HomeMy WebLinkAbout6.21.2023 REF Round 16 Request for Applications (draft)AEA 23046 Page 1 of 33 6/27/2023
Renewable Energy Fund
IMPORTANT NOTICE
Requests for Grant Applications (RFA) AEA 23046 for
Renewable Energy Fund Grant Program (ROUND 16)
RFA ISSUE DATE: Tuesday, June 27, 2023
APPLICATION DUE DATE: Tuesday, August 29, 2023 at 4 p.m.
Register to Receive Notification: Interested applicants that want to be notified of updates or
changes to the Renewable Energy Fund (REF) Request for Applications (RFA) must subscribe
to the State of Alaska REF List Server. Follow the link list.state.ak.us, scroll down until you find
the listserve “aea.renewable.energy.fund,” click on it, and follow the subscription instructions.
Two Applications: The Renewable Energy Grant Fund and Recommendation Program
(“Renewable Energy Fund”), has two application forms for two categories of renewable energy
projects:
1) Heat Application Form is for projects with a primary purpose of producing heat, and
2) Standard Application Form is for all other eligible projects, as defined in Section 1.5 of this
document.
Both applications may be found at the Alaska Energy Authority’s (AEA) website at:
https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-Energy-Fund/2022-
REF-Application.
Economic Model: AEA makes available to all applicants the economic model used to evaluate
projects. This model has built-in future fuel cost projections and other important information that
we use to ensure a level playing field for all applications. Applicants are not required to use the
model.
Public Records Notice to Applicants:
• AEA is subject to the Public Records Act, Alaska Statute (AS) 40.25 and materials submitted
to AEA may be subject to disclosure requirements under the act if no statutory exemptions
apply.
• In accordance with Alaska Regulations (3 AAC 107.630 (b)) applicants may request certain
information be kept confidential subject to review and approval by AEA.
• All applications and information received will be posted on AEA’s website after final
recommendations are made to the Legislature.
Contact: Questions about this RFA and the application process should be directed to:
Grants Coordinator
Alaska Energy Authority
Phone: (907) 771-3081
Email: grants@akenergyauthority.org
Deadline: Applications must be submitted to AEA by no later than 4 p.m. on Tuesday,
August 29, 2023 either by email or physical delivery. Faxed applications will not be
accepted. Please note applications must be signed by an individual authorized to bind the
applicant to its provisions and to make the commitments of the application. See Section 1.7 of
this RFA for instructions and details.
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Past Applicants: AEA encourages applicants who were recommended but not funded in
previous rounds to resubmit an updated applications using the current application for
consideration in the current round. If you have any questions regarding resubmittal of your
previous application please contact AEA’s grants coordinator listed above.
AEA 23046 Page 3 of 33 6/27/2023
Table of Contents
1. Introduction and Instructions ............................................................................................. 5
1.1 Purpose ...................................................................................................................... 5
1.2 Introduction ............................................................................................................... 5
1.3 Government Roles and Responsibilities ................................................................ 5
1.4 Eligible Applicants .................................................................................................... 6
1.5 Eligible Projects ........................................................................................................ 6
1.6 Public Benefit ............................................................................................................ 8
1.7 Filing an Application ................................................................................................. 8
1.8 Application Deadline ................................................................................................. 9
1.9 RFA Project Website ................................................................................................. 9
1.10 Questions about the RFA ....................................................................................... 10
1.11 Modifications of the RFA ........................................................................................ 10
1.12 RFA Schedule .......................................................................................................... 11
1.13 Grant Regulations ................................................................................................... 11
1.14 Grant Funding Program Targets ............................................................................ 11
1.15 Grant Funding Project Limits ................................................................................. 12
1.16 Grantee Reimbursement ......................................................................................... 13
1.17 Pre-Award Obligations and Reimbursement ........................................................ 13
1.18 Applicant Match ....................................................................................................... 14
1.19 Application Preparation Costs ............................................................................... 15
1.20 Application Content Requirements ....................................................................... 15
1.21 Authorized Signature .............................................................................................. 15
1.22 Applicant's Certification ......................................................................................... 15
1.23 Correction, Modification or Withdrawal of Applications ..................................... 15
1.24 Review of Applications - General .......................................................................... 16
1.25 Public Notice and Recommendations to the Legislature .................................... 16
1.26 Notice of Intent to Award a Grant .......................................................................... 16
1.27 Grant Agreement ..................................................................................................... 16
1.28 Failure to Proceed ................................................................................................... 16
2. Project Requirements ........................................................................................................ 18
2.1 Project Management Requirements ...................................................................... 18
2.2 Project Phase Descriptions .................................................................................... 18
2.3 Phase I– Reconnaissance Requirements ............................................................. 19
2.4 Phase II Feasibility Analysis, Conceptual Design Requirements ....................... 20
2.5 Phase III Final Design and Permitting Requirements .......................................... 22
2.6 Phase IV Project Requirements – Construction ................................................... 22
3. Grant Requirements .......................................................................................................... 24
3.1 Declaration of Public Benefit (Ref 3 AAC 107.605) .............................................. 24
3.2 Grantee Project Manager ........................................................................................ 24
3.3 Approval to Proceed With Next Phase .................................................................. 24
3.4 Contracts for Engineering Services ...................................................................... 24
3.5 Site Control .............................................................................................................. 24
3.6 Permits ..................................................................................................................... 25
3.7 Exclusion of Existing Environmental Hazards ..................................................... 25
3.8 Environmental Standards ....................................................................................... 25
3.9 Current Prevailing Rates of Wage and Employment Preference ........................ 25
3.10 Construction Plans and Specifications Review ................................................... 26
3.11 Construction Contractor Bonding ......................................................................... 26
3.12 Post Construction Certification ............................................................................. 26
3.13 Ownership of Facilities ........................................................................................... 26
3.14 Operation and Maintenance of Facilities .............................................................. 26
3.15 Performance/Operation and Maintenance (O&M) Reporting .............................. 26
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3.16 Tariffs & Rates for Use of Grant-Funded Assets .................................................. 27
3.17 Grant-Funded Assets Not Included in PCE .......................................................... 27
3.18 Procurement and Suspension and Debarment .................................................... 27
4. Application Evaluation Process ....................................................................................... 28
Stage 1 Review: Completeness and Eligibility ................................................................... 28
Stage 2 Review: Project Feasibility and Benefits ............................................................... 30
Stage 3 Review – Ranking of Projects ................................................................................ 31
Stage 4 Review: Regional Distribution and Final Ranking Recommendations ............... 32
5. Appendices ..................................................................................................................... 33
Application Forms (Heat Applications, Standard Applications) ....................................... 33
Standard Grant Template ..................................................................................................... 33
Best practices Checklists (by resource type) ..................................................................... 33
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1. Introduction and Instructions
1.1 Purpose
Pursuant to Chapter 31 Session Laws of Alaska 2008 and as amended by Chapter 12 Session
Laws of Alaska 2012 (referred to below as the program legislation), which establishes and
amends the renewable energy grant recommendation program in AS AS 42.45.045, AEA is
soliciting competitive applications from qualified applicants for the purpose of recommending
grants for renewable energy (RE) projects to be funded by the Alaska State Legislature.
Applications will be accepted and evaluated in accordance with AS (AS 42.45.045), and
regulations (3 AAC107.600 – 695) and this RFA.
1.2 Introduction
This RFA sets out the purpose, instructions, requirements, evaluative criteria, and other
information for submitting an application to AEA for recommendation for grant funding.
This RFA is organized as follows:
Section 1 – Introduction and Instructions: describes program and procedural requirements
for preparing and submitting an application.
Section 2 – Project Requirements: describes project information that is required to be
discussed in each application.
Section 3 – Grant Requirements: describes specific grant terms and conditions related to this
program.
Section 4 – Application Evaluation Process and Criteria: describes the criteria that will be
used to evaluate and rank each application.
Section 5 – Appendices: provides additional reference material to assist in application
preparation, application forms, grant documents, and applicable law.
Accompanying this RFA are application forms to use in preparing your application for a REF
Grant.
