0.0 5.4 583.5 0.0 0.0 47,694.8 0.0000***************************************** Changes From FY2025 Management Plan To FY2026 Governor Adjusted Base ***************************************** Reverse FY2025 Alaska Energy Authority Power Cost Equalization Allocation Sec35(d) Ch7 SLA2024 P102 L30 (HB268) (Language) OTI -48,049.8 0.0 0.0 -355.0 0.0 0.0 -47,694.8 0.00001169 PCE Endow -48,049.8The amount necessary for the purposes specified in AS 42.45.085(a), estimated to be $48,049,800, not to exceed the amount determined under AS42.45.080(c)(1), is appropriated from the power cost equalization endowment fund (AS 42.45.070(a)) to the Department of Commerce, Community, andEconomic Development, Alaska Energy Authority, power cost equalization allocation, for the fiscal year ending June 30, 2025. FY2026 Alaska Energy Authority Power Cost Equalization Allocation (Language) IncM 48,049.8 0.0 0.0 355.0 0.0 0.0 47,694.8 0.00001169 PCE Endow 48,049.8* Sec. XX. DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT.(d) The amount necessary for the purposes specified in AS 42.45.085(a), estimated to be $48,049,800, not to exceed the amount determined under AS42.45.080(c)(1), is appropriated from the power cost equalization endowment fund (AS 42.45.070(a)) to the Department of Commerce, Community, andEconomic Development, Alaska Energy Authority, power cost equalization allocation, for the fiscal year ending June 30, 2026.Page 55 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Alaska Energy Authority Power Cost Equalization (2602)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NPSubtotal 48,283.7 0.0 5.4 583.5 0.0 0.0 47,694.8 0.0000***************************************** Changes From FY2026 Governor Adjusted Base To FY2026 Governor ***************************************** Totals 48,283.7 0.0 5.4 583.5 0.0 0.0 47,694.8 0.0000Page 56 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Statewide Project Development, Alternative Energy and Efficiency (2888)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NP***************************************** Changes From FY2025 Enrolled To FY2025 Authorized ***************************************** FY2025 EnrolledEnrolled 5,734.3 0.0 128.5 5,485.8 120.0 0.0 0.0 0.00001061 CIP Rcpts 4,333.11210 Ren Energy 1,401.2 Integrated Transmission Systems Ch24 SLA2024 (SB217 passed as HB307) (Sec2 Ch7 SLA2024 P51 L12 (HB268))FisNot 943.5 0.0 30.0 893.5 20.0 0.0 0.0 0.00001004 Gen Fund 943.5This legislation creates the Railbelt Transmission Organization (RTO) within the Alaska Energy Authority (AEA). The AEA and the Regulatory Commission ofAlaska (RCA) will develop a methodology for the filing of an “open access transmission” tariff, subject to the RCA-approval, which would serve as the “revenuemechanism” as required by statute, which would serve to ensure the reliability and sufficient capacity of the backbone transmission system to support andpromote state and regional energy policies and a rigorous, dynamic economy.These additional duties will increase the AEA’s operational costs in the short term until a revenue mechanism methodology for the RTO is developed, approvedby the RCA, and eventually, upon the RCA approval, recovered in the tariff rate and such costs passed-through in utility rates. The regulatory compliance costsare estimated to be $500.0 annually in addition to two full-time permanent positions and their associated costs, housed within the AEA.The Alaska Industrial Development and Export Authority (AIDEA) provides all staff support for the AEA programs and is reimbursed via a reimbursable servicesagreement from the AEA. This fiscal note reflects the personal services costs associated with this fiscal note for these two new positions and initial legal,regulatory/tariff consultants, and engineering firm in the services line.Contractual costs for the AEA include authorization to pay for the positions that will be housed in the AIDEA:Services:Program Manager, range 26, in Anchorage $197.9 annuallySenior Accountant, range 20, in Anchorage $145.6 annually$50.0 statewide and department core services - for both positions annually$500.0 contractual services for establishment of the RTO within AEA and development and establishment of a backbone transmission revenue mechanismmethodology for the required filing of RCA-approved “open access transmission” tariff as required per AS 44.83.700 – 44.83.720.Commodities:$20.0 one-time start-up costs for both positionsThis bill also separates the board of directors of the AEA from the board of directors of the AIDEA. It provides that the directors of the AEA are the commissionerof Commerce, Community, and Economic Development, the commissioner of Revenue, and six public members appointed by the Governor with expertiserelevant to the mission of the AEA.Board Travel:$30.0 for four of the eight board members to travel to the 10 board meetings held in Anchorage annually.Subtotal 6,677.8 0.0 158.5 6,379.3 140.0 0.0 0.0 0.0000Page 57 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Statewide Project Development, Alternative Energy and Efficiency (2888)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NP***************************************** Changes From FY2025 Authorized To FY2025 Management Plan ***************************************** Transfer Positions from the Alaska Industrial Development Export AuthorityTrin 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 12 0 12Previously the Alaska Industrial Development and Export Authority (AIDEA) provided staff support for the Alaska Energy Authority (AEA). Positions were locatedin the AIDEA and funded by through the AEA a reimbursable services agreement. The passage of House Bill 307 in 2024 included statutory authorization forexempt employees for the AEA, along with establishing a separate board for the AEA. In FY2025, 12 permanent full-time positions and 12 nonpermanentfull-time positions performing work for the Infrastructure Investment and Jobs Act (IIJA) and Grid Resilience and Innovation Partnerships (GRIP) federalprograms were transferred out of the AIDEA to the AEA Statewide Project Development. The position transfers will occur in fall 2024. Transfer Authority from Alaska Energy Authority Statewide Project Development and Alternative EnergyTrout -2,344.7 0.0 -80.0 -2,244.7 -20.0 0.0 0.0 0.00001004 Gen Fund -943.51210 Ren Energy -1,401.2Transfer renewable energy grant fund authority and general funds from the Alaska Energy Authority (AEA) Statewide Project Development and AlternativeEnergy to the AEA Rural Energy Assistance to align funding with the appropriate component.Renewable energy grant funds support the administration of grants from the fund. General funds were added in FY2025 in support of the Railbelt TransmissionOrganization. Human Resources Technician to Support Federal ProgramsPosAdj 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0100The Alaska Energy Authority (AEA) is the federally designated applicant, prime recipient and administrator for the State of Alaska for a number of federalprograms made available through the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA). Currently, the AEA has been awarded$79 million in IIJA/IRA program funding, with an additional $555 million awarded conditionally and $116 million pending award from federal agencies. In additionto the AEA’s management, administration, and oversight of its existing programs, federal programs deployed under the IIJA/IRA, require an increase to theAEA’s existing workforce for successful deployment of federal funds and to meet federal compliance requirement. A Human Resources Technician (08#188),range 18, in Anchorage will support the positions created under the federal programs. Align Authority with Anticipated ExpendituresLIT 0.0 2,460.0 0.0 -2,460.0 0.0 0.0 0.0 0.0000Align authority to meet projected personal service needs.Previously the Alaska Industrial Development and Export Authority (AIDEA) provided staff support for the Alaska Energy Authority (AEA). Positions were locatedin the AIDEA and funded by through the AEA a reimbursable services agreement. The passage of House Bill 307 in 2024 included statutory authorization forexempt employees for the AEA, along with establishing a separate board for the AEA. In FY2025, 12 permanent full-time positions and 12 nonpermanentfull-time positions performing work for the Infrastructure Investment and Jobs Act (IIJA) and Grid Resilience and Innovation Partnerships (GRIP) federalprograms were transferred out of the AIDEA to the AEA Statewide Project Development. The position transfers will occur in fall 2024. This transfer alignsauthority in the component to support the transferred positions. Transfer Capital Improvement Project Receipts from Rural Energy AssistanceTrin 2,000.0 2,000.0 0.0 0.0 0.0 0.0 0.0 0.0000Page 58 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Statewide Project Development, Alternative Energy and Efficiency (2888)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NP1061 CIP Rcpts 2,000.0Transfer capital improvement project (CIP) receipts from the Alaska Energy Authority (AEA) Rural Energy Assistance to Statewide Project Development,Alternative Energy and Efficiency.These receipts have historically been used in the AEA to support personal services for positions working on capital projects. The passage of House Bill 307 in2024 included statutory authorization for exempt employees for the AEA, along with establishing a separate board for the AEA. This authorization will be used tosupport personal services costs for positions working on capital projects in Statewide Project Development, Alternative Energy and Efficiency.Subtotal 6,333.1 4,460.0 78.5 1,674.6 120.0 0.0 0.0 0.0 13 0 12***************************************** Changes From FY2025 Management Plan To FY2026 Governor Adjusted Base ***************************************** Reverse Funding for Infrastructure Investment and Jobs Act (IIJA) Staff Support (FY2024-FY2027)OTI -958.0 0.0 0.0 -908.0 -50.0 0.0 0.0 0.00001061 CIP Rcpts -958.0The Alaska Energy Authority (AEA) received multiple capital appropriations in the FY2023 budget related to the Infrastructure Investment and Jobs Act (IIJA) bill.This change restores funding for five positions and associated costs to support IIJA programs. Positions are funded from capital improvement project receiptsreceived in the AEA and passed through to the Alaska Industrial Development and Export Authority (AIDEA) as inter-agency receipts to fund positions. Reverse Infrastructure Investment and Jobs Act (IIJA) Staff Support (FY25-FY29)OTI -1,249.5 0.0 0.0 -1,179.5 -70.0 0.0 0.0 0.00001061 CIP Rcpts -1,249.5The Alaska Energy Authority (AEA) received multiple capital appropriations in the FY2024 budget related to the Infrastructure Investment and Jobs Act (IIJA) bill.This change adds seven positions and associated costs to support IIJA programs. Positions will be funded from capital improvement project receipts received inthe AEA. A corresponding change record is included in the Alaska Industrial Development and Export Authority (AIDEA) operating component to reflect thepersonal services cost because positions are located in the AIDEA. The AEA reimburses the AIDEA for payroll, core services, and commodities costs throughinteragency receipts.The following positions are added:Full-time Project Manager (08#138), range 23/24/25, in AnchorageFull-time Project Manager (08#139), range 23/24/25, in AnchorageFull-time Sr. Contracting Officer (08#140), range 20/22, in AnchorageFull-time Grant Accountant (08#141), range 20/22, in AnchorageFull-time Accounting Technician (08#142) range 14/16, in AnchorageFull-time Engagement and Communications Specialist (08#143), range 18/20, in AnchorageFull-time Administrative Assistant (08#144), range 14/16, in Anchorage Reverse Grid Resilience and Innovation Partnership Grant Staff Support and OfficeOTI -120.0 0.0 0.0 0.0 -120.0 0.0 0.0 0.00001061 CIP Rcpts -120.0Page 59 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Statewide Project Development, Alternative Energy and Efficiency (2888)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NPThe Alaska Energy Authority (AEA) received notification from the Department of Energy that the AEA has been selected to receive $206.5 million in federalgrant fund from the Grid Resilience and Innovation Partnership (GRIP) grant program. These funds are included in the capital budget. The awarded project willconstruct a High Voltage Direct Current (HVDC) submarine cable to serve as parallel transmission route from Kenai to Anchorage and provide funding formultiple battery energy storage systems (BESS). The expected timeframe of the program is a minimum of eight years.The AEA estimates requiring 12 new positions, including annual core services costs per position of $25.0 and one-time setup costs of $10.0 commodities perposition. Additionally, the AEA will need additional office space and associated utilities totaling $183.1 per year. All costs will be funded from capitalimprovement project receipts received by the AEA. A corresponding change record is included in the Alaska Industrial Development and Export Authority(AIDEA) operating component to reflect the personal services cost and additional positions. The AEA reimburses the AIDEA for payroll, core services, andcommodities costs through a reimbursable services agreement and interagency receipts.The following positions are added:Full-time Program Manager, range 27, in AnchorageFull-time Utility Engineer, range 27, in AnchorageFull-time Environmental Engineer, range 27, in AnchorageFull-time Transmission Project Manager, range 26, in AnchorageFull-time Transmission Project Manager, range 26, in AnchorageFull-time Project Controls/Compliance Officer, range 22, in AnchorageFull-time Sr. Contracting Officer, range 20/22, in AnchorageFull-time GIS/IT, range 20/22, in AnchorageFull-time Sr. Accountant, range 20, in AnchorageFull-time Accounting Technician, range 14/16, in AnchorageFull-time Administrative Assistant, range 14/16, in AnchorageFull-time Engagement and Communications Specialist, range 18/20, in Anchorage Restore Infrastructure Investment and Jobs Act (IIJA) Staff Support (FY2025-FY2029)IncT 1,249.5 0.0 0.0 1,179.5 70.0 0.0 0.0 0.00001061 CIP Rcpts 1,249.5The Alaska Energy Authority (AEA) received multiple capital appropriations in the FY2024 budget related to the Infrastructure Investment and Jobs Act (IIJA) bill.This change supports seven positions and associated costs to support the IIJA programs. Positions will be funded from capital improvement project receiptsreceived in the AEA. The reversal of the prior year temporary increment is located in the Alaska Industrial Development and Export Authority but is restored inthe AEA in FY2026 as the employees and associated costs have transferred. Restore Funding for Infrastructure Investment and Jobs Act (IIJA) Staff Support (FY2024-FY2027)IncT 958.0 0.0 0.0 908.0 50.0 0.0 0.0 0.00001061 CIP Rcpts 958.0The Alaska Energy Authority (AEA) received multiple capital appropriations in the FY2023 budget related to the Infrastructure Investment and Jobs Act (IIJA) bill.This change restores funding for five positions and associated costs to support the IIJA programs. The reversal of the prior year temporary increment is locatedin the Alaska Industrial Development and Export Authority but is restored in the AEA in FY2026 as the employees and associated costs were transferred to theAEA in FY2025 Management Plan.Page 60 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Change Record Detail - Multiple Scenarios with Descriptions (294)Department of Commerce, Community, and Economic DevelopmentComponent:Statewide Project Development, Alternative Energy and Efficiency (2888)RDU:Alaska Energy Authority (453)PositionsScenario/ChangeRecord TitleTransTypeTotals PersonalServicesTravel Services Commodities Capital Outlay Grants,BenefitsMiscellaneous PFT PPT NP FY2026 Salary, Health Insurance, and Retirement IncreasesSalAdj 198.1 198.1 0.0 0.0 0.0 0.0 0.0 0.00001061 CIP Rcpts 198.1Salary, health and retirement increases: $198.1AlaskaCare increase from $1908 to $2030.11 per member per month: $35.2FY2026 3% cost of living adjustment for employees not covered by a collective bargaining agreement: $117.1FY2026 PERS rate adjustment from 26.76% to 28.33%: $45.8Subtotal 6,411.2 4,658.1 78.5 1,674.6 0.0 0.0 0.0 0.0 13 0 12***************************************** Changes From FY2026 Governor Adjusted Base To FY2026 Governor ***************************************** Totals 6,411.2 4,658.1 78.5 1,674.6 0.0 0.0 0.0 0.0 13 0 12Page 61 of 78 State of AlaskaOffice of Management and Budget Released December 12, 2024 Alaska Energy Authority - Grid Resilience and Innovation Partnership Grant Match FY2026 Request: Reference No: $1,500,000 65274 AP/AL: Appropriation Project Type: Energy Category: Development Location: Statewide House District: Statewide (HD 1 - 40) Impact House District: Statewide (HD 1 - 40)Contact: Curtis W. Thayer Estimated Project Dates: 07/01/2025 - 06/30/2030 Contact Phone: (907)771-3000 Brief Summary and Statement of Need: In FY2024, the Alaska Energy Authority (AEA) was selected to receive $206.5 million from the United States Department of Energy (DOE) for a Grid Resilience and Innovation Partnership (GRIP) Grant Project. This federal grant requires 100 percent State match over the eight-year term of the grant; this is year two of the State match. Alaska is at a critical transition point with a once-in-a-generation opportunity to build resiliency and develop a fuel-diverse, low-carbon economy, by investing in essential electric infrastructure. The AEA will use existing bond authority for necessary State match in FY2026. Funding:FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Total 1003 GF/Match $1,500,000 $1,500,000 Total:$1,500,000 $0 $0 $0 $0 $0 $1,500,000 State Match Required One-Time Project Phased - new Phased - underway Ongoing 100% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: Sec1 Ch8 SLA2024 P3 L4 SB187 $3,453,900 Sec4 Ch8 SLA2024 P39 L13 SB187 $213,452,000 Sec7 Ch8 SLA2024 P56 L8 SB187 $2,294,100 Project Description/Justification: The AEA and the Railbelt utilities are partners in this project as collaborative decision makers representing all primary transmission owners and operators of Alaska's largest electrical grid (the Railbelt). Alaska's largest, but electrically islanded, grid serves over 550,000 Alaskans including diverse and underserved communities, primary commerce and shipping centers, strategic military bases, and access areas for key mineral deposits. However, due to the relatively low population, the electric system does not meet the minimum standards of the lower 48 states. The collective mission of the State of Alaska and the interconnected Railbelt electric utilities is to build a resilient, clean, smart, and low-cost electrical grid. A team has been assembled to manage the project consisting of relevant decision makers in the region: the AEA representing the State of Alaska, the Regulatory Commission State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2026 Governor Reference No: 65274 Page 1 Released December 12, 2024 Alaska Energy Authority - Grid Resilience and Innovation Partnership Grant Match FY2026 Request: Reference No: $1,500,000 65274 of Alaska, and the five electric utilities that make up the Railbelt electric grid. The total estimated cost for the construction of the transmission line segments and associated station facilities proposed is approximately $1 billion. The DOE funds for grid resiliency provide a federal funding opportunity to defray a portion of the total estimated cost of required upgrades and is specifically eligible for the following scope of work ($413 million): Installation of High Voltage Direct Current (HVDC) submersible cable connecting the Kenai Peninsula to the Central Region (Anchorage and Mat-Su Valley); and installation of new Battery Energy Storage Systems (BESS) at Central and Northern (Fairbanks) regions. Generation locations and electrical loads are changing, and existing transmission was constructed for a different system decades ago. The parallel transmission and batteries will enable energy to travel from one region to another more reliably and allow additional clean energy sources to connect on the transmission grid system. This funding will begin work on the Grid Modernization and Resiliency Plan (GMRP), but without federal and State financial assistance, it cannot be completed. Work in FY2026 includes preparatory costs for initial design, engineering, and National Environmental Policy Act (NEPA) permitting. Residents from Homer to Fairbanks will benefit from the project. The value proposition for the residents of the Railbelt grid is clear: this project will position the Railbelt for lower energy costs through more efficient use of decreasing available volumes of Cook Inlet natural gas as Alaska transitions to a fuel-diverse, clean energy future. Improving the resiliency, reliability, and efficiency of the Railbelt grid will provide a more secure energy supply to critical military defense infrastructure located in the three Railbelt regions, enhancing national security and global stability. State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2026 Governor Reference No: 65274 Page 2 Released December 12, 2024 Alaska Energy Authority - Dixon Diversion - Bradley Lake Hydro Power FY2026 Request: Reference No: $6,500,000 65125 AP/AL: Appropriation Project Type: Energy Category: Development Location: Statewide House District: Statewide (HD 1 - 40) Impact House District: Statewide (HD 1 - 40)Contact: Curtis W. Thayer Estimated Project Dates: 07/01/2025 - 06/30/2030 Contact Phone: (907)771-3000 Brief Summary and Statement of Need: The project is estimated to cost $342 million and is anticipated to be funded through revenue bonds backed by Railbelt utilities. Operations could begin as soon as 2030, conditioned on the timely funding of the remaining initial phases. The AEA has been working on preliminary geological, environmental, and engineering studies on the Dixon Diversion project. This project will increase the energy available from Bradley Lake Hydro by about 50 percent; Bradley power is some of the lowest cost energy available on the Railbelt today. Additional funds are required to complete the engineering design, permitting, and geological studies in order to obtain the required FERC license, and support a completed project by 2030. Funding:FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Total 1004 Gen Fund $6,500,000 $6,500,000 Total:$6,500,000 $0 $0 $0 $0 $0 $6,500,000 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: Sec7 Ch7 SLA2024 P56 L1 SB187 $1,379,000 Sec14 Ch1 SLA2023 P83 L11 HB39 $5,000,000 Project Description/Justification: The Bradley Lake Hydroelectric Project, completed in 1991, is a 120-megawatt (MW) facility that generates about 10 percent of the total annual power used by Railbelt electric utilities and provides some of the lowest-cost power to more than 550,000 Alaskans and “electrifies” 54,000 homes. Following the successful completion of the West Fork Upper Battle Creek Diversion Project in 2020, the Dixon Diversion Project (Project) would be the 3rd largest renewable energy project in Alaska (largest in last 30 years). The Alaska Energy Authority (AEA), in partnership with the Railbelt utilities, has filed a preliminary license amendment with the Federal Energy Regulatory Commission (FERC) as an initial step in pursuing the project, to be followed by a Draft License and Final License application. State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2026 Governor Reference No: 65125 Page 1 Released December 12, 2024 Alaska Energy Authority - Dixon Diversion - Bradley Lake Hydro Power FY2026 Request: Reference No: $6,500,000 65125 The project has broad support among all Railbelt utilities. Along with displacing natural gas demand, the project will enhance Alaska’s energy security by directly increasing overall renewable generation, indirectly enable additional non-firm renewable energy to be developed, displace natural gas, improve resilience to fuel price fluctuations and supply side disruptions, and lower long-term cost of energy. Once licensed, the project will be shovel ready. Geotechnical studies in 2024 verified tunnel geology. Environmental studies in 2024 verified the impact will be minimal and will not adversely affect fish returns. In 2025, the AEA will complete geotechnical drilling investigation and other engineering and environmental studies required by the FERC license process. Once construction is funded, the project could be completed as soon as 2030 and while estimated construction costs have been affected by inflation, design efforts have also reduced cost, netting no significant change in construction cost from last year. Construction is estimated at $342 million. The project construction is anticipated to be funded through revenue bonds and possible federal tax credits due to expire in 2032. State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2026 Governor Reference No: 65125 Page 2 Released December 12, 2024 Alaska Energy Authority - Bulk Fuel Upgrades FY2026 Request: Reference No: $4,000,000 65120 AP/AL: Appropriation Project Type: Energy Category: Development Location: Statewide House District: Statewide (HD 1 - 40) Impact House District: Statewide (HD 1 - 40)Contact: Curtis W. Thayer Estimated Project Dates: 07/01/2025 - 06/30/2030 Contact Phone: (907)771-3000 Brief Summary and Statement of Need: The Bulk Fuel Upgrades (BFU) program will invest in rural Alaska BFU projects in FY2026. The BFU program upgrades non-compliant bulk fuel tank farms in rural communities. This project reduces the cost of energy by reducing or eliminating fuel loss from leaks, spills, or catastrophic failure. By providing enough capacity for current and planned needs, communities may purchase fuel in larger quantities at a lower cost per gallon. Projects ensure facilities meet code compliance standards improving life, health, and safety of the community. Funding:FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Total 1002 Fed Rcpts $2,000,000 $2,000,000 1003 GF/Match $2,000,000 $2,000,000 Total:$4,000,000 $0 $0 $0 $0 $0 $4,000,000 State Match Required One-Time Project Phased - new Phased - underway Ongoing 20% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: Sec1 Ch1 SLA2024 P2 L23 SB187 $13,000,000 Sec14 Ch1 SLA2023 P83 L25 HB39 $19,000,000 Sec11 Ch11 SLA2022 P85 L13 HB281 $13,000,000 Sec8 Ch19 SLA2021 P70 L19 HB69 $13,000,000 Sec1 Ch19 SLA2018 P2 L19 SB142 $17,000,000 Sec1 Ch1 SLA2017 P2 L22 SB23 $2,420,000 Sec1 Ch2 SLA2016 P2 L18 SB138 $1,300,000 Sec1 Ch18 SLA2014 P3 L33 SB119 $7,300,000 Sec1 Ch16 SLA2013 P4 L14 SB18 $6,000,000 Sec1 Ch17 SLA2012 P6 L9 SB160 $7,000,000 Bulk fuel tanks are not upgraded in a timely manner due to available funds for bulk fuel upgrades declining. As a result, communities are left with aging fuel tanks that may not meet the capacity needs of the community or are at risk of leaks, contamination, and/or failure. Project Description/Justification: State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2026 Governor Reference No: 65120 Page 1 Released December 12, 2024 Alaska Energy Authority - Bulk Fuel Upgrades FY2026 Request: Reference No: $4,000,000 65120 Recent emphasis has been put on maintenance and improvement projects to protect river and oceanside fuel systems. The projects preliminarily identified for construction are in the following communities: Russian Mission and Shageluk. State matching funds are required for Denali Commission funded construction projects, 20 percent for distressed communities and 50 percent for non-distressed communities. The Denali Commission maintains the distressed community list. Most of the rural tank farms have serious deficiencies that typically include: •Inadequate dikes to contain fuel spills; •Inadequate foundations, which could cause gradual tank movement and fuel leakage; •Improper piping systems and joints, which are the most common source of fuel leaks; •Improper siting near wells, beaches, and buildings, or within a floodplain; •Tanks that are rusted or damaged beyond repair; •Electrical code violations; and •Inadequate security. The deferred maintenance need for BFU is estimated at approximately $1 billion. In August 2024, the AEA moved two bulk fuel tanks that were within two feet from falling into the river in Shageluk. State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2026 Governor Reference No: 65120 Page 2 Released December 12, 2024 Alaska Energy Authority - Rural Power Systems Upgrades FY2026 Request: Reference No: $5,000,000 65126 AP/AL: Appropriation Project Type: Energy Category: Development Location: Statewide House District: Statewide (HD 1 - 40) Impact House District: Statewide (HD 1 - 40)Contact: Curtis W. Thayer Estimated Project Dates: 07/01/2025 - 06/30/2030 Contact Phone: (907)771-3000 Brief Summary and Statement of Need: The Rural Power System Upgrades (RPSU) program will invest in rural communities projects in FY2026. Electric utility systems are essential infrastructure in rural communities. New power systems are designed to meet accepted utility standards for safety, reliability, and environmental protections. As funding availability diminishes, emphasis on maintenance, improvement projects, training for operations, and planned maintenance have become critical. Funding:FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Total 1002 Fed Rcpts $2,500,000 $2,500,000 1003 GF/Match $2,500,000 $2,500,000 Total:$5,000,000 $0 $0 $0 $0 $0 $5,000,000 State Match Required One-Time Project Phased - new Phased - underway Ongoing 20% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: Sec1 Ch1 SLA2024 P3 L12 SB187 $27,500,000 Sec14 Ch1 SLA2023 P83 L4 HB39 $32,500,000 Sec11 Ch11 SLA2022 P85 L20 HB281 $20,000,000 Sec8 Ch1 SLA2021 P70 L21 HB69 $17,500,000 Sec5 Ch8 SLA2020 P64 L17 HB205 $17,500,000 Sec1 Ch19 SLA2018 P2 L22 SB142 $21,900,000 Sec18 Ch2 SLA2016 P35 L28 SB138 $1,053,858 Sec1 Ch2 SLA2016 P2 L20 SB138 $1,446,142 Sec1 Ch18 SLA2014 P6 L9 SB119 $5,120,000 Sec1 Ch16 SLA2013 P4 L18 SB18 $10,800,000 Sec1 Ch17 SLA2012 P6 L13 SB160 $13,000,000 Project Description/Justification: The Alaska Energy Authority (AEA) is working in partnership with the Denali Commission for the FY2025 work plan to identify projects for funding. The projects preliminarily identified are the following communities: Chalkyitsik and Koyukuk. The AEA will continue to refine project selection and cost State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2026 Governor Reference No: 65126 Page 1 Released December 12, 2024 Alaska Energy Authority - Rural Power Systems Upgrades FY2026 Request: Reference No: $5,000,000 65126 estimates. State funds are used to leverage federal funds to expand the number of communities served by this program which advances sustainable, efficient energy infrastructure projects that decrease energy costs in rural Alaska over the long term. State matching funds are required for federally funded construction projects, 20 percent for distressed communities and 50 percent for non-distressed communities. The Denali Commission maintains the distressed community list. This program concentrates on power production and delivery, including diesel powerhouse, heat recovery, and electrical distribution. Efficiency, reliability, safety, and sustainability are primary drivers throughout the conceptual design, final design, and construction process. After completion of the project, the rural utility is required to employ a qualified operator to ensure that the system is properly operated and maintained. The AEA provides training and technical assistance to assist the community with proper operation of the new facility. The deferred maintenance need for RPSU is estimated at approximately $300 million. State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2026 Governor Reference No: 65126 Page 2 Released December 12, 2024 Alaska Energy Authority - Statewide Grid Resilience and Reliability - IIJA Formula FY2026 Request: Reference No: $13,927,102 65128 AP/AL: Appropriation Project Type: Energy Category: Development Location: Statewide House District: Statewide (HD 1 - 40) Impact House District: Statewide (HD 1 - 40)Contact: Curtis W. Thayer Estimated Project Dates: 07/01/2025 - 06/30/2030 Contact Phone: (907)771-3000 Brief Summary and Statement of Need: The Alaska Energy Authority (AEA) expects to receive $60 million in federal funds under this federal formula program, requiring a 15 percent State cost match equal to $9 million. This request for $1.8 million in State matching funds will leverage the remaining $12.1 million federal funds under the program. Total federal funds received to-date under the program is $39.8 million with a State match of $7.2 million. Funding:FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Total 1002 Fed Rcpts $12,110,523 $12,110,523 1003 GF/Match $1,816,579 $1,816,579 Total:$13,927,102 $0 $0 $0 $0 $0 $13,927,102 State Match Required One-Time Project Phased - new Phased - underway Ongoing 15% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: Sec1 Ch8 SLA2024 P3 L16 SB187 $19,443,597 Sec14 Ch1 SLA2023 P83 L13 HB39 $13,927,102 Sec35 Ch11 SLA2022 P144 L1 HB281 $3,633,158 Sec11 Ch11 SLA2022 P85 L10 HB281 $12,110,523 Project Description/Justification: This federal formula grant program enables the AEA to provide critical financial assistance through the issuance of sub-awards to eligible entities, via a robust competitive solicitation process, to improve the resilience of the respective entities’ electric grids against disruptive events - events in which operations of the electric grid are disrupted, preventively shut off, or cannot operate safely due to extreme weather, wildfire, or a natural disaster. Such disruptive events, especially in Alaska, pose serious risks to the health and welfare of community residents as many critical facilities cannot operate without sufficient power, including hospitals, schools, airports, and emergency services. Eligible entities for sub-awards under the program include, but are not limited to, electric grid operators, electricity generators, transmission owners/operators, and fuel suppliers. Eligible activities State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2026 Governor Reference No: 65128 Page 1 Released December 12, 2024 Alaska Energy Authority - Statewide Grid Resilience and Reliability - IIJA Formula FY2026 Request: Reference No: $13,927,102 65128 funded under the program include, but are not limited to, undergrounding of electrical equipment; utility pole management; relocation of power lines; reconductoring of power lines with low-sag; vegetation and fuel-load management; hardening of power lines, facilities substations, or other systems; replacement of old overhead conductors and underground cables; and monitoring and control technologies. State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2026 Governor Reference No: 65128 Page 2 Released December 12, 2024 Alaska Energy Authority - Round 17 Renewable Energy Project Grants (AS 42.45.045) FY2026 Request: Reference No: $6,315,507 65132 AP/AL: Appropriation Project Type: Energy Category: Development Location: Statewide House District: Statewide (HD 1 - 40) Impact House District: Statewide (HD 1 - 40)Contact: Curtis W. Thayer Estimated Project Dates: 07/01/2025 - 06/30/2030 Contact Phone: (907)771-3000 Brief Summary and Statement of Need: There are currently 59 projects under development as a direct result of funding appropriated to the program since FY2021. The Renewable Energy Fund (REF) has proven to be an instrumental program in realizing energy cost savings through the displacement of 85 million gallons of diesel fuel, promoting energy independence and technological knowledge-transfer across all regions of Alaska. This program has leveraged over $300 million in federal and local community funds in support of such renewable energy projects. Funding:FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Total 1210 Ren Energy $6,315,507 $6,315,507 Total:$6,315,507 $0 $0 $0 $0 $0 $6,315,507 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: Sec2 Ch8 SLA2024 P3 L9 SB187 $10,521,836 Sec14 Ch1 SLA2023 P83 L25 HB39 $17,052,000 Sec11 Ch11 SLA2022 P85 L17 HB281 $15,000,000 Sec7 Ch1 SLA2021 P9 L12 SB3003 $4,750,973 Sec1 Ch19 SLA2018 P2 L23 SB142 $11,000,000 Sec1 Ch38 SLA2018 P2 L17 SB26 $11,512,659 Sec1 Ch18 SLA2014 P4 L8 SB119 $22,843,900 Sec1 Ch16 SLA2013 P4 L20 SB18 $25,000,000 Sec1 Ch17 SLA2012 P6 L15 SB160 $25,870,659 Sec4 Ch5 SLA2011 P127 L23 SB46 $36,620,231 Sec7 Ch43 SLA2010 P19 L20 SB230 $25,000,000 Sec1 Ch15 SLA2009 P2 L23 SB75 $25,013,014 Sec13 Ch29 SLA2008 P87 L20 SB221 $100,000,000 Project Description/Justification: From 2008 to 2024, appropriations totaling approximately $330 million were issued, providing financial assistance to 294 Renewable Energy Fund (REF) projects across multiple project phases State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2026 Governor Reference No: 65132 Page 1 Released December 12, 2024 Alaska Energy Authority - Round 17 Renewable Energy Project Grants (AS 42.45.045) FY2026 Request: Reference No: $6,315,507 65132 and regions of the state. This funding has been matched by over $300 million in funding from local sources to develop projects designed to promote the integration of renewable energy resources within the statewide energy portfolio and stabilize the cost of energy in Alaska. The REF also provides critical preliminary phase(s) funding for those projects in those early stages where conventional financing may be difficult to obtain. State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2026 Governor Reference No: 65132 Page 2 Released December 12, 2024 Alaska Energy Authority - Green House Gas Reduction Fund - Solar for All Competition FY2026 Request: Reference No: $42,450,000 65124 AP/AL: Appropriation Project Type: Energy Category: Development Location: Statewide House District: Statewide (HD 1 - 40) Impact House District: Statewide (HD 1 - 40)Contact: Curtis W. Thayer Estimated Project Dates: 07/01/2025 - 06/30/2030 Contact Phone: (907)771-3000 Brief Summary and Statement of Need: The Alaska Energy Authority (AEA) was selected to receive a $62,450,000 federal grant through the United States Environmental Protection Agency (EPA) Greenhouse Gas Reduction Fund Solar for All Program. The AEA received $20,000,000 in FY2025 federal receipt authority; the remaining balance of $42,450,000 is needed to receive the federal grant. The funding allows the AEA to provide subgrants, loans, other forms of financial assistance, technical assistance, and to conduct community outreach and engagement in order to deploy residential rooftop and residential-serving community solar projects in and benefiting low-income and disadvantaged communities. No State match is required. Funding:FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Total 1002 Fed Rcpts $42,450,000 $42,450,000 Total:$42,450,000 $0 $0 $0 $0 $0 $42,450,000 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: Sec1 Ch8 SLA2024 P2 L30 SB187 $20,000,000 Project Description/Justification: The AEA, in partnership with Alaska Housing Finance Corporation (AHFC), applied in September 2023 for federal funding through the EPA Greenhouse Gas Reduction Fund Solar for All Program and was selected to receive $62,450,000 in April 2024 to develop programs that will serve households throughout Alaska. This project will enable the 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. State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2026 Governor Reference No: 65124 Page 1 Released December 12, 2024 Alaska Energy Authority - Whittier Cruise Ship Terminal Port Electrification FY2026 Request: Reference No: $4,400,000 65129 AP/AL: Appropriation Project Type: Energy Category: Development Location: Statewide House District: Statewide (HD 1 - 40) Impact House District: Statewide (HD 1 - 40)Contact: Curtis W. Thayer Estimated Project Dates: 07/01/2025 - 06/30/2030 Contact Phone: (907)771-3000 Brief Summary and Statement of Need: This project will complete the Whittier-Cruise Ship Terminal Electrification Project (WCCTEP), which will upgrade the cruise ship dock in the City of Whittier, Alaska to provide shore power directly to cruise ships and allow the engines to be shut down while they are docked. The request will be funded by the state cruise ship head tax. Funding:FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Total 1205 Ocn Ranger $4,400,000 $4,400,000 Total:$4,400,000 $0 $0 $0 $0 $0 $4,400,000 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: Sec14 Ch1 SLA2023 P83 L33 HB39 $5,000,000 Project Description/Justification: The Whittier-Cruise Ship Terminal Electrification Project has commenced and is comprised of three sub-elements: 1) portions of the feeder line outside of the Anton Anderson Memorial Tunnel must be upgraded; 2) voltage step-down equipment must be relocated near the cruise ship dock; and 3) specific equipment must be installed to support the shore power and EV charging station. All elements must be completed to achieve the desired project outcomes. These upgrades, once completed, will allow cruise ship engines to shut down when docked and operate using cleaner energy. Under prior authorization, the project received $5,000,000 from the Commercial Passenger Vessel (CPV) fund. Holland American Princess and Chugach Electric Association have contributed $6,000,000 and $1,000,000 respectively in match, for a total of $12,000,000. The Cruise Ship Head Tax funds must be spent on projects that support Commercial Passenger Vessels and not ancillary projects that only benefit passengers. The proposed improvements are allowed under the CPV fund rules. Future projects, similar to the Whittier project, are being considered for other Alaskan ports. State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2026 Governor Reference No: 65129 Page 1 Released December 12, 2024 Alaska Energy Authority - Interest Earned on Matching Funds and Other Federal Funds FY2026 Request: Reference No: $0 66140 AP/AL: Appropriation Project Type: Energy Category: Development Location: Statewide House District: Statewide (HD 1 - 40) Impact House District: Statewide (HD 1 - 40)Contact: Curtis W. Thayer Estimated Project Dates: 07/01/2025 - 06/30/2030 Contact Phone: (907)771-3000 Brief Summary and Statement of Need: The Alaska Energy Authority holds all corporation funds in interest-bearing accounts. Interest earned on federal grant funds and matching funds appropriated to the Authority will be appropriated to the authority as matching funds. Funding:FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Total 1003 GF/Match $0 Total:$0 $0 $0 $0 $0 $0 $0 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: Proposed language: Interest and other earnings on state funds appropriated or provided as matching funds for federal grants received by the Alaska Energy Authority, estimated to be $0, are appropriated to the Alaska Energy Authority as additional contributions of state matching funds. State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development DCCED FY2026 Governor Reference No: 66140 10/21/24 2:55:52 PM Page 1 Alaska Energy Authority - Electrical Emergencies Program FY2025 Request: Reference No: $234,500 65121 AP/AL: Appropriation Project Type: Energy Category: Development Location: Statewide House District: Statewide (HD 1 - 40) Impact House District: Statewide (HD 1 - 40)Contact: Curtis W. Thayer Estimated Project Dates: 07/01/2025 - 06/30/2030 Contact Phone: (907)771-3000 Brief Summary and Statement of Need: * Sec. XX. SUPPLEMENTAL DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT. (a) The unexpended and unobligated balance, estimated to be $234,500 of the appropriation made in sec. 1, ch. 16, SLA 2013, page 4, lines 11 - 13 (Department of Commerce, Community, and Economic Development Alaska Energy Authority -Energy Programs, alternative energy and energy efficiency programs - $2,000,000), is reappropriated to the Department of Commerce, Community, and Economic Development for the Alaska Energy Authority's electrical emergencies program. Funding:FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 Total 1275 Reapprop $234,500 $234,500 Total:$234,500 $0 $0 $0 $0 $0 $234,500 State Match Required One-Time Project Phased - new Phased - underway Ongoing 0% = Minimum State Match % Required Amendment Mental Health Bill Operating & Maintenance Costs:Amount Staff Project Development: 0 0 Ongoing Operating: 0 0 One-Time Startup:0 Totals: 0 0 Prior Funding History / Additional Information: Sec1 Ch1 SLA2024 P2 L25 SB187 $200,000 Sec14 Ch1 SLA2023 P82 L29 HB39 $200,000 Sec11 Ch11 SLA2022 P85 L15 HB281 $200,000 Sec11 Ch1 SLA2021 P103 L18 HB69 $200,000 Sec1 Ch19 SLA2018 P2 L20 SB142 $330,000 Sec12 Ch1 SLA2017 P16 L30 SB23 $330,000 Sec27 Ch38 SLA2015 P27 L16 SB26 $330,000 Sec1 Ch18 SLA2014 P3 L6 SB119 $330,000 Sec1 Ch17 SLA2012 P6 L11 SB160 $330,000 Sec4 Ch5 SLA2011 P127 L19 SB46 $330,000 The Alaska Energy Authority's (AEA) Electrical Emergencies Program is critical to rural communities. Electrical emergencies can result in the loss of power to homes, communications, lights, refrigeration systems, washeterias, water and sewer systems, and the use of other basic infrastructure and equipment. The program contributes to the mission of promoting a healthy economy and strong communities. State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2025 Supplemental in Gov Reference No: 65121 Page 1 Released December 12, 2024 Alaska Energy Authority - Electrical Emergencies Program FY2025 Request: Reference No: $234,500 65121 Project Description/Justification: The Electrical Emergencies Program often involves a life or safety issue and is the last resort for communities with an electrical emergency, which may involve power plant and/or distribution system failures. This program provides support when an electric utility has lost or will lose the ability to generate or transmit power to its customers and the condition is a threat to life, health, and/or property. Funding provides the current level of technical support through the Electrical Emergencies Program. If the Alaska Energy Authority (AEA) is unable to respond, the response to loss of power emergencies will be redirected to the Department of Military and Veterans Affairs, Division of Homeland Security and Emergency Management, State Emergency Operations Center (SEOC). The severity of electrical emergencies is increasing due to the rapidly rising cost of deferred maintenance in rural energy infrastructure, which is now estimated at over $300 million. State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development FY2025 Supplemental in Gov Reference No: 65121 Page 2 Released December 12, 2024 4910-0698-5233\1 M E M O R A N D UM TO: Alaska Energy Authority FROM: David D. Grossklaus, Dorsey & Whitney LLP DATE: January 17, 2025 RE: Resolution to Approve Document Amendments Series 2022 Bonds I have provided for the Board of the Alaska Energy Authority (“AEA”) a resolution for consideration with respect to amending bond documents related to the prior issuance by the AEA of its Power Revenue Bonds, Eleventh Series (Bradley Lake Hydroelectric Project), in an aggregate principal amount not to exceed $200,000,000 (the "Series 2022 Bonds"). Resolutions have been previously adopted to provide for amending the uses of the bond proceeds to include funding a portion of the GRIP Grant not to exceed $50,000,000. The current resolution would provide for an additional use of bond proceeds to allow for interest earnings on the proceeds of the Series 2022 Bonds deposited in the Eleventh Series Construction Account to additional Costs of Acquisition and Construction of the Bradley Lake Hydroelectric Project, including Costs of Acquisition and Construction of the Dixon Diversion Project. Currently the bond documents do not provide for Series 2022 Bond proceeds, including interest earnings generated within existing funds, to be used for such purposes. A corresponding resolution will need to be approved by the board of BPMC and the bondholder will also need to agree to amend the bond documents accordingly. 4936-6170-1392\1 ALASKA ENERGY AUTHORITY RESOLUTION NO. 2025 -02 RESOLUTION OF THE ALASKA ENERGY AUTHORITY PROVIDING FOR AMENDMENTS TO RESOLUTIONS REGARDING THE SALE OF NOT TO EXCEED $200,000,000 OF ALASKA ENERGY AUTHORITY POWER REVENUE BONDS, ELEVENTH SERIES (BRADLEY LAKE HYDROELECTRIC PROJECT); PROVIDING FOR AMENDMENTS TO THE TENTH SUPPLEMENTAL RESOLUTION OF THE AUTHORITY TO SECURE SAID BONDS; AUTHORIZING AMENDMENTS TO AND THE EXECUTION OF THE LOAN AGREEMENT BETWEEN THE AUTHORITY AND PURCHASER OF THE SAID BONDS; DELEGATING CERTAIN AUTHORITY TO THE CHAIR, THE BOARD MEMBER DESIGNEE OF THE CHAIR, THE EXECUTIVE DIRECTOR AND THE CHIEF FINANCIAL OFFICER; AND PROVIDING FOR RELATED MATTERS. WHEREAS, the Alaska Energy Authority ("Authority") is authorized by Title 44, Chapter 83, of the Alaska Statutes, as amended, to issue bonds for the purpose of carrying out its corporate purpose and power, including the establishment or increase of reserves to secure or to pay for bonds; and WHEREAS, the Authority has, pursuant to the Power Revenue Bond Resolution, adopted by the Board on September 7, 1989, as amended and supplemented ("Master Bond Resolution"), issued ten series of power revenue bonds subject to terms and conditions set forth in the Bradley Lake Hydroelectric Project Agreement for the Sale and Purchase of Electric Power (the "Power Sales Agreement") dated as of December 8, 1987, by and among the Chugach Electric Association, Inc., Golden Valley Electric Association, Inc., the City of Seward d/b/a Seward Electric System, and Alaska Electric Generation & Transmission Cooperative, Inc., and as Additional Parties Homer Electric Association, Inc. and Matanuska Electric Association, Inc. (collectively, "Power Purchasers") and the Authority; and WHEREAS, the Master Bond Resolution authorizes the issuance of additional bonds for purposes of financing costs and expenses of planning, designing, acquiring, constructing, installing capital improvements in connection with the Bradley Lake Hydroelectric Project ("Bradley Project") subject to terms and conditions set forth therein and the Power Sales Agreement; and WHEREAS, pursuant to the request of the Power Purchasers the Authority, pursuant to Resolution No. 2022-06, previously determined to issue its Power Revenue Bonds, Eleventh Series (Bradley Lake Hydroelectric Project), in an aggregate principal amount not to exceed $270,000,000 to provide funds to be used to (a) pay all or a portion of the costs of the acquisition, improvement and development of the electric transmission line systems between the Bradley Junction and Soldotna Substation, the electric transmission line systems between the Soldotna Substation and the Sterling Substation, the electric transmission line systems between the Sterling Substation and the Quartz Creek Substation, and of battery energy storage systems, in each case including associated rights-of-way and permits, all of which will become an integral part of the Project; (b) fund a debt service reserve account; and (c) pay costs incurred in connection with the issuance of the Bonds (collectively, the "Project"); and WHEREAS, subsequent to the adopting of Resolution No. 2022-06 the Authority, pursuant to Resolution No. 2022-07, approved a tenth supplemental resolution (the “Tenth Supplemental Resolution”) setting forth the terms and provisions of the issuance, sale and delivery of its Power Revenue Bonds, Eleventh Series (Bradley Lake Hydroelectric Project), in an aggregate principal amount not to exceed $200,000,000 (the "Series 2022 Bonds") to provide funds to be used for the purpose of (1) financing a portion of the costs 4936-6170-1392\1 of the Transmission Project, (2) making a deposit to the Capital Reserve Fund, sufficient to satisfy the Capital Reserve Fund Requirement and (3) paying costs of issuance of the Bond. The Bond of such Series shall be designated and entitled “Power Revenue Bond, Eleventh Series (Bradley Lake Hydroelectric Project); and WHEREAS, the Series 2022 Bonds were issued on November 30, 2022, under and pursuant to and secured by the Master Bond Resolution and the Tenth Supplemental Resolution; and WHEREAS, provisions were made for the sale of the Series 2022 Bonds pursuant to a Loan Agreement entered between the Authority and National Cooperative Services Corporation (the "Purchaser"); and WHEREAS, subsequent to the issuance of the Series 2022 Bonds the Authority was awarded pursuant to letter dated October 3, 2023, and issued by the U.S. Department of Energy the Authority to receive a funding opportunity grant in the amount of $206,500,000 (the “GRIP Grant”), subject to meeting certain additional requirements including providing for an equal amount of state match funds (the “State Match”); and WHEREAS, portions of the Bradley Lake Hydroelectric Project to be funded by the proceeds of the Series 2022 Bonds may also be funded by funds to be provided pursuant to the GRIP Grant; and WHEREAS, the GRIP Grant also provides for funding an HVDC submarine circuit crossing Cook Inlet from Nikiski in the Southern region to Beluga in the Central region to maximize transfer capability between regions and minimize spinning reserves, thereby reducing fuel usage, and reducing carbon emissions (the “Underwater HVDC Transmission Line”); and WHEREAS, to fund the necessary state match necessary to receive the total funds awarded pursuant to the GRIP Grant the Authority has also requested moneys be provided from the State of Alaska pursuant to a request to the Governor, State of Alaska; and WHEREAS, pursuant to a letter dated December 22, 2023, the Authority, as required pursuant to the Power Sales Agreement and prior to the incurrence of debt must receive a determination from the Alaska Department of Law the Underwater HVDC Transmission Line is Required Project Work; and WHEREAS, pursuant to Resolution No. 24-02 passed and approved on the 8th day of February, 2024, the Authority approved providing for the amendment of the Series 2022 Bond financing documents to expand the uses of the Series 2022 Bonds previously executed to expand the uses of Series 2022 Bond proceeds to fund any and all portions of the Bradley Lake Hydroelectric and Transmission Project and to use the Series 2022 Bonds proceeds fund a match with respect to the GRIP Grant in an aggregate amount not to exceed $50,000,000 (with no more than $20,000,000 to be used for the Underwater HVDC Transmission Line); and WHEREAS, pursuant to Resolution No. 2024-12 passed and approved on the 10th day of September, 2024, the Authority approved to expand the Bradley Lake Hydroelectric Project to include the Underwater HVDC Transmission Line provided for funding pursuant to the GRIP Grant portion of the Series 2022 Bonds and increase the amount of approval to not to exceed $50,000,000 to be used for the Underwater HVDC Transmission Line, along with such other necessary requests of the Purchaser to amend the bond documents accordingly (the Bradley Lake Hydroelectric Project, Transmission Project, Underwater HVDC Transmission Line and other approved projects of the Department of Energy shall hereinafter collectively be referred to as the “Bradley Lake Hydroelectric and Transmission Project”); and WHEREAS, the Authority has determined that it would be advantageous to the Bradley Lake Hydroelectric Project to apply interest earnings on the proceeds of the Series 2022 Bonds deposited in the 4936-6170-1392\1 Eleventh Series Construction Account to additional Costs of Acquisition and Construction of the Bradley Lake Hydroelectric Project, including Costs of Acquisition and Construction of the Dixon Diversion Project and other projects determined to be Required Project Work pursuant to the Power Sales Agreement and the Authority’s Power Revenue Bond Resolution, adopted on September 7, 1989 (as amended and supplemented, the “Power Revenue Bond Resolution”); and WHEREAS, the consent of the holder of the Series 2022 Bonds to the amendment of the Tenth Supplemental Resolution and certain other agreements related to the Series 2022 Bonds is required to permit the Authority to apply interest earnings on the proceeds of the Series 2022 Bonds deposited in the Eleventh Series Construction Account to additional Costs of Acquisition and Construction of the Bradley Lake Hydroelectric Project, including Costs of Acquisition and Construction of the Dixon Diversion Project and other projects determined to be Required Project Work pursuant to the Power Sales Agreement and the Power Revenue Bond Resolution; and WHEREAS, to fund the Dixon Diversion Project, the Authority has also requested moneys be provided from the State of Alaska pursuant to a request to the Governor, State of Alaska; and WHEREAS, the AEA desires to amend the Tenth Supplemental Resolution and any other agreements related to the Series 2022 Bonds to permit the Authority to apply interest earnings on the proceeds of the Series 2022 Bonds deposited in the Eleventh Series Construction Account to additional Costs of Acquisition and Construction of the Bradley Lake Hydroelectric Project, including Costs of Acquisition and Construction of the Dixon Diversion Project and other projects determined to be Required Project Work pursuant to the Power Sales Agreement and the Power Revenue Bond Resolution and to confirm and support the Authority’s determination to make such requests for consent of the holder of the Series 2022 Bonds to such amendments; and WHEREAS, capitalized terms used but not defined herein have the meaning given to such terms in the Power Sales Agreement and the Resolution: NOW, THEREFORE, BE IT RESOLVED BY THE ALASKA ENERGY AUTHORITY, AS FOLLOWS: Section 1. In order to provide funds to finance the Bradley Lake Hydroelectric and Transmission Project the Authority is hereby authorized, conditioned upon approval and receipt of all necessary consents and approvals from the Purchaser, the Alaska Department of Law, the Bradley Lake Project Management Committee and any other necessary parties, to amend any and all of the necessary Series 2022 Bond financing documents and Series 2022 Bonds previously executed to provide for the provisions of Resolutions No. 24-02 and No. 24-03 and to apply interest earnings on the proceeds of the Series 2022 Bonds deposited in the Eleventh Series Construction Account to additional Costs of Acquisition and Construction of the Bradley Lake Hydroelectric Project, including Costs of Acquisition and Construction of the Dixon Diversion Project and other projects determined to be Required Project Work pursuant to the Power Sales Agreement and the Power Revenue Bond Resolution . Section 2. In order to finance, construct and equip all, or any part, of the Bradley Lake Hydroelectric and Transmission Project and to consummate the transactions contemplated in the Tenth Supplemental Resolution, as amended, subject to appropriate insertions and revisions, be and the same hereby is in all respects authorized, approved and confirmed, and that the Chair, the Board member designee of the Chair, Executive Director or Chief Financial Officer of the Authority (each, an 4936-6170-1392\1 "Authorized Officer") be, and each of them hereby is, authorized, empowered, and directed to execute Series 2022 Bonds, as amended, whether by manual or facsimile signature, to seal the Series 2022 Bonds, as amended, with the official seal of the Authority (manually or by facsimile), and to deliver, for and on behalf of the Authority, the Series 2022 Bonds, as amended, to the Purchaser; and that the provisions of the Tenth Supplemental Resolution, as amended, and Series 2022 Bonds, as amended, be and the same hereby is authorized, approved and confirmed and is incorporated herein by reference. Section 3. The Series 2022 Bonds, as may be amended to carry out the purposes hereof, do not constitute an indebtedness or other liability of the State of Alaska, or any political subdivision thereof, except the Authority. The Authority does not pledge the faith and credit of the State of Alaska, or any political subdivision thereof (except the Authority) to the payment of the Series 2022 Bonds, as amended, and the issuance of the Series 2022 Bonds, as amended, does not obligate the State of Alaska or any political subdivision thereof (except the Authority) to apply money, or levy or pledge any form of taxation whatsoever to, payment of the Series 2022 Bonds, as amended. The Authority has no taxing power. Section 4. The form and content of the Loan Agreement, as amended, be and the same hereby are in all respects authorized, approved and confirmed and each Authorized Officer be and hereby are authorized, empowered and directed to execute and deliver the Loan Agreement, as amended, for and on behalf of the Authority, with such changes, modifications, additions, and deletions therein as shall to them seem necessary, desirable or appropriate, their execution of the Loan Agreement, as amended, to constitute conclusive evidence of their approval of any and all changes, modifications, additions or deletions therein from the form and content of the Loan Agreement now before this meeting, and that, from and after the execution and delivery of the Loan Agreement, as amended, each Authorized Officer be and they hereby are authorized, empowered, and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Loan Agreement, as amended and as executed. Section 5. The form and content of the Tenth Supplemental Resolution and providing of the security therefor to the repayment of the Series 2022 Bonds to U.S. Bank Trust Company, National Association, as Trustee, for the security of the Series 2022 Bonds, including necessary counterparts, but with such changes, modifications, additions, and deletions therein as shall to them seem necessary, desirable, or appropriate, the execution thereof to constitute conclusive evidence of their approval of any and all changes, modifications, additions, or deletions thereto from such form, and that the final Tenth Supplemental Resolution, as amended, is hereby authorized, approved, confirmed and adopted in accordance with the Master Bond Resolution and is incorporated herein by reference. Following execution and delivery of the Tenth Supplemental Resolution, as amended, each Authorized Officer be and they hereby are authorized, empowered, and directed to do all such acts and things and to execute all such documents as may be necessary or convenient to carry out and comply with the provisions of the Tenth Supplemental Resolution, as amended and as executed. Section 6. The Authorized Officers be, and each of them hereby is, authorized to execute and deliver for and on behalf of the Authority any and all additional certificates, documents, opinions or other papers and perform all such other acts as they may deem necessary or appropriate in order to implement and carry out the intent and purposes of this Resolution, and all of the acts and doings of the Authorized Officers of the Corporation that are in conformity with the intent and purposes of these resolutions, whether heretofore or hereafter taken or done, shall be and the same are hereby in all respects ratified, confirmed and approved as the acts and deeds of the Corporation. 