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AEA 13-006 Page 1 of 27 7/5/12
Renewable Energy Fund
IMPORTANT NOTICE
Requests for Grant Applications (RFA) AEA13-006
for
Renewable Energy Grant Program
RFA ISSUE DATE: July 3, 2012
(ROUND 6)
Interested applicants that want to be notified of updates or changes to the Renewable Energy
Grant Request for Applications MUST follow the directions below; otherwise, we will be unable
to notify applicants of possible addenda to this RFA.
To receive email notices regarding the Renewable Energy Fund Grant Program, click on the link
below to the State of Alaska List Server; scroll down until you find
Renewable.energy.fund.grants click ‘Join’ and follow the instructions. (State of Alaska List
Server)
Public Records Notice to Applicants:
Alaska Energy Authority is subject to the Public Records Act, AS 40.25 and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
In accordance with 3 AAC 107.630 (b) Applicants may request certain information be
kept confidential subject to review and approval by the Authority.
All applications and information received will be posted on the Authority web site after
final recommendations are made to the legislature.
Return to:
Grant Manager: Shawn Calfa
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, AK 99503
FAX: (907) 771-3942
Phone: (907) 771-3031
E-mail: scalfa@aidea.org
Applications are due at the Alaska Energy Authority office by 5PM on Monday,
September 24, 2012. Faxed and emailed applications will not be accepted. Per Section
1.7 of this RFA, applicants are reminded that two hard copies and one electronic copy of
each application must be submitted.
Under guidance from the Renewable Energy Fund Advisory Committee, Alaska Energy
Authority is actively soliciting applications for heating projects, including heat recovery, biomass,
ground source heat pumps, and direct-geothermal use.
The Alaska Energy Authority also encourages applicants who were recommended but not
funded in previous rounds to resubmit their applications for reconsideration in the current round.
If you have any questions regarding resubmittal of your previous application please contact the
Authority’s Grant Administrator, Shawn Calfa, at 907-771-3031 or by email at scalfa@aidea.org
AEA 13-006 Page 2 of 27 7/5/12
Table of Contents
1. Introduction and Instructions .................................................................................................. 4
1.1 Purpose ................................................................................................................................................ 4
1.2 Introduction ....................................................................................................................................... 4
1.3 Government Roles and Responsibilities .................................................................................. 4
1.4 Eligible Applicants ........................................................................................................................... 5
1.5 Eligible Projects ................................................................................................................................ 5
1.6 Public Benefit .................................................................................................................................... 6
1.7 Filing an Application ....................................................................................................................... 7
1.8 Application Deadline ...................................................................................................................... 7
1.9 RFA Project Web Site ...................................................................................................................... 7
1.10 Questions about the RFA ............................................................................................................... 8
1.11 Modifications of the RFA ............................................................................................................... 8
1.12 RFA Schedule ..................................................................................................................................... 9
1.13 Grant Regulations ............................................................................................................................ 9
1.14 Grant Funding Program Targets ................................................................................................. 9
1.15 Grant Funding Project Limits .................................................................................................... 10
1.16 Grantee Reimbursement ............................................................................................................ 10
1.17 Pre-Award Obligations and Reimbursement ...................................................................... 11
1.18 Applicant Match ............................................................................................................................. 11
1.19 Application Preparation Costs ................................................................................................. 11
1.20 Application Content Requirements ........................................................................................ 12
1.21 Authorized Signature ................................................................................................................... 12
1.22 Applicant's Certification ............................................................................................................. 12
1.23 Correction, Modification or Withdrawal of Applications ............................................... 12
1.24 Review of Applications - General ............................................................................................. 13
1.25 Public Notice and Recommendations to the Legislature ................................................ 13
1.26 Notice of Intent to Award a Grant ............................................................................................ 13
1.27 Grant Agreement ........................................................................................................................... 13
1.28 Failure to Proceed ......................................................................................................................... 14
2. Project Requirements ................................................................................................................ 14
2.1 Project Management Requirements ....................................................................................... 14
2.2 Project Phase Descriptions ........................................................................................................ 15
2.3 Phase I– Reconnaissance Requirements .............................................................................. 15
2.4 Phase II Feasibility Analysis, Conceptual Design Requirements ................................. 16
2.5 Phase III Final Design and Permitting Requirements ...................................................... 18
2.6 Phase IV Project Requirements – Construction ................................................................. 19