1.3 Government Roles and Responsibilities
The Alaska Legislature established the Renewable Energy Grant Fund and the associated
Renewable Energy Grant Recommendation Program in Chapter 31 SLA 2008, which the
Legislature enacted in 2008. This bill included a new statute, AS 42.45.045, outlining the
program and giving AEA responsibility for administering the program. The Legislature is
responsible for final approval and funding of all REF grant projects, with the Governor’s
approval.
AEA is a public corporation of the State of Alaska with the mission to reduce the cost of energy
in Alaska and by carrying out the powers and duties assigned to it. AS 42.45.045 gives AEA the
authority to solicit applications for projects, develop and implement regulations, and recommend
grants for renewable energy projects to the Alaska Legislature. AEA has adopted regulations
under 3 AAC107.600 – 695 for the purpose of implementing this program.
AEA’s grants coordinator is responsible for accepting applications, coordinating any
communications with grantees, and posting any changes or clarifications to the application
process. AEA’s REF program manager is responsible for coordinating the evaluation of all
applications, and developing the lists of grant projects to be recommended to the Legislature.
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AEA consults with REFAC in establishing the final ranking of recommended applications.
An AEA project manager will be assigned to assist each grantee whose application is selected
for grant funding. Tasks and level of AEA’s project management will vary according to the
project management plan developed under the grant agreement with the goal of safeguarding
the AEA’s investment in the project. At a minimum, the AEA project manager will clarify grant
requirements, review progress reports and billings, and review and accept deliverables of the
grant project. The project management plan developed under the grant agreement may have
applicants self-manage the awarded project or have AEA manage the project. Unless AEA is
the primary project manager, the applicant should be prepared to have staff or a contractor
available to perform all of the duties required to adequately manage the project.
The Executive Director of AEA or a designee will approve the final grant and carry out all other
duties as defined in statutes, regulations, and this RFA.
1.4 Eligible Applicants
To be eligible for a grant recommendation the applicant must demonstrate formal approval and
endorsement of its project by its governing authority (such as board of directors or executive
management if it does not have a governing board) and be one of the following types of entities:
1. An electric utility holding a certificate of public convenience and necessity under AS
42.05;
2. An independent power producer as defined under 3 AAC 107.695 (a) (1);
"independent power producer" means a corporation, person, agency, authority, or
other legal entity or instrumentality, that is not an electric utility and that owns or
operates a facility for the generation or production of energy entirely for use by the
residents of one or more municipalities or unincorporated communities recognized by
the Department of Commerce, Community, and Economic Development for
community revenue sharing under AS 29.60.850 - 29.60.879 and 3 AAC 180.
3. A local government; or
4. A governmental entity (which includes tribal councils and housing authorities).
In accordance with 3 AAC 107.610, an applicant must also be able to demonstrate that they will
take ownership of the project; own, lease, or otherwise control the site upon which the project is
located; and upon completion of the project operate and maintain it for its economic life for the
benefit of the public.
Applications whose applicants do not meet these requirements will be rejected without further
evaluation.
1.5 Eligible Projects
AEA may recommend grants for reconnaissance studies, feasibility studies, final design and
construction of an eligible project. Applications for projects that are not eligible per the statute
and regulations will be rejected without further evaluation.
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To be eligible for a grant recommendation the applicant’s project must:
1.5.1. Be a
• new project not in operation on August 20, 2008 or,
• an addition to an existing project made after August 20, 2008;
AND
1.5.2 Be a
• hydroelectric facility:
• direct use of renewable energy resources;
• facility that generates electricity from fuel cells that use hydrogen from renewable
energy resources or natural gas; or
• facility that generates energy from renewable energy resources.
“Renewable energy resources” means:
• wind, solar, geothermal, waste heat recovery, hydrothermal, wave, tidal, river in-
stream, hydropower; or
• low-emission nontoxic biomass based on solid or liquid organic fuels from wood,
forest and field residues, or animal or fish products; or
• dedicated energy crops available on a renewable basis; or
• landfill gas and digester gas.
“Wasteheat recovery” means systems for the recovery of unused heat from systems or
processes in operation when the applicant applies for a renewable energy grant. REF
grant funds will be allocated only to the portions of existing systems that are required for
the capture and distribution of heat.
A project involving the “direct use of renewable energy resources” means it either uses
renewable energy to generate energy or to make fuel used to generate energy. (3 AAC
107.615)
To qualify for a grant, a natural gas project (other than one using landfill or digester gas)
must benefit a community that:
• has a population of 10,000 or less; and
• does not have economically viable renewable energy resources that it can develop.
Or the applicant’s project must:
1.5.3 Be for the construction of transmission or distribution infrastructure located in Alaska that
links a renewable energy project or natural gas project to other transmission or
distribution infrastructure. For electrical projects, distribution from the grid to end users is
not an eligible use. (An applicant requesting a grant for transmission or distribution
infrastructure is not required to be involved in the financing or construction of the
renewable energy project or natural gas project it may be connecting.)
As mentioned on page 1 of this document, two application forms are available. One for heat
projects, one for all other projects. Heat projects are those with a primary purpose to produce
thermal energy via renewable energy source. These include but are not limited to: biomass or
biofuels for heat generation; geothermal for heat; geothermal heat pumps; wind to heat; hydro to
heat; heat recovery; and solar thermal. Applicants proposing heat projects as defined above
should complete the heat project application form. All other projects should complete the
standard application form. If the proposed project generates heat and electricity, the applicant
should complete the standard application form.
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1.6 Public Benefit
In accordance with 3 AAC
7.605, an application for a grant from REF must provide sufficient public benefit. Therefore, an
independent power producer will be required to have rates reviewed and approved by the
Regulatory Commission of Alaska or, if the Regulatory Commission of Alaska does not have or
exercise jurisdiction, reviewed and approved by the authority, for the use of assets funded in
whole or in part with a renewable energy grant and for energy generated by those assets.
During the economic evaluation and scoring of applications, only the economic benefits to the
public, direct and/or indirect will be included in the benefit/cost analysis. For example, if 50
percent of the energy produced is for the purpose of providing power to one private industry
user, that portion of the energy will not count as a public benefit in the economic evaluation.
Projects proposed to generate energy from renewable energy (RE) resources whose primary
markets are private sector industry (such as sawmills, cruise ships, mines, etc.) are required to
provide additional information to demonstrate the public benefit of the project. Private market
sales can increase the public benefit of the RE project if they are accounted for correctly and the
general public purchases the remaining RE power. For the purposes of the economic evaluation
of projects submitted to REF, the RE energy price Alaskans pay is calculated as the total cost of
the RE generation divided by the total expected lifetime electric sales to Alaskans. Revenue
from private sector industry sales can be used to offset the total cost of RE generation so
Alaskans pay a price based on a smaller total cost. Using this approach, an RE project will still
need to sell some power to the general public in order to produce a net benefit. Net revenue
from industrial sales may also be considered in the cost/benefit calculation since the net
revenue could potentially reduce cost to the public consumer.
The additional support information needed includes: (1) define the available renewable energy
resource (in kWh) by month and (2) estimated sales (kWh) and (3) revenue ($) for displacing
diesel generation for use at these private sector industry users and (4) estimated sales (kWh)
and (5) revenue ($) for displacing diesel generation for use by the Alaskan public. The benefit-
cost ratio calculated during the evaluation of the project application will take into account solely
the savings to the general public through reduced unit power sales costs after project
completion.
1.7 Filing an Application
Applicants may either submit their applications by (1) attaching their application and supporting
documents to an email and sending it to the AEA grants coordinator, or (2) by having their
applications physically delivered to AEA. Please note applications must be signed by an
individual authorized to bind the applicant to its provisions and to make the commitments of the
application.
Applicants choosing to submit their application via email are asked to address the email to
grants@akenergyauthority.org with the subject line of “REF Round 16 Grant Application”.
Applicants are asked to submit the application and applicable documentation in searchable PDF
or other word searchable electronic format. Applicants using this method are encouraged to use
delivery receipt and read receipt. It should be noted that AEA’s email system limits attachments
to 40MB and will not accept .zip files or executables.
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Applicants choosing to submit their application via physical delivery method are asked to submit
one (1) electronic version on an electronic storage device (i.e. CD/DVD or thumb drive) in a
searchable PDF or other word searchable electronic format.
Additionally, if a hard copy of the completed application is submitted, AEA requires that the hard
copy be double-sided with minimal binding, including appendices that can be duplicated.