4936-6170-1392\1 Section 7. This Resolution does hereby incorporate by reference, as though fully set out herein, the provisions of the Act, the Master Bond Resolution, the Tenth Supplemental Resolution, the Series 2022 Bonds, and the documents presented to this meeting. Section 8. All prior resolutions of this Board or any parts thereof in conflict with the foregoing resolutions are hereby repealed to the extent of such conflict. Section 9. The recitals to this Resolution, including definition of terms, are incorporated into this Resolution as if fully set forth herein. Terms used herein and not otherwise defined shall have the meanings as set forth in the Tenth Supplemental Resolution, as amended. Section 10. Resolution shall become effectively immediately upon its passage and approval. DATED at Anchorage, Alaska, this 30th day of January 2025. _________________________________ Chair ATTEST: ____________________________________________ Secretary 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 DATE: January 30, 2025 TO: AEA Board of Directors FROM: Curtis W. Thayer, Executive Director RE: Authorizing AEA to Borrow Working Capital from AIDEA This memorandum provides the background and context necessary for the Board of Directors to consider and adopt Resolution No. 2025-03, which authorizes the Alaska Energy Authority (AEA) to borrow up to $3.5 million in working capital from AIDEA under specific terms and conditions. Dating back to at least 2012, AIDEA supported AEA with essential financial support: an interest- free open line of credit that enabled AEA to address its working capital needs, including for programs funded through federal awards that operate on a cost-reimbursable basis. In July 2024, through House Bill 307, AEA was given its own board of directors separate from AIDEA’s and was authorized to hire its own employees. Despite this separation, AEA continues to need working capital, especially given the timing mismatch inherent in federal cost- reimbursable programs and the lack of a dedicated legislative appropriation for working capital. In November 2024, AIDEA reached in interim agreement to lend $3.5 million to AEA under the following conditions: AEA must hold the funds in a dedicated Working Capital Account. AEA may draw funds from the Working Capital Account only as needed to pay for expenses under awards that operate on a cost reimbursable basis. AEA shall deposit back into the Working Capital Account all award reimbursement payments for expenses that were initially paid using loaned funds. Alaska Energy Authority Page 2 of 2 AEA shall repay the full loaned amount of $3.5 million to AIDEA immediately upon receipt from the Alaska legislature of working capital equal to or greater than $3.5 million. Interest earned on the Working Capital Account shall be remitted to AIDEA on a quarterly basis. AEA’s need to borrow working capital will persist until such time as the Alaska Legislature provides an appropriation specifically for this purpose or another source of working capital is secured. Proposed resolution 2025-03 authorizes AEA to borrow working capital from AIDEA, remit interest earned on the working capital to AIDEA, and maintain this arrangement until a legislative appropriate or alternative source of working capital is secured. AEA Resolution No. 2025-03 Page 1 of 2 ALASKA ENERGY AUTHORITY RESOLUTION NO. 2025-03 RESOLUTION OF THE ALASKA ENERGY AUTHORITY AUTHORIZING THE BORROWING OF WORKING CAPITAL FROM ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY WHEREAS, AEA needs working capital for, among other things, federal awards that operate on a cost reimbursable basis; WHEREAS, historically Alaska Industrial Development and Export Authority (AIDEA) has provided AEA with working capital through an interest-free open line of credit; WHEREAS, in July 2024, AEA was separated from AIDEA, including creation of a separate board for AEA, empowering AEA to hire its own employees, and establishing its own banking services contract with a new bank; WHEREAS, in November 2024, AIDEA agreed to lend AEA $3.5 million on the conditions that AEA remit any interest accrued to AIDEA on a quarterly basis and that AEA repays the full loaned amount to AIDEA immediately upon receipt from the Alaska legislature of working capital equal to or greater than $3.5 million; WHEREAS, AEA’s will need to continue borrowing working capital until AEA receives a legislative appropriation for this purpose; WHEREAS, by lending working capital, AIDEA is helping AEA meet the needs of rural Alaska residents through programs that are fundamental to their life, health, and safety; AEA Resolution No. 2025-03 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED, by the ALASKA ENERGY AUTHORITY as follows: Section 1. The Executive Director is authorized to borrow from AIDEA up to $3.5 million in funds to be used for working capital. Section 2. The Executive Director is authorized compensate AIDEA for the loan by remitting to AIDEA all interest earned on the loaned funds. Section 3. The Executive Director is authorized to continue this borrower-lender arrangement with AIDEA until AEA receives a legislative appropriation equal to or greater than $3.5 million or as otherwise modified by a resolution of the AEA Board of Directors. Section 4. The Executive Director is authorized to take all actions and execute all documents necessary to implement this resolution as well as to delegate responsibilities, as appropriate, to employees or agents of AEA to ensure the effective execution of duties and responsibilities under this resolution. DATED at Anchorage, Alaska, this ___ day of January 2025. ALASKA ENERGY AUTHORITY __________________________ Chair __________________________ Curtis W. Thayer, Secretary Corporate seal 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 DATE: January 30, 2025 TO: AEA Board of Directors FROM: Curtis W. Thayer, Executive Director RE: Authorizing AEA to Borrow Working Capital from AIDEA This memorandum provides the background and context necessary for the Board of Directors to consider and adopt Resolution No. 2025-03, which authorizes the Alaska Energy Authority (AEA) to borrow up to $3.5 million in working capital from AIDEA under specific terms and conditions. Dating back to at least 2012, AIDEA supported AEA with essential financial support: an interest- free open line of credit that enabled AEA to address its working capital needs, including for programs funded through federal awards that operate on a cost-reimbursable basis. In July 2024, through House Bill 307, AEA was given its own board of directors separate from AIDEA’s and was authorized to hire its own employees. Despite this separation, AEA continues to need working capital, especially given the timing mismatch inherent in federal cost- reimbursable programs and the lack of a dedicated legislative appropriation for working capital. In November 2024, AIDEA reached in interim agreement to lend $3.5 million to AEA under the following conditions: AEA must hold the funds in a dedicated Working Capital Account. AEA may draw funds from the Working Capital Account only as needed to pay for expenses under awards that operate on a cost reimbursable basis. AEA shall deposit back into the Working Capital Account all award reimbursement payments for expenses that were initially paid using loaned funds. Alaska Energy Authority Page 2 of 2 AEA shall repay the full loaned amount of $3.5 million to AIDEA immediately upon receipt from the Alaska legislature of working capital equal to or greater than $3.5 million. Interest earned on the Working Capital Account shall be remitted to AIDEA on a quarterly basis. AEA’s need to borrow working capital will persist until such time as the Alaska Legislature provides an appropriation specifically for this purpose or another source of working capital is secured. Proposed resolution 2025-03 authorizes AEA to borrow working capital from AIDEA, remit interest earned on the working capital to AIDEA, and maintain this arrangement until a legislative appropriate or alternative source of working capital is secured. AEA Resolution No. 2025-03 Page 1 of 2 ALASKA ENERGY AUTHORITY RESOLUTION NO. 2025-03 RESOLUTION OF THE ALASKA ENERGY AUTHORITY AUTHORIZING THE BORROWING OF WORKING CAPITAL FROM ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY WHEREAS, AEA needs working capital for, among other things, federal awards that operate on a cost reimbursable basis; WHEREAS, historically Alaska Industrial Development and Export Authority (AIDEA) has provided AEA with working capital through an interest-free open line of credit; WHEREAS, in July 2024, AEA was separated from AIDEA, including creation of a separate board for AEA, empowering AEA to hire its own employees, and establishing its own banking services contract with a new bank; WHEREAS, in November 2024, AIDEA agreed to lend AEA $3.5 million on the conditions that AEA remit any interest accrued to AIDEA on a quarterly basis and that AEA repays the full loaned amount to AIDEA immediately upon receipt from the Alaska legislature of working capital equal to or greater than $3.5 million; WHEREAS, AEA’s will need to continue borrowing working capital until AEA receives a legislative appropriation for this purpose; WHEREAS, by lending working capital, AIDEA is helping AEA meet the needs of rural Alaska residents through programs that are fundamental to their life, health, and safety; AEA Resolution No. 2025-03 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED, by the ALASKA ENERGY AUTHORITY as follows: Section 1. The Executive Director is authorized to borrow from AIDEA up to $3.5 million in funds to be used for working capital. Section 2. The Executive Director is authorized compensate AIDEA for the loan by remitting to AIDEA all interest earned on the loaned funds. Section 3. The Executive Director is authorized to continue this borrower-lender arrangement with AIDEA until AEA receives a legislative appropriation equal to or greater than $3.5 million or as otherwise modified by a resolution of the AEA Board of Directors. Section 4. The Executive Director is authorized to take all actions and execute all documents necessary to implement this resolution as well as to delegate responsibilities, as appropriate, to employees or agents of AEA to ensure the effective execution of duties and responsibilities under this resolution. DATED at Anchorage, Alaska, this ___ day of January 2025. ALASKA ENERGY AUTHORITY __________________________ Chair __________________________ Curtis W. Thayer, Secretary Corporate seal Economic Impact Analysis Date: January 2, 2025 To: Board of Directors, Alaska Energy Authority From: Northern Economics Re: High Voltage Direct Current (HVDC) Submarine Transmission Line from Nikiski to Beluga, Estimated Economic Benefits Project Description The project is being advanced by the Alaska Energy Authority in collaboration with the Railbelt electric utilities. The project is designed to provide an array of benefits to the Railbelt electric transmission system via the creation of an alternative electric transmission path between the Central and Southern regions of the Railbelt. The project is estimated to cost $413 million, half of which has been secured via a competitive federal grant opportunity as awarded to the Alaska Energy Authority by the U.S. Department of Energy, in the amount of $206.5 million. Of the $206.5 million in required non-federal cost match, $62.7 million has been secured, leaving $143.8 million in remaining cost match. The project involves construction of a high-voltage direct current (HVDC) subsea line across Cook Inlet from a landing station near Nikiski on the Kenai Peninsula to the existing Beluga substation. In order to convert direct current to alternating current, or vice versa in the opposite direction, two converter stations will be constructed, one at each of the terminal ends of the HVDC line. The long-term project benefits include, but are not limited to, the following: • Increasing the reliability and power transfer capacity of the interconnected Railbelt electrical system between the Kenai Peninsula to Fairbanks, this added inter-regional transfer capacity will reduce the load shedding requirements during system disturbances, including outages; • Reducing the existing transmission capacity constraints which limit access to power capacity entitlements from the Bradley Lake Hydroelectric Project for Railbelt utilities north of the Kenai Peninsula, and allowing Bradley Lake generation to be more fully-utilized; • Providing capability to utilize the most economic generation mix available to reduce costs to consumers and to allow available generation capacity in one region to support load demand in another region; • Reducing load-serving area requirements for spinning reserve generation, thereby reducing operating costs, increasing the useful life of generation plants and improving system stability; • Reducing the existing system line loss, thereby improving power transmission efficiency, and reducing generation costs; • Allowing the continued transfer of economic power during planned and unplanned transmission line maintenance; and • Providing increased incentive for clean energy project development along the Railbelt owing to increased transmission reliability reducing risks related to return on investment. 2 Near-Term Economic Benefits of Construction Phase of the Project The project is expected to take eight years to complete. Aggregate project activities which include design, permitting, construction management, and construction services are estimated to amount to $413 million. A portion of the cost, particularly for the converter stations and submarine cabling, will need to be purchased from outside the state and thus will not generate local multiplier effects. However, the estimated in-state project expenditures which amount to $221.7 million will generate multiplier effects and is estimated to result in an additional $110.1 million in indirect and induced economic output (or business sales). Indirect economic output refers to the value of business sales that accrue to the businesses that provide materials and services to the companies involved in the upgrades. Induced economic output refers to the value of business sales that accrue to businesses who will benefit from workers’ spending of wages and salaries (e.g., grocery stores, barber shops, gasoline stations, dining places, utilities). In total, the project is projected to generate $331.7 million in economic output or business sales. This construction stimulus is projected to generate 950 direct jobs and 520 additional indirect and induced jobs; total of 1,470 jobs over the course of the construction phase. These jobs would be temporary or short- term and are not full-time equivalent jobs. These short-term construction phase jobs will generate about $129 million in total labor income. The construction project’s estimated economic benefits are summarized in Table 1 below. Table 1. Projected Economic Benefits of the Submarine HVDC Line Construction Project Indicator Direct 1 Indirect2 Induced3 Total Economic Output (2023$ millions) $221.7 $39.8 $70.3 $331.7 Employment (# of Jobs) 950 150 370 1,470 Labor Income (2023$ millions) $94.7 $10.5 $23.7 $128.9 Source: Northern Economics estimates based on construction cost estimates provided by the Alaska Energy Authority and the IMPLAN4 input-output model for Alaska. Operations Phase and Long-Term Economic Benefits of the Project The facility is anticipated to have a useful life of 35 years. The costs of operating and maintaining the infrastructure associated with the project are estimated to amount to $6 million per year. This annual spending will generate additional long-term economic benefits within the state including 37 direct, indirect and induced jobs, $2.8 million in total labor income, and $9.4 million in total business sales, each year for the next 35 years, after project completion. 1 Direct effects refer to the new economic activity that can be tied directly to the proposed project. In this table, direct effects include spending for construction of the facility, and the direct jobs and labor income associated with the construction activities. 2 Indirect effects are those associated with a change in economic activity due to spending for goods and services tied to the new facility. During construction, these are the changes in the local economy occurring because construction firms purchase goods (e.g., cement, wood, and nails) and related services (e.g., landscaping, accounting, and legal). As construction firms make purchases, this creates an increase in purchases across the supply chain. 3 Induced effects are those associated with a change in economic activity due to spending by the employees of businesses (labor) and by households. These are economic changes related to spending by people directly employed to construct the facility. Once operations begin, spending by employees of the facility will drive induced effects. Induced effects also include household spending related to indirect effects. 4 IMPLAN is a predictive input-output model of local/regional economies and is widely used to measure the economic impact of industries and industrial/commercial development. IMPLAN uses borough level employment and payroll data to define linkages between industries in the local economy and multipliers that predict the total impact of an economic stimulus. Economic Impact Analysis Date: January 2, 2025 To: Board of Directors, Alaska Energy Authority From: Northern Economics Re: Bradley Lake Hydroelectric Facility - Dixon Diversion Project, Estimated Economic Benefits Project Description The proposed Dixon Diversion project is an expansion of the existing Alaska Energy Authority (AEA)-owned Bradley Lake Hydroelectric facility on the Kenai Peninsula of Alaska. The project is designed to divert water coming off the Dixon Glacier into the existing reservoir supplying the hydroelectric power plant at Bradley Lake. The project is expected to increase energy output by 190,800 megawatt hours (MWh) annually (a 50 percent increase in energy from Bradley Lake), offsetting an estimated 1.5 billion cubic-feet (bcf) of Cook- Inlet natural gas. By utilizing the existing infrastructure, a significant amount of additional renewable energy will be made available at a reduced cost and with limited developmental impact. The project is estimated to cost $342 million, and is anticipated to come on-line in 2030. The project will include the following project elements: • a diversion dam and intake structure at the toe of the Dixon Glacier; • a 4.7-mile long 14-foot diameter underground tunnel to convey water from the Martin River to the existing Bradley Lake reservoir; • modifications to the existing dam to raise the reservoir elevation by 14 feet; and • 1 mile of new access road. The Dixon Diversion project will immediately provide benefits to the entire Railbelt upon commissioning. The Railbelt is an electric transmission system comprised of interconnected transmission infrastructure assets that spans over 700 miles from Bradley Lake (at the southernmost point) to Delta Junction in interior Alaska. The Railbelt is served by five load-serving electric utilities (four independent member-owned electric cooperatives) and one municipal electric utility, and also includes the State-owned Alaska Intertie and Bradley Lake Hydroelectric Project. Power generated by the Bradley Lake Hydroelectric facility is partitioned amongst the Railbelt utilities according to Bradley Lake Power Sales Agreement which allocates the available power capacity, on a percentage basis, as follows: 16.9 percent for Golden Valley Electric Association (GVEA); 13.8 percent for Matanuska Electric Association (MEA); 56.3 percent for Chugach Electric Association (CEA); 12.0 percent for Homer Electric Association (HEA); and 1.0 percent for Seward Electric System (SES). 2 This project represents the largest renewable energy project in Alaska in the last 30 years and is expected to result in the following long-term benefits that are difficult to quantify with respect to jobs, income, and business sales. Such benefits include, but are not limited to: • lower long-term energy costs; • 190,800 MWh per year increase in average renewable energy generation; • 1.5 bcf per year reduction in Cook Inlet Natural gas demand, equivalent to approximately 7.5 percent of the Railbelt’s unmet natural gas demand projected for 2030; • annual offset of 106,668 metric tons in carbon-dioxide-equivalent (CO2e) emissions, benefitting all Alaskans; and • providing additional stored energy that would allow Railbelt utilities to reliably dispatch economic, renewable power year-round, and assist in the regulation of non-firm renewable generation sources. Through the project’s reductions in the cost of electricity for consumers along the Railbelt (about 75 percent of Alaska’s population), the project also indirectly lowers the cost of energy for Power Cost Equalization (PCE) program-enrolled communities in the state. The PCE program provides financial benefits to 188 remote and rural communities that are not connected to the Railbelt and are subject to high electricity costs. The PCE program reduces costs in these communities based on a statutory formula tied to Railbelt rates. AEA has estimated that using the statutory PCE credit formula, a one-cent reduction in residential electric rates on the Railbelt results in an increased credit to PCE communities of about $1.4 million, based on historical usage. Near-Term Economic Benefits of the Pre-Construction and Construction Phase of the Project Pre-construction activities are expected to occur from 2024 through 2027 with field studies including geotechnical drilling and investigation at the tunnel inlet and outlet, continued hydrology and stream gaging, water quality monitoring, geomorphology, aquatic habitat characterization and fish use, and cultural resource studies. Pre-engineering and design work as well as licensing activities will also be part of the pre- construction activities. Construction of the project elements identified above is anticipated to occur from 2028 to 2030. Spending associated with all these activities will create a short-term economic stimulus in the state and will benefit the businesses in the professional services, engineering services, environmental services, construction, and logistics sectors, as well as other sectors that supply goods and services to these companies and their workers. This stimulus is projected to generate 3,250 direct, indirect, and induced jobs and about $260 million in associated labor income over the course of the pre-construction and construction phase of the project. The construction spending is estimated to generate about $584 million in total business sales (economic output). The estimated economic benefits of the construction phase of the proposed project are summarized in Table 1 below. 3 Table 1. Projected Economic Benefits of the Dixon Diversion Construction Project Indicator Direct 1 Indirect2 Induced3 Total Economic Output (2023$ millions) $342.0 $100.4 $141.9 $584.3 Employment (# of Jobs) 2,120 390 740 3,250 Labor Income (2023$ millions) $184.5 $27.8 $47.9 $260 Source: Northern Economics estimates based on construction cost estimates provided by the Alaska Energy Authority and the IMPLAN4 input-output model for Alaska. Operations Phase and Long-Term Economic Benefits of the Proposed Project The costs of operating and maintaining the additional infrastructure associated with the proposed project will be relatively modest; estimated to amount to $500,000 per year. This annual spending will generate additional long-term economic benefits within the state including three year-round jobs, $198,000 in labor income, and $989,000 in business sales. 1 Direct effects refer to the new economic activity that can be tied directly to the proposed project. In this table, direct effects include spending for construction of the facility, and the direct jobs and labor income associated with the construction activities. 2 Indirect effects are those associated with a change in economic activity due to spending for goods and services tied to the new facility. During construction, these are the changes in the local economy occurring because construction firms purchase goods (e.g., cement, wood, and nails) and related services (e.g., landscaping, accounting, and legal). As construction firms make purchases, this creates an increase in purchases across the supply chain. 3 Induced effects are those associated with a change in economic activity due to spending by the employees of businesses (labor) and by households. These are economic changes related to spending by people directly employed to construct the facility. Once operations begin, spending by employees of the facility will drive induced effects. Induced effects also include household spending related to indirect effects. 4 IMPLAN is a predictive input-output model of local/regional economies and is widely used to measure the economic impact of industries and industrial/commercial development. IMPLAN uses borough level employment and payroll data to define linkages between industries in the local economy and multipliers that predict the total impact of an economic stimulus. Economic Impact Analysis Date: January 2, 2025 To: Board of Directors, Alaska Energy Authority From: Northern Economics Re: Sterling Substation to Quartz Creek Substation (SQ line) Upgrades, Estimated Economic Benefits Project Description The project involves upgrades to the 50-year-old Alaska Energy Authority (AEA)-owned Sterling Substation to Quartz Creek (SQ) Substation transmission line. About 88 percent of the energy from the AEA-owned Bradley Lake Hydroelectric Project (Bradley Lake) crosses this section of the transmission line. This section represents some of the highest line loss per mile of Bradley Lake energy. The upgrades will involve sizing the conductor, insulators, and poles/towers to 230 kV standards (which currently operate at 115 kV). SQ line upgrades are estimated to cost $92 million, with all needed funds secured via AEA bonds. The project is anticipated to be completed in 2028. The construction is divided into three phases as follows: Phase 1: Sterling Substation to Kenai National Wildlife Refuge (8 miles) Phase 2: Through Kenai National Wildlife Refuge (17 miles) Phase 3: Kenai National Wildlife Refuge to Quartz Creek Substation (14 miles) The SQ line upgrade project will provide long-term benefits to the region by improving the efficiency of the transmission system through reduced line losses and added transmission capacity. The project will also result in a more secure communication and control system and will increase resilience of the system, mitigating negative impacts from wildfires and other disruptive, unplanned events that were likely to occur with the old infrastructure. Near-Term Economic Benefits of Construction Phase of the Project The upgrades will occur from 2024 to 2028. Spending on activities associated with the transmission line upgrades will generate an immediate short-term economic stimulus to the state that will result in additional business sales (economic output), jobs, and labor income. The estimated costs of these upgrade activities which include permitting, design, construction management, and construction services amount to $92 million. Note that a portion of the cost, particularly for the towers and cabling, will need to be purchased from outside the state and thus will not generate multiplier effects. Estimated in-state spending on the upgrades is $61 million. This direct spending is estimated to generate an additional $34.6 million in indirect and induced economic output (or business sales). Indirect economic output refers to the value of business sales that accrue to the businesses that provide materials and services to the companies involved in the upgrades. Induced economic output refers to the value of business sales that accrue to businesses who will benefit from workers’ spending of wages and salaries (e.g., grocery stores, barber shops, gasoline stations, dining places, utilities). In total, the project is projected to generate $96 million in economic output or business sales. 2 A project of this scope is estimated to create 290 direct short-term jobs in construction related sectors and an additional 170 indirect and induced jobs in the state. These jobs will be temporary in nature, lasting over the 4-year construction phase of the project. The total direct, indirect, and induced labor income resulting from the project is estimated to amount to about $39 million. Labor income is the sum of employee compensation (wages and benefits) and proprietor income; it represents the combined cost of total payroll paid to employees and payments received by self- employed individuals and/or unincorporated business owners across the economy. The estimated short-term economic benefits of this project are summarized in Table 1 below. Table 1. Projected Economic Benefits of the Sterling Substation to Quartz Creek Substation Transmission Upgrade Indicator Direct 1 Indirect2 Induced3 Total Economic Output (2023$ millions) $61.2 $13.3 $21.3 $95.7 Employment (Number of Jobs) 290 60 110 460 Labor Income (2023$ millions) $27.9 $4.0 $7.2 $39.0 Source: Northern Economics estimates based on construction cost estimates provided by the Alaska Energy Authority and the IMPLAN4 input-output model for Alaska. Operations Phase and Long-Term Economic Benefits of the Project The facility is anticipated to have a useful life of 50 years. The cost of operating and maintaining the infrastructure associated with the project is estimated to amount to $646,000 per year. This annual spending will generate additional long-term economic benefits within the state including 3 year-round jobs, $148,000 in labor income, and $1.2 million in business sales, each year for the next 50 years. 1 Direct effects refer to the new economic activity that can be tied directly to the proposed project. In this table, direct effects include spending for construction of the facility, and the direct jobs and labor income associated with the construction activities. 2 Indirect effects are those associated with a change in economic activity due to spending for goods and services tied to the new facility. During construction, these are the changes in the local economy occurring because construction firms purchase goods (e.g., cement, wood, and nails) and related services (e.g., landscaping, accounting, and legal). As construction firms make purchases, this creates an increase in purchases across the supply chain. 3 Induced effects are those associated with a change in economic activity due to spending by the employees of businesses (labor) and by households. These are economic changes related to spending by people directly employed to construct the facility. Once operations begin, spending by employees of the facility will drive induced effects. Induced effects also include household spending related to indirect effects. 4 IMPLAN is a predictive input-output model of local/regional economies and is widely used to measure the economic impact of industries and industrial/commercial development. IMPLAN uses borough level employment and payroll data to define linkages between industries in the local economy and multipliers that predict the total impact of an economic stimulus. 