3. Grant Requirements ................................................................................................................... 20
3.1. Declaration of Public Benefit (Ref 3 AAC 107.605) ........................................................... 20
3.2. Grantee Project Manager............................................................................................................ 20
3.3. Approval to Proceed With Next Phase ................................................................................... 20
3.4. Contracts for Engineering Services......................................................................................... 20
3.5. Site Control ...................................................................................................................................... 21
3.6. Permits .............................................................................................................................................. 21
3.7. Exclusion of Existing Environmental Hazards .................................................................... 21
3.8. Environmental Standards .......................................................................................................... 21
3.9. Current Prevailing Rates of Wage and Employment Preference ................................. 21
3.10. Construction Plans and Specifications Review ................................................................... 22
3.11. Construction Contractor Insurance and Bonding ............................................................. 22
3.12. Post Construction Certification ................................................................................................ 22
3.13. Ownership of Facilities ............................................................................................................... 22
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3.14. Operation and Maintenance of Facilities .............................................................................. 22
3.15. Performance/Operation and Maintenance (O&M) Reporting ...................................... 23
3.16. Tariffs & Rates for Use of Grant-Funded Assets ................................................................. 23
3.17. Grant-Funded Assets Not Included in PCE ........................................................................... 23
4. Application Evaluation Process ............................................................................................. 24
Stage 1 Review: Completeness and Eligibility .................................................................................... 24
Stage 2 Review: Project Feasibility and Benefits ............................................................................... 25
Stage 3 Review - Evaluation of Individual Applications ................................................................... 26
Stage 4 Review: Final Ranking Recommendations ........................................................................... 27
5. Appendices ................................................................................................................................ 27
Application Form ............................................................................................................................................ 27
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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 amends
the renewable energy grant recommendation program in Alaska Statute AS 42.45.045, the
Alaska Energy Authority (“AEA” or “Authority”) is soliciting competitive applications from
qualified applicants for the purpose of recommending grants for renewable energy projects to be
funded by the Alaska State Legislature. Applications will be accepted and evaluated in
accordance with AS 42.45.045, 3 AAC107.600 – 695 and this Request for Applications (RFA).
1.2 Introduction
This RFA sets out the purpose, instructions, requirements, evaluative criter ia, and other
information on submitting an application to the Authority 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 and Instructions to use in preparing your
application for a Renewable Energy Fund Grant.
1.3 Government Roles and Responsibilities
The Alaska Legislature established the Renewable Energy Grant Fund and the 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 the Alaska Energy Authority responsibility for administering the program.
The legislature is responsible for final approval and funding of all grant projects, with the
Governor’s approval.
The Authority is a public corporation of the State of Alaska with the purpose to promote,
develop, and advance the general prosperity and economic welfare of the people of the State by
providing a means of financing and operating power projects 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 legislature. The Authority also has adopted regulations under 3 AAC107.600 –
695 for the purpose of implementing this program. Go to www.akenergyauthority.org for a copy
of these regulations.
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An Advisory Committee has been established for the Authority to consult with in the final ranking
of applications.
The AEA Grant Manager is responsible for accepting applications, coordinating the evaluation
of all applications, and developing the list of grant projects to be recommended to the
Legislature.
An AEA Project Manager will be assigned to assist each grantee whose application is selected
for grant funding. Tasks and level of the Authority project management will vary according to
the project management plan developed under the grant agreement. At a minimum, the AEA
Project Manager will clarify grant requirements, review reports and billings, and track progress
of the grant project.
The Executive Director of AEA or his designee will approve the final grant and carry out all other
duties as defined in statues, 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
The Authority may recommend grants for feasibility studies, reconnaissance studies, energy
resource monitoring, and/or work related to the design and construction of an eligible project.
Applications for projects that are not within the scope of eligible projects will be rejected wi thout
further evaluation
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 project that generates energy from or involves the direct use of:
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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.
“Direct use of energy” means that it either uses renewable energy to generate energy or to
make fuel used to generate energy. (3 AAC 107.615)
Or
be a facility that generates electricity from fuel cells that use hydrogen from
renewable energy resources or natural gas.
Or
be a natural gas project (other than landfill or digester gas) that benefits 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
be a transmission or distribution infrastructure located in Alaska that links an eligible
renewable energy project or eligible natural gas project to other transmission or
distribution infrastructures. (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 g as project it may be
connecting.)