Physical delivery of either of the above must be in a sealed envelope(s) clearly labeled:
From: Applicant Return Address
To: Alaska Energy Authority
Renewable Energy Fund Grant Application
813 West Northern Lights Blvd
Anchorage, AK 99503
Any questions or concerns about filing an application should be directed to:
Grants Coordinator
Alaska Energy Authority
Direct Phone: (907) 771-3081
AEA Main Phone: (907) 771-3000
Email: grants@akenergyauthority.org
1.8 Application Deadline
All applications must be received no later than 4 p.m. on Tuesday, August 29, 2023.
The applicant is solely responsible for complete and timely submission of its application. AEA
accepts no responsibility for submission of applications or for applications that are received after
the application deadline, whether because they were misdirected, delayed, erroneously
addressed, or for any other reason. While clarifying questions may be asked by AEA after this
deadline, no new significant information will be accepted in support of an application.
Failure to meet the deadline will result in the application being rejected.
1.9 RFA Project Website
AEA’s website at: https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-
Energy-Fund/2022-REF-Application has been set up to make information available to the public
regarding the program. The site contains the following Round 16 information and documents:
• This RFA
• Application and Grant forms
• A summary of relevant questions received regarding the RFA and responses
• Clarifications and addenda to the RFA
• A list of all applications received upon completion of the review process
• Status of applications received (upon completion of the review and ranking process)
• PDF versions of all applications received (upon completion of the review and ranking
process). Applicants are reminded that all information submitted with an application will
be posted to the web; unless it is determined to be confidential. Resumes that are
submitted as separate electronic files will not be posted to the web. Please submit
electronic copies of resumes in a separate electronic file from the application.
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1.10 Questions about the RFA
Applicants should carefully review all documents and AEA’s website prior to contacting the
grants coordinator with questions. AEA requests questions be sent via email, when possible.
Any questions regarding the RFA or grant documents should be directed to:
Grants Coordinator
Alaska Energy Authority
Direct Phone: (907) 771-3081
AEA Main Phone: (907) 771-3000
Email: grants@akenergyauthority.org
Questions that require clarification or interpretation of this RFA that the applicant cannot answer
by careful review of the RFA should be submitted in writing (letter or email) no later than
August 14, 2023 (10 business days before the application due date).
The grants coordinator may contact the applicant directly by phone or email to respond to non-
material questions. The grants coordinator will post the answer to material questions on the
project website.
1.11 Modifications of the RFA
Applicants may submit written requests for modifications to this RFA to the grants coordinator
no later than August 14, 2023. Please be advised that AEA cannot modify requirements of
Statutes AS 42.45.045 or regulations 3 AAC107.600 – 695 as it relates to the solicitation.
Acceptance or denial of the request is solely at the discretion of AEA. The grants coordinator
has 10 calendar days to respond, but not later than 4 calendar days prior to the application
deadline. Failure of the grants coordinator to issue a written modification within 10 days from
submittal of request shall be considered a denial of the request.
Modifications to this RFA may be issued at any time prior to the deadline for receipt of
applications at AEA’s option. If modifications are issued within 10 days of the deadline for
applications, the application deadline may be extended to allow time for applicants to respond to
any changes. All modifications to this RFA will be in writing and posted to the program website
at https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-Energy-
Fund/2022-REF-Application and AEA will provide email notice to those registered as described
on the cover page of this RFA.
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1.12 RFA Schedule
Below is a schedule of critical dates related to this request and the award of grants. Actual dates
after the application due date are tentative and may vary depending on the number of
applications received, the complexity of applications, and the timing of the final state budget.
Task Actual or Target Dates
Application Due Date 8/29/2023
Complete Evaluation of Applications 12/19/2023
AEA Submits Recommendations to Legislature 1/23/2024
Projects Approved for Funding by Legislature and Signed by
Governor
Prior to July 1,2024
Finalize Grant Award Documents (Contingent upon AEA receiving
all documentation needed for award)
6/1/2024 – 7/31/2024
Actual award dates may vary depending on timing of legislative approval and any modifications
that may be required to the grantee’s proposal prior to grant award.
1.13 Grant Regulations
Grant regulations, 3 AAC107.600 – 695, effective 10/16/2009, have been developed and are
available for review at: https://www.akenergyauthority.org/What-We-Do/Grants-
Loans/Renewable-Energy-Fund or the State of Alaska Folio Infobase
1.14 Grant Funding Program Targets
A grant resulting from this RFA is subject to legislative appropriation. The actual amounts
available for the program and for any particular grant are subject to legislative appropriation;
previous years have been as high as $100 million and as low as $0. Through FY 2024, the
Legislature has authorized over $317 million in grants that have been or will be awarded as a
result of AEA’s past Requests for Applications. For the preceding Round 15, the Legislature
approved and authorized $17 million to fund 18 AEA-recommended projects.
AEA must receive approval from the Legislature prior to award of any grant.
In a 2019 consultation with REFAC, AEA has established funding allocation targets by project
phase as indicated below as goals in its selection of projects to recommend. The targets are
preliminary and subject to adjustment based on the available funding and the type, number, and
quality of projects submitted. This change is a reflection of the importance of state funding
assisting projects in the early development stages that cannot as easily be financed through
other mechanisms. Once through early development, strong projects are able to attract a variety
of financing mechanisms.
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Project Phase
Target Allocation –
Percentage of Grant Funds
Recommended
I. Reconnaissance Study
75% II. Feasibility/Conceptual Design or
Energy Resource Monitoring
III. Final Design and Permitting 25% IV. Construction and Commissioning
1.15 Grant Funding Project Limits
In addition to the above program targets, AEA intends to impose limits on the amount of funds
that will be available for individual grant projects. For a given project, the limits are cumulative
by project phase; including all prior rounds of funding from REF, and are subject to adjustment
based on the available funding and the type, number, and quality of projects submitted.
The purpose of these limits is to be able to fund more projects statewide and encourage
financial participation on the part of the grant applicants. Applicants should take these limits into
account when preparing their application as it is expected that the grantee will be responsible
for any project costs beyond the grant funds available to complete the project. Note that these
limits have increased from the limits of $1/$2 million used in funding rounds 13 and 14.
Phase Grant Limits by Location Low Energy Cost Areas* High Energy Cost Areas**
Total project grant limit $2 Million $4 Million
Phase I,
Reconnaissance
The per project total of Phase I and II is limited to 20% of
anticipated construction cost (Phase IV), not to exceed $2
Million.
Phase II,
Feasibility and Conceptual
Design
Phase III,
Final Design and Permitting
20% of anticipated construction cost (Phase IV), and
counting against the total construction grant limit below.
Phase IV,
Construction and
Commissioning
$2 Million per project,
including final design and
permitting (Phase III)
costs, above.
$4 Million per project,
including final design and
permitting (Phase III) costs,
above.
Exceptions
Biofuel projects Biofuel projects where the applicant does not intend to
generate electricity or heat for sale to the public are limited
to reconnaissance and feasibility phases only at the limits
expressed above. Biofuel is a solid, liquid or gaseous fuel
produced from biomass, excluding fossil fuels.
Geothermal projects The per-project total of Phase I and II for geothermal
projects is limited to 20% of anticipated construction costs
(Phase IV), not to exceed $2 million /$4 million (low/high
cost areas). Any amount above the usual $2 million cap
spent on these two phases combined shall reduce the total
Phase III and IV grant limit by the same amount, thereby
keeping the same total grant dollar cap as all other
projects. This exception recognizes the typically increased
cost of the feasibility stage due to test well drilling.
*Low Energy Cost Areas are defined as communities connected to the Railbelt electrical grid or
with a residential retail electric rate below $0.20 per kWh, before Power Cost Equalization.
AEA 23046 Page 13 of 33 6/27/2023
(PCE) reimbursement is applied. For heat projects, low energy cost areas are communities with
natural gas available as a heating fuel to at least 50% of residences, or availability expected by
the time the proposed project is constructed. “Expected” is defined as: the project has a secured
supply of natural gas and secured financing to build out the system needed to deliver gas to
consumers.
**High Energy Cost Areas are defined as communities with a residential retail electric rate of
$0.20 per kWh or higher, before PCE funding is applied. For heat projects, high energy cost
areas are communities that do not have natural gas available as a heating fuel.