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, Executive Director FROM: Bryan Carey, AEA Owned Assets Director DATE: January 14, 2025 RE: Owned Assets Update Bradley Lake Hydroelectric Indoor projects occurring at Bradley Lake power plant at this time. During 2024 Bradley Lake generated about 404,000 MWhs. Of this 38,200 MWh were from the Battle Creek Project completed in 2020. FERC amendment energy estimated from Battle Creek was 37,000 MWh. Alaska Energy Authority Page 2 of 2 Bradley Lake has little if any snow. Storms coming in have rained at the lake elevation causing lake level to increase for short periods. Higher locations appear to have low snow. Dixon Diversion: Environmental studies performed in 2024 are being written up and submitted to agencies. Agency & public meetings covering Terrestrial, Cultural, & Aquatics are currently being held at AEA. Based on studies and agency/public requests studies may end, be modified, or occur in 2025 without modification. AEA meeting with a Board of Consultants and FERC Dam Safety next month to go over project and facility design criteria. Based on 2024 water flows there has been no changes to the energy estimate of 190,800 MWh. AEA has been working with an engineering company to produce an Independent Cost Estimate (ICE) for the Dixon Diversion Project. Direct construction costs are about the same as existing estimate. Main difference is the indirect percentages and costs. The ICE uses higher indirects to estimate a higher cost than existing estimate (within +/- range). Waiting on final ICE. Governor’s proposed budget has $6.5 million in Dixon Diversion. Amount would get AEA through amendment application. Sterling – Quartz Transmission Rebuild: Contractor has started the the rebuild of the Sterling to Quartz Project 1 section. Towers and line will be replaced to enable transmission at 230 kV. Project 1 goes eight miles from Sterling East to the edge of the Kenai refuge. End of December the contractor submitted a Change Order (up to $2 million) request because of warm weather the marshes had not frozen and mats would be need to access some locations. Cost to demob and return a year from now was determined to be a higher cost and would push the schedule back a year. Chugach Electric (overseeing project) and AEA discussed and determined to proceed with outage. Outage started January 7 for 40 days. 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 of Directors THROUGH: Curtis Thayer, Executive Director FROM: Jim Mendenhall, P.E., Program Manager DATE: January 15, 2025 SUBJECT: Railbelt Innovation and Resliency Project, Phase 1 GRIP Topic 3, Round 1 – Update Stantec is making progress to provide the following items: 1. Initial Project Plan and Schedule: 2024-12-18 Preliminary Draft issued for review 2. HVDC Conceptual Design: Initial analysis is favoring an Asymetrical monopole vs. bipole 3. HVDC Cable Preliminary Design 4. Critical Environmental Issues Analysis: 2024-12-18 Draft issued for review 5. Preliminary Cost Estimate: Construction component ranges from $358M-$390M AEA has shared the draft reports with the Railbelt Utilitiy members of the Technical Working Group. AEA may authorize Stantec to prepare procurement contracts for major long lead items, specifically the cable and HVDC converter stations. Near term activities include discussing the following items with Stantec: • System ratings and configuration • Cable routing concerns from Nikiski to Beluga • Converter station location at Nikiski • Cost differential for alternative of going from Nikiski to Anchorage • Basis for AEA project budget (Confirm what is, and is not required within the GRIP Budget). • Project schedule and GRIP funding timelines • Buy America requirements. Stantec plans to have an intermediate report in mid-February that will address the budget estimate and schedule. Final report will be issued in March 2025. DOE has accepted AEA’s Project Management Plan so it can be approved and the formal kick-off meeting is scheduled for January 31st. Initial invoice has been submitted AEA is preparing to advertise for several postions that will support the GRIP Project. Alaska Energy Authority Page 2 of 2 AEA has secured $62.7M in State matching funds and therefore we need to secure $143.8M in additional funding. 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 RGYAUTHORITY.ORG MEMORANDUM TO: Alaska Energy Authority Board THRU: Curtis. W. Thayer, Executive Director FROM: Karen Bell, Planning Manager DATE: January 13, 2025 RE: Railbelt Transmission Organization (RTO) Update The RTO held public meetings on November 8, December 4, December 6, and December 16, 2024. In its December 4th meeting, the governance committee voted unanimously to hire Tina Grovier from Stoel Rives as its legal counsel and accepted an interim cost share agreement between the five Railbelt utilities and the Alaska Energy Authority. On December 16th, the governance committee approved a charter and bylaws for the RTO. Also in its December 16th meeting, the governance committee authorized Curtis Thayer, Acting Chair of the RTO, to finalize and sign the application for a certificate of public convenience and necessity (CPCN) for the RTO. The next RTO public meeting is scheduled for February 14, 2025. The CPCN application for the RTO and a petition for waiver was submitted to the Regulatory Commission of Alaska (RCA) on December 20th, prior the January 1, 2025 statutory deadline. The RCA assigned a docket number to the filing, U-24-042, and issued a public notice. The period to file public comments with the RCA closes on January 16th. One public comment on the filing has been received to date. The RCA will rule on the petition for waiver and determine whether the application is complete by February 18th. The RTO Working Group continues to meet regularly to develop recommendations to the RTO for establishing an Open Access Transmission Tariff (OATT) to achieve the purposes of AS 44.83.700 - 44.83.720. The statutory deadline for the RTO to submit an OATT to the RCA is July 1, 2025. Award No / Project Name DC Funding Perf Period Beginnng Perf Period End Actions Since Last Report Estimated Jobs Created Estimated Jobs Created DC 01474 Chlkytsk BF (Des/F)(Con 87F/13S)-6/30/25 517,500.00 6/16/2015 6/30/2025 None 15 2 DC 01485 START Communities Tech Assist 6/30/25 375,000.00 11/1/2015 6/30/2025 None 2 0 DC 01492 Beaver BF Refurbishmnt (86F/14S)-6/30/25 608,000.00 7/6/2016 6/30/2025 None 5 2 DC 01500 BF Operator Training - 09/30/2025 1,985,000.00 9/1/2016 9/30/2025 None 3 0 DC 01515 Circuit Rider Program (83F/17S)-12/31/25 1,425,000.00 1/1/2017 12/31/2025 None 3 0 DC 01516 RPS Maint & Improvements-12/31/24 748,776.00 10/1/2016 12/31/2024 None 20 0 DC 01523 Misc Small Maint & Improv Prjs - 12/31/25 2,945,000.22 6/1/2017 12/31/2025 None 20 0 DC 01544 Itinerant Utility Training-12/31/25 500,000.00 3/1/2018 12/31/2025 None 3 0 DC 01548 RPSUMaint&Improvent Prg 76F/24S 12/31/25 3,540,000.00 5/1/2018 12/31/2025 None 20 0 DC 01551 Venetie RPSU (76F/24S) 12/31/25 2,250,000.00 5/1/2018 12/31/2025 Closing in Process 5 2 DC 01557 BargeHeaders&Fill Lines(80F/20S)-12/31/25 3,976,820.00 10/1/2018 12/31/2025 None 60 0 DC 01571 BF SF Upgrd-Nunapitchuk(65F/35S)-12/31/24 3,522,546.00 8/15/2019 12/31/2024 Closing in Process 30 2 DC 01575 RPSU Nelson Lgn 12/31/26 45F/55S 1,585,455.00 8/1/2019 12/31/2026 None 5 2 DC 01576 RPSU Upgrade Rampart Design 12/31/25 1,733,740.00 8/1/2019 12/31/2025 None 5 2 DC 01577 RPSU Napaskiak - 12/31/25 335,455.00 8/1/2019 12/31/2025 Extended to 12/31/25 26 2 DC 01592 Scammon Bay BF-12/31/26 56F/44S 1,200,000.00 2/17/2020 12/31/2026 None 35 5 DC 01600 VEEP-Statewide 85F/15S - 12/31/25 875,000.00 6/15/2020 12/31/2025 None 3 0 DC 01618 Fivemile Creek Hydro - 45F/55S 9/30/27 2,880,000.00 9/1/2020 9/30/2027 None 65 2 DC 01628 Craig High Sch Biomass(89F/11S)-6/30/2026 440,417.00 11/1/2020 6/30/2026 None 0 2 DC 01645 O&M Manual Conversion&Training-12/31/25 75,000.00 4/1/2021 12/31/2025 Extended to 12/31/25 4 0 DC 01646 Bulk Fuel Inv&Assess-12/31/25 (70F/30S)1,230,000.00 4/1/2021 12/31/2025 None 20 0 DC 01647 Port Heiden Dist (72F/28S)-12/31/24 1,905,600.00 4/1/2021 12/31/2024 Closing in Process 8 0 DC 01666 DOELittoral PowerSys Hydrokint 12/31/24 80,642.00 11/15/2021 12/31/2024 None 1 0 DC 01704 Chalkyitsik RPSU CDR - 12/31/25 200,000.00 10/1/2022 12/31/2025 None 5 2 DC 01705 MKEC Failure Mitigation Analysis & Plan 200,000.00 10/1/2022 12/31/2025 None 5 2 DC 01731 Shungnak BFU 1/1/23 - 12/31/24 (65F/35S)3,296,032.04 1/1/2023 12/31/2025 Extended to 12/31/25 60 3 DC1771 Dist Sys Inv & Asses Stw (52F/48S) 12/31/25 267,051.64 4/1/2023 12/31/2025 None 7 0 DC 01735 Ruby Powerhouse Lvlg 80F/20S 12/31/25 200,000.00 1/15/2023 12/31/2025 Extended to 12/31/25 5 0 DC 01761 Tuluksak BFU M&I 20F/80S 12/31/24 200,000.00 1/15/2023 1/3/2025 None 5 0 DC 01767 AVTEC Powerplant Lab Upgr 77F/23S 9/25 250,000.00 5/1/2023 9/30/2025 None 5 0 DC 01784 Power Plant Operator Training 9/30/26 250,000.00 7/1/2023 9/30/2026 None 3 0 DC 01793 Circle Emer Pwrhse Rep 75F/25S 9/30/24 320,000.00 6/1/2023 9/30/2024 Closed 5 0 DC 01825 Kwethluk Emer Gen Repair&Replace 80F/20S 350,000.00 12/15/2023 1/17/2025 Extension in Process 5 1 DC 01830 Kipnuk Distribution Upgrades 62F/38S 800,000.00 12/1/2023 12/31/2026 None 8 1 DC 01832 Rampart Elec Dist and Heat Rec 82F/18S 784,982.00 12/1/2023 12/31/2026 None 3 0 DC 01868 Bulk Fuel Aggregation Study 250,000.00 6/1/2024 12/30/2026 New Project 20 0 DC 01871 Shageluk Emer BulkFuel Tank Reloc 78F/12S 1,472,000.00 8/1/2024 9/30/2025 New Project 30 2 Total Funding for Active DC Awards: $43,575,016.90 Less Total Spending on Active DC Awards:31,210,470.32 Total Funding on Active DC Awards:$12,364,546.60 Active Denali Commission Awards 1/16/25 H:\BOARDAEA\2025 AEA Board Meetings\2025.01.30 AEA Board Meeting\Working Documents\Copy of Active DC Awards 1.16.25FINAL 1/16/202510:58 AM $17,358 $9,724 $10,572 ($12,599)$21,552 $17,358 $27,082 $37,655 $24,643 $46,607 $988,533 $989,566 $1,000,005 $979,170 $1,000,566 1.84%1.02%1.10%-1.35%2.27%1.84%2.84%3.92%2.64%4.90%-2.00%-1.00%0.00%1.00%2.00%3.00%4.00%5.00%6.00%($200,000)$0$200,000$400,000$600,000$800,000$1,000,000$1,200,000July August September October NovemberPower Cost Equalization (PCE) Endowment Fund (Managed by APFC)Reporting of Investment Gain (Loss) by Month and YTDand Fund Balance by Month as of 11/30/2024InvestmentGain (Loss)Monthly Investment Gain (Loss) YTDFund BalanceInvestment Rate of Return MonthlyInvestment Rate of Return YTD Schedules of Investments Managed by the Alaska Permanent Fund Corporation Unaudited (thousands of dollars) November 30, 2024 audited June 30, 2024 ASSETS Cash and temporary investments $ 55,289.1 45,833.0 Receivables and other assets 8,375.5 5,514.7 Investments: Marketable debt securities 229,910.6 211,213.9 Preferred and common stock 314,141.7 327,340.4 Real estate 118,348.1 114,515.0 Absolute return 59,234.1 57,674.9 Private credit 35,252.1 35,024.7 Private equity 152,454.2 146,874.4 Infrastructure 41,351.6 40,929.4 Total investments 950,692.4 933,572.7 TOTAL ASSETS $ 1,014,357.0 984,920.4 LIABILITIES Accounts payable $ 13,790.8 13,664.6 TOTAL LIABILITIES $ 13,790.8 13,664.6 NET INVESTMENTS MANAGED BY THE ALASKA PERMANENT FUND CORPORATION $ 1,000,566.2 971,255.8 Power Cost Equalization Fund Schedules of Investment Income from Investments Managed by the Alaska Permanent Fund Corporation Month ended Five months ended Fiscal year-end Unaudited (thousands of dollars) November 30, 2024 November 30, 2024 audited June 30, 2024 Investment income Interest $ 580.8 3,396.3 7,078.8 Dividends 423.9 2,656.7 7,398.7 Real estate and other income 577.4 3,071.1 5,584.0 Total investment income 1,582.1 9,124.1 20,061.5 Net increase (decrease) in the fair value of investments Marketable debt securities 1,594.6 4,654.5 1,545.2 Preferred and common stock 11,657.6 28,005.5 46,171.4 Real estate 643.5 215.3 (7,327.9) Absolute return 1,030.3 1,027.7 6,564.1 Private credit 127.9 (78.9) 752.3 Private equity 2,493.1 1,877.1 421.0 Infrastructure 2,348.2 2,937.5 2,339.5 Derivative instruments 433.7 391.6 2,208.3 Currency (359.3) (1,547.4) (4,611.8) of investments 19,969.6 37,482.9 48,062.1 NET INVESTMENT GAIN (LOSS) $ 21,551.7 46,607.0 68,123.6 Less operating expenses $ (155.3) (567.7) (1,777.0) TOTAL GAIN (LOSS) FROM INVESTMENTS MANAGED BY THE APFC $ 21,396.4 46,039.3 66,346.6 Other financing sources (uses) Transfers in - 241.8 958,574.7 Transfers out - (16,970.7) (53,665.5) TOTAL FINANCING SOURCES (USES) $ - (16,728.9) 904,909.2 End of period Net Investments - Beginning of period 979,169.8 971,255.8 - Net Investments - End of period $ 1,000,566.2 1,000,566.2 971,255.8 Power Cost Equalization Fund Total net increase (decrease) in the fair value AEA IIJA/IRA Funding Opportunities %$ Awarded Clean Energy Innovator Fellowship Program NA NA NA AEA matched with one fellow that began work at AEA in September. Fellow would be paid by stipend from DOE, receipt authority not needed. Awarded Defense Community Infrastructure Pilot - National Defense Authorization Act Black Rapids Training Site $ 15,602,648 $ - $ - AEA partnered with GVEA. $12.6M federal receipt authority approved in FY24 and received 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 $ - $ - Solicitation for RE-VEEP subawards Round 1 closed 2/27/24. Round 2 closed 5/28/24. Awarded Energy Efficiency Revolving Loan Capitalization Program - IIJA 40502 $ 4,782,480 $ - $ - Award effective July 1, 2024. AEA will manage grant, AHFC will administer program. Awarded Grid Resilience and Innovation Partnerships Program Topic 3 - IIJA 40103b $ 206,500,000 $ 1 $ 206,500,000 AEA accepted award in the amount of $206.5M. $206.5M match required, that $62.7M of match has been identified for and $143.8M is still needed. Awarded Greenhouse Gas Reduction Fund - Solar For All Competition - IRA 134a $ 62,450,000 $ - $ - Received $20M federal receipt authority in FY25 budget. Federal receipt authority of $42.45M needed for remainder of award. Awarded Home Efficiency Rebates: Early Administrative Funds - IRA 50121 $ 934,128 $ - $ - Award for early administrative funds effective June 1, 2024. AEA will manage grant, AHFC will administer program. Awarded Home Electrification and Appliance Rebates: Early Administrative Funds - IRA 50122 $ 928,656 $ - $ - Award for early administrative funds effective June 1, 2024. AEA will manage grant, AHFC will administer program. Awarded High Energy Cost Grants - USDA RUS $ 2,000,000 $ - $ - AEA awarded grant for Manokotak. Awarded National Electric Vehicle Infrastructure Program (NEVI) - IIJA 11401- Formula Funding FFY22-FFY26 $ 52,415,294 $ 0 $ 10,483,059 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 $ 0 $ 9,603,383 AEA has receipt authority for $39.8M federal award and $7.2M match. The allocation for year four is $16,921,659, application open February 2025. Awarded Training for Residential Energy Contractors (TREC) - IRA 50123 - Formula Funding $ 1,293,870 $ - $ - AEA received notice of award on 1/6/25. AHFC to administer the program. Received federal receipt authority in FY25 budget. Awarded State Energy Program Funding - IIJA 40109 $ 3,661,930 $ - $ - AEA awardee. Funding split 70% AEA and 30% AHFC. Awarded Vehicle Technology Office FFY 2022 $ 1,670,000 $ 0 $ 417,500 Match to be provided by site partners. $644,892,954 $ 417,889,012 $ 227,003,942 Conditional Award Energy Future Grant $ 496,725 $ - $ - AEA partnered with AML for proposal to evaluate energy permitting in 45 municipalities. Application was selected for award - currently under negotiation. Conditional Award Home Efficiency Rebate (formula funding) - IRA 50121 $ 36,358,943 $ - $ - AEA received notice of conditional award for the remaining $36,358,943 on 1/15/25. Awarded early administrative 6/1/24. AEA will manage grant, AHFC will administer program. AK Funding Award / Request Comments Required Match Status GO Federal Receipt Authority Grant Program Name Total Awarded: Note: New information is in bold font in cells highlighted yellow Page 1 of 2 last updated 1/16/2025 AEA IIJA/IRA Funding Opportunities %$ AK Funding Award / Request Comments Required Match Status GO Federal Receipt Authority Grant Program Name Conditional Award Home Electrification and Appliance Rebates (formula funding) - IRA 50122 $ 36,222,284 $ - $ - AEA received notice of conditional award for the remaining $36,222,284 on 1/16/25. Awarded early administrative 6/1/24. AEA will manage grant, AHFC will administer program. $73,077,952 $ 73,077,952 $ - Pending Home Energy Efficiency Contractor Training Grants, Competitive TREC $ 2,000,000 $ - $ - Application submitted on 1/15/25. AHFC to administer program. Pending USDA Community Wood Energy and Wood Innovation Program FY 2025 $ 500,000 $ 1 $ 500,000 AEA applied to fund re-design and construction of the Tok School CHP system. Pending USDA Wood Innovation Grant FY 2025 $ 150,000 $ 1 $ 150,000 AEA applied for funding to complete the engineering design for biomass systems in Elim, Galena, and BBNA. Pending Transmission Acceleration Grants (TAG) Program - DOE GDO $ 3,000,000 0% $ - AEA to submit grant request for planning. Application due 1/21/25. Pending Watersmart Grants: Water and Energy Efficiency Grants for FY2024 & 2025 Bureau of Reclamation Opportunity No. R24AS00052 $ 5,000,000 100% $ 5,000,000.00 AEA applied for part of the Dixon Diversion Project. $16,300,000 $ 10,650,000 $ 5,650,000 Considering Community Microgrid Assistance Partnership (C-MAP) TBD 0% $ - Application deadline 1/31/25. AEA intends to submit a proposal. Considering Energy Improvements in Remote and Rural Areas FY 2025 - DOE OCED TBD 5% - 50% TBD Concept papers are due February 27, 2025 and applications are due August 28, 2025. AEA intends to submit three concept papers. Considering Energy Innovator Fellowship 2025 NA NA NA Host application due January 31, 2025. Fellow paid by stipend from DOE. AEA intends to apply. Considering High Energy Cost Grants 2025 - USDA RUS TBD 0% $ - Application due February 28, 2025. AEA intends to apply for one or more communities. Considering Port Infrastructure Development Program 2025 TBD 0% - 20% TBD Application due April 30, 2025. AEA intends to apply for one or more rural communities. TBD TBD Total Considering: Total Conditional Award: Total Pending: Note: New information is in bold font in cells highlighted yellow Page 2 of 2 last updated 1/16/2025 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: Yosty Storms, Project Manager Josi Hartley, Program Manager of Renewable Energy and Energy Efficiency THROUGH: Audrey Alstrom, Director of Renewable Energy and Energy Efficiency DATE: January 15, 2025 RE: Home Energy Rebates and Training for Residential Energy Contractors Update Background: Sections 50121 and 50122 of the Inflation Reduction Act of 2022 established the Home Efficiency Rebates and the Home Electrification and Appliance Rebates Programs. At this time, the U.S. Department of Energy (DOE) was authorized to make a combined total of $74,444,011.00 in formula funds available to the State of Alaska or $37,293,071.00 for Section 50121 and $37,150,940.00 for Section 50122, with no state matching requirement. An appropriation for federal receipts associated with the Home Efficiency Rebates and the Home Electrification and Appliance Rebates was included as part of the Governor’s amended budget for fiscal year 2024 and approved during the first session of the 33rd legislature. Mr. Curtis Thayer provided details of the Governor’s amended budget to the AEA Board of Directors at the March 1, 2023 meeting. Additional information regarding the rebate programs was included in presentations to the AEA Board of Directors at the August 2, 2023, and September 10, 2024, meetings. Under this same act, Section 50123 established the State-Based Home Energy Efficiency Contractor Training Grants (Training for Residential Energy Contractors, or TREC) program in July 2023, authorizing DOE to appropriate $1,296,870.00 in formula funds to the State of Alaska, with no matching requirement. In March of 2024, DOE issued a Funding Opportunity Announcement (FOA) for discretionary TREC program funds to complement the TREC formula funding. As the state energy office and authorized recipient of this funding, the Alaska Energy Authority (AEA) is collaborating with the Alaska Housing Finance Corporation (AHFC) to design and administer the Home Energy Rebates (HER) and Training for Residential Energy Contractors (TREC) programs at the state level. AEA will ensure DOE compliance and reporting as required by BIL Sections 50121, 50122, and 50123 and will work with AHFC to administer the program via Memorandum of Agreements and Reimbursable Service Agreements (RSAs). Once implemented, the HER program will improve the residential efficiency needs of Alaskans by financing single and multifamily energy-efficient home retrofits and high-efficiency electric Alaska Energy Authority Page 2 of 2 projects and appliances. The TREC program will focus on training contractors and providing them with the certifications needed to deliver energy efficiency, electrification, and clean energy improvements, including those covered under the HER program. Update: On June 17, 2024, after submitting early administrative applications for each section, AEA was awarded $934,127.96 for 50121 and $928,655.94 for 50122, or a combined total of $1,862,786.90. Of this total, $1,711,465.50 was encumbered for AHFC to develop the Alaska HER Program applications. The remaining $151,321.40 supports AEA staff to provide program oversight and administration. On December 23, 2024, AEA submitted the Section 50121: Home Energy Rebates – Efficiency Rebates application for the remaining $36,358,943.04 and was awarded these funds on January 15, 2025. AEA is in the final review of Section 50122: Home Energy Rebates – Electrification Rebates application for the remaining $36,222,284.06. The full application deadline is January 31, 2025. AEA anticipates being awarded its 50122 funds soon and will work with AHFC to launch the Alaska HER program in Summer 2025. In addition to HER, AEA, in collaboration with AHFC, applied for and was awarded TREC formula funds on January 6, 2025. On January 15, AEA and AHFC submitted an application for $2,103,646 for TREC competitive grant funds, with AHFC committed to providing an additional $52,350 in cost share to expand the workforce development efforts of Alaska’s formula-funded TREC program. If awarded, AEA and AHFC intend to use these competitive funds to focus on heat pump installation and maintenance training. Established as an independent entity under state statute, AEA finances, constructs, and operates energy infrastructure projects that improve access, affordability, and reliability for all Alaskans. Through transformative projects like the Bradley Lake Hydroelectric Facility and new grid infrastructure initiatives, AEA strengthens Alaska’s energy network — ensuring resilient, cost-effective, and sustainable power for the future. The Alaska Energy Authority (AEA) is the State’s trusted leader in reducing energy costs and advancing statewide energy policy. As a public corporation, AEA delivers innovative energy solutions that power Alaska’s communities, industries, and economic growth. A PROVEN PA R T N E R I N E N E R GY SOL UTIONS akenergyauthority.org (907)771-3009 cthayer@akenergyauthority.org Contact Information Economic Growth Environmental Leadership Resiliency and Redundancy SUSTAINABLE ENERGY, TANGIBLE RESULTS AEA’s energy solutions strengthen Alaska’s energy systems, safeguarding communities, industries, and military installations against outages and disruptions. Projects like the HVDC Submarine Cable add critical grid redundancy, ensuring 75% of Alaskans have uninterrupted power. The HVDC Submarine Cable and the Dixon Diversion will generate 4,720 construction-phase jobs and $1.3 billion in total economic impact and labor income. AEA’s investments diversify Alaska’s energy portfolio. The Dixon Diversion alone reduces carbon emissions by over 106,000 metric tons annually, displacing 1.5 billion cubic feet of natural gas. AEA leads Alaska’s transition to a low-carbon, renewable energy future through projects like these. Let's power Alaska's future together! To explore partnership opportunities with AEA, contact Curtis W. Thayer, Executive Director at (907)771-3009 or cthayer@akenergyauthority.org. Alaska United States of America Strengthening Grid Resilience: HVDC Submarine Cable A $413 million investment to construct a 38-mile High-Voltage Direct Current (HVDC) submarine cable across Cook Inlet, eliminating single points of failure and enhancing grid reliability. Improves energy transfer capacity and reduces system outages, benefiting 75% of Alaska’s population while enabling large-scale renewable energy integration. This project includes $143 million in unmet funding. Expanding Renewable Energy: Dixon Diversion Project A $342 million project to increase the Bradley Lake Hydroelectric Project energy by 50%, generating an additional 190,800 MWh annually. Offsets 1.5 billion cubic feet of natural gas annually, reducing carbon emissions by over 106,000 metric tons and stabilizing energy costs for Railbelt communities. Modernizing Transmission Efficiency: Sterling to Quartz Upgrade A $92 million upgrade to 39 miles of aging transmission lines, increasing capacity to 230 kV standards. Reduces energy losses, mitigates wildfire risks, and supports integrating new renewable projects across Alaska. Funding for this project has been fully secured. THE BIG ENERGY PICTURE: ALASKA VS. THE LOWER YOUR STRATEGIC PARTNER FOR ENERGY INNOVATION For nearly five decades, AEA has delivered energy solutions tailored to Alaska’s unique challenges. In the past five years, AEA has secured nearly $1 billion in federal and state grants, as well as revenue bonds. With a proven track record in projects such as the Bradley Lake Hydroelectric Project, the Sterling to Quartz Creek Transmission Line, and the Alaska Intertie Transmission Line — the sole connection for transferring power between northern and southern utilities — AEA has reduced consumer costs while advancing renewable energy integration across Alaska. A LEGACY OF LEADERSHIP ACCOUNTABILITY TO STAKEHOLDERS DRIVING RESILIENCY AND CLEAN ENERGY ACROSS ALASKA AEA is a public corporation of the State of Alaska governed by a board of directors. Our transparent processes ensure that every investment generates meaningful returns for stakeholders, communities, and Alaska’s energy future. AEA’S STATEWIDE IMPACT Providing clean, low-cost energy to the Railbelt through the Bradley Lake Hydroelectric Project. Enabling renewable energy adoption by upgrading critical infrastructure, such as the AEA-owned Alaska Intertie and the Sterling to Quartz Creek Transmission Line. Stabilizing Alaska’s energy grid by delivering reliable power to 75% of the state’s population. Reducing Railbelt energy costs, which can lower residential rates for rural Alaskans via the Power Cost Equalization Program. Alaska United States of America Strengthening Grid Resilience: HVDC Submarine Cable A $413 million investment to construct a 38-mile High-Voltage Direct Current (HVDC) submarine cable across Cook Inlet, eliminating single points of failure and enhancing grid reliability. Improves energy transfer capacity and reduces system outages, benefiting 75% of Alaska’s population while enabling large-scale renewable energy integration. This project includes $143 million in unmet funding. Expanding Renewable Energy: Dixon Diversion Project A $342 million project to increase the Bradley Lake Hydroelectric Project energy by 50%, generating an additional 190,800 MWh annually. Offsets 1.5 billion cubic feet of natural gas annually, reducing carbon emissions by over 106,000 metric tons and stabilizing energy costs for Railbelt communities. Modernizing Transmission Efficiency: Sterling to Quartz Upgrade A $92 million upgrade to 39 miles of aging transmission lines, increasing capacity to 230 kV standards. Reduces energy losses, mitigates wildfire risks, and supports integrating new renewable projects across Alaska. Funding for this project has been fully secured. THE BIG ENERGY PICTURE: ALASKA VS. THE LOWER YOUR STRATEGIC PARTNER FOR ENERGY INNOVATION For nearly five decades, AEA has delivered energy solutions tailored to Alaska’s unique challenges. In the past five years, AEA has secured nearly $1 billion in federal and state grants, as well as revenue bonds. With a proven track record in projects such as the Bradley Lake Hydroelectric Project, the Sterling to Quartz Creek Transmission Line, and the Alaska Intertie Transmission Line — the sole connection for transferring power between northern and southern utilities — AEA has reduced consumer costs while advancing renewable energy integration across Alaska. A LEGACY OF LEADERSHIP ACCOUNTABILITY TO STAKEHOLDERS DRIVING RESILIENCY AND CLEAN ENERGY ACROSS ALASKA AEA is a public corporation of the State of Alaska governed by a board of directors. Our transparent processes ensure that every investment generates meaningful returns for stakeholders, communities, and Alaska’s energy future. AEA’S STATEWIDE IMPACT Providing clean, low-cost energy to the Railbelt through the Bradley Lake Hydroelectric Project. Enabling renewable energy adoption by upgrading critical infrastructure, such as the AEA-owned Alaska Intertie and the Sterling to Quartz Creek Transmission Line. Stabilizing Alaska’s energy grid by delivering reliable power to 75% of the state’s population. Reducing Railbelt energy costs, which can lower residential rates for rural Alaskans via the Power Cost Equalization Program. Established as an independent entity under state statute, AEA finances, constructs, and operates energy infrastructure projects that improve access, affordability, and reliability for all Alaskans. Through transformative projects like the Bradley Lake Hydroelectric Facility and new grid infrastructure initiatives, AEA strengthens Alaska’s energy network — ensuring resilient, cost-effective, and sustainable power for the future. The Alaska Energy Authority (AEA) is the State’s trusted leader in reducing energy costs and advancing statewide energy policy. As a public corporation, AEA delivers innovative energy solutions that power Alaska’s communities, industries, and economic growth. A PROVEN PA R T N E R I N E N E R GY SOL UTIONS akenergyauthority.org (907)771-3009 cthayer@akenergyauthority.org Contact Information Economic Growth Environmental Leadership Res iliency and Redundancy SUSTAINABLE ENERGY, TANGIBLE RESULTS AEA’s energy solutions strengthen Alaska’s energy systems, safeguarding communities, industries, and military installations against outages and disruptions. Projects like the HVDC Submarine Cable add critical grid redundancy, ensuring 75% of Alaskans have uninterrupted power. The HVDC Submarine Cable and the Dixon Diversion will generate 4,720 construction-phase jobs and $1.3 billion in total economic impact and labor income. AEA’s investments diversify Alaska’s energy portfolio. The Dixon Diversion alone reduces carbon emissions by over 106,000 metric tons annually, displacing 1.5 billion cubic feet of natural gas. AEA leads Alaska’s transition to a low-carbon, renewable energy future through projects like these. Let's power Alaska's future together! To explore partnership opportunities with AEA, contact Curtis W. Thayer, Executive Director at (907)771-3009 or cthayer@akenergyauthority.org. Design and Permitting: 2024�2026 Construction Start: 2027 Project Completion: 2032 Total Project Cost: $413 million $206.5 million secured in federal funding. $143.8 million is needed to close funding requirements. Economic Impact: Creates thousands of jobs and stimulates economic activity during construction. Delivers long-term energy savings, clean energy integration, and grid resilience. STRATEGIC IMPORTANCE PROJECT TIMELINE INVESTMENT SUMMARY Future Integration of Clean Energy Generation: Added power transfer capacity allows for the full realization of those benefits from future clean-energy generation projects. Resilience Against Disruptions: System redundancy enhances reliability and reduces vulnerability to outages for urban areas and military installations. Long-Term Cost Savings: Improved transmission efficiency reduces system losses, reducing operational and generation costs for the benefit of Railbelt utilities and consumers. akenergyauthority.org (907) 771-3009 cthayer@akenergyauthority.org Contact Information Partner with AEA to advance Alaska’s