For waste heat recovery systems, if the waste heat is currently being wasted, then
the project is eligible. However, Renewable Energy Fund grant funds will be
allocated only to portions of new and existing fossil fuel systems that are required for
the capture and distribution of heat.
1.6 Public Benefit
In accordance with 3 AAC 107.605, an application for a grant from the Renewable Energy Fund
has to be for the greatest public benefit. Therefore, an independent power producer must
provide power based on a cost-based rate, rather than an avoided-cost rate.
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1.7 Filing an Application
Applicants must submit two (2) hard copies of their complete application, including appendices
that can be duplicated, and one electronic version on an electronic storage devise in PDF or
other word searchable document electronic format in a sealed envelope(s) clearly labeled:
From: Applicants Return Address
To: Alaska Energy Authority
AEA 13-006 Renewable Energy Grant Application
813 West Northern Lights Blvd
Anchorage, AK 99503
Phone: 907-771-3000
1.8 Application Deadline
All applications must be received by the Authority no later than 5:00 pm September 24,
2012.
The Applicant is solely responsible for complete and timely submission of its application. The
Authority accepts no responsibility for submission of applications or for applications that are
received after the Application deadlines, whether because they were misdirected, delayed, or
erroneously addressed or for any other reason.
Failure to meet the deadline will result in the application being rejected.
1.9 RFA Project Web Site
The Alaska Energy Authority web site at: http://www.akenergyauthority.org/RE_Fund-6.html has
been set up to make information available to the public regarding the program. The site
contains the following Round 6 information and documents:
The 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 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. 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 the Authority web site prior to contacting
the Grant Manager with questions. Any questions regarding the RFA or grant documents
should be directed to:
Grant Administrator: Shawn Calfa
Alaska Energy Authority
813 West Northern Lights Blvd
Anchorage, AK 99503
Phone: (907) 771-3031
Fax: (907) 771-3942
E-mail: scalfa@aidea.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 e -mail) no later than 10
business days before the September 24, 2012 application due date.
The Grant Manager may contact the applicant directly by phone or e-mail to respond to non-
material questions. The Grant Manager 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 Grant Manager no
later than September 14, 2012. Please be advised that the Authority 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 in the discretion of the Authority. Failure of the
Grant Manager to issue a written modification within 10 days from submittal of request shall be
considered a denial of the request.
Modifications to this request for applications may be issued at any time prior to the deadline for
receipt of applications at the Authority’s option. If modif ications 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 web site at www.akenergyauthority.org and the Authority will provide e-mail 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 as it relates to this request and 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 timely completion of review by the
Legislature.
Task Target Dates
Application Due Date 9/24/2012
Complete Evaluation of Applications 1/9/2013
Submit Projects for Approval by Legislature 1/25/2013
Projects Approved for Funding (contingent
upon legislative action)
6/30/2013
Finalize Award Documents (Contingent upon
the Authority receiving all documentation
needed for award)
7/1/2013
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: www.akenergyauthority.org
1.14 Grant Funding Program Targets
A grant resulting from this RFA is subject to legislative appropriation. The program legislation
indicated that the legislature intends to provide $50 million per year from St ate fiscal year 2009
through 2023 for Renewable Energy Projects under this program. The actual amounts available
for the program and for any particular grant are subject to legislative appropriation. Through FY
2012, the Legislature has authorized over $ 202 million in grants that are being awarded as a
result of the Authority’s past Request for Applications.
The Authority must receive approval from the legislature prior to award of any grant.
AEA has established initial funding allocation targets 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.
Project Type
Target Allocation –
% of Grant $’s Recommended
Reconnaissance Study 20%
Feasibility/Conceptual Design or
Energy Resource Monitoring
Final Design and Permitting 80%
Construction
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1.15 Grant Funding Project Limits
In addition to the above program targets, the Authority intends to impose limits on the amount of
funds that will be available for individual grant projects. 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.
Project Type/Phase Grant Limits
Biofuel projects where the Applicant
does not intend to generate electricity or
heat for sale to the public. Biofuel is a
solid, liquid or gaseous fuel produced
from biomass.
Limited to reconnaissance and
feasibility phases only.