For a given project, the limits are cumulative by project phase; including all prior rounds of
funding from REF, and are subject to adjustment based on the available funding and the type,
number, and quality of projects submitted.
1.16 Grantee Reimbursement
Reimbursement to grantees under this program is on a cost reimbursable basis. In accordance
with the terms of the grant, a grantee is required to submit requests for reimbursements that
document commitment, expenditures, and demonstrate meeting milestones identified in the
grant.
The milestones, with a proposed reimbursement schedule, should be identified in the applicant’s
proposal. The final reimbursement schedule is subject to negotiation and will be incorporated
into the final grant agreement.
AEA may authorize a percentage of grant funds as an advance payment of the Grant; however,
the grantee is still obligated to document all expenditures of grant and matching funds including
any advance payment in subsequent requests for reimbursement.
AEA will withhold a percentage of the total grant subject to completion of the project and
submission of final reports and other documentation that may be required by the grant.
1.17 Pre-Award Obligations and Reimbursement
If a potential grantee anticipates award of a grant the grantee may proceed with work on
projects prior to fully executed grant award provided:
• They do so at their own risk as there is no guarantee projects will be funded or funded at the
level requested in their application.
• They must have sufficient funds from sources other than this program to meet their project
commitments prior to grant award.
• The grantee documents all pre-award expenditures including matching fund commitments
and when requesting reimbursement for pre-award expenses follows the reimbursement
requests requirements in the grant document.
• No work performed or obligations incurred prior to July 1, 2024, or whatever the first
day of the fiscal year for which the money has been appropriated, will be considered
for reimbursement unless special pre-approval is granted by AEA for long-lead items
or special circumstances.
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1.18 Applicant Match
Matching funds are a scoring criterion and while not required to be recommended for funding,
points will be awarded to an applicant based on the percentage of total grant costs. Matching
funds can be cash or in-kind and may come from any source not specifically prohibited.
Applicants should identify the amount and source of matching funds or other resources
(collectively referred to as “match”) the applicant will contribute to the project based on the total
proposed grant project budget.
In order for funds to be considered as match, the amount and source of funds must be verified
to AEA. Verification may be accomplished by submitting a resolution from the applicant’s board
or assembly that clearly recognizes the obligation of providing matching funds. When reviewing
applications for construction AEA will require the applicant to demonstrate financial ability and
commitment to provide the necessary funds to cover the estimated cost to construct the project
as proposed, assuming the requested grant is awarded.
Failure to provide this verification will result in no points being awarded for proposed
matching funds during the scoring of the application.
The proposed matching funds for this project cannot be used to match other state grants.
If matching funds or in-kind contributions are proposed, the applicant will be required in the
grant award to document the match contribution in their reimbursement requests. If labor or
equipment costs are to be presented as matching costs, the proposed rates for the labor or
equipment must be approved by AEA.
While specifically funding energy efficiency and training with REF monies is prohibited, AEA has
allowed the inclusion of demand-side energy efficiency projects from the previous five years as
match for heat projects, funding for training, energy efficiency, and other activities or projects
that directly support the proposed project (e.g. the training of an in-house bookkeeper to support
the additional workload) with the following provisions:
• In order for the training to be eligible it must be for full or part-time personnel employed by
the applicant at the time of the grant award or for a new hire during the execution of the
proposed project. The training must be complete before final reimbursements will be made
from the grant.
AEA is expanding the use of match for supply-side and demand-side efficiency projects that will
assist in the integration and/or performance of the renewable energy project. For projects using
supply-side or demand-side energy efficiency completed within the last 5 years as in-kind
match, the applicant must provide documentation of the nature and cost of work completed and
how it will lead to the success of the RE project. Potential examples include—supply-side
efficiency such as new switchgear and controls that will allow the interface of the RE and diesel
systems or demand-side efficiency that would reduce the required spinning reserve capacity.
Applicants will be able to choose if the efficiency work is included as match or to assist as
scoring in other parts of the application. If the efficiency work is included as match, it will be
included as a cost in the benefit-cost scoring. To assist in scoring, applicants should provide as
much documentation as possible including:
1. Evidence on how the energy efficiency work either complements or improves the operation of
the renewable energy project proposed;
2. Energy efficiency pre and post audit reports, or other appropriate analysis;
3. Invoices for work completed;
4. Photos of the work performed; and/or
5. Any other available verification such as scopes of work, technical drawings, and payroll for
work completed internally.
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Previous REF grants will not be counted as matching funds.
Applicants should note that if matching funds are pledged and budgeted in the grant agreement;
but later not provided during the grant project, the grant amount will be reduced in proportion to
the match funds not received.
See the budget form instructions and clarification for matching requirements.
1.19 Application Preparation Costs
AEA shall not pay for any costs incurred by the applicants to prepare and submit their
application. No costs incurred by the applicants in preparation of their application may be
charged as an expense of performing the Grant.
The only reimbursable costs will be those allowed in the grant agreement signed by AEA.
1.20 Application Content Requirements
The application must address all the information required as noted in Section 2 for the type of
project proposed. Applicants should download and complete the Microsoft Word application
form specific to their project. There is an application for heat projects and one for all other
projects. The application form includes a cost worksheet, budget, and authorized signers
section. The application may require additional materials be provided as appendices or
attachments. The application forms and other materials are provided on the Round 16 website
at https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-Energy-
Fund/2022-REF-Application.
1.21 Authorized Signature
Applications must be signed by an individual authorized to bind the applicant to its provisions
and to make the commitments of the application.
1.22 Applicant's Certification
By signature on their application, applicants certify that they are complying and will comply with:
1) the laws of the State of Alaska; 2) the applicable portion of the Federal Civil Rights Act of
1964; 3) the Equal Employment Opportunity Act, the Americans With Disability Act (ADA) and
the regulations issued thereunder by the federal government; 4) all terms and conditions set out
in this RFA; and 5) the amount of matching funds being committed by the applicant.
1.23 Correction, Modification or Withdrawal of Applications
After an application has been received by AEA, an application may be corrected, modified or
withdrawn by providing a written request from an authorized representative of the applicant to
the grant manager before the time and date set for receipt of the applications.
After applications are opened, applicants may be requested to provide additional information
prior to completion of the evaluation process if AEA determines that it is in the best interest of
the program to allow modifications.
Applicants who may be recommended for grant awards may be requested to provide additional
information regarding their application prior to recommendations being sent to the Legislature or
prior to award of a grant if AEA determines that it is in the best interest of the program.
Applicants who fail to respond to requests for additional information within the period specified
in the request may have their application rejected or removed from the list of recommended
projects.
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1.24 Review of Applications - General
Applications will be reviewed in four stages by AEA and the Department of Natural Resources
staff, consultants, and members of the Advisory Committee established under the program
legislation.
Stage 1 – Completeness and Eligibility Review (3 AAC 107.635)
Stage 2 – Technical and Financial Feasibility Review (3 AAC 107.645)
Stage 3 – Ranking of Projects (3 AAC 107.655)
Stage 4 – Regional and Final Ranking Recommendations (3 AAC 107.660)
The review and evaluation criteria for each stage are listed in Section 4.
Applications that do not comply with AS 42.45.045, 3 AAC 107.600-695, and all of the material
and substantial terms, conditions, and requirements of this RFA may be rejected. If an
application is rejected, the applicant will be notified in writing that its application has been
rejected and the basis for rejection. Appeals for rejected applications will handled following the
procedures outlined in 3 AAC 107.650.
AEA may waive minor requirements of the RFA that do not result in a material change in the
requirements of the RFA and do not give an applicant an unfair competitive advantage.
At any stage in the review process, AEA may request additional information and the applicant
will have a specified amount of time to respond to the request for information. Failure to respond
timely or provide adequate information may result in the application being rejected.
If information is sufficient and any minimum scores are met, the application will advance to the
next stage of review.
1.25 Public Notice and Recommendations to the Legislature
Upon completion of Stage 4 of the review process, AEA will forward to the Legislature a
summary of all applications received, their status, the technical score and the final rank of all
applications. AEA will also post on its website the applications, a brief summary of each project,
and the final ranking and disposition of all applications. The total cost of all recommended
projects may be for more or fewer total dollars than the current funding authorized by the
Legislature.