energy resilience with the HVDC Submarine Transmission Line — a game-changing investment for Alaska’s Railbelt. The Nikiski-to-Beluga HVDC Submarine Transmission Line is a transformative infrastructure project that will advance energy reliability and resiliency across Alaska�s Railbelt. The project will create a redundant power pathway between the Kenai Peninsula �Nikiski� and Anchorage �Beluga substation�. Key Infrastructure: Submarine HVDC Line: Extends across Cook Inlet. Converter Stations: Terminal constructed at each end to convert power between Alternating Current and Direct Current. System Enhancements: Enables cost-effective, reliable power transfer throughout the Railbelt grid. HIGHVOLTAGE DIRECT CURRENT HVDC SUBMARINE TRANSMISSION LINE Energy Resilience and Reliability: Creates a redundant transmission path, eliminating the risk of load-shedding during outages. It also reduces transmission capacity constraints, allowing the full utilization of Bradley Lake Hydroelectric Project energy for Railbelt utilities. Increased Power Transfer Capacity: Enables the transfer of the most economical generation mixes across the Railbelt. It also reduces utilities' operational costs and improves the efficiency and lifespan of generation plants. Clean Energy Integration: Enhances transmission infrastructure, incentivizing new renewable energy development and allowing renewable resources like wind, solar, and hydro to be distributed more effectively. Transmission Efficiency: Reduces system line loss and lowers generation costs. It also supports uninterrupted power flow during planned and unplanned line maintenance. PROJECT BENEFITS ECONOMIC BENEFITS Jobs Created: 1,470 jobs �950 direct, 520 indirect/induced� Labor Income: $129 million Total Economic Output: $332 million Construction Phase (2024–2032): Annual O&M Costs: $6 million per year. Generates additional long-term jobs, labor income, and business activity throughout its 35-year lifespan. Operations Phase: Design and Permitting: 2024�2026 Construction Start: 2027 Project Completion: 2032 Total Project Cost: $413 million $206.5 million secured in federal funding. $143.8 million is needed to close funding requirements. Economic Impact: Creates thousands of jobs and stimulates economic activity during construction. Delivers long-term energy savings, clean energy integration, and grid resilience. STRATEGIC IMPORTANCE PROJECT TIMELINE INVESTMENT SUMMARY Future Integration of Clean Energy Generation: Added power transfer capacity allows for the full realization of those benefits from future clean-energy generation projects. Resilience Against Disruptions: System redundancy enhances reliability and reduces vulnerability to outages for urban areas and military installations. Long-Term Cost Savings: Improved transmission efficiency reduces system losses, reducing operational and generation costs for the benefit of Railbelt utilities and consumers. akenergyauthority.org (907) 771-3009 cthayer@akenergyauthority.org Contact Information Partner with AEA to advance Alaska’s energy resilience with the HVDC Submarine Transmission Line — a game-changing investment for Alaska’s Railbelt. The Nikiski-to-Beluga HVDC Submarine Transmission Line is a transformative infrastructure project that will advance energy reliability and resiliency across Alaska�s Railbelt. The project will create a redundant power pathway between the Kenai Peninsula �Nikiski� and Anchorage �Beluga substation�.Key Infrastructure:Submarine HVDC Line: Extends across Cook Inlet.Converter Stations: Terminal constructed at each end to convert power between Alternating Current and Direct Current.System Enhancements: Enables cost-effective, reliable power transfer throughout the Railbelt grid.HIGHVOLTAGE DIRECTCURRENT HVDC SUBMARINE TRANSMISSION LINEEnergy Resilience and Reliability: Creates a redundant transmission path, eliminating the risk of load-shedding during outages. It also reduces transmission capacity constraints, allowing the full utilization of Bradley Lake Hydroelectric Project energy for Railbelt utilities.Increased Power Transfer Capacity: Enables the transfer of the most economical generation mixes across the Railbelt. It also reduces utilities' operational costs and improves the efficiency and lifespan of generation plants.Clean Energy Integration: Enhances transmission infrastructure, incentivizing new renewable energy development and allowing renewable resources like wind, solar, and hydro to be distributed more effectively.Transmission Efficiency: Reduces system line loss and lowers generation costs. It also supports uninterrupted power flow during planned and unplanned line maintenance.PROJECT BENEFITSECONOMIC BENEFITSJobs Created: 1,470 jobs �950 direct, 520 indirect/induced�Labor Income: $129 millionTotal Economic Output: $332 millionConstruction Phase (2024–2032):Annual O&M Costs: $6 million per year. Generates additional long-term jobs, labor income, and business activity throughout its 35-year lifespan.Operations Phase: Partner with AEA to advance Alaska’s energy resilience with the Dixon Diversion Project — a game-changing investment for Alaska’s Railbelt. akenergyauthority.org (907) 771-3009 cthayer@akenergyauthority.org Contact Information Grid Resilience: Provides additional stored energy for the Railbelt grid, increasing reliability and stability across 75% of Alaska’s population. Support for Renewable Integration: Facilitates regulation and dispatch of non-firm renewable generation sources like wind and solar. Rural Energy Cost Reductions: When Railbelt energy costs decrease, so do residential rates drop for rural Alaskans via the Power Cost Equalization Program. STRATEGIC IMPORTANCE PROJECT TIMELINE INVESTMENT SUMMARY Total Project Cost: $342 million Substantial emissions reductions and natural gas displacement. Job creation and economic stimulation during construction and operations. Potential for federal tax incentives for the project. Pre-Construction: 2024–2027 (studies, permitting, and design) Construction Start: 2027–2030 Project Completion: 2030 The Dixon Diversion Project is an expansion of the largest hydroelectric facility in Alaska, the AEA-owned Bradley Lake Hydroelectric Project on the Kenai Peninsula, Alaska. The Dixon Diversion will redirect water from the Dixon Glacier to the reservoir for the Bradley Lake power generation facility, thereby increasing energy output and providing significant renewable energy benefits to the Railbelt transmission system. Key benefits include: Increased Energy Production: Adds 190,800 MWh annually, a 50% increase in Bradley Lake’s energy output. Equivalent to powering up to 30,000 homes annually. Cook Inlet Natural Gas Offsets: Reduces 1.5 billion cubic feet of natural gas demand annually, equivalent to 7.5% of the Railbelt’s projected unmet-demand for natural gas. Environmental Benefits: Eliminates 106,668 metric tons of CO equivalent emissions annually, benefitting Alaska’s air quality and climate goals. DIXON DIVERSION PROJECT Diversion Infrastructure: A diversion dam and intake structure at Dixon Glacier. Tunnel Construction: A 4.7-mile underground tunnel (14 feet in diameter) to convey water. Reservoir Enhancements: Modifications to raise Bradley Lake’s reservoir dam wall by 14 feet. PROJECT BUILD SCOPE ECONOMIC BENEFITS Jobs Created: 3,250 jobs (direct, indirect, and induced) Labor Income: $260 million Total Economic Output: $584 million Pre-Construction and Construction Phase (2024–2030): Annual Operations and Maintenance Costs: $500,000 annually. Generates additional long-term jobs, labor income, and $1 million in economic output annually throughout its 50-year lifespan. Operations Phase (Post-2030): Partner with AEA to advance Alaska’s energy resilience with the Dixon Diversion Project — a game-changing investment for Alaska’s Railbelt. akenergyauthority.org (907) 771-3009 cthayer@akenergyauthority.org Contact Information Grid Resilience: Provides additional stored energy for the Railbelt grid, increasing reliability and stability across 75% of Alaska’s population. Support for Renewable Integration: Facilitates regulation and dispatch of non-firm renewable generation sources like wind and solar. Rural Energy Cost Reductions: When Railbelt energy costs decrease, so do residential rates drop for rural Alaskans via the Power Cost Equalization Program. STRATEGIC IMPORTANCE PROJECT TIMELINE INVESTMENT SUMMARY Total Project Cost: $342 million Substantial emissions reductions and natural gas displacement. Job creation and economic stimulation during construction and operations. Potential for federal tax incentives for the project. Pre-Construction: 2024–2027 (studies, permitting, and design) Construction Start: 2027–2030 Project Completion: 2030 The Dixon Diversion Project is an expansion of the largest hydroelectric facility in Alaska, the AEA-owned Bradley Lake Hydroelectric Project on the Kenai Peninsula, Alaska. The Dixon Diversion will redirect water from the Dixon Glacier to the reservoir for the Bradley Lake power generation facility, thereby increasing energy output and providing significant renewable energy benefits to the Railbelt transmission system. Key benefits include: Increased Energy Production: Adds 190,800 MWh annually, a 50% increase in Bradley Lake’s energy output. Equivalent to powering up to 30,000 homes annually.Cook Inlet Natural Gas Offsets: Reduces 1.5 billion cubic feet of natural gas demand annually, equivalent to 7.5% of the Railbelt’s projected unmet-demand for natural gas.Environmental Benefits: Eliminates 106,668 metric tons of CO equivalent emissions annually, benefitting Alaska’s air quality and climate goals.DIXON DIVERSION PROJECTDiversion Infrastructure: A diversion dam and intake structure at Dixon Glacier.Tunnel Construction: A 4.7-mile underground tunnel (14 feet in diameter) to convey water.Reservoir Enhancements: Modifications to raise Bradley Lake’s reservoir dam wall by 14 feet.PROJECT BUILD SCOPEECONOMIC BENEFITSJobs Created: 3,250 jobs (direct, indirect, and induced)Labor Income: $260 millionTotal Economic Output: $584 millionPre-Construction and Construction Phase (2024–2030):Annual Operations and Maintenance Costs: $500,000 annually. Generates additional long-term jobs, labor income, and $1 million in economic output annually throughout its 50-year lifespan.Operations Phase (Post-2030): Total Project Cost: : $92 million (fully funded) Economic Impact: Generates short-term job opportunities and statewide economic growth. Delivers long-term transmission reliability and efficiency improvements. Phase 1 Construction: 2024–2025 Phase 2 Construction: 2025–2026 Phase 3 Construction: 2027–2028 Project Completion: 2028 Partner with AEA to advance Alaska’s energy resilience with the SQ Substation Transmission Line Upgrade — a game-changing investment for Alaska’s Railbelt. akenergyauthority.org (907) 771-3009 cthayer@akenergyauthority.org Contact Information Modernization of Aging Infrastructure: Upgrading the 50-year-old SQ line ensures Alaska’s energy grid can meet growing demands. Resilience Against Disruptions: Enhances system reliability, reducing vulnerability to outages caused by wildfires or unexpected failures. Long-Term Cost Savings: Improved transmission efficiency lowers energy delivery costs, benefiting Railbelt utilities and consumers. STRATEGIC IMPORTANCE PROJECT TIMELINE INVESTMENT SUMMARY Phased Construction: Phase 1: Sterling Substation to Kenai National Wildlife Refuge (8 miles). Phase 2: Through Kenai National Wildlife Refuge (17 miles). Phase 3: Kenai National Wildlife Refuge to Quartz Creek Substation (14 miles). STERLING SUBSTATION TO QUARTZ CREEK SUBSTATION SQ LINE UPGRADE Increased Transmission Efficiency: Reduces significant line losses, ensuring more energy reaches consumers at a lower cost. Adds critical transmission capacity, supporting future renewable energy integration. Support for Renewable Energy: Enables more effective clean energy delivery generated at Bradley Lake to Railbelt communities. Reduces the Railbelt grid’s reliance on fossil fuels. Grid Resilience and Reliability: Mitigates risks associated with wildfires and aging infrastructure. Improves system communication and control for enhanced stability. PROJECT BENEFITS ECONOMIC BENEFITS Jobs Created: 460 jobs (290 direct, 170 indirect/induced) Labor Income: $39 million Total Economic Output: $96 million Construction Phase (2024–2028): Annual Operations and Maintenance Costs: $650,000 per year. Generates additional long-term jobs, labor income, and $1.2 million in economic output annually throughout its 50-year lifespan. Operations Phase: KEY INFRASTRUCTURE UPGRADES: Upgrading conductors, insulators, and poles/towers to 230 kV standards (currently operating at 115 kV). The Sterling Substation to Quartz Creek (SQ) Substation Transmission Line Upgrade is a critical infrastructure improvement designed to modernize Alaska’s aging Railbelt transmission system. Managed by AEA, the SQ line carries 88% of the energy generated by the Bradley Lake Hydroelectric Project, making it essential for efficient power delivery. Total Project Cost: : $92 million (fully funded) Economic Impact: Generates short-term job opportunities and statewide economic growth. Delivers long-term transmission reliability and efficiency improvements. Phase 1 Construction: 2024–2025 Phase 2 Construction: 2025–2026 Phase 3 Construction: 2027–2028 Project Completion: 2028 Partner with AEA to advance Alaska’s energy resilience with the SQ Substation Transmission Line Upgrade — a game-changing investment for Alaska’s Railbelt. akenergyauthority.org (907) 771-3009 cthayer@akenergyauthority.org Contact Information Modernization of Aging Infrastructure: Upgrading the 50-year-old SQ line ensures Alaska’s energy grid can meet growing demands. Resilience Against Disruptions: Enhances system reliability, reducing vulnerability to outages caused by wildfires or unexpected failures. Long-Term Cost Savings: Improved transmission efficiency lowers energy delivery costs, benefiting Railbelt utilities and consumers. STRATEGIC IMPORTANCE PROJECT TIMELINE INVESTMENT SUMMARY Phased Construction:Phase 1: Sterling Substation to Kenai National Wildlife Refuge (8 miles).Phase 2: Through Kenai National Wildlife Refuge (17 miles).Phase 3: Kenai National Wildlife Refuge to Quartz Creek Substation (14 miles).STERLING SUBSTATION TO QUARTZ CREEK SUBSTATION SQ LINE UPGRADEIncreased Transmission Efficiency: Reduces significant line losses, ensuring more energy reaches consumers at a lower cost. Adds critical transmission capacity, supporting future renewable energy integration.Support for Renewable Energy: Enables more effective clean energy delivery generated at Bradley Lake to Railbelt communities. Reduces the Railbelt grid’s reliance on fossil fuels.Grid Resilience and Reliability: Mitigates risks associated with wildfires and aging infrastructure. Improves system communication and control for enhanced stability.PROJECT BENEFITSECONOMIC BENEFITSJobs Created: 460 jobs (290 direct, 170 indirect/induced)Labor Income: $39 millionTotal Economic Output: $96 millionConstruction Phase (2024–2028):Annual Operations and Maintenance Costs: $650,000 per year. Generates additional long-term jobs, labor income, and $1.2 million in economic output annually throughout its 50-year lifespan.Operations Phase:KEY INFRASTRUCTURE UPGRADES:Upgrading conductors, insulators, and poles/towers to 230 kV standards (currently operating at 115 kV).The Sterling Substation to Quartz Creek (SQ) Substation Transmission Line Upgrade is a critical infrastructure improvement designed to modernize Alaska’s aging Railbelt transmission system. Managed by AEA, the SQ line carries 88% of the energy generated by the Bradley Lake Hydroelectric Project, making it essential for efficient power delivery. 1.Dixon Diversion: AEA-unfunded (studies underway)* 2.Bradley-Soldotna West: HEA-unfunded* 3.Bradley-Soldotna East & Substation: AEA-HEA-unfunded* 4.Soldotna-Bernice: AEA-unfunded** 5.Quartz Creek Substation XMFR: CEA-unfunded* 6.Soldotna-Sterling: HEA/AEA-partially funded* 7.Sterling-Quartz Creek: AEA-funded, target 2028* 8.GRIP Match: AEA-partially funded, target 2032** 9.Quartz Creek-Anchorage: CEA-ongoing, target 2032* 10.Beluga Substation XMFR (2nd line): AEA-unfunded** 11.Fossil Creek Substation XMFR: CEA-MEA-unfunded* 12.Intertie Connector: AEA-unfunded** 13.Teeland-Douglas: MEA-unfunded* 14.Alaska Intertie: AEA-unfunded* 15.New Intertie Beluga-Healy: AEA-unfunded** 16.Healy Substation: AEA-unfunded* 17.Fairbanks BESS: GVEA-partially funded, target 2027** 18.Northern Intertie: GVEA-unfunded* 19.Fort Knox-North Pole Loop: GVEA-funded, target 2031* *Expansion or upgrade**New project Acronyms BESS: Battery Energy Storage System SVC: Static Var Compensator XMFR: Transformer Legend Railbelt Projects Date: 12/31/2024 Alaska Energy Authority Chugach Electric Association Copper Valley Electric Association Golden Valley Electric Association Homer Electric Association Matanuska Electric Association Seward Electric System In Progress Northern Intertie 230 kV $19 Million 18 New Intertie 230 kV $486 Million 15 Intertie Connector 230 kV $50 Million 12 Beluga Substation $19 Million 10 GRIP Match $143.8 Million 8 Soldotna to Sterling $27 Million 6 Soldotna to Bernice New 230 kV $149 Million 4 Fort Knox to North Pole $28 Million19 Fairbanks BESS $81 Million17 Healy Substation BESS/SVC $88 Million16 Alaska Intertie 230 kV Line $40 Million14 Teeland Douglas 230 kV BESS/SVC $146 Million13 Fossil Creek Substation $25 Million11 Quartz Creek to Anchorage 230 kV $204 Million9 Quartz Creek Substation $31 Million5 Sterling to Quartz 230 kV $90 Million7 Bradley to Soldotna 230 kV East & Substation $184 Million3 Dixon Diversion $342 Million1 Bradley to Soldotna 230 kV West $172 Million 2 1.Dixon Diversion Hydroelectric 2.Augustine Island Geothermal 3.Bradley Lake Bench Wind Farm 4.Ninilchik Wind Farm 5.Caribou Hills Wind Farm 6.East Foreland (Nikiski) Wind Farm 7.Godwin & Fourth of July Creeks Hydroelectric 8.Snow River Hydroelectric 9.Cook Inlet Offshore Wind 10.Kenai Peninsula Solar 11.Mount Spurr Geothermal 12.Fire Island Wind Phase 2 13.Little Mount Susitna Wind 14.Hunter Creek Hydroelectric 15.Susitna Clean Coal with Carbon Capture, Utilization & Storage 16.Susitna-Watana Hydroelectric 17.Shovel Creek Wind Legend Clean EnergyProjects Date: 12/31/2024 Shovel Creek 150 MW $600 Million 17 Susitna Clean Coal with CCUS 400 MW $3.7 Billion 15 Little Mount Susitna 150 MW $600 Million 13 Ninilchik 30 MW $79 Million (2021)4 Susitna-Watana 618 MW $5.6 Billion (2014)16 Hunter Creek 7.7 MW $68 Million (2023)14 Fire Island Phase 2 20 MW $50 Million (2016)12 Kenai Peninsula Solar 43 MW $50.1 Million10 Snow River 71 MW $664 Million (2016)8 Caribou Hills 30 MW $85 Million (2021)5 Godwin & Fourth of July Creeks 12 MW $125 Million (2014)7 Bradley Lake Bench 30 MW $108 Million (2021)3 Dixon Diversion 60 MW $342 Million1 Augustine Island 70 MW $TBD 2 East Foreland (Nikiski) 30 MW $81 Million (2021)6 Cook Inlet Offshore 36 MW $53 Million (2022)9 Mount Spurr 70 MW $TBD 11 Geothermal Hydroelectric Storage Solar Wind Clean Coal Alaska Energy Authority Chugach Electric Association Copper Valley Electric Association Golden Valley Electric Association Homer Electric Association Matanuska Electric Association Seward Electric System ALASKA ENERGY AUTHORITY January 2, 2025 The Honorable Michael Dunleavy, Governor of the State of Alaska The Honorable Gary Stevens, Senate President The Honorable Cathy Tilton, Speaker of the House SUBJECT: CERTIFICATION OF CAPITAL RESERVE FUND REQUIREMENT The Alaska Energy Authority maintains one capital reserve fund subject to the certification requirements of AS 44.83.11 0(f), with respect to the following Bradley Lake Hydroelectric Project bond issues: •$40,000,000 Alaska Energy Authority Power Revenue Bonds, Seventh Series (Battle Creek Diversion Project) •$1,239,000 Alaska Energy Authority Power Revenue Bonds, Eighth Series (Battle Creek Diversion Project) •$17,000,000 Alaska Energy Authority Power Revenue Bonds, Tenth Series (Transmission Line Projects) •$166,013,134 Alaska Energy Authority Power Revenue Bonds, Eleventh Series (Required Project Work) Under AS 44.83.11 0(f), the Authority is to report to you any amount required to restore any capital reserve fund to its capital reserve fund requirement. This certifies that the capital reserve fund is adequately maintained and that no amounts are needed to replenish it or to restore it to its capital reserve fund requirements. Sincerely, t7� Clay Koplin, Chair AEA Board of Directors Cc: Bryce Edgmon, Speaker of the House Elect REDUCING THE COST OF ENERGY IN ALASKA AKENERGY .A.UTHORITY.ORG 813 W Northern Lights Blvd, Anchorage, AK 99503 • Phone: (907) 771-3000 • Fax: (907) 771-3044 • Email: info@akenergyauthority.org The following additional Statutorily Required Submittals are pending review and will be added once final and submitted as required: •Capital Project Status Report (AS 44.83.950(b)) –Due Jan. 30, 2025 •Renewable Energy Fund recommendations (AS 42.45.045 (d)(3)) – Due Jan. 30, 2025 •Revised Estimate of need to withdraw from Capital Reserve Fund (AS 44.83.110(h) – Due Jan. 30, 2025 Bill Short Title Sponsor(s) Status Date SB 32 Allowed Costs in Electric Coop Rates Senator Cathy Giessel Introduced 1/10/2025 SB 37 Strategic Plans for State Agencies Senator James Kaufman Introduced 1/10/2025 34th Legislature - AEA Bill Tracker DATE ROLE DESCRIPTION LOCATION TEAM MEMBER January 15, 2025 Presenter AEA Long-Duration Energy Storage Presentation Virtual Bryan Carey January 13, 2025 Media Inquiry AEA's Big Projects, Alex DeMarban, Anchorage Daily News Email Brandy Dixon January 13, 2025 Media Inquiry Transmission Line Project, Tim Ellis, KUAC Fairbanks Email Brandy Dixon January 13, 2025 Press Release AEA and DOT&PF Secure FHWA Approval for FY25 Alaska NEVI Plan Email/Social Media Brandy Dixon January 9, 2025 Media Inquiry Alaska’s Grid Resilience, Tim Ellis, KUAC Phone Curtis Thayer January 8, 2025 Press Release AEA Awards $20.9 Million to Strengthen Interior Alaska’s Grid Resilience Email/Social Media Brandy Dixon January 7-17, 2025 Atteendee Governor's Trade Mission United Arab Emirates Curtis Thayer January 6, 2025 Speaker/Attendees Governor's Energy Press Conference Robert B. Atwood Building, Anchorage, AK Curtis Thayer, Brandy Dixon December 19, 2024 Attendee Alaska Sustainable Energy Conference Planning Committee Virtual Brandy Dixon December 19, 2024 Attendee AEA Presentation and Discussion with Westinghouse Virtual Curtis Thayer December 12, 2024 Newsletter Alaska Electric Vehicle Working Group (AKEVWG) December Newsletter Sent to 269 Recipients Email Brandy Dixon December 12, 2024 Host Legisaltive Lunch and Learn AEA Office, Anchorage, AK AEA Team December 11-12 Vendor Booth 74th Annual Alaska Municipal League Local Government Conference Dena’ina Civic and Convention Center, Anchorage, AK Hannah Amick, Shannon Apgar- Kurtz, Katherine Aubry, Brandy Dixon, Quinlan Harris, Josi Hartley, Anna Larsen, Jim Mendenhall Dawn Molina, Taase Toli-Moana, Chris McConnell, Bill Price December 9, 2024 Media Inquiry Dixon Diversion, Tim Bradner, Alaska Economic Report and Alaska Legislative Digest Email Brandy Dixon December 5, 2024 Attendee Anchorage Assembly Retreat on Energy & Infrastructure University of Alaska Anchorage, Anchorage, AK Audrey Alstrom December 5, 2024 Speaker/Attendees AEA Presentation to Alaska Power Assocation Managers' Forum Crowne Plaza, Anchorage, AK Curtis Thayer, Brandy Dixon November 25, 2024 Media Interview AEA Payments for BESS System Usage, Alan, Bailey, Petroleum News Phone Curtis Thayer November 16, 2024 Newsletter AKEVWG November Newsletter Sent to 269 Recipients Email Brandy Dixon November 8, 2024 Presenter AEA Infrastructure Projects Overview Presentation to American Public Works Association Virtual Bryan Carey November 6, 2024 Presenter AEA Modernizing the Railbelt Grid Presentation to New Energy Alaska AEA Office, Anchorage, AK Curtis Thayer November 5, 2024 Presenter AEA Presentation to Anchorage Rotary Club Petroleum Club Curtis Thayer October 30, 2024 Host AKEVWG Technical Session: Southeast Conference Recap AEA Office/Virtual, Anchorage, AK Josi Hartley October 28, 2024 Presenter AEA Modernizing the Railbelt Grid Presentation to Center Right Coalitions Alaska Support Industry Alliance, Anchorage, AK Curtis Thayer October 24, 2024 Attendee Chugach Legislative Luncheon Alaska Native Heritage Center, Anchorage, AK Curtis Thayer, Brandy Dixon October 23, 2024 Presenter AEA Modernizing the Railbelt Grid Presentation to Regulatory Commission of Alaska Regulatory Commission of Alaska, Anchorage, AK Curtis Thayer October 18, 2024 Newsletter AKEVWG October Newsletter Sent to 271 Recipients Email Brandy Dixon AEA COMMUNITY OUTREACH Last Updated on January 15, 2025 (6-Month Look Back) 813 W Northern Lights Blvd, Anchorage, AK 99503 • Phone: (907) 771-3000 Fax: (907) 771-3044 • Email: info@akenergyauthority.org • Website: akenergyauthority.org DATE ROLE DESCRIPTION LOCATION TEAM MEMBER October 17-19, 2024 Vendor Booth Alaska Federation of Native Convention Dena’ina Civic and Convention Center, Anchorage, AK Hannah Amick, Katherine Aubry, Karen Bell, Brandy Dixon, Patrick Domitrovich, Conner Erickson, Quinlan Harris, Amy Jackson, Anna Larsen, Dean Maschner, Jim Mendenhall, Dawn Molina, Bill Price, Yosty Storms, Ashley Streveler October 15, 2024 Vendor Booth Alaska Tribal Water and Sanitation Symposium William A. Egan Civic & Convention Center, Anchorage, AK Justin Tuomi, Ashley Streveler October 7, 2024 Speaker/Attendees Chugach Electric and Matanuska Electric Association: Battery Energy Storage System Commissioning Ceremony Chugach Electric Headquarters, Anchorage, AK Curtis Thayer, Bryan Carey, Brandy Dixon October 4, 2024 Presenter Chugach Electric and Matanuska Electric Association: Battery Energy Storage System Commissioning Ceremony Westmark Fairbanks Hotel & Conference Center, Fairbanks AK Audrey Alstrom October 4, 2024 Attendee Chugach Electric Ribbon Cutting Ceremony: Chugach's Direct Current Fast Charger Chugach Electric Headquarters, Anchorage, AK Quinlan Harris October 4, 2024 Presenter Alaska Rural Energy Conference: Utilizing Circuit Riders and Emergency Response Presentation Westmark Fairbanks Hotel & Conference Center, Fairbanks AK Justin Tuomi October 4, 2024 Presenter Alaska Rural Energy Conference: Energy Dashboard and Statewide Survey Presentation Westmark Fairbanks Hotel & Conference Center, Fairbanks AK Justin Tuomi, Dean Maschner October 3, 2024 Attendees Public Relation Society of America Alaska Chapter: Aurora Awards Willowaw Social, Anchorage, AK Brandy Dixon, Josi Hartley October 3, 2024 Media Inquiry Governor's Press Release on Eklutna Lake, Arielle Ingram-David, Fox News/Your Alaska Link Phone Brandy Dixon September 29-October 2, 2024 Attendee/Panelist National Association of State Energy Officials Annual Meeting: Investment, Innovation, Jobs, and Affordability New York Hilton Midtown, New York, NY Curtis Thayer September 18, 2024 Media Inquiry Follow-Up on High-Voltage Direct Current Transmission Line Project Locations Email Brandy Dixon September 18, 2024 Media Interview Southcentral Natural Gas Crunch and Coal-Fired Power, James Brooks, Alaska Beacon Email Brandy Dixon September 17, 2024 Press Release AEA Board Approves Acceptance of $475.5 Million in Federal Awards Email/Social Media Brandy Dixon September 13, 2024 Presenter Alaska Power Association Annual Meeting: Modernizing the Railbelt Grid Presentation Wedgewood Resort, Fairbanks AK Curtis Thayer September 12, 2024 Newsletter AKEVWG September Newsletter Sent to 276 Recipients Email Brandy M. Dixon September 12, 2024 Presenter Southcentral Mayor’s Energy Coalition Technical Committee: Modernizing the Railbelt Grid Presentation Virtual, Anchorage, AK Curtis Thayer August 29, 2024 Presenter National Hydropower Association Alaska Regional Meeting: Dixon Diversion Overview Presentation Baranof Downtown, Juneau, AK Bryan Carey August 28-29, 2024 Attendee/Moderator National Hydropower Association: Alaska Regional Meeting Baranof Downtown, Juneau, AK Curtis Thayer August 28, 2024 Panelist Alaska Defense Forum: Alaska Energy Security Virtual Tim Sandstrom August 26, 2024 Attendee Renewables/Utility Roundtable Hosted by Chugach Electric Association Chugach Electric Association, Anchorage, AK Curtis Thayer, Audrey Alstrom August 20, 2024 Featured Speaker Greater Fairbanks Chamber of Commerce Raven Landing Center, Fairbanks, AK Curtis Thayer August 19, 2024 Media Inquiry Solar Farms, Jamie Deip, KBBI (Homer)Email Brandy M. Dixon AEA Community Outreach Page 2 of 3 DATE ROLE DESCRIPTION LOCATION TEAM MEMBER August 16, 2024 Exhibitor Booth Alaska State Fair: Energy Day Palmer Fair Grounds, Palmer, AK Quinlan Harris, Yosty Storms, Curtis Thayer, Karen Turner August 15, 2024 Attendee Solar Energy Roundtable Hosted by the Alaska Industrial Development and Export Authority Marriott Anchorage Downtown, Anchorage, AK Curtis Thayer, Audrey Alstrom August 14, 2024 Media Interview AEA Update, Tim Bradner, Alaska Economic Report/Alaska Legislative Digest Phone Curtis Thayer August 13, 2024 Host AKEVWG Technical Session: Utility Roundtable AEA Office/Virtual, Anchorage, AK Josi Hartley August 8, 2024 Newsletter AKEVWG August Newsletter Sent to 278 Recipients Email Brandy Dixon August 6, 2024 Featured Speaker Greater Wasilla Chamber of Commerce Evangelo's Restaurant, Wasilla, AK Curtis Thayer August 1-2, 2024 Attendee Toured several facilities including the Eyak Substation, distribution facilities, battery energy storage system, Power Creek Hydroelectric Project, and the Orca Diesel Plan Various Locations, Cordova, AK Curtis Thayer July 31, 2024 Host Governor's Energy Bills Signing: House Bills 50, 247, and 307 AEA Office, Anchorage, AK AEA Team July 29, 2024 Media Interview Alaska Railbelt, Hal Bernton, Inside Climate News and Anchorage Daily News Phone, Anchorage, AK Curtis Thayer July 25, 2024 Presenter Alaska's EV Program Presentation to Fairbanks Chamber Transportation Committee Virtual Josi Hartley July 22, 2024 Featured Speaker Anchorage Chamber of Commerce Dena’ina Civic and Convention Center, Anchorage, AK Curtis Thayer July 17, 2024 Newsletter AKEVWG July Newsletter Sent to 272 Recipients Email Brandy Dixon AEA Community Outreach Page 3 of 3 Alaska officials preparing geothermal lease sale at Cook Inlet volcano https://www.adn.com/alaska-news/2025/01/16/alaska-officials-preparing-geothermal-lease-sale-at-cook-inlet-volcano/ 1/3 Alaska officials preparing geothermal lease sale at Cook Inlet volcano By Yereth Rosen, Alaska Beacon Updated: 18 hours ago Published: 19 hours ago Augustine Volcano is on an island near Kamishak Bay in Cook Inlet. Its last eruption ended in March 2006. Flying between Homer and Hallo Bay in Katmai National Park provides a different perspective on the Cook Inlet area. Photographed June 12, 2013. (Anne Raup / ADN) Alaska officials are preparing to hold a lease sale for geothermal exploration rights at Augustine Volcano, a 4,133-foot peak that forms its own cone-shaped island in the southern part of Cook Inlet. The Alaska Division of Oil and Gas, which manages the state’s geothermal program, issued a formal finding on Jan. 10 concluding that a geothermal lease sale at Augustine would be in the state’s best interest. Such findings are required as precursors to lease sales. Alaska officials preparing geothermal lease sale at Cook Inlet volcano https://www.adn.com/alaska-news/2025/01/16/alaska-officials-preparing-geothermal-lease-sale-at-cook-inlet-volcano/ 2/3 Division officials hope to hold the Augustine lease sale as soon as possible, said Sean Clifton, a spokesman for the division. A further announcement could come as early as t his spring, he said. Augustine lies about 175 miles southwest of Anchorage and about 70 