Final Design and Permitting $500,000 or no more than 20%
of anticipated construction cost
Construction projects on the ‘Railbelt’,
Juneau, Sitka, Ketchikan, Wrangell, and
Petersburg electrical grids
$4 million per project
Construction in all other areas of the
State not mentioned above
$8 million per project
The limits are cumulative; including all prior rounds of funding from the Renewable Energy
Fund, 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.
The Authority may authorize a percentage of grant funds as an advance payment at the startup
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.
The Authority 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.
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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 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, 2013 will be considered
for reimbursement.
1.18 Applicant Match
When reviewing applications the Authority will favorably consider applications that commit the
applicant to provide matching funds to complete the project.
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 the Authority. Verification maybe accomplished by submitting a resolution from the
applicant’s board or assembly that clearly recognizes the obligation of providing matching funds.
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 have been used to match a previous grant
request.
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 the Authority.
Previous Renewable Energy Fund 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 accordingly.
See the budget form instructions and clarification for matching requirements.
1.19 Application Preparation Costs
The Authority 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 the
Authority.
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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 W ord application,
cost worksheet, budget, and authorized signers forms provided from the Round 6 web site at
www.akenergyauthority.org
Below is a list of document names and their purpose:
Document Name Description Date Software
version
GrantApp6.doc Application Form and Instructions 7/3/12 Word 2003
Standard Grant template6.pdf Example of Standard Grant Form 7/3/12 Acrobat 9
1.21 Authorized Signature
Applications must be signed by an individual authorized to bind the Applicant to it s 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 there under by the federal government; 4) all terms and conditions set out
in this RFA; and 5) the amount of matching funds being offered.
1.23 Correction, Modification or Withdrawal of Applications
An application may be corrected, modified or withdrawn by providing a written request from an
authorized representative of the Applicant to the grant manager befor e the time and date set for
receipt of the applications.
After applications are opened, modifications may be allowed prior to completion of the
evaluation process if the Authority 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 clarify, modify, or
correct their application prior to recommendations being sent to the legislature or prior to award
of a grant if the Authority determines that it is in the best interest of the program.
Applicants who fail to respond to requests for clarifications, modifications, or corrections 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 Authority and Department of Natural Resources
staff, and consultants.
Stage 1 – Completeness and Eligibility Review (3 AAC 107.635)
Stage 2 – Technical and Financial Feasibility Review (3 AAC 107.645)
Stage 3 – Evaluation of Individual Applications (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.
The Authority 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, the Authority may request clarifying 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 will result in the application being rejected.
If information is sufficient, the application will be forwarded through to the next stage of review.
1.25 Public Notice and Recommendations to the Legislature
Upon completion of Stage 4 of the review process, the Authority will forward to the legislature a
summary of all applications received, their status, the technical score and the final rank of all
applications. The Authority will also post on its web site 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 less 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 FY2012 grants and signing of the budget
authorization by the Governor, the Authority 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 when their application was originally submitted 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 the Authority that contain the terms and conditions in the Grant form
included as an appendix to this document. The Authority may modify its standard form grant
agreement if necessary for this program or for particular projects.
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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;
then the offer of the grant may be withdrawn by the Authority. Available grant funds may be
offered to another eligible grant applicant subject to availability of funds and consistent with
legislative intent.
If the Authority and a grantee are unable to complete a grant agreement within one year of the
original Notice of Intent to Award a grant, the Authority may suspend negotiations, rescind the
grant offer and return the allocated grant funds to the Renewable Energy Fund. [3 AAC
107.670(b)]
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 ap plication
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,
and how project risks will be mitigated. 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 the Authority
informed of the status.
Project Risk Identifies potential problems and how they will be addressed.
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2.2 Project Phase Descriptions
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
document successfully completing the phase with a positive public benefit for the project prior to
the Authority 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.
Project phases or major project tasks that should be addressed in the applicant’s project
description are as follows:
Phase I
Reconnaissance
A preliminary feasibility study designed to ascertain
whether a feasibility study is warranted.
Phase II –Feasibility Analysis,
Resource Assessment,
Conceptual Design
Detailed evaluation intended to assess technical,
economic, financial, and operational viability and to
narrow focus of final design and construction.
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, Commissioning,
Operation, and Reporting
Completion of project construction and beginning of
operations. It also includes follow-up O&M reporting
requirements.