Applicants may be required to provide additional information to the Legislature upon request.
1.26 Notice of Intent to Award a Grant
Upon approval of funding by the Legislature for Round 16 grants and signing of the budget
authorization by the Governor, AEA will notify successful applicants of their award. Grantees
whose authorizations are less than what was requested or whose scope, schedule, or budget
may have changed from their application will be required to update their application to assure
the grant is consistent with the funding available.
1.27 Grant Agreement
Applicants whose projects are selected for grant funding will be required to sign a Grant
Agreement prepared by AEA that contains the terms and conditions in the Grant. AEA may
modify its standard form grant agreement if necessary for this program or for particular projects.
1.28 Failure to Proceed
If an Applicant is unable to respond and indicate acceptance of the Grant Agreement within 30
days of receipt of the Grant Agreement or provide an update to its project as may be required;
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then the offer of the grant may be withdrawn by AEA. Available grant funds may be offered to
another eligible grant applicant subject to availability of funds and consistent with legislative
intent. [3 AAC 107.670(b), 3 AAC 107.675(b)]
If AEA and a grantee are unable to complete a grant agreement within one year of the original
Notice of Intent to Award a grant, AEA will lose the ability to make the grant due to lapsing of the
legislative appropriation. In that event, the grant offer shall be void and the allocated grant funds
will be retained in REF.
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2. Project Requirements
An application under the RFA should describe the Applicant’s renewable energy project in one
or more phases as described in this section and include sufficient information to allow for the
evaluation and ranking of the application. The depth of information needed with the application
will vary depending on the type and complexity of the project, the number of phases for which
grant funding may be requested, the amount of state funds requested, and the estimated total
project costs.
All applicants are required to have a project management plan they intend to follow that includes
who is going to manage the project, how it is going to be managed, a schedule with milestones,
a description of how project risks will be mitigated and the processes and personnel that will be
utilized to account for the grant funding. The level of detail in the plan will vary depending on the
project phase(s), amount of funds requested, and complexity of the project.
2.1 Project Management Requirements
The Applicant is responsible for implementing and executing a plan for managing the project so
that the project is completed within the scope, schedule and budget proposed in the application.
Project Management
Project Manager The Applicant must designate a project manager(s) responsible for
managing the project for the Grantee. This may be:
• An employee of the Grantee
• A consultant
• Or other partners committed to the project. For example, Native
corporations, other utilities, IPPs, or government entities.
• If not known, the grantee should indicate how they intend to
acquire project managers.
Project Schedule Schedule for the proposed work that will be funded by this grant.
Project Milestones Identifies key tasks and decision points in the project schedule. Project
management milestone charts and descriptions of major project decision
points are encouraged.
Project Resources Identifies what people, equipment, or services will be used to accomplish
the project. Includes any commitments the grantee may have or
reference any existing contracts or the selection process that may be
used for major equipment purchases or contracts.
Project
Communications
Identifies how the grantee will monitor the project and keep AEA informed
of the status. Identifies the people that will be tasked with performing the
accounting of the project and the methods and processes that will be
utilized to ensure proper accounting of grant funds.
Project Risk Identifies potential problems and how they will be addressed.
2.2 Project Phase Descriptions
Project phases or major project tasks that should be addressed in the applicant’s project
description are as follows:
Phase I – Reconnaissance A preliminary, “desktop” study designed to ascertain
whether additional study is warranted.
Phase II – Feasibility Analysis,
Conceptual Design
This category includes resource monitoring and
assessment. Based on the resource assessment, a
detailed evaluation intended to assess technical,
AEA 23046 Page 19 of 33 6/27/2023
economic, financial, and operational viability and to
narrow focus of final design and construction (i.e. the
conceptual design report) will be completed.
Phase III – Final Design and
Permitting
Project configuration and specifications that guide
construction. Land use and resource permits and leases
required for construction.
Phase IV –
Construction and
Commissioning
Completion of project construction and beginning of
operations.
The application should describe the project proposed for grant funding by phase in order to
demonstrate a likelihood that the project will be successfully completed and will provide
substantial public benefits. Applicants who have completed a project phase will be required to
sufficiently document to AEA substantial completion of the phase with a positive public benefit
for the project prior to AEA recommending, awarding, or releasing funds for a following phase.
Each type of technology may have issues or tasks that are specific to that technology that will
need to be addressed in addition to the issues or tasks identified in each phase.
Included after each phase described here are a list of possible milestones to assist with the
preparation of an application. The milestones should also be consulted to ensure that your
proposal is prepared for the phase of funding requested. For instance, if you are applying for
Phase II funding, you should have already completed the milestones in Phase I and Phase II
and provided those results in the REF application.
2.3 Phase I – Reconnaissance Requirements
The purpose of a Reconnaissance Study is to determine whether further study is warranted. A
study is required to consider and address the information and tasks below:
Phase I – Reconnaissance
Proposed Energy
Resource
General description of the extent and amount of the renewable resource.
This would generally be a “desktop study” and would not necessary
collect new resource data.
Existing Energy
System
For rural power systems and/or facility heating systems
• Basic configuration (number, size, age, and type of gensets and
boilers; efficiency; operating hours)
• Capital and replacement costs
• Annual fuel consumption
• Load information (peak, minimum, average, and future trends)
• Plans for system upgrades
For all systems
• Residential and commercial electrical service rates
• Avoided cost of energy
Proposed System
Design
• Description of renewable energy technology specific to project
location
• Alternative system discussion
• Expected installed capacity
• Realistic expected annual generation
• Anticipated technical barriers
• Basic integration concept
Proposed System
Costs & Financing
• Total anticipated project cost for this phase
• Projected capital cost
• Projected debt financing, if applicable
•
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Project Benefits • Annual fuel displacement and savings (in gallons) over the project
life
• Discussion of non-monetary benefits
Cost of Energy and
Market Analysis
• Identification of potential energy market
• Potential energy purchase and sales rates
• Annual revenue from energy sales, tax credits, green tags, and
other incentives
Land Ownership • Landowner(s) identified and contacted
Permits &
Consultations
• List of applicable permits
• Anticipated permitting timeline
• Potential regulatory barriers
Environmental Complete environmental screening that addresses:
• Threatened and Endangered species and other habitat impacts
• Fisheries and wildlife protection
• Water and air quality impacts
• Wetland and protected areas
• Archaeological and historical resource impacts
• Land development constraints
• Telecommunications and aviation impacts
• Visual and aesthetic resource impacts
• Other environmental barriers
Analysis and
Recommendations
• Basic economic analysis of alternatives
• Recommendations for additional project development work, if any
Milestones for a Reconnaissance Project should include the following:
1. Project scoping and contractor solicitation
2. Resource identification and analysis
3. 3. Land use, permitting, and environmental analysis
4. Preliminary design and cost analysis
5. Cost of energy and market analysis
6. Simple economic analysis
7. 7. Final report and recommendations
2.4 Phase II – Feasibility Analysis, Conceptual Design Requirements
Phase II Feasibility Analysis requires a detailed evaluation intended to further assess technical,
economic, financial, and operational viability of a project and to narrow the focus of final design
and construction. In addition to addressing all the requirements of Phase I, a feasibility analysis
should address the information and tasks below:
Phase II – Feasibility Analysis, Conceptual Design
Proposed Energy
Resource
Site-specific assessment of available energy resource following industry
standards usually based on field measurements, discussions with
resource owners, and other onsite activities. Examples of assessment
activities include:
• Collection and analysis of meteorological tower data at
proposed wind turbine locations
• Assessment of geological data from surface investigation and
test wells for geothermal and natural gas projects
• Stream gauging and hydrological modeling for hydroelectric
projects
• Analysis of wood and sawmill residue availability and delivered
cost to biomass energy project locations
AEA 23046 Page 21 of 33 6/27/2023
Existing Energy
System
• Annual load profile—power projects may require onsite
measurement
• Load growth projections
• Transmission system layout and capacity
• Existing generation system – manufacturer, model number, size,
age, and type of gensets and boilers; efficiency; operating
hours.
• Retirement schedule
• O&M costs – AEA evaluation for diesel O&M is estimated based
on system size and calculated in $/run hour.