miles southwest of the Kenai Peninsula city of Homer. Its last eruptions came in a series that stretched over about three months in late 2005 and early 2006, according to the federal-state Alaska Volcano Observatory. Geothermal energy projects use the heat beneath the Earth’s surface. There have been some geothermal projects that have successfully tapped into energy at volcanic sites in the Lower 48, notably in Nevada, where a power plant located on a volcano’s flank has been operating for decades. An upcoming Augustine geothermal lease sale would offer up to 55,771 acres in 24 tracts, all on the north side of the island and in nearby offshore areas, according to the best interest finding. The south side of the island would not be available. Anchorage-based GeoAlaska LLC already holds geothermal prospecting permits for that part of Augustine, obtaining the first permit from the Division of Oil and Gas in 2022 and adding to it two years later. So far, three companies have notified the Division of Oil and Gas that they are interested in exploring geothermal resources at Augustine beyond the area permitted to GeoAlaska, Clifton said. Those expressions of interest are what led to plans for a lease sale, he said. The first of those companies submitted a proposal that the Division of Oil and Gas received in mid-July. In response to the division’s call for public comments, two more companies came forward with competing proposals. That led to the lease sale process being carried out under the state’s geothermal program, Clifton said. “Because there is competing interest, we have to do a competitive lease sale,” he said. The coastline area along the Gulf of Alaska is teeming with active volcanoes, and companies and government officials have tried for decades to harness some of the geothermal energy they hold. Most interest has been focused on the volcanoes closest to population centers: 11,069 - foot Mount Spurr, located about 70 miles west of Anchorage; 5,905 -foot Makushin, 16 miles from the busy fishing port of Unalaska/D utch Harbor; and Augustine. Alaska officials preparing geothermal lease sale at Cook Inlet volcano https://www.adn.com/alaska-news/2025/01/16/alaska-officials-preparing-geothermal-lease-sale-at-cook-inlet-volcano/ 3/3 Although there has been exploration of varying levels at those volcanoes, there has been no energy production at any. There has been more success in Alaska with geothermal energy derived from hot springs. East of Fairbanks, the Chena Hot Springs resort uses the same geothermal energy that heats its pools to fuel electricity, heat buildings and keep food-producing greenhouse operating. North of Nome, the heat from Pilgrim Hot Springs has been used since the early 1900s to support food-producing gardens; a modern gardening and greenhouse operation there supplies local produce to Nome consumers. Past experience shows that tapping into geothermal energy from volcanoes is d ifficult, Clifton said. He cautioned that the results of any upcoming lease sale are uncertain. “The initial interest doesn’t always materialize into bidding, so I don’t want to oversell,” Clifton said. “Drilling into a volcano, that’s hard. On an island.” In the case of Augustine, potential explorers face numerous safety risks that are listed in the best interest finding, including explosive, ash - or lava-producing eruptions, mudslides, landslides and tsunamis. Explorers would also have to take steps to red uce risks to the area’s fish and wildlife habitat, according to the finding. The Augustine leasing is being planned under the state’s long -standing program and is unrelated to any changes created through a broad energy bill that the Legislature passed and Gov. Mike Dunleavy signed into law last year. That bill, House Bill 50, focused more on Cook Inlet and Railbelt energy issues, but it included some provisions that are aimed at making geothermal exploration more attractive. Regulations have not yet been completed to enact the changes authorized by that legislation. Although the potential Augustine lease sale is not affected by that state legislation, new federal legislation might make geothermal energy development there and elsewhere more attractive than it was in the past, the best interest findin g noted. The Inflation Reduction Act of 2022 includes federal tax credits for geothermal power plants and manufacturers of geothermal technologies. There are also opportunities to get loan guarantees for new projects, the document said. “In sum, federal e nergy policy has shifted significantly since the other noncompetitive permits were issued, which has generated renewed interest in geothermal exploration,” the finding said . Fairbanks electric utility sees issues with power supply from Southcentral Alaska https://www.alaskasnewssource.com/2025/01/15/fairbanks-electric-utility-sees-issues-with-power-supply-southcentral-alaska/ 1/3 FAIRBANKS, Alaska (KTUU) - In response to issues with natural gas-produced power coming out of Southcentral Alaska, Golden Valley Electric Association (GVEA) is asking its customers to be prepared in case of potential outages. According to Ashley Bradish, GVEA’s Director of External Affairs and Public Relations, the utility has not been able to purchase what they call “economy energy” from Southcentral since February 2024. “That’s natural-gas-powered electricity from the southcentral utilities,” she said. Before then, GVEA was primarily purchasing that energy from Chugach Electric Association, and occasionally from Matanuska Electric Association and Homer Electric Association. In addition, GVEA’s contract with Enstar to purchase natural gas is scheduled to end on Jan. 23, and with it, the 20 megawatts of power coming from that source. Fairbanks electric utility sees issues with power supply from Southcentral Alaska https://www.alaskasnewssource.com/2025/01/15/fairbanks-electric-utility-sees-issues-with-power-supply-southcentral-alaska/ 2/3 According to Bradish, Enstar could not renew its contract with GVEA due to the ongoing shortage of gas in Cook Inlet, which created uncertainty on supply when compared to user demand. Potential contracts are still being discussed, as Enstar considers future gas suppliers. However, for these reasons, GVEA does not expect to have any natural gas-powered electricity for the foreseeable future, when in 2023, it made up about 17.5% of the utility’s power mix, dipping to 10% last year. Making up for this shortfall, Bradish said GVEA’s coal units in Healy are producing more power, as are the utility’s diesel units. Meanwhile, construction is currently happening to a transmission line on the Kenai Peninsula, cutting off the utility’s access to another 20 megawatts of power from Bradley Lake Hydropower for the first quarter of 2025, according to Bradish. These combined factors, according to GVEA, eliminate some resources used to prevent outages, a situation the utility alerted its members about on Jan. 13. The notification clarifies that these losses alone do not impact GVEA’s ability to meet the needs of its members, and they do not anticipate power disruptions. Bradish said, “Our optimistic hope is that there will be no impact. We don’t expect to have any power interruptions. This is purely informational. It’s precautionary and we just want to be transparent with our membership.” However, the utility is also asking those who use GVEA to be prepared in case steps need to be taken in the future to meet their needs if power demand exceeds supply. One potential scenario is called a “controlled load shed program,” and would involve turning off the power for different grids in a rotating pattern, for a period of 30 minutes to one hour each. “We’re talking about a worst-case scenario if we were to lose multiple generation units at a time, where we might have to end up in a controlled load shed program,” said Bradish. However, she explained that before this option is utilized, GVEA would reach out to industrial users to see if they could spare some time without power to take the brunt of the shortage. “We would work with our large industrial members with our largest loads to see what they can curtail on their end in order to mitigate or reduce the impact to our larger system, potentially even not having to run this program,” Bradish said. She discussed actions being taken to mitigate the risk, saying, “Our board is currently in the strategic planning process. That’s for our entire company, but generation is certainly a large portion of that planning process, to see what, you know, what steps can be taken to really Fairbanks electric utility sees issues with power supply from Southcentral Alaska https://www.alaskasnewssource.com/2025/01/15/fairbanks-electric-utility-sees-issues-with-power-supply-southcentral-alaska/ 3/3 mitigate this, fortifying and kind of hardening our existing assets to make sure that these unexpected outages become less and less and less likely.” It is unclear at this point when natural gas could rejoin GVEA’s list of power supplies. As far as hydropower, according to Bradish, construction at this time of year is expected at the Kenai Peninsula transmission line for the next seven to ten years. Meanwhile, members are not expected to see an impact on their monthly electric bills, as these situations and expectations have already been factored into the current fuel and purchased power rate. GVEA is asking its members to be prepared for potential outages by among other things, making sure their phone is adequately charged and having an emergency kit ready. Copyright 2025 KTUU. All rights reserved. PRESS RELEASE Brandy M. Dixon Communications Director (907) 771-3078 FOR IMMEDIATE RELEASE AEA and DOT&PF Secure FHWA Approval for FY25 Alaska NEVI Plan The announcement unlocks an additional $11 million for fiscal year 2025 ANCHORAGE, January 13, 2025 — The Alaska Energy Authority (AEA), in collaboration with the Alaska Department of Transportation & Public Facilities (DOT&PF), is pleased to announce that the third annual Alaska National Electric Vehicle Infrastructure (NEVI) Plan has been approved by the Federal Highway Administration (FHWA). This approval secures an additional $11 million in federal funding for the continued expansion of electric vehicle (EV) charging infrastructure across Alaska. This latest funding allocation builds on the $30 million designated for fiscal years 2022, 2023, and 2024, bringing the total federal investment in Alaska’s EV charging infrastructure to $41 million. The FY25 NEVI Plan outlines strategies to increase reliable, fast EV charging, ensuring a consistent charging experience for residents and travelers. It also includes renewed approval for discretionary exceptions, providing greater flexibility for placement of charging stations along the Alternative Fuel Corridor (AFC) between Anchorage and Fairbanks. These exceptions will specifically benefit areas like Trapper Creek to Cantwell, Wasilla to Trapper Creek, and Healy to Nenana. With this funding, AEA and DOT&PF aim to complete Phase One, focused on building NEVI- compliant charging stations along the AFC between Anchorage and Fairbanks. The NEVI-funded stations will include at least four Combined Charging System (CCS) ports, each capable of delivering 150 kilowatts of power. Some stations will even offer up to eight CCS charging ports. "This funding allows us to leverage available federal resources to directly benefit Alaskans,” said AEA Executive Director Curtis W. Thayer. “Developing EV charging infrastructure ensures our state remains connected and is well-prepared for the future, while also addressing Alaska’s unique transportation challenges.” "The approval of the FY25 NEVI Plan is a significant step forward for Alaska’s transportation network. Expanding EV charging infrastructure gives Alaskans more travel options while the department continues to build a reliable and resilient transportation system across the state for all users,” said DOT&PF Commissioner Ryan Anderson. Once the AFC is fully built out and meets FHWA criteria, anticipated at the end of 2025, the program will transition to Phase Two. This phase will focus on connecting smaller urban areas, rural communities on the road system, and Alaska’s road network to Canada. It will also extend infrastructure along the Alaska Marine Highway System to serve coastal communities. ‘ AEA and DOT&PF sincerely thanks Alaskans for their valuable input during the planning process. Community feedback has played a crucial role in shaping a plan that effectively addresses local needs and priorities. The NEVI program, established through the historic Infrastructure Investment and Jobs Act, provides dedicated federal funding to states to support the strategic deployment of EV Level 3 Direct Current Fast Charging infrastructure. The goal is to create an interconnected, reliable charging network, focusing on locations near interstate highway exits. Alaska is expected to receive $52 million over five years, with updated plans to be submitted annually to the FHWA detailing how the funds will be spent. For more information, check out the updated Alaska EV Infrastructure Deployment Plan here. To learn about future community engagement opportunities, visit akenergyauthority.org/evs. ### About the Alaska Energy Authority The Alaska Energy Authority is a public corporation of the state. Its mission is to reduce the cost of energy in Alaska. To achieve this mission, AEA strives to diversify Alaska's energy portfolio increasing resiliency, reliability, and redundancy. To learn more, visit akenergyauthority.org. About the Alaska Department of Transportation and Public Facilities The Alaska Department of Transportation and Public Facilities oversees 237 airports, 9 ferries serving 33 communities along 3,500 marine miles, over 5,600 miles of highway and 839 public facilities throughout the state of Alaska. The mission of the department is to “Keep Alaska Moving through service and infrastructure.” E C O N O M Y & E N V I R O N M E N T E D U C AT I O N G O V E R N M E N T & P O L I T I C S H E A LT H J U S T I C E ECONOMY & ENVIRONMENT GOVERNMENT & POLITICS State lawmakers plan to continue to focus on the need for new Cook Inlet natural gas In a preview forum held by industry groups, legislators said royalty relief will get a new look, and they expect action on mining, seafood and other natural resources BY: YERETH ROSEN - JANUARY 10, 2025 5:00 AM ✉⎙ Rep. Chuck Kopp, R-Anchorage, third from left, speaks at a Jan. 9, 2025, forum in Anchorage hosted by the Resource Development Council for Alaska and the Alaska Support Industry Alliance. Flanking Kopp are, from left, Sen. James Kaufman, R-Anchorage; House Speaker Bryce Edgmon, I-Dillingham; Rep. Mia Costello, R-Anchorage; Rep. Andy Josephson, D-Anchorage; and Rebecca Logan, chief executive of the Alaska Support Industry Alliance. (Photo by Yereth Rosen/Alaska Beacon) H O M E A B O U T S U B S C R I B E D O N AT E P A R T O F S TAT E S N E W S R O O M Last year’s session of the Alaska Legislature put a big focus on energy and alleviating an impending shortage of the Cook Inlet natural gas that powers the most populous part of the state. This year, even though some of the membership changed a bit with the election, Alaskans can expect the same focus from the Legislature, leading lawmakers said at a resource industry forum in Anchorage on Thursday. Incoming House Speaker Bryce Edgmon, I-Dillingham, said one thing likely to be produced by the 34th Alaska Legislature is a follow-up to last year’s bill that modernized the utility system along the Railbelt, the corridor running from Fairbanks to Anchorage to the Kenai Peninsula. That measure, House Bill 307, put into law many long-desired facets of energy delivery to the state’s most densely populated region, like a uni ed transmission system and a system to create a portfolio of energy sources, including renewables, Edgmon said. Additionally, the state is bene tting from hundreds of millions of dollars in federal money for energy upgrades and diversi cation, he said. “We’re turning a chapter in energy here in Alaska. I’m pretty excited about what we’re going to do over the next couple of years,” Edgmon said at the event held by the Resource Development Council for Alaska and the Alaska Support Industry Alliance. One idea likely to come up again is royalty relief for Cook Inlet natural gas producers. The House passed a bill last year that would have reduced state royalties on new natural gas and oil produced from the inlet, but state senators were skeptical about whether bene ts would result and dropped the idea. In the end, lawmakers passed a wide-ranging bill, House Bill 50, that incorporated numerous Cook Inlet and Railbelt energy provisions but omitted the House-approved Cook Inlet royalty relief. Rep. Andy Josephson, D-Anchorage, supported last year’s bill and presented a case at the RDC-Alliance event for reconsidering Fire Island is seen from Tony Knowles Coastal Trail in Anchorage on Sept. 23, 2023. The island is the site of wind turbines that provide energy to Alaska’s largest city. Alaska lawmakers, at a forum in Anchorage on Thursday, said they plan to focus on increasing energy supplies from Cook Inlet, as they did in last year ’s session. (Photo by Yereth Rosen/Alaska Beacon) reduced Cook Inlet royalties. Making such reductions, “frankly, is not very expensive for the state because the royalty share in Cook Inlet is so small anyway,” and provides minimal funding for the state, he said. Josephson acknowledged that the state’s past experience with nancial incentives granted by the Legislature to Cook Inlet producers had some negative consequences. Tax credits approved more than a decade ago proved very expensive, costing around $1 billion, and were only recently paid o , he said. “You’re not going to see that sort of subsidy. But I think there’s more that we can do,” he said. Along with a new look at royalty relief, which he said “is surely going to continue to be a topic, front and center, for both chambers,” lawmakers could try to do something to address what has been the lack of Cook Inlet producers’ ready access to a jack-up rig. Jack-up rigs are mobile oating platforms that are used in o shore oil and gas drilling. Rep. Chuck Kopp, R-Anchorage, the incoming House majority leader, said resource-development issues addressed by lawmakers will go beyond natural gas and oil. “I think our mining industry is going to get a lot more attention in this Legislature. We are at a point where we can no longer a ord to allow a lot of the permitting issues, a lot of the activism against these projects to continue to stall the critical mineral needs not only that Alaska has but our nation needs,” Kopp said. Senate President Gary Stevens, R-Kodiak, speaks at a forum held Thursday by the Resource Development Council for Alaska and the Alaska Support Industry Alliance. Stevens urged the audience to consider the needs of the seafood industry and the communities dependent on it. Next to Stevens are Sen. Jesse Bjorkman, R- Nikiski, and Sen. James Kaufman, R-Anchorage. (Photo by Yereth Rosen/Alaska Beacon) With global insecurity that “is unprecedented right now,” the nation faces potential shortages of critical minerals, Kopp said. “We’re being cut o . We are no longer going to be able to get them from China, Russia, Ukraine,” he said. Minerals like antimony are needed for high-tech products and for national defense, “and Alaska has all these things,” he said. Senate President Gary Stevens, R-Kodiak, pleaded with the resource-industry audience to pay more attention to seafood. He said he was bothered by the lack of seafood industry representation in the room; he found only two people from the industry after asking for a show of hands. “Years ago, when I would come to the RDC there was a big representation of the shing industry. I don’t see that anymore. What’s happened?” he said. “My charge to you is, for God’s sake, represent resources, not just oil and gas, not just mining, but sheries is extremely important.” And he noted that he is heading a task force that is working on recommendations to help rescue Alaska’s ailing but huge seafood industry. “We’re trying to save an industry in crisis,” he said. Lawmakers at the event said it continues to be challenging to craft a budget during a time of diminished revenues. What should not be driving the budget, said Sen. Jesse Bjorkman, R- Nikiski, is any promise of a supersized Alaska Permanent Fund dividend. “We have to move past this idea that Alaskans are entitled to this one thing, and that’s the most important thing ever. Because it’s not,” Bjorkman said. He talked to thousands of Kenai Peninsula residents while campaigning this summer and fall, and very few mentioned the dividend as important to them. “They care about roads and schools and public safety,” he said. And on the Kenai Peninsula, they care about sh, he added. Addressing all those needs costs money and requires a commitment to invest in the state, he said. The budget that Gov. Mike Dunleavy proposed to the Legislature in December includes a Permanent Fund dividend of about $3,800 per Alaska resident and a projected de cit of $1.5 billion. ✉GET THE MORNING HE ADLINES.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 website. AP and Getty images may not be republished. Please see our republishing guidelines for use of any other photos and graphics. YER ETH R O S E N ✉ Yereth Rosen came to Alaska in 1987 to work for the Anchorage Times. She has reported for Reuters, for the Alaska Dispatch News, for Arctic Today and for other organizations. She covers environmental issues, energy, climate change, natural resources, economic and business news, health, science and Arctic concerns. In her free time, she likes to ski and watch her son's hockey games. RE L AT E D N E WS As Alaska lawmakers begin introducing bills, public pension… Legislative task force offers possible actions to rescue… Alaska Energy Authority awards grants for GVEA local, grid work https://fm.kuac.org/energy-and-the-environment/2025-01-10/alaska-energy-authority-awards-grants-for-gvea-local-grid-work 1/4 Alaska Energy Authority awards grants for GVEA local, grid work KUAC | By Tim Ellis Published January 10, 2025 at 5:26 PM AKST Golden Valley Electric Association Winter storms often knock over trees along powerline right-of-ways and hit the lines, knocking out power Alaska Energy Authority awards grants for GVEA local, grid work https://fm.kuac.org/energy-and-the-environment/2025-01-10/alaska-energy-authority-awards-grants-for-gvea-local-grid-work 2/4 ‘Very old transmission lines’: Golden Valley to oversee upgrades projects, Intertie snowload protection system The Alaska Energy Authority has awarded nearly $21 million in grants to Golden Valley Electric Association to pay for three projects that will make the co-op’s system, and the Railbelt grid it’s connected to, more reliable. Golden Valley spokesperson Ashley Bradish says Wednesday’s announcement by the Alaska Energy Authority, or AEA, is good news for all four Railbelt utilities, because the grants will reduce power outages and help hold down electricity costs. The Alaska Energy Authority has awarded nearly $21 million in grants to Golden Valley Electric Association to pay for three projects that will make the co-op’s system, and the Railbelt grid it’s connected to, more reliable. Golden Valley spokesperson Ashley Bradish says Wednesday’s announcement by the Alaska Energy Authority, or AEA, is good news for all four Railbelt utilities, because the grants will reduce power outages and help hold down electricity costs. “This work would really need to be done regardless of this funding,” she said. “So, it's a real boon for us to be able to have received these grants to perform the work.” AEA Executive Director Curtis Thayer says the projects are needed to upgrade and repair aging parts of the Railbelt grid built around the time Ronald Reagan was president. “In Alaska, we have very old transmission lines between Anchorage and Fairbanks, built 40 years ago,” he said. Thayer said the grants are the first of a handful that AEA will award to Alaska utilities this year, totaling $70 million. The funding comes from the 2021 Infrastucture Investment and Jobs Alaska Energy Authority awards grants for GVEA local, grid work https://fm.kuac.org/energy-and-the-environment/2025-01-10/alaska-energy-authority-awards-grants-for-gvea-local-grid-work 3/4 Act, along with state match funding. He says AEA awarded the first grant to Golden Valley, because the projects outlined in its applications were important and shovel-ready. “They were quality applications and definitely there was a need, and the funding matched the need,” he added. Intertie maintenance, upgrades The $20.9 million grant package will pay for three projects, the largest is a $10.3 million upgrade on a stretch of the Alaska Intertie. That’s one of two high-voltage transmission lines that connects Golden Valley to Palmer-based Matanuska Electric Association, Anchorage-based Chugach Electric and Homer Electric, on the Kenai Peninsula. Bradish says the project will reduce outages and transmission-line damage caused by heavy snow. “It's important to keep those things in mind, especially when we're talking about extreme weather events, like the storm that we experienced in October that cost our members over $8 million, she said.” Golden Valley will do some similar upgrades on transmission lines in its service area that run from Fairbanks to Fox and Ester and between Fort Wainwright and Salcha. That’s part of a nearly $9 million project that’ll also include relocating transmission-line poles that run through permafrost-ridden areas, to keep them poles from sinking. “It was constructed in the ’60s and ’70s,” she said, “so this is a really good example of work that would just need to be done, regardless.” The third project is the $1.7 million Alaska Railbelt Synchrophasor and Disturbance Reporting System. Alaska Energy Authority awards grants for GVEA local, grid work https://fm.kuac.org/energy-and-the-environment/2025-01-10/alaska-energy-authority-awards-grants-for-gvea-local-grid-work 4/4 “It will provide the rail belt transmission operators with high-speed automated analysis of data,” she said, “from the tip of the Kenai Peninsula all the way up into GVEA’s service territory.” Bradish says the system will provide real-time critical data on electrical currents and voltages for the utilities. That’ll help keep power flowing smoothly and reduce damage to the grid. “It really is aiming to reduce systemwide disturbances based on being able to look at that data more quickly, she added.” Thayer, with the Alaska Energy Authority, says the agency will award a second round of grants to Alaska utilities later this year. Unnamed company in talks to develop Alaska LNG Pipeline, governor says https://www.homernews.com/news/unnamed-company-in-talks-to-develop-alaska-lng-pipeline-governor-says/ 1/3 Unnamed company in talks to develop Alaska LNG Pipeline, governor says The next step is for both parties to create a legally binding development agreement that will move the project forward. Natural gas processing equipment is seen at Furie Operating Alaska’s central processing facility in Nikiski, Alaska, on Wednesday, July 10, 2024. (Jake Dye/Peninsula Clarion) The Alaska LNG Project is one step closer to reality, with the announcement Monday that the Alaska Gasline Development Corporation had come to an agreement with an energy company to lead and fund the development. Unnamed company in talks to develop Alaska LNG Pipeline, governor says https://www.homernews.com/news/unnamed-company-in-talks-to-develop-alaska-lng-pipeline-governor-says/ 2/3 “I’m announcing that AGDC has reached an exclusive framework agreement with a qualified energy company to privately lead and fund the development of the Alaska LNG project, including the Arctic carbon capture plan on the North Slope, the LNG export facility in Nikiski, and the pipeline,” Alaska Gasline Development Corporation Frank Richards said during a press conference hosted by Gov. Mike Dunleavy. “The terms of the framework agreement are being negotiated or have been negotiated; the next step is for both parties to create a legally binding development agreement that will move the project forward.” Until that agreement is finalized, Richards said, the state and AGDC will not name the company they are negotiating with. He said a “formal announcement” may be forthcoming “within the next few months.” Richards said that this agreement was only secured because of the recent creation of a $50 million line of credit issued to AGDC by the Alaska Industrial Development and Export Authority. Richards told the Alaska Legislature’s House Resources Committee in November that an unnamed partner, seemingly the same he referred to this week, wouldn’t pursue the project unless the state could provide assurance funding — if that partner completes the design work and then decides not to develop the pipeline, the state will pay them back their expenses, limiting their necessary investment in the project. AIDEA secured the line of credit in December to be used for that purpose. A study by Wood Mackenzie, touted by AGDC as indication that the project should move forward, says that a 765-mile pipeline with a diameter of 42 inches would cost $10.8 billion but could provide gas as soon as 2031 at a cost lower than importing gas, also providing more jobs than an importing terminal. Local utilities have warned of a shortfall of natural gas as soon as 2026. To bridge the gap, Dunleavy on Monday said that the Alaska Legislature will need to provide further incentives to local suppliers to drive increased production in Cook Inlet. The gasline has been discussed “for decades and decades and decades,” he said, noting that those conversations have been at times unfruitful. He characterized the advancement as “not just theoretical, but actual, significant movement.” John Sims, president of Enstar Natural Gas Company, said during the press conference that his utility had expanded its storage facility for natural gas in Kenai, entered into a new agreement with Hex Furie for gas that’s more expensive than the typical range and has explored importing gas locally. Sims said that Enstar has entered into an agreement with another unnamed entity to provide gas imports “as a bridge solution.” That entity seems to be Excelerate Energy, who have repeatedly in 2024 described their plans to create an integrated liquefied natural gas import terminal in lower Cook Inlet using a floating Unnamed company in talks to develop Alaska LNG Pipeline, governor says https://www.homernews.com/news/unnamed-company-in-talks-to-develop-alaska-lng-pipeline-governor-says/ 3/3 storage regasification unit in the inlet and a local import facility. During an earnings call on Nov. 7, Excelerate leadership said that they were working with local utilities and state officials to design the import terminal, “the best solution to meeting the state’s near-term needs and helping Alaskans bridge to their energy future.” Enstar has declined to respond to questions about whether they’re working with Excelerate. A full recording of the press conference is available at the governor’s Facebook page, “Governor Mike Dunleavy.” Reach reporter Jake Dye at jacob.dye@peninsulaclarion.com. LNG project development company says it has an agreement to develop $44 billion Alaska project https://www.adn.com/business-economy/energy/2025/01/09/lng-project-development-company-announced-that-it-has- an-agreement-to-develop-the-44-billion-alaska-project/ 1/3 LNG project development company says it has an agreement to develop $44 billion Alaska project By Alex DeMarban Updated: January 9, 2025 Published: January 9, 2025 A sign warns of underground natural gas pipelines at the Cook Inlet Natural Gas Storage Alaska facility in Kenai. The facility takes natural gas from producers and stores the gas underground in a depleted gas field until it is needed by its customers, which include Enstar and Chugach Electric. (Loren Holmes / ADN) A New York-based company pursuing LNG export projects in the Lower 48 said this week that it has a deal with the Alaska gasline agency to develop the state’s long - sought $44 billion Alaska LNG project. “Glenfarne confirms it has entered into an exclusive agreement with the Alaska Gasline Development Corp. for the development of the Alaska LNG project, including the LNG project development company says it has an agreement to develop $44 billion Alaska project https://www.adn.com/business-economy/energy/2025/01/09/lng-project-development-company-announced-that-it-has- an-agreement-to-develop-the-44-billion-alaska-project/ 2/3 Alaska export facility, pipeline, and a carbon capture facility,” a spokesperson with Glenfarne Energy Transition said in an email Thursday. The deal is an important development for the Alaska LNG project, in the works for more than a decade. Board members for the project last year had suggested shutting the project down, if enough progress was not made by now. The state -owned project is the latest iteration in de cades of attempts in Alaska to build a project that would tap into the vast quantities of natural gas contained on the North Slope. Costs, and the project’s huge facilities, have long stymied efforts to build it. Alaska LNG envisions development of an 800-mile pipeline delivering natural gas from the North Slope. The gas would be liquefied in Nikiski on the Kenai Peninsula and exported to Asian market s in oceangoing tankers. Glenfarne’s statement follows a statement on Monday from the head of the Alaska Gasline Development Corp. was in secret talks with an unnamed partner to lead and fund development of the project. Frank Richards, president of the gasline agency, said in the announcement that it had reached an “exclusive framework agreement with a qualified energy company.” “The next step is for both parties to create legally binding development agreements that will move the project forward,” he said. “The company involved brings extensive US and international natural gas and LNG experience to bear to this project.” Richards said he expected “a formal announcement of the definitive agreements in the next few months.” Richards declined to share details of the potential agreement. A spokesperson with the agency, reached Thursday, did not provide additional details. Glenfarne, founded in 2011, develops, owns and operates energy and infrastructure projects. It sees LNG as a bridge to renewables and other low -carbon energy sources, according to Brendan Duval, the company’s co-founder. It’s working to develop LNG projects in Texas and Louisiana. LNG project development company says it has an agreement to develop $44 billion Alaska project https://www.adn.com/business-economy/energy/2025/01/09/lng-project-development-company-announced-that-it-has- an-agreement-to-develop-the-44-billion-alaska-project/ 3/3 The Texas LNG project and the Magnolia LNG project in Louisiana have not reached the critical stage of a final investment decision, when a company has agreed to fund project costs and move to construction. A representative with Glenfarne declined to comment on the Alaska agreement on Thursday. The Alaska LNG project is also far from that pivotal moment that will determine how the massive project would be paid for. Glenfarne’s statement on Thursday said it is also working on an LNG import project with Enstar Natural Gas, th e natural gas utility for Southcentral Alaska. “As well, Glenfarne and ENSTAR Natural Gas Company have entered into an exclusive agreement to advance an LNG import project utilizing the Alaska LNG export site,” Glenfarne said. The Alaska Landmine and the Peninsula Clarion earlier this week reported on the Glenfarne statement. The Alaska LNG project received a $50 million line of credit from another state agency last month that helped it secure the framework agreement, Richards said Monday. The Alaska Industrial Development and Export Authori ty in December agreed to commit $50 million as an insurance policy to allow Glenfarn e to spend up to $50 million to help develop the project by funding engineering and design studies needed for an initial phase of the project. Gov. Mike Dunleavy has asked the Alaska Legislature to provide the $50 million to AIDEA in support of the Alaska LNG project. The state development agency would make the $50 million payment if the Alaska LNG project does not move ah ead to construction. 