Included after each phase described here are a list of possible milestones to assist with the
preparation of an 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
Existing Energy
System
For rural power systems and/or facility heating systems
Basic configuration (number, size, and type of gensets and
boilers; efficiency; operating hours)
Capital and replacement costs
Annual O&M cost and schedule
Annual fuel consumption and fuel price
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
Optimum installed capacity
Annual generation
Anticipated barriers
Basic integration concept
AEA 13-006 Page 16 of 27 7/5/12
Proposed System
Costs
Total anticipated project cost for this phase
Projected capital, O&M, and fuel costs
Projected debt financing if applicable
Project Benefits Annual fuel displacement and savings over the project life
Annual revenue from energy sales, tax credits, green tags, and
other incentives
Discussion of non-monetary benefits
Energy
Purchase/Sale
Identification of potential energy market
Potential energy purchase and sales rates
Land Ownership Landowner(s) identified and contacted
Permits 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
Milestones for a Reconnaissance Project should include.
1. Project scoping and contractor solicitation completed
2. Resource identification and analysis completed
3. Land use, permitting, and environmental analysis completed
4. Preliminary design and cost analysis completed
5. Cost of energy and market analysis
6. Simple economic analysis completed
7. Final report and recommendations completed
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
AEA 13-006 Page 17 of 27 7/5/12
projects
Analysis of wood and sawmill residue availability and delivered
cost to biomass energy project locations
Existing Energy
System
Annual load profile—power projects may require onsite
measurement
Load growth projections
Transmission system layout and capacity
Retirement schedule
Proposed System
Design
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
Annual O&M and fuel costs
Other project costs including leases, taxes, insurance, and
financing
Project Benefits Annual fuel displacement and savings over the project life
Detailed analysis of revenue from energy sales, tax credits,
green tags, and other incentives
Discussion of non-monetary benefits
Energy
Purchase/Sale
Preliminary energy purchase or sales agreement
Land Ownership Assessment of site control requirements for proposed project
Authorization from land owners for onsite feasibility activities
Permits Obtain authorizations from all applicable agencies for any use of
land or resources for feasibility activities
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.
1. Project scoping and contractor solicitation completed
2. Detailed resource assessment completed
3. Identification of land and regulatory issues
4. Permitting and environmental analysis completed
5. Detailed analysis of current cost of energy and future market completed
6. Assessment of alternatives
7. Conceptual design and costs estimate completed
8. Detailed economic and financial analyses completed
9. Conceptual business & operations plan completed
10. Final report and recommendations completed
AEA 13-006 Page 18 of 27 7/5/12
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. 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 Final engineer’s estimate of project cost
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 All necessary permits obtained
Environmental All environmental issues resolved
Business &
Operational Plan
Final operational and business plan
Milestones for a Design and Permitting Phase of a project should include.
1. Project scoping and contractor solicitation completed
2. Permit applications completed
3. Final environmental assessment and mitigation plans completed
4. Resolution of land use, right of way issues
5. Permitting, rights-of-way, site control completed
6. Final system design completed
7. Final cost estimate completed
8. Updated economic and financial analyses completed
9. Power or heat sale agreements in place
10. Final business and operational plan completed
AEA 13-006 Page 19 of 27 7/5/12
2.6 Phase IV Project Requirements – Construction
The purpose of the construction phase is to construct and commission the project, begin
operations, and provide follow-up reports on operations and maintenance for a specific period of
time to document the programs impact on the community. Grantees are expected to cover all
costs of operations and maintenance in compliance with their operational and business plans
developed in Phase III. The construction phase will address the information and tasks below
Phase IV –Construction, Commissioning, Operation, and Reporting
Renewable Energy
Resource
Continuous monitoring to verify and update projections and
system efficiency
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
Periodic operation and maintenance reports as required by
grant including actual O&M, fuel, and equipment costs; O&M
measures and schedule; energy output; project availability;
conversion efficiency; renewable energy resource; and
recommendations. The Authority will work with the grantee to
implement this required reporting.
Milestones for a Construction project will include:
1. Design and feasibility requirements completed
2. Bid documents completed
3. Vendor selected and award in place
4. Construction – unique to each project
5. Integration and testing
6. Decommissioning of old system complete
7. Final acceptance, commissioning and start-up complete
8. Operations reporting
AEA 13-006 Page 20 of 27 7/5/12
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 the Authority’s standard grant document,
reference Appendices; Standard Grant Template 6.pdf. 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 (Ref 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 manag e 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 the Authority 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 the
Authority 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 the Authority, the insurance required by this section shall, at a
minimum, included 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
AEA 13-006 Page 21 of 27 7/5/12
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 the
Authority that it has secured these real property interests.