Proposed System
Design & Operations
• Identification and analysis of system alternatives
• Recommended alternative including discussion of impacts on
existing system
• Assessment of project site, including geotechnical
characteristics as necessary
• Annual energy production profile
• Conceptual system design
• Conceptual integration design
• Identification of remaining technical barriers
Project Costs • Conceptual-level cost estimates for final design and construction
• Costs associated with required measurement and reporting
• Other project costs including leases, taxes, insurance, and
financing
Project Benefits • Annual fuel displacement and savings (in gallons) over the
project life
• Discussion of non-monetary benefits
Conceptual Business
& Operations Plan
• O&M costs
• Training needed
• Other operational costs including leases, taxes, insurance, and
financing
• Preliminary energy purchase or sales agreement
• Detailed analysis of revenue from energy sales, tax credits,
green tags, and other incentives
Land Ownership • Assessment of site control requirements for proposed project
• Authorization from land owners for onsite feasibility activities
Permits &
Consultations
• Obtain authorizations from all applicable agencies for any use of
land or resources for feasibility activities
• Begin consultations with agencies on longer-term permitting
requirements
Environmental • Site-specific assessment of resources that may be significantly
affected. Examples include fish and wildlife habitat assessment,
visual impact modeling, and air quality assessment.
• Plan for addressing potential environmental impacts
Analysis and
Recommendations
• Comprehensive economic and financial analyses of alternatives
• Recommendations for project design and construction activities
• Draft operational and business plan
Milestones for a Feasibility Project should include the following:
1. Project scoping and contractor solicitation
2. Detailed resource assessment
3. Identification of land and regulatory issues
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4. Permitting and environmental analysis
5. Detailed analysis of current cost of energy and future market
6. Assessment of alternatives
7. Conceptual design and costs estimate
8. Detailed economic and financial analyses
9. Conceptual business & operations plan
10. Final report and recommendations
2.5 Phase III — Final Design and Permitting Requirements
Building on information gathered in Phases I and II, applicants will be required to complete
Phase III prior to construction. The purposes of Phase III are to establish the project
configuration and specifications that will be used to guide construction, refine project costs
estimates, finalize business plans, and obtain land use and resource authorizations required for
construction. Phase III must be substantially completed and sufficiently documented to AEA
before an application for construction funds will be considered for funding. Work should address
the information and tasks below:
Phase III – Final Design & Permitting
Renewable Energy
Resource
• Updated data to confirm that resource is still available
Existing Energy
System
• Final engineered and approved energy system configuration
including upgrades
Proposed System
Design
• Final engineered and approved system design
• Final engineered and approved integration design
• Interconnection study
Project Cost &
Financing Plan
• Final engineer’s estimate of project cost
• Financing plan to pay for construction
Project Benefits • Detailed financial analysis based on chosen business structure
and applicable costs, revenues, and incentives
Power Purchase/Sale • Executed power purchase/sales agreement
Land Ownership • Final land use authorizations obtained
Permits &
Consultation
• All necessary permits obtained and consultations
Environmental • All environmental issues resolved
Business &
Operational Plan
• Final operational and business plan, including financial and
operational plans for end-of-life
Milestones for a Design and Permitting Phase of a project should include following:
1. Project scoping and contractor solicitation
2. Permit applications
3. Final environmental assessment and mitigation plans
4. Resolution of land use, right of way issues
5. Permitting, rights-of-way, site control
6. Final system design
7. Final cost estimate and financing plan
8. Updated economic and financial analyses
9. Power or heat sale agreements in place
10. Final business and operational plan
2.6 Phase IV – Construction
The purpose of the construction phase is to construct and commission the project. Grantees are
expected to cover all costs of operations and maintenance in compliance with their operational
and business plans developed in Phase III, but O&M cannot be included in the REF grant costs.
AEA 23046 Page 23 of 33 6/27/2023
Applications that have not provided sufficient supporting documentation of the substantial
completion of Phase III will not be considered for funding. The construction phase will address
the information and tasks below:
Phase IV – Construction and Commissioning
Renewable Energy
Resource
• Continuous monitoring to verify and update projections of
renewable resource availability
Existing Power
System • Coordination of conversion, integration, or surplus of existing
system
Proposed System
Design
• Construction plan and schedule
• Commissioning plan and schedule
• Modifications to final design during construction
Project Cost • Actively track project costs against the project budget
• Propose budget modifications as needed
• Manage cost overruns
Environmental • Environmental monitoring as required
Permitting • Reports as required by permitting agencies
Analysis and
Recommendations
• Update business plans and power purchase agreements as
needed to account for actual construction costs
• Final project report including as-built specifications and
drawings, final budget, schedule, and recommendations (see
Section 3.12 of this RFA).
End-of-life planning • Include end-of-useful-life plans in the business plan, including
what activities are expected (replacement, refurbishment,
retrofitting, decommissioning, etc.) and a financial plan to
ensure that funds are available to implement the end-of-life
plan.
Milestones for a Construction project will include the following:
1. Design and feasibility requirements
2. Bid documents
3. Vendor selection and award
4. Construction – unique to each project
5. Integration and testing
6. Decommissioning of old system
7. Final acceptance, commissioning and start-up
8. Post-Construction certification and report
9. Operations reporting [not a grant budget item]
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3. Grant Requirements
To receive renewable energy grants, applicants must comply with the following standard terms
and conditions and the other terms and conditions in AEA’s standard grant document, and
referenced appendices. If the grantee is a tribal entity, a waiver of sovereign immunity will be
required as a condition of the grant.
3.1 Declaration of Public Benefit (3 AAC 107.605)
The grantee acknowledges and agrees that the Project shall be constructed, owned and
operated for the benefit of the general public and will not deny any person use and/or benefit of
Project facilities due to race, religion, color, national origin, age, physical handicap, sex, marital
status, changes in marital status, pregnancy or parenthood.
3.2 Grantee Project Manager
For construction projects, the Grantee will contract or hire competent persons to manage all
phases of the Project. Work at a minimum will include; management of Grantee’s labor for the
project, engineering firms and consultants, procurement, management of construction
contractors, selection of equipment, review of plans and specifications, on-site inspections and
review and approval of work, and other duties to ensure that the completed work conforms with
the requirements of the grant and the construction documents.
If the Grantee fails to provide adequate project management AEA may terminate the Grant or
assume project management responsibilities with the concurrence of the Grantee. Costs for a
grantee project manager must be reasonable to be considered an eligible grant expense.
3.3 Approval to Proceed With Next Phase
A grant award may be for one or more phases of a project. The grantee must achieve
substantial completion of work or of designated grant milestones and receive approval from
AEA prior to proceeding to the next phase of work.
3.4 Contracts for Engineering Services
In the event the Grantee contracts for engineering services, the Grantee will require that the
engineering firm certify that it is authorized to do business in the State of Alaska and provide
proof of licensing and required professional liability insurance.
Unless otherwise agreed by AEA, the insurance required by this section shall, at a minimum,
include professional liability insurance covering all errors, omissions or negligent acts in the
performance of professional services under this agreement, with limits required per the following
schedule:
Contract Amount Minimum Required Limits
Under $ 100,000 $ 300,000 per Occurrence/Annual Aggregate
$ 100,000-$ 499,999 $ 500,000 per Occurrence/Annual Aggregate
$ 500,000-$ 999,999 $ 1,000,000 per Occurrence/Annual Aggregate
$ 1,000,000 or over Refer to Risk Management
3.5 Site Control
If the grant Project involves the occupancy and use of real property, the Grantee assures that it
has the legal right to occupy and use such real property for the purposes of the grant, and
further that there is legal access to such property. The Grantee is responsible for securing the
real property interests necessary for the construction and operation of the Project, through
ownership, leasehold, easement, or otherwise, and for providing evidence satisfactory to AEA
that it has secured these real property interests.
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3.6 Permits
It is the responsibility of the Grantee to identify and ensure that all permits required for all
phases of the project, including the construction and operation of this Project by the Federal,
State, or Local governments have been obtained unless otherwise stated in the scope of work.
These permits may include, but are not limited to, Corps of Engineers, Environmental Protection
Agency, Alaska Department of Environmental Conservation, Alaska Department of Labor, State
Historic Preservation Office, State Fire Marshal, Alaska Department of Natural Resources,
Alaska Department of Fish and Game, and Boroughs.