813 W Northern Lights Blvd, Anchorage, AK 99503 Phone: (907) 771-3000 Fax: (907) 771-3044 Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG RGYAUTHORITY.ORG PRESS RELEASE Brandy M. Dixon Communications Director (907) 771-3078 FOR IMMEDIATE RELEASE AEA Awards $20.9 Million to Strengthen Interior Alaska’s Grid Resilience ANCHORAGE, January 8, 2025 — The Alaska Energy Authority (AEA), in partnership with the United States Department of Energy, has awarded $20.9 million to three Golden Valley Electric Association (GVEA) grid resilience projects. These projects are designed to enhance Interior Alaska’s transmission infrastructure and improve its ability to withstand disruptive events. The awarded projects include: • Alaska Intertie Snow Load Resiliency ($10.3 million) — This project, awarded to GVEA on behalf of the Alaska Intertie Management Committee, will mitigate trip events along the Alaska Intertie. The initiative involves reconfiguring conductor insulators to prevent ground contact caused by sagging due to unbalanced snow loads. • Interior Alaska Power Line Resiliency ($8.9 million) — GVEA will relocate sinking transmission poles affected by permafrost within its service area and modify existing transmission line insulators to address unbalanced snow loading, reducing power disruptions. • Alaska Railbelt Synchrophasor and Disturbance Reporting System ($1.7 million) — Also awarded to GVEA on behalf of the Alaska Intertie Management Committee, this project will enhance real-time data sharing between Railbelt substations. The installation of a synchrophasor data collection network aims to reduce system-wide disruptive oscillation events. “These investments are pivotal for strengthening Alaska’s overall grid resilience,” said AEA Executive Director Curtis W. Thayer. “Through these projects, we’re working to reduce the frequency, duration, and severity of disruptive events, ensuring a more reliable energy system for all Alaskans.” “These grant opportunities through AEA will provide long-term benefits to GVEA’s member- owners. The awarded projects will improve reliability and resiliency while enhancing safety for GVEA’s team in the field and our members. By making these projects economically viable, the grant funds will help us deliver lasting value to the communities we serve,” said GVEA Chief Executive Officer Travis Million. Alaska Energy Authority Page 2 of 2 The Grid Resilience Grant Program, funded through Section 40101(d) of the Infrastructure Investment and Jobs Act, is administered through AEA. Over the program’s five-year duration, AEA anticipates receiving $60.5 million, with a 15 percent cost match requirement totaling $9 million. A second Request for Applications (RFA) is planned for the first quarter of 2025. Prospective applicants can learn more about the Grid Resilience Formula Grant Program and the status of future RFAs by visiting https://www.akenergyauthority.org/grid-resilience-formula-grant- program. ### About the Alaska Energy Authority The Alaska Energy Authority is a public corporation of the state. Its mission is to reduce the cost of energy in Alaska. To achieve this mission, AEA strives to diversify Alaska's energy portfolio increasing resiliency, reliability, and redundancy. To learn more, visit akenergyauthority.org. Dunleavy says energy development must be a priority for the state https://www.alaskasnewssource.com/2025/01/07/dunleavy-says-energy-development-must-be-priority-state/ 1/2 ANCHORAGE, Alaska (KTUU) - Gov. Mike Dunleavy said the state will need a mix of energy sources going forward in order to keep the lights on and the heat flowing across Alaska in the coming years. He said during a news conference Monday that he is feeling more positive than ever about the chances that a natural gas pipeline from the North Slope will be built. Flanked by department heads and agency leaders, the governor said the state is looking into not just oil, gas and renewables, but also coal and even nuclear power as potential energy sources in the future. Dunleavy said incoming president Donald Trump has expressed his enthusiastic support for multiple forms of energy development in Alaska. Dunleavy says energy development must be a priority for the state https://www.alaskasnewssource.com/2025/01/07/dunleavy-says-energy-development-must-be-priority-state/ 2/2 In the near term, the state will be focused on incentivizing companies to invest in getting more gas out of Cook Inlet to power the Railbelt, Dunleavy said. It comes after Hilcorp, a dominant player in Cook Inlet, informed utilities it might not have enough natural gas to renew contracts. There is also growing concern that limited supplies of gas may necessitate rationing, as they almost did last winter. Department of Natural Resources Commissioner John Boyle pointed out that the easily- developable gas in the Inlet is gone, which is why incentives will be needed to get companies to invest. Dunleavy said he is confident there is still oil and gas to be had in the inlet and the administration is working on proposals for the upcoming legislative session. John Sims, President of Enstar Gas Company, said at the conference that there has been progress. He said Enstar has reached a five-year agreement with natural gas producer HEX/Furie to bring more Cook Inlet gas into the system beginning in 2026, but he added that gas will be more expensive than what Enstar currently pays. That contract was submitted to the Regulatory Commission of Alaska for approval, Sims said Monday. Sims said the company is also moving forward with plans to import LNG. It’s something Dunleavy said he wished didn’t need to happen but might be necessary to bridge the gap before new energy sources are fully developed. Dunleavy said he believes a North Slope natural gas pipeline is closer to reality than ever given an announcement from Frank Richards, president of the Alaska Gasline Development Corporation. Richards said the company has entered into a “framework” agreement with a private company that wants to finance the massive project. Richards said the agreements are still being worked out and are confidential for now but expected to make more information public in the coming months. The governor said there has been renewed interest in Alaska’s gas and other resources from foreign investors as well. The governor said he plans to travel to Dubai later this week for an energy conference where he can meet with potential investors firsthand and talk about opportunities that Alaska can offer. Copyright 2025 KTUU. All rights reserved. PETROLEUM NEWS • WEEK OF JANUARY 5, 2025 7 We Keep Alaska Moving At Lynden, we know that what we carry is so much more than freight. We supply communities, keep projects on track, and help move the world’s most vital industries forward. From mechanics and drivers, to customer service and support teams, we are proud of the people who do this hard work every day. Call us at 1-888-596-3361 or visit our website at lynden.com. TNERS ARAP ROWING TGROGETHER IN QUALITY T ying • EevSurngineering • GIS l • Oil & Gas ib.lounwww omyinc.cnsbur GOVERNMENT Comments asked on CD1 gravel expansions On Dec. 18 the Alaska Department of Natural Resources’ Division of Oil and Gas posted a public notice asking for comments on ConocoPhillips Alaska Inc.’s Colville Delta 1 gravel expansions. The two unit plan of operations amendment applications were filed on Nov. 19 and Nov. 26 by CPAI requesting authorization to expand the existing Colville Delta 1, or CD1, gravel pad in the Colville River Unit, or CRU. The plans propose two separate gravel expansions of 0.92 acres and 0.48 acres to the CD1 gravel pad. The 0.92-acre gravel expansion will extend the northeast area of the Alpine Operating Center and will allow for the installation of up to 55 powered and unpowered conexes, a new aviation warm storage tent, and a new bull rail. A 91-foot trench will be excavated on the gravel expansion area to install a new power cable that will tie-in power from the existing Shark Tooth Camp to the new infrastructure. The 0.48-acre gravel expansion will extend the west side of the CD1 pad to pro- vide space for rig movement and increase safety of vehicle and equipment traffic. The projects are scheduled to begin Feb. 15, and Feb. 1, respectively. The application package is available for review at the division’s Permitting Section, 550 West 7th Avenue, Suite 1100, Anchorage, AK 99501, or online at http://dog.dnr.alaska.gov/Newsroom. Please send comments to the division by email to dog.permitting@alaska.gov or by regular mail to the division address above. All comments must be in writing. A copy of the final decision will be sent to any person who provides written comments. An eligible person affected by this decision may appeal or request the commis- sioner’s reconsideration in accordance with 11 AAC 02. All comments must be received by the comment deadline: 4:30 p.m., Alaska Standard Time, Jan. 18. DNR complies with Title II of the Americans with Disabilities Act of 1990. This notice will be made available in alternative communication formats upon request. Individuals with disabilities who may need auxiliary aids, services, or special mod- ifications to participate may contact the address above or call 907-269-8411. —PETROLEUM NEWS A 91-foot trench will be excavated on the gravel expansion area to install a new power cable that will tie- in power from the existing Shark Tooth Camp to the new infrastructure. ENVIRONMENT & SAFETY BLM issues Teshekpuk Lake right of way On Dec. 17 the Bureau of Land Management announced that it had issued a right of way to Nuiqsut Trilaateral Inc. for the protection of the Teshekpuk Caribou Herd and its key habitat in the Teshekpuk Lake Special Area of the National Petroleum Reserve-Alaska. The right of way encompasses about 1 million acres in the northerly sector of the 3.6 million acre special area. Nuiqsut Trilateral is a non-profit corporation formed by the Native Village of Nuiqsut, Kuukpik Corp. and the City of Nuiqsut. The objective of the right of way is to enable the Nuiqsut community to ensure that the caribou herd and associated subsistence uses are not adversely impacted by ConocoPhillips’ nearby Willow oilfield development — the village of Nuiqsut is the closest community to the Willow field. The Willow field has one planned well pad within the special area, but not within the newly designated right of way. And there are no existing oil and gas leases within the right of way. The right of way will continue in existence for the duration of the Willow project and until any impacted caribou habitat has been effectively restored, BLM says. Under the terms of the right of way Nuiqsut Trilateral will have the authority to enforce restrictions on oil and gas development within the right of way area. BLM says that restrictions potentially include new oil and gas leasing; the construction of surface infrastructure related to oil and gas and mineral exploration, development and mining; the extraction of resources including oil and gas, other mineral resources, and gravel; and the construction of roads and pipelines in support of oil and gas activities. However, Nuiqsut Trilateral will also be able to waive restrictions on behalf of the communities that the restrictions are designed to benefit, BLM says. The right of way agreement derives from an environmental mitigation measure within the special environmental impact statement for the Willow development, BLM says. —ALAN BAILEY RTO files for its certificate with RCA The Railbelt Transmission Organization has filed an application for its certificate of public necessity and convenience with the Regulatory Commission of Alaska. Mandated by House Bill 307, passed into law earlier this year, the RTO is being formed within the Alaska Energy Authority. The organization is tasked with developing and overseeing a new Railbelt electricity transmission tariff arrangement that removes cur- rent impediments to competition in the bulk power market in the Railbelt. Because of the manner in which the current tariffs for the use of different sectors of the transmis- sion grid stack on top of each other, the current tariff arrangements tend to obstruct the development of new power generation that could transmit power over long distances. Under the statute the organization has to file a new transmission tariff protocol by July 1. And, although the RTO is not a utility, the statute requires the organization to be regulated under the same terms as those for a utility. Hence the need for an RCA approved CPCN. The RTO is governed by a committee consisting of an AEA repre- sentative, a representative from each Railbelt electric utility, and a representative from the Railbelt Reliability Council. According to the certificate application, the RTO is being organized along similar lines to the arrangements for managing the Bradley Lake hydropower facility in the southern Kenai Peninsula — the RTO’s bylaws are modeled on the Bradley Lake bylaws. The certificate application says that, for the development and oversight of a new tar- iff system, the RTO has access to staff in the utilities who have expertise and experience in the holding and administration of open access transmission tariffs. In addition the Alaska Legislature is providing funds for the hiring of a financial analyst and an RTO director. The application also comments that the open access transmission tariff will be a complex document involving, among other things, a definition of what transmission assets fall within the definition of the Railbelt’s “backbone transmission system,” and the revenue mechanism for the system as required under HB 307. “Although progress has been made, the RTO is still in the early stages of this process and will need all of the time between now and the July 1, 2025, deadline to get the OATT ready to file,” the certificate application says. —ALAN BAILEY UTILITIES e-Edition •Today's Paper •Games - New!•Obituaries •ADN Store • Promotions •Sponsored Content •Manage account ADVERTISEMENT Opinions Opinion: As he starts his nal two years, Alaska Gov. Dunleav y’s mixed legacy By Tim Bradner Updated: January 4, 2025 Published: January 4, 2025 Alaska News • Politics • Opinions • Talk to us Get our free newslettersSections 1/7/25, 9:35 AM Opinion: As he starts his final two years, Alaska Gov. Dunleavy’s mixed legacy - Anchorage Daily News https://www.adn.com/opinions/2025/01/04/opinion-as-he-starts-his-final-two-years-alaska-gov-dunleavys-mixed-legacy/1/8 Alaska Gov. Mike Dunleav y holds during a news conference on Dec. 12, 2024, in Juneau, outlining his budget proposal for the coming year. (Becky Bohrer/AP) Gov. Mike Dunleavy is in the last two years of his two terms as governor. He must be thinking of his legacy, of what he accomplished. It’s time for all of us to give the governor a report card, too. Like a student in the final semester, it’s not too late to bring up the grade. What’s on the legacy ledger so far? I see three negatives, one partly corrected. This was the governor’s disastrous first-term budget cuts, when he took a meat ax to state programs and the University of Alaska. I think the new governor got bad advice. He changed out his advisers and reversed course on many of the cuts. He is now supporting the university, for example, in restoring its funding. But the damage was done. Two other blemishes are still on Dunleavy’s ledger. One is his refusal, so far, to increase school funding to offset several years of inflation. He has agreed to one- 1/7/25, 9:35 AM Opinion: As he starts his final two years, Alaska Gov. Dunleavy’s mixed legacy - Anchorage Daily News https://www.adn.com/opinions/2025/01/04/opinion-as-he-starts-his-final-two-years-alaska-gov-dunleavys-mixed-legacy/2/8 time increments of money, but that doesn’t count. We can’t hire teachers with one- time money. A second stain on the ledger is Dunleavy’s ambivalence toward repairing public- sector pensions. There is an exodus of skilled state and local government workers who are recruited to other states with better benefits and salaries. But the governor has some positives, too. One is his record on energy. He has strongly supported innovations, alternative energy and conservation. His annual conferences on energy — another one is planned in June — have attracted a lot of attention. ADVERTISEMENT I’m impressed with a focused drive in Dunleavy’s administration to establish carbon sequestration, both forest-based and by underground injection and storage. These will help the planet by storing carbon dioxide, a leading cause of climate change. They also give Alaska industries a way to burnish their image among major financiers who score their loans for management of carbon emissions. The carbon programs are complex and it took a sustained, two-year push by the governor and his Department of Natural Resources to get buy-in from the Legislature. Another plus for Dunleavy: The streamlining, long-delayed, of regulation of long- distance power transmission. That will make larger regional renewable energy 1/7/25, 9:35 AM Opinion: As he starts his final two years, Alaska Gov. Dunleavy’s mixed legacy - Anchorage Daily News https://www.adn.com/opinions/2025/01/04/opinion-as-he-starts-his-final-two-years-alaska-gov-dunleavys-mixed-legacy/3/8 projects possible because new power can be moved through the grid with less delay. This took another two-year push to get the Legislature’s buy-in, and this time the governor’s office led the effort along with the Alaska Energy Authority. Getting Alaska’s utilities to work together was an accomplishment. It was like herding cats. So far on the report card: Two positives and three negatives, one partly repaired (the big budget cut). There’s still time for Dunleavy to repair his record on school funding and pensions. Another legislative session looms. However, I see potential for a third positive for the governor in his advocacy of food security and agriculture. Dunleavy has always talked about food security, and this year he has a proposal for a new state Department of Agriculture. This has prompted some head-scratching because many Alaskans don’t even know we have farms and many children don’t understand where food really comes from. The governor talks about food security, but I think of agriculture for its economic development potential. There’s business here, and jobs. We now have a small agriculture industry that’s highly regional, in the Mat-Su, Kenai Peninsula and Interior Alaska, and it really springs to life in summer. Farmers are the ultimate entrepreneurs as the vibrant summer farmers markets in many parts of the state demonstrate. Can we build on the energy and entrepreneurship Alaskans show in those farmers markets? They prove Alaskans will buy locally made products and pay a premium for fresh and quality food. Consumers show this nationwide, too. I think Dunleavy is on to something. What could a Department of Agriculture do that our present Division of Agriculture, now part of the Department of Natural Resources, doesn’t do? The division, which is based in Palmer, does a lot now. Its Plant Materials Center does research on crops 1/7/25, 9:35 AM Opinion: As he starts his final two years, Alaska Gov. Dunleavy’s mixed legacy - Anchorage Daily News https://www.adn.com/opinions/2025/01/04/opinion-as-he-starts-his-final-two-years-alaska-gov-dunleavys-mixed-legacy/4/8 and inspects for the quality of food products. The division also administers loans for farmers. But the Department of Natural Resources has a lot of other things on its plate. DNR looks after oil and gas, mining, forest firefighting and caretaking of Alaska’s 100 million acres of state lands. Plucking a division out of a department with a lot on its plate can have benefits. We saw this when the governor reorganized the former Department of Health and Social Services into two new departments. The new Department of Health was able to focus attention on public health. Raising the profile for farming (this includes ocean farming, or mariculture) has benefits in focusing attention in the Legislature. I saw this in the last legislative session when several worthy farm-related bills didn’t get the attention they deserved. “Food security” is a nice goal, but is it just a sound-bite? Some worry about this because Dunleavy has talked agriculture before and not much seems to happen. Just creating a new state department won’t change anything without specific plans, and budgets. I have a list of things the governor could do. It starts with making sure food banks and food assistance have support. Dunleavy could also press school districts to buy healthy local food rather than the processed stuff kids are fed. ADVERTISEMENT Also on my list: Jaw-boning managers of big grocery chains so they’ll give locally grown products more shelf space over their own corporate food brands. Alaskans will buy local, but they need to see the products on store shelves. I remember when we had dairy farms in the Mat-Su and Interior. Juneau once had its own dairy. Alaska-made milk was in the stores. Now we have corporate dairies in the 1/7/25, 9:35 AM Opinion: As he starts his final two years, Alaska Gov. Dunleavy’s mixed legacy - Anchorage Daily News https://www.adn.com/opinions/2025/01/04/opinion-as-he-starts-his-final-two-years-alaska-gov-dunleavys-mixed-legacy/5/8 Pacific Northwest supplying our milk. The worst part of this is that imported milk often goes sour, even before the “sell by” date on the milk carton. We must do better if we really want food security. Tim Bradner is publisher of the Alaska Economic Report and Alaska Legislative Digest. The views expressed here are the writer’s and are not necessarily endorsed by the Anchorage Daily News, which welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary(at)adn.com. Send submissions shorter than 200 words to letters@adn.com or click here to submit via any web browser. Read our full guidelines for letters and commentaries here. ADVERTISEMENT ADVERTISEMENT ADVERTISEMENT Sign up for our opinions newsletter Commentary, letters to the editor and more: Hear from different voices around Alaska in our free opinions newsletter, sent every Monday. Email* Type your email Sign Up 1/7/25, 9:35 AM Opinion: As he starts his final two years, Alaska Gov. Dunleavy’s mixed legacy - Anchorage Daily News https://www.adn.com/opinions/2025/01/04/opinion-as-he-starts-his-final-two-years-alaska-gov-dunleavys-mixed-legacy/6/8 ‘Hitting that 80% renewable is huge for us’: CEC sets record hydro power energy usage in 2024 By Margaret Bauman -January 3, 2025 Cordova Electric Cooperative (CEC) set a record of 80% overall hydropower usage in 2024, and the utility plans to boost that renewable energy effort even higher in 2025, a spokesman for CEC said on Dec. 28. “We are looking at every opportunity to use hydro and not use diesel,” said Leif Stavig, executive assistant to CEO Clay Koplin. The electric utility serves just under 2,500 people in the Prince William Sound shing community. Among the record-setting 80% renewable energy usage in 2024, the electric usage is roughly split in thirds: Between residential, commercial, and the seafood processing industry. This winter, for the rst time, CEC also introduced a winter incentive rate. For members reaching a certain usage rate, their rates will drop way down. Cordova, at the head of Orca Inlet on the east side of Prince William Sound, lies off the state’s road system. The average total cost of housing, food, childcare, transportation, healthcare, taxes and other necessities for a single adult come to about $44,914 annually – compared to $45,372 statewide and $38,433 nationally. Power Creek hydroelectric plant, seven miles east of Cordova. Photo courtesy of Cordova Electric Cooperative 1/7/25, 9:53 AM ‘Hitting that 80% renewable is huge for us’: CEC sets record hydro power energy usage in 2024 | The Cordova Times https://thecordovatimes.com/2025/01/03/cec-record-hydro-power-energy/1/3 With the impact of global warming on the environment, Cordova, like many other communities, is focused on replacing traditional energy sources like diesel fuel with renewable energy. Over the last 20 years, CEC has employed energy ef ciency and conservation projects to further reduce Cordova’s use of costly diesel fuel – which is barged into town – and its associated environmental impact. These projects have included member education, purchase and distribution of energy saving devices, community-wide conversion to LED street lighting, and more. The hydro power comes from the Humpback Creek hydroelectric plant seven miles north of Cordova – which has with a total installed generating capacity of 1.25 megawatts – and the Power Creek hydroelectric plant seven miles east of Cordova – with installed generating capacity of 6.0 megawatts. The Orca Power Plant, on the outskirts of Cordova, is the cooperative’s only diesel generation facility. It has installed generating capacity of 10.8 megawatts. Every single home in Cordova currently uses diesel fuel in their hot water heaters, but CEC is promoting a variety of heat pumps to replace those hot water and other heaters. However, Stavig acknowledged that installers are hard to get a hold of to do the work involved. “The technology is new and it is hard to get contractors to do this,” he said. Right now there is only one contractor in Cordova who does this, and other contractors are busy working on hot water heaters using diesel fuel. CEC is offering $5,000 toward the transition from diesel hot water heaters to the heat pumps, which are very popular in Southeast Alaska communities like Juneau and Ketchikan, but so far haven’t had many takers. Stavig himself said he has been using a heat pump in his home and saved a little money even before CEC began offering the $5,000 incentive in October. Diesel is at a fairly cheap price right now compared to what it was a couple of years ago, but there are still a lot of incentives to switch to heat pumps, he said. That’s true especially if Cordova has a warm winter, since users get more out of hydroelectric power in a mild winter. The cooperative has put everything in place for a transition to heat pumps and it’s now up to individual people to decide what they want to do, Stavig said. “Overall, people are really positive about renewable energy and diesel is seven times more expensive than hydroelectric,” he said. “Everyone’s utility bill has a little note on it saying now much is saved by hydro.” CEC has a total of 15 employees, all members of the International Brotherhood of Electric Workers. “We are a pretty respected employer and are able to hire some good crews,” Stavig said. “We have been happy with what we have been able to get … The overall result of 80% use of hydroelectric power was due to the hard work of CEC employees, who also worked to make diesel generators more ef cient.” 