3.7 Exclusion of Existing Environmental Hazards
Grant funds will not be awarded for and may not be used for environmental investigation,
removal or remediation of contamination, remediation of existing facilities or properties, or any
other environmental matters, unless specifically provided in the Grant Agreement. In addition,
grant funds will not be awarded for and may not be used for the decommissioning or removal of
any existing facilities except as specifically provided in the Grant Agreement.
3.8 Environmental Standards
The grantee will comply with applicable environmental standards, including without limitation
applicable laws for the prevention of pollution, management of hazardous waste, and evaluation
of environmental impacts.
3.9 Current Prevailing Rates of Wage and Employment Preference
To the extent required by federal and State law, construction projects may require certain
grantees to include the requirements for ‘Davis-Bacon’ and ‘Little Davis-Bacon’ when
contracting for construction services. This requires contractors to pay minimum rates of pay for
specific classes of workers and provide certified payrolls to the State Department of Labor. The
current wage rates can be found at the following websites:
The Federal wage rates at beta.sam.gov
The State wage rates at www.labor.state.ak.us/lss/pamp600.htm
If federal funding sources require federal ‘Davis-Bacon’ compliance, the grantee must use both
the Federal and State wage scale and the contractor is required to pay the higher of the State or
Federal wage scale. When only State Funds are used that requires ‘Little Davis-Bacon,’ the
grantee is only required to follow the State Rate schedule.
The grantee is responsible for identifying any other sources of project funds and for ensuring
compliance with applicable wage scales for all sources of project funding. If a Grantee believes
they or their contractors may be exempt from these requirements, they should contact the State
of Alaska Department of Labor and Workforce Development, Wage and Hour Administration, for
a determination and forward a copy of that determination to AEA’s grants coordinator.
For further information regarding other State of Alaska Labor Issues, please visit the State of
Alaska Department of Labor and Workforce Development website at the link provided above.
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3.10 Construction Plans and Specifications Review
Prior to public notice of bidding a construction project, the grantee will provide the plans and
specifications to AEA for review. Concurrence that the plans and specifications are consistent
with the grant award must be received before grant funds will be released for construction-
related costs.
3.11 Construction Contractor Bonding
When the value of the construction is anticipated to be greater than $100,000, prior to beginning
construction on a project funded by this grant, the grantee or grantee’s contractor(s) must
provide AEA either a payment and performance bond, as may be required by AS 36.25.010, a
surety in form and substance acceptable to AEA, or some other guarantee or assurance
acceptable to AEA that the grantee or the grantee’s contractor has the capacity, qualifications,
and financial resources necessary to complete construction of the project as proposed in the
grant or construction contract(s) funded by this grant.
3.12 Post-Construction Certification
Upon completion of construction the Grantee will submit a final report that includes:
• A summary narrative describing the construction process, any obstacles met, lessons
learned or other project highlights;
• Certification that all work is completed in accordance with the grant and all costs claimed
are eligible costs and represent work completed on the Project;
• Summary of total project cost including detailed funding sources and any outstanding
debt;
• Certification that there is a release of any contractor or subcontractor liens on the
project;
• Identification of any outstanding construction issues;
• Demonstration that appropriate insurance is in place and,
• As-built drawings.
3.13 Ownership of Facilities
The grantee shall assume all liabilities arising from the ownership and operation of the project.
Grantee will not sell, transfer, encumber, or dispose of any of its interest in the facilities
constructed with this grant funding during the economic life of the Project without prior written
approval of AEA.
3.14 Operation and Maintenance of Facilities
The grantee is required to maintain and operate the facilities defined in the scope of work of the
grant agreement for the economic life of the facility or the specific period of time designated in
the grant agreement.
In the event that the grantee is no longer operating the facilities for the intended purposes, AEA
may require the grantee to reimburse AEA an amount based on the total contribution of AEA,
the value of the assets, and the terms and conditions of the grant agreement. AEA may require
that the assets acquired under the grant agreement be sold and the proceeds remitted to AEA.
3.15 Performance/Operation and Maintenance (O&M) Reporting
As per regulation 3 AAC 107.685, a grantee’s obligation to report on certain project
data/metrics, the conditions obligating, cadence and the duration of the reporting period shall be
determined by AEA, and stated in the grant agreement. A grantee’s non-compliance with such
reporting requirements may render, at AEA’s discretion, the grantee ineligible for
recommendations for future renewable energy grants or ineligible for other future grants from
AEA.
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Any metering/tracking equipment identified in the application needed to comply with the
reporting requirement will not be included as a project cost as part of the economic
analysis.
3.16 Tariffs & Rates for Use of Grant-Funded Assets
Rates for power provided as a result of the use of assets funded in whole or in part with a grant
may be subject to review and approval by the Regulatory Commission of Alaska (RCA), or if the
rates are not subject to RCA review and approval, they may be subject to review and approval
by AEA to ensure reasonable and appropriate public benefit from the ownership and operation
of the Project.
As a condition of the grant, and if the Regulatory Commission of Alaska does not have or
exercise jurisdiction, Independent Power Producers will agree to sell energy resources for
electricity and heat at a rate or rates approved by the authority for the economic life of the
project. AEA will hire an independent economist to provide guidance in developing a rate or
rates for electric sales consistent with protecting the public interest in and benefit from the use
of grant funds while also providing for an appropriate rate of return on equity.
The rate or rates approved by the authority represent the highest rates that the Independent
Power Producer will be allowed to charge. The authority will approve cost-based rates as being
in the public interest and the authority will consider other possible rate mechanisms or
structures as being in the public interest, depending upon the applicant’s written justification for
the rate mechanism or structure used.
Application for a Certification of Public Convenience and Necessity (CPCN) is also a grant
condition. RCA action related to the issuance of the CPCN must be completed prior to the
issuance of any construction grant funding.
3.17 Grant-Funded Assets Not Included in PCE
The grantee agrees that it will not include the value of facilities, equipment, services, or other
benefits received under this grant as expenses under the Power Cost Equalization Program or
as expenses on which wholesale or retail rates or any other energy tariffs are based.
3.18 Procurement and Suspension and Debarment
When the Grantee enters into a transaction with an entity for the purchase of goods or services
that are expected to equal or exceed $25,000, or meet other special criteria as specified in 2
CFR section 180.220, the grantee is required to verify that the entity and its principals as
defined in 2 CFR section 180.995, are not suspended or debarred or otherwise excluded from
participating in the transaction. The Grantee must verify the eligibility of the entity and its
principals by one of the following: (1) checking the Excluded Parties List System (EPLS)
maintained by the General Services Administration (GSA) (Note: EPLS is no longer a separate
system; however, the OMB guidance and agency implementing regulations still refer to it as
EPLS) and available at https://www.sam.gov/portal/public/SAM/), (2) collecting a certification
from the entity, or (3) adding a clause or condition to the covered transaction with that entity
stating it is not suspended or debarred from participating in the transaction (2 CFR section
180.300).
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4. Application Evaluation Process
Applications will be reviewed in four stages by application evaluation committees, which may
include AEA staff, consultants, and members of the Advisory Committee established under the
program legislation.
Stage 1 – Completeness and Eligibility Review (3 AAC 107.635)
Stage 2 – Feasibility and Public Benefit Scoring (3 AAC 107.645)
Stage 3 – Ranking of Projects (3 AAC 107.655)
Stage 4 – Regional and Final Ranking Recommendations (3 AAC 107.660)
The review and evaluation criteria for each stage are listed below.
Applications that do not comply with AS 42.45.045, 3 AAC 107.600-695, and all of the material
and substantial terms, conditions, and requirements of this RFA may be rejected. If an
application is rejected, the applicant will be notified in writing or via email that its application has
been rejected and the basis for rejection. Appeals for rejected applications will handled following
the procedures outlined in 3 AAC 107.650.
AEA may waive minor requirements of the RFA that do not result in a material change in the
requirements of the RFA and do not give an applicant an unfair competitive advantage.
At any stage in the review process, AEA may request additional information and the applicant
will have a specified amount of time to respond to the request for information. Failure to timely
respond or timely provide adequate information will result in the application being rejected.
If information meets the standard of each stage, the application will be forwarded through to the
next stage of review.
Stage 1 Review: Completeness and Eligibility
All applications received by the deadline will initially be reviewed by AEA staff to assess if the
application is complete, meets the minimum submission requirements, and has adequate
information to proceed to Stage 2 – Feasibility and Public Benefit Review.
The following pass-fail criteria will be used to determine if the application meets the minimum
requirements.
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Application must meet all of these criteria to be considered further (P/F)
1. The application is submitted by an Eligible Applicant that demonstrates that they will take
ownership of the project; own, lease, or otherwise control the site upon which the project is
located; and upon completion of the project operate and maintain it for its economic life for
the benefit of the public (sec 1.4). Included as documentation is a resolution or other
formal authorization of the applicant’s governing body is included with the application to
demonstrate the applicant’s commitment to the project and any proposed matching funds
are available and in the applicant’s control (sec 1.22).
2. The project meets the definition of an Eligible Project (sec 1.5).
3. The application is complete in that the information provided is sufficiently responsive to the
RFA to allow AEA to consider the application in the next stage of evaluation. The
application provides a detailed description of the phase(s) of project proposed, i.e.
reconnaissance study, conceptual design/feasibility study, final design/permitting, and/or
construction (sec 2.2).
AEA may request additional information and the applicant will have a specified amount of time
to provide the requested information. Failure to timely respond or timely provide adequate
information may result in the application being rejected.
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Stage 2 Review: Project Feasibility and Benefits
For all applications that pass Stage 1, AEA will perform a feasibility and public benefit review in
accordance with 3 AAC 107.645 and the criteria below:
Application must substantially meet these criteria to be considered for further
review:
Criteria Weight
1. Project Management, Development, and Operation
a. The proposed schedule is clear, realistic, and described in adequate
detail.
1. The pre-requisites for the stage of the project have been
successfully completed and indicate a project that is ready to
move forward. See pre-requisite check list in appendix.
b. The cost estimates for project development, operation, maintenance,
fuel, and other project items meet industry standards or are
otherwise justified.
c. The Applicant’s communications plan, including monitoring and
reporting, is described in adequate detail.
d. Logistical, business, and financial arrangements for operating and
maintaining the project throughout its lifetime and selling energy
from the completed project are reasonable and described in
adequate detail. For construction projects, the final operational and
business plan is sufficiently detailed and complete
25%
2. Qualifications and Experience
a. The Applicant, partners, and/or contractors have sufficient
knowledge and experience to successfully complete and operate the
project.
• If the applicant has not yet chosen a contractor to complete the
work, qualifications and experience points will be based on the
applicant’s capacity to successfully select contractors and
manage complex contracts.
b. The project team has staffing, time, and other resources to
successfully complete and operate the project.
c. The project team is able to understand and address technical,
economic, and environmental barriers to successful project
completion and operation.
d. The project uses local labor and trains a local labor workforce.
20%
3. Technical Feasibility
a. The renewable energy resource is available on a sustainable basis,
and project permits and other authorizations can reasonably be
obtained.
b. A site is available and suitable for the proposed energy system.
c. Project technical and environmental risks are reasonable.
d. The proposed energy system can reliably produce and deliver
energy as planned.
e. if a demonstration project is being proposed,
i. application in other areas of the state, or another specific
benefit of the proposed project, is likely;
20%
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ii. the need for the project is shown; and
iii. the risks of the proposed system are reasonable and warrant
demonstration
Or, if a reconnaissance project is being proposed:
a. The renewable energy resource is present and can potentially be
used for energy generation.
b. The proposed technology is suitable for the resources and demands
of the community.
c. The proposed technology has reached a level of maturity necessary
for the proposed application.
4. Economic Feasibility
a. The project is shown to be economically feasible (net positive
savings in fuel, operation and maintenance, and capital costs over
the life of the proposed project).
25%
b. The project has an adequate financing plan for
i. completion of the grant-funded phase, including contingency
plans for cost overruns, and
ii. has considered options for financing subsequent phases of the
project.
5%
c. Other benefits to the Alaska public are demonstrated. 5%
AEA may develop a preliminary list of applications that may be technically and economically
feasible and request additional information from applicants at this time to confirm a complete
understanding of the project proposed.
If information is requested, the applicant may be required to provide information within a short
time frame to allow for AEA to continue to the next stage of the review process.
Applicants that fail to respond to requests for information or to adequately address the criteria in
the technical review may be rejected.
If an application for design or construction project funding is incomplete to the point that an
economic and/or technical feasibility evaluation cannot be completed, or there is no indication of
a feasible financing plan that will provide for project funding through completion of construction,
the application will not be recommended for construction funding.
For all projects, the Stage 2 review score must be at least 40 out of 100 possible;
otherwise the project will not be recommended for funding and will not be considered for
Stage 3 review.
Stage 3 Review – Ranking of Projects
All applications that pass the technical review will be evaluated for the purpose of ranking
applications and making recommendations to the Legislature based on the following criteria
which include criteria required by 3 AAC 107.655 and AS 42.45.045.
Evaluation and ranking criteria to be used for determining applications to
recommend to Legislature:
Criteria Weight
1. Burden of energy costs (combined electricity and heating costs as a 30%
AEA 23046 Page 32 of 33 6/27/2023
proportion of household income) in the affected project area relative to
other areas of the state
2. The type and amount of matching funds and other resources an applicant
will commit to the project 15%
3. Project feasibility: 25% of the Stage 2 score 25%
4. Project readiness:
• How quickly the proposed work can begin and be accomplished and/or
success in previous phases of project development.
• The existing energy system is in a condition to accept the integration
of the proposed system.
• The financial and logistical support systems within the community are
capable of managing the integrated system.
5%
5. Public benefits including economic benefit to the Alaska public 10%
6. Sustainability: The ability of the applicant to finance, operate and maintain
the project for the life of the project. A financial and operational plan,
sufficient for the phase of development, is included.
10%
7. Local support for the project 5%
8. Region balance: How the project meets the needs of the region in
conjunction with other energy projects P/F
9. Compliance with previous grant awards and progress in previous phases of
project development P/F
During this stage of review, the evaluation team may conduct interviews of applicants to
determine a more complete understanding of the technical or financial aspects of their
application.
Stage 4 Review: Regional Distribution and Final Ranking Recommendations
All applications recommended for grants as a result of the Stage 3 evaluation will be ranked in
accordance with AS 42.45.045 and 3 AAC 107.660.
To establish a statewide balance of recommended projects, AEA will provide to the advisory
committee a statewide and regional ranking of all applications recommended for grants in Stage
3.
In consultation with the advisory committee, AEA will make a final prioritized list of all
recommended projects giving significant weight to providing a statewide balance for grant
money, and taking into consideration the amount of money that may be available, the number
and types of projects within each region, the burden of energy costs, regional rank, and
statewide rank of each application.
In its final decision on an application, AEA may recommend a grant in an amount for project
phases different from what the applicant requested. In recommending a grant for phases
different from what the applicant requested, AEA may limit its recommendation to a grant for
one or more preliminary project phases before recommending a grant for project construction.
AEA in consultation with the advisory committee may recommend partial funding for projects in
order to achieve better statewide balance or in order to fund a greater number of projects.
During the Stage 4 Review, AEA will identify regions of the state that may be under-served and
over-served in all cumulative rounds of REF. A target allocation per region will be set based
upon the regional cost of energy burden weighted according to the populations of each
AEA 23046 Page 33 of 33 6/27/2023
community in the region. The cost of energy burden for a region is estimated using community
based cost of electricity, space heat divided by household income and then population
weighting community results.
A region is considered under-served if they have received less than 50 percent of their target
funding allocation in all prior rounds cumulatively. Each region’s target funding allocation is
based on cumulative REF funding and the regions’ population weighted cost of energy burden.
Projects from underserved regions may be considered for a higher rank, taking into
consideration other factors listed above. Currently, the underserved regions are Bristol Bay and
Yukon-Koyukuk/Upper Tanana.
5. Additional Documents & forms available via the AEA REF Round 16 Website
Application Forms (Heat Applications, Standard Applications)
Standard Grant Template
Business and Management Sustainability Plan Template
Phase Prerequisite checklists
Best practices Checklists (by resource type)
• Biomass
• Heat Pumps
• Heat Recovery
• Hydro
• Solar
• Wind