1/7/25, 9:53 AM ‘Hitting that 80% renewable is huge for us’: CEC sets record hydro power energy usage in 2024 | The Cordova Times https://thecordovatimes.com/2025/01/03/cec-record-hydro-power-energy/2/3 WP2Social Auto Publish Powered By : XYZScripts.com Stavig went on to praise CEC’s green energy goals. “I think just hitting that 80% renewable is huge for us,” he said. “Cordova Electric is killing it. We are proud of that accomplishment and hoping to do every better in the future.” Margaret Bauman Margaret Bauman is a veteran Alaska journalist focused on covering fisheries and environmental issues. Bauman has been writing for The Cordova Times since 2010. You can reach her at fisheriesreporter@gmail.com. 1/7/25, 9:53 AM ‘Hitting that 80% renewable is huge for us’: CEC sets record hydro power energy usage in 2024 | The Cordova Times https://thecordovatimes.com/2025/01/03/cec-record-hydro-power-energy/3/3 Alaska Economic Report No. 19/2024 Page 2 Page 2 Natural gas supply: HEX set to drill more, but is there enough natural gas? – Continued from top, page 1 All of this sets the stage for HEX to accelerate its work. There are still concerns. The gas may not be there, or as much of it as HEX is hoping for. There may be drilling problems, as happens in Cook Inlet. There are also high (and rising) costs for Cook Inlet work and the timing as to when Hilcorp Energy can make its jack-up rig available for HEX to use. A jack-up rig is needed for work at Kitchen Lights. Hil- corp owns the rig but must also use it for maintenance and development on its own Cook Inlet gas wells. That’s also important to Enstar and other regional utilities who rely on Hilcorp’s gas production. HEX has shown that there is undeveloped natural gas. The company recently drilled an exploration well into a prospect near Kitchen Lights and found gas. The well is capable of 2.5 million cubic feet per day. Not a huge producer, but everything will help. Natural gas is important because it heats buildings in Southcentral Alaska. Enstar has no current al- ternative to supply this energy, while electric utilities like Chugach and Matanuska Electric have access to hydro power, wind and solar and are planning to add more. The cost of natural gas to consumers and businesses in Southcentral will be rising Enstar now pays about $7.80 per thousand cubic feet on its HEX contract. The new HEX contracts, which are still to be approved by the Regulatory Commission of Alaska, are priced at $13.69 per mcf or $12.30 with state royalty relief. This is about what imported LNG is likely to cost, Enstar has said. These increases won’t be felt right away because there will still be gas supplied from the older, though declining, Cook Inlet fields, so consumers will pay a rolled-in average of higher-priced “new” gas with lower-priced “old” gas. However, the old gas is being supplied under Hilcorp contracts that will be ex- piring. There will be new contracts. Our bet is that they will have higher prices. A wild card to watch: Incoming President Trump’s proposed tariffs on imports from Canada. If these happen, and if they include Canadian gas exported to the U.S., the tariff will be added to the cost of the LNG if it is from Canada, which is most likely. Enstar now says it is short 6 billion cubic feet in contracted supply for 2025. That’s a good chunk of the utility’s annual need. While the declines in Cook Inlet production from older fields are expected to appear in 2027, short-term gas supply problems are cropping up. If current gas producers (main- ly Hilcorp and HEX) can’t make up the shortfall Enstar will work with the electric utilities, Chugach and MEA, to reduce their gas use. The electric utilities can fall back on alternatives they have, such as diesel-powered generation and purchasing power from Golden Valley Electric Association in Fairbanks, which has coal and oil-fired power, to be delivered over the Alaska Energy Authority’s intertie that con- nects the Interior and Southcentral grid. This won’t be cheap, however. Consumers will pay for it. https://www.newsminer.com/news/local_news/fast-planning-to-consider-adopting-electric- vehicle-infrastructure-strategy/article_8e579714-bc0c-11ef-ad80-0fd69322cb4c.html FEATURED FAST Planning to consider adopting electric vehicle infrastructure strategy Jack Barnwell Dec 17, 2024 Visitors check out a few electric vehicles, including a Tesla Cybertruck, during the 18th annual Renewable Energy Fair at Chena Hot Springs Resort on Sunday, Aug. 18, 2024. Jack Barnwell/News-Miner 12/18/24, 8:45 AM FAST Planning to consider adopting electric vehicle infrastructure strategy | Local News | newsminer.com https://www.newsminer.com/news/local_news/fast-planning-to-consider-adopting-electric-vehicle-infrastructure-strategy/article_8e579714-bc0c-11ef-a…1/7 The Fairbanks Area Surface Transportation Planning Policy Board will consider adopting a final version of an electric vehicle (EV) infrastructure implementation strategy for North Pole and Fairbanks on Wednesday. The EV infrastructure plan serves as a blueprint to gradually build out assets for electric vehicles, such as charging stations. It also includes challenges, an inventory of existing infrastructure, cost projections and utility impacts. FAST Planning Executive Director Jackson Fox told the FAST Planning technical committee on Dec. 4 that a 30-day public comment period was between October and November, with an open house at the Morris Thompson Visitors and Cultural Center on Nov. 7. FAST Planning contracted Michael Baker International to develop the implementation plan. An important element emphasizes public-private partnerships with local host sites. The plan cost $180,000 to develop and was paid with federal Carbon Reduction Program funding. Fox said the plan’s steering committee drafted responses to the 17 comments it received and refined the plan accordingly. 12/18/24, 8:45 AM FAST Planning to consider adopting electric vehicle infrastructure strategy | Local News | newsminer.com https://www.newsminer.com/news/local_news/fast-planning-to-consider-adopting-electric-vehicle-infrastructure-strategy/article_8e579714-bc0c-11ef-a…2/7 “We added a new ‘Electric Vehicle 101’ section,” Fox said. The information includes summaries of the different types of electric vehicles and charging station tiers. Some of the existing conditions garnered include a slow growth in electric vehicles in Interior Alaska since January 2023. According to Alaska Division of Motor Vehicle registration data, there were 101 electric vehicles in Interior Alaska. It grew to 175 vehicles as of September of this year. “Based on the registration trends of both the Interior and the state, projections were made to determine the expected number of EVs in the region in both 2030 and 2035 to allow for near-term and long-term planning,” the draft plan states. “In 2030, the region can expect to see a total of 355-612 EVs registered. In 2035, the region can expect to see a total of 534-1,774 EVs registered, depending on how aggressive the growth is over the next ten years.” Golden Valley Electric Association hosts the only public charging station available in Fairbanks. The plan includes several challenges to adoption of electric vehicles in Interior Alaska, with cold weather conditions at the top. Those challenges include reduced battery performance, increased consumption for vehicle cabin heating, battery charges, safety concerns and the limited charging infrastructure. FAST Planning executed its own call for projects in 2023 and received seven applications for nine sites, including the University of Alaska Fairbanks, Pioneer Park, the Carlson Center, Noel Wien Library, the Lavery Transportation Center parking garage in downtown Fairbanks, the Juanita Helms Administration Building. the Morris Thompson Center, North Pole City Hall and North Pole Branch Library. 12/18/24, 8:45 AM FAST Planning to consider adopting electric vehicle infrastructure strategy | Local News | newsminer.com https://www.newsminer.com/news/local_news/fast-planning-to-consider-adopting-electric-vehicle-infrastructure-strategy/article_8e579714-bc0c-11ef-a…3/7 “This call for project nominations was the motivation behind this plan and its analysis to determine if the sites are adequate to meet the needs of the region and appropriate in size,” the plan states. Public feedback suggested several additional sites for public chargers, including Fort Wainwright and Eielson Air Force Base, Birch Hill Recreation Area and ones in Chena Hot Springs Resort, Salcha, Ester, Fox and at the Hilltop Truck Stop on the Elliott Highway. The plan notes that the Alaska Energy Authority intends to deploy two fast-charging stations in the region that are funded with National Electric Vehicle Infrastructure program money. AEA’s efforts are part of the federally-funded Alaska Alternative Fuel corridor, which would build a network of stations up the Parks Highway. One would be located at Fred Meyer on Airport Way and managed by Tesla, while the second would be located at the Westmark Fairbanks Hotel & Conference Center in downtown Fairbanks. Tesla received a $451,989 award for its Fred Meyer location, while eCAMION USA received an $875,951. The NEVI program will also fund a charging station at Main Street and First Street in Nenana, one at Parks Highway Mile 239.9 in Denali National Park and Preserve and one in Trapper Creek. According to the Alaska Energy Authority’s Fiscal Year 2025 implementation plan, those locations are planned to be operational by summer 2025. Three Bears Alaska has also proposed hosting a charging station at its North Pole store location after it opens. Next steps 12/18/24, 8:45 AM FAST Planning to consider adopting electric vehicle infrastructure strategy | Local News | newsminer.com https://www.newsminer.com/news/local_news/fast-planning-to-consider-adopting-electric-vehicle-infrastructure-strategy/article_8e579714-bc0c-11ef-a…4/7 If the FAST Planning Policy Board adopts the infrastructure implementation plan, the transportation agency will issue a new call for projects and charging stations. Once that closes and a final list of sites is determined, FAST Planning would work with the Alaska Department of Transportation to secure engineering design and construction services. Any site selection would require a 9% match from applicants. FAST Planning would also explore additional funding sources outside the approximately $12 million it receives from the U.S. Department of Transportation to sustain ongoing infrastructure needs. Other goals include encouraging private investment and work with the International Brotherhood of Electrical Workers Local 1547 to develop training programs. Public input mixed FAST Planning received 17 written comments, with several supporting an investment in an electric vehicle infrastructure. Others were more critical. One comment stated that the money could be put to better use because there was no reason “EV infrastructure should be built in the interior of Alaska.” Another comment said while electric vehicles sound nice in theory they are far from a solution for going green. “At the end of the day, this is a concept that will not help anyone, nor will it be the green solution they are being advertised as,” the comment read. “Sorry, but this is just a bad idea, and spending money we don’t have is an even worse idea.” FAST Planning noted that the federal funding sources, the Congestion Mitigation and Air Quality and Carbon Reduction Program, have limits on what can be funded. FAST Planning also noted that its feedback from Fairbanks drivers indicated “that EVs are generally reliable at -40 degrees.” 12/18/24, 8:45 AM FAST Planning to consider adopting electric vehicle infrastructure strategy | Local News | newsminer.com https://www.newsminer.com/news/local_news/fast-planning-to-consider-adopting-electric-vehicle-infrastructure-strategy/article_8e579714-bc0c-11ef-a…5/7 “FAST Planning’s vision is to support EVs as a transportation choice and option, not forcing EV adoption,” stated in its responses. “FAST funds all types of transportation projects for various modes of transportation.” Another comment cited a disputed claim that electric vehicles would disrupt the power grid, that it would disrupt the gas car industry and that such vehicles could become deadly for occupancies during below freezing temperatures. “People traveling in these cars in the winter will freeze to death as soon as there is any kind of a traffic jam on one of our long highways,” the comment read. “It will be catastrophic and could wipe out entire families and furthermore small children and seniors are at the highest risk for death and injury in these situations. Conclusion: Electric cars are deadly for Alaska and should not be sold here for the safety of the public.” FAST Planning noted that Golden Valley Electric Association “does not have any concerns with the capacity of the grid.” The co-op utility has “a plan to expand as demand increases” based on long-term planning studies. “GVEA has a robust system that can accommodate the proposed EV charging infrastructure in the FAST plan without impacting reliability,” FAST Planning responded. With the claim about EVs being fatal, FAST Planning said that that electric vehicles are much like gas-powered cars: as long as there’s energy or fuel, occupants can keep warm.” Other commenters welcomed the development and proposed looking at support for current fast-charging stations to reduce the recharging time. 12/18/24, 8:45 AM FAST Planning to consider adopting electric vehicle infrastructure strategy | Local News | newsminer.com https://www.newsminer.com/news/local_news/fast-planning-to-consider-adopting-electric-vehicle-infrastructure-strategy/article_8e579714-bc0c-11ef-a…6/7 jbarnwell FAST Planning also conducted a public survey, albeit with a limited response. Of those responses, about 43% owned an electric vehicle, 16% considered purchasing one in the next three years, 20% with the next five years and 20% rejected the notion. The major turn-offs to purchasing an electric vehicle included the price, cold- weather performance, a lack of range and a lack of public charging stations. The draft plan includes interviews with Fairbanks dealerships. Most did not have inventory in stock, citing either a lack of market demand, slow sales or a lack of space. Seekins Ford Lincoln noted that it had sold six Ford Lightning F150 pickups and a Ford Mustang Mach-e sports coupe in the past. Chevrolet GMC of Fairbanks reported it sold two or three per year, while Fairbanks Nissan has sold none. Kendall Toyota, Honda and Subaru provided the most in-depth response, citing that they have a few in stock. However, it would defer a sales request unless the buyer wishes to wait three or four months for a custom order to process. The FAST Planning Policy Board meets on Wednesday at noon at its small boardroom at the Key Bank Building, 100 Cushman Street, Suite 215. The meeting is also conducted live via Zoom at fastplanning.us/keepup/zoom. Contact reporter Jack Barnwell at 907-459-7587 or jbarnwell@newsminer.com. 12/18/24, 8:45 AM FAST Planning to consider adopting electric vehicle infrastructure strategy | Local News | newsminer.com https://www.newsminer.com/news/local_news/fast-planning-to-consider-adopting-electric-vehicle-infrastructure-strategy/article_8e579714-bc0c-11ef-a…7/7 Page 3Alaska Legislative Digest No. 28/2024 . . . Energy, natural resources, transportation . . . – Continued from previous pageEnergy (Cont.) • $6.5 million for the completion of engineering, design, permitting, and geological studies for the Bradley Lake Hydropower Dixon Diversion Project • $6.3 million for Alaska Energy Authority Renewable Energy Project Grants • $5 million for Alaska Housing Finance Corporation Energy Weatherization Programs (utilizing federal funds and funds from the AHFC Dividend) Transportationi • $4.2 million for improvements along the Copper River Highway and development of the Wood River Canyon Bridges and Trails • $2.5 million for Dalton Highway Heavy Maintenance milepost 76-89 • $18.1 million for Alaska West Coast Resiliency Projects for damage to infrastructure caused by Typhoon Merbok ($14.5 million federal, $3.6 million State funds) • $500,000 for Alaska DOT&PF Right-of-Way clearing of vacated homeless encampments Natural resources • $5.6 million initiating a Gulf of Alaska chinook salmon marine harvest study • $800,000 to continue the Alaska Marine Salmon Program to obtain critical marine research in the Bering Sea and Gulf of Alaska • $858,000 to develop forest infrastructure for increased timber sales in Southeast Alaska • $10 million for the Alaska Seafood Marketing Institute to invest over three years to market Alas- ka’s seafood. This is introduced as a FY2025 supplemental Housing and living costs • $11.5 million for the Alaska Housing Finance Corporation Rural Professional Housing Program ($10.5 million AHFC Dividend, $500,000 other, $500,000 federal) • $10.1 million for the Alaska Housing Finance Corporation Homeless Assistance Program ($9.2 million AHFC Dividend, $950,000 other) • $6 million to implement expanded eligibility of the Child Care Assistance Program implementing SB 189 • $3 million for the Point Mackenzie Correctional Farm Produce Processing Plant • $3 million for the University of Alaska Fairbanks – Agriculture and Food Systems for Alaska’s Economic Sustainability New study aims to fill in the data gaps on EV use in rural Alaska https://alaskapublic.org/2024/12/12/new-study-aims-to-fill-in-the-data-gaps-on-ev-use-in-rural-alaska/ 1/4 New study aims to fill in the data gaps on EV use in rural Alaska Alaska Public Media | By Desiree Hagen, KOTZ - Kotzebue Published December 12, 2024 at 12:16 PM AKST A group of students in Galena learning about EV engines. (Courtesy Jen Schmidt) New study aims to fill in the data gaps on EV use in rural Alaska https://alaskapublic.org/2024/12/12/new-study-aims-to-fill-in-the-data-gaps-on-ev-use-in-rural-alaska/ 2/4 Transportation within remote, Alaska communities that are inaccessible by road usually means burning gas or diesel. For the first time, however, researchers in two northern Alaska communities want to study how electric vehicles, including electric snowmachines, could be incorporated into their isolated power grids. The Electric Vehicles in the Arctic study began this year in Kotzebue and in the Interior community of Galena. The National Science Foundation is paying more than $3 million dollars for the five-year study. Researchers hope to better understand the role and future of EVs in more remote areas of Alaska. In August, the Alaska Energy Authority reported over 3,000 fully electric vehicles registered in Alaska. Only two are in Kotzebue, both owned by the local energy co-op, the Kotzebue Electric Association. The study doesn’t promote EVs, but aims to better understand their usage in rural Alaska and clarify misconceptions about them. “We hear a lot that they won't perform,” said Michelle Wilber, a research engineer for the University of Alaska Fairbanks and a principal investigator for the study. “People are worried that they won't perform in the super-cold.” Jennifer Schmidt works for the University of Alaska Anchorage and focuses on the social components of the study. “I think the other misconception is that it doesn't make sense to have EVs in rural Alaska because the plant is powered by diesel, you're just basically using another fossil fuel to charge these and so there really isn't the environmental benefits.” said Schmidt. Schmidt said the reality is more complicated, and that even if an EV is powered by a diesel- burning electric utility, it’s often still more environmentally sound than a comparable gas vehicle. Although factoring in the mining required for EV batteries further complicates the tradeoffs. The researchers chose Kotzebue and Galena for the study because both already use renewable energy on their electrical grids with more in the works. Galena, for example, uses solar panels and has begun looking at how hydrokinetic, or river powered turbines, could be used during warmer months. In Kotzebue, both the KEA and Kotzebue’s tribe are continuing to build more solar and wind arrays to offset diesel generators. Schmidt said there is very little research on vehicle usage in rural Alaska. She only knew of one survey by the Alaska Department of Fish and Game, which asked just subsistence users about vehicle use. New study aims to fill in the data gaps on EV use in rural Alaska https://alaskapublic.org/2024/12/12/new-study-aims-to-fill-in-the-data-gaps-on-ev-use-in-rural-alaska/ 3/4 The new study commissioned by the National Science Foundation, however, has a few components. The first is gathering baseline data. During the first two years, Schmidt, Wilber and other local partners will track and log 19 people’s vehicle usage — whether by car, four-wheeler, snowmachine or boat. Participants will stow small metal trackers in their vehicles. Biologists use the same kind of trackers to plot caribou migrations, in part because they can still function at lower temperatures. Participants won’t be tracked in real-time; they only use the data in aggregate. The logger (left) used to monitor vehicle usage. (Courtesy of Jennifer Schmidt) “It's not the Iron Dog,” Schmidt said. “I can't see what people are doing.” Participants could also receive over $800 if they participate in the full, year-long survey. Schmidt said the information can also be used by engineers with the project to look at how much energy the power-plant would need to integrate more EVs. New study aims to fill in the data gaps on EV use in rural Alaska https://alaskapublic.org/2024/12/12/new-study-aims-to-fill-in-the-data-gaps-on-ev-use-in-rural-alaska/ 4/4 EVs aside, the vehicle use information is valuable in other ways too, for things like road-use patterns, or how to manage dust in the summer months. “So, in Galena, they're very interested in using the information to provide statistics for grants going after funding to repair the road,” Schmidt said. Another component of the study is purchasing electric vehicles chosen by the communities to see how they might realistically work in rural areas. In Kotzebue, survey participants were paid $40 to evaluate and select the EV they thought would work best. Participants selected the all-electric Taiga snowmachine and Polaris 4-wheeler as the preferred winter and summer vehicles, which the researchers said were favored mostly for their mileage range. The final component of the study – training a local workforce to maintain the vehicles once they are in their communities – is critical. “The prohibitive costs of shipping it back to a dealership somewhere to get it worked on came up over and over again as a barrier to adoption of electric vehicles,” Wilbur said. The researchers are working with the school districts in Galena and Kotzebue to develop a EV repair training program at no-cost to students, in coordination with the UAA’s Automotive program. They also hired a local research manager based in each community. HEA talks search for new energy sources, hazard trees at chamber luncheon https://www.homernews.com/news/hea-talks-search-for-new-energy-sources-hazard-trees-at-chamber-luncheon/ 1/3 HEA talks search for new energy sources, hazard trees at chamber luncheon The utility produces 90% of its electricity using natural gas Homer Electric Association Chief Operating Officer Rob Montgomery speaks during a joint luncheon of the Kenai and Soldotna Chambers of Commerce at the Kenai Chamber of Commerce and Visitor Center in Kenai, Alaska, on Wednesday, Nov. 13, 2024. (Jake Dye/Peninsula Clarion) At a joint luncheon of the Kenai and Soldotna chambers of commerce on Wednesday, Nov. 13, Homer Electric Association Chief Operating Officer Rob Montgomery shared updates on HEA’s strategy for diversifying fuel sources, combating “hazard trees” and managing rates. HEA talks search for new energy sources, hazard trees at chamber luncheon https://www.homernews.com/news/hea-talks-search-for-new-energy-sources-hazard-trees-at-chamber-luncheon/ 2/3 The utility produces 90% of its electricity using natural gas, purchased from Enstar Natural Gas. Enstar was part of the Alaska Utilities Working Group who in 2023 released a report saying that Cook Inlet gas cannot meet the demand forecast at current productivity levels. Montgomery said Wednesday a five-year contract between HEA and Enstar expired in March, and they were only able to negotiate a one-year contract that expires in the coming spring, though the “good news” is that current discussions suggest that HEA will be able to extend that contract. Still, recent uncertainty is driving the utility to explore other options. “If you are so dependent upon one fuel source to produce your electricity, that puts you in a vulnerable or compromising situation,” Montgomery said. “It’s important that as we look to the future, we look to diversify our fuel supply.” First among the potential solutions that HEA has been working on is a process that will convert methane gas at the Central Peninsula Landfill into energy. Montgomery said that the project will benefit both HEA and the Kenai Peninsula Borough, creating a “low-cost option” for electricity. Per information on HEA’s website, methane gas produced by garbage at the landfill would be captured and converted to electricity using an internal combustion engine generator. Waste heat from the generator would also be used to run the landfill leachate evaporator, providing cheap electricity to HEA while also eliminating gas costs borne by the borough to operate its evaporator. Around $5 million in grants have been secured for design work that is expected to be completed in “the middle of next year,” when Montgomery said he also expects other agreements to be in place for the project. When completed, he said it would add 5 megawatts of electricity to the utility, which currently uses 80 megawatts to “fulfill all the electric needs today,” per the HEA website. HEA is also exploring both onshore and offshore wind. For onshore wind, the utility has secured grants from the Alaska Energy Authority to collect data in four potential sites, Happy Valley, the Caribou Hills, the East Forelands in Nikiski and Bradley Bench. Offshore, Montgomery said HEA has partnered with Hilcorp for use of their existing infrastructure, with data collection underway now. Both projects are “early,” he said. Montgomery also spotlighted the battery energy storage system located just outside of Soldotna, which adds reserve capacity for use during outages. Montgomery said “perhaps its most important function” is stabilization of HEA’s grid by maintaining a consistent frequency of electricity. HEA is looking to add a second battery “within the next five years.” Finally, Montgomery spotlighted the Puppy Dog Lake Project, undertaken by Anchorage-based Renewable IPP, who seek to create a solar farm in Nikiski that will be the largest in Alaska. HEA’s HEA talks search for new energy sources, hazard trees at chamber luncheon https://www.homernews.com/news/hea-talks-search-for-new-energy-sources-hazard-trees-at-chamber-luncheon/ 3/3 Board of Directors approved a purchase agreement for the purchase of 30 megawatts of power through that project when it comes online — expected to be around 2028. “It was really a no-brainer,” Montgomery said. “It’s a low-cost energy option that will help diversify our energy mix as we look to the future.” Under the purchase agreement, he said HEA will acquire solar energy for around seven and a half cents per kilowatt hour with 1.5% annual escalation — they currently pay nine cents per kilowatt hour for natural gas “and we have no idea where the price of natural gas is going to go over the next several years.” Montgomery said the utility has to “look at the full breadth of resources that we have available” and make the decisions that make the most sense for the utility. There’s value, Montgomery said, in purchasing energy from another producer. That’s as opposed to spending funds to build and maintain the facility themselves. “Had we had to build it and maintain it, those costs would have gone into our rates,” he said. “Which impacts all of you.” Acknowledging “a lot of outages” in recent years, Montgomery described the issue of hazard trees — beetle-killed trees that are outside of the utility’s right of way that are falling onto power lines. The utility cannot deal with those trees without permission from property owners. In 2024, “year-to-date,” 99% of outages have been caused by those trees, up from 50% in 2023. To solve that problem, Montgomery said they’ve hired contractors to prioritize areas where the most problems are being seen, approaching property owners and trying to clear the trees. They also received a community wildfire defense grant that will empower “some pretty significant clearing” in the next few years. Alaska Economic Report No. 17/2024 Page 2 Page 2 Energy: Cost shock on rural power projects Natural Gas: Cook Inlet supply gap (Cont.) – Continued from top, page 1 There are additional known gas deposits in Cook Inlet, mainly at Cosmopolitan, an oil field near Anchor Point, but developing it will require state fi- nancial participation. This is possible but it will take time for BlueCrest Energy, the owner, to work out details. Permitting and construction will also take time. Another company, HEX, is drilling and finding new gas near its Kitchen Lights field in the Inlet, but tests are still underway on how much can be pro- duced. HEX says it also needs relief on the state’s 12.5% royalty, which is a controversial decision for state officials and legislators. Hilcorp itself says it cannot supply much more gas than that already committed to under its contracts, which are expiring. While there is additional gas there are big uncertainties on whether BlueCrest and HEX can fashion terms for development. There are also technical risks, for example whether new gas wells will perform as expected. Gas from the North Slope would solve the problem, but someone (the state?) has to come up with $10 billion-plus to build a pipeline. Bottom line: The utilities say they cannot count on these and must continue with LNG import planning. LNG imports, when they happen, will take at least $100 million out of the regional economy, Enstar says. The utility now spends about $300 million a year on purchasing gas from producers, mainly Hil- corp. That will rise by 30% after 2033 to about $400 million. Meanwhile, discussions are still underway on how the liquefied gas would be transported and the LNG “re-gasified,” but this will likely be done in Nikiski, on the Kenai Peninsula. *** Rural energy projects have rapidly increased in cost, resulting in a growing deferred maintenance tab for village power houses and bulk fuel storage, the Alaska Energy Authority has told the Regulatory Commission of Alaska. Federal infrastructure grant programs through the Infrastructure Investment and Jobs Act and the Inflation Reduction Act do not cov- er these kinds of costs because they are fossil fuel projects, AEA said. Rural powerhouse upgrades now cost $5 million to $7 million, up from $3 million to $4 million. Similar problems occur with bulk fuel storage replacements, which now cost about $11 million each, AEA said. This has resulted in a deferred maintenance back- log of about $1 billion on the rural bulk storage tanks and about $300 million on rural power sys- tems. *** Battery storage will reduce gas use The $65 million 40 megawatt Battery Energy Storage System, or BESS, installed by Chugach Electric and Matanuska Electric associations will reduce natural gas use by about 5%. The BESS is mainly designed to keep the regional power grid stable against short-term interruptions (it can power the grid for up to two hours in a total blackout) but it also reduces reliance on “spinning reserve,” or the gas-fired power units kept idling as backup. Reduc- ing this is where the savings on gas use comes from. The BESS can be expanded to 70 megawatts. *** Natural gas storage: Chugach is also investigating gas storage in unused reservoir space in the Beluga gas field where it is part-owner. The goal is for 20 billion cubic feet of added storage. ***