3.6. Permits
It is the responsibility of the Grantee to identify and ensure that all permits required for the
construction and operation of this Project by the Federal, State, or Local governments have
been obtained unless otherwise stated in Appendix C. These permits may include, but are not
limited to, Corps of Engineers, Environmental Protection Agency, Alaska Department of
Environmental Conservation, 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 web sites:
The Federal wage rates at http://www.wdol.gov/
The State wage rates at http://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.
For projects that are only State funded, contractors are also required to use local residents
where they are available and qualified in accordance with AS 36.10.150-180, and 8 AAC 30.064
- 088.
AEA 13-006 Page 22 of 27 7/5/12
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 the Authority’s Grant Administrator.
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 the Authority 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 Insurance and 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 the Authority; 1) proof of adequate insurance as defined in Appendix B #4 of the grant
agreement, and 2) either a payment and performance bond, as may be required by AS
36.25.010, a surety in form and substance acceptable to the Authority, or some other guarantee
or assurance acceptable to the Authority 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:
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 the Authority.
3.14. Operation and Maintenance of Facilities
The grantee is required to maintain and operate the facilities defined in Appendix C of the Grant
agreement for the economic life of the facility or the specific period of time designated herein.
In the event that the grantee is no longer operating the facilities for the intended purposes the
Authority may require the grantee to reimburse the Authority an amount based on the total
contribution of the Authority, the value of the assets, and the terms and conditions of this
agreement. The Authority may require that the assets acquired under this agreement be sold
and the proceeds returned to the Authority.
AEA 13-006 Page 23 of 27 7/5/12
3.15. Performance/Operation and Maintenance (O&M) Reporting
If the grant is for Project construction, the grantee must provide the Authority with a
Performance/O&M Report annually for five years after Project completion. The Performance/
O&M Report must include: (1) a detailed description of Project operations and maintenance
activities and issues; and (2) a detailed description of Project performance, including energy
output, estimated fuel savings resulting from the operation of the Project, and any other relevant
measures of Project performance reasonably requested by the Authority, a description of
repairs and modifications to the Project, and recommendations for improvements for similar
future projects.
The Authority may take into account the grantee’s failure to provide the required annual
Performance/O&M Report in evaluating future applications from the grantee for grant funds.
The Authority encourages grantees to provide annual Performance/O&M reports for the life of
the Project, and may consider the grantee’s voluntary submittal of annual Performance/O&M
reports beyond the first five years in evaluating future applications from the grantee for grant
funds.
3.16. Tariffs & Rates for Use of Grant-Funded Assets
Rates for power provided as a result of generation or transmission facilities built with grant funds
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 the Authority to ensure reasonable and appropriate public benefit from the ownership and
operation of the Project.
As a condition of the grant, Independent Power Producers will agree to sell energy resources for
electricity and heat at a cost-based rate for the economic life of the project. The Authority will
hire an independent economist to provide guidance in developing a cost-based rate for electric
sales with an appropriate rate of return on equity.
The allowable cost-based rate represents the highest rate that the Independent Power Producer
will be allowed to charge. Because the cost-based rates are a grant condition, avoided costs
rates or Public Utility Regulations Policies Act (PURPA) rates will not apply for projects whi ch
obtain grant funding.
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.
AEA 13-006 Page 24 of 27 7/5/12
4. Application Evaluation Process
Applications will be reviewed in four stages by application evaluation committees, which may
include the Authority 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 Review (3 AAC 107.645)
Stage 3 – Evaluation of Individual Applications (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 here.
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.
The Authority 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, the Authority may request clarifying 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 will result in the application being rejected.
If information is sufficient, 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 Authority 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.
Application
must meet all of
these criteria to
be considered
further.
1. The application is submitted by an Eligible Applicant (sec 1.4).
2. The project meets the definition of an Eligible Project (sec 1.5).
3. 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).
4. 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).
5. 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.
6. The applicant 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)
AEA 13-006 Page 25 of 27 7/5/12
If an application is ambiguous regarding questions 1-6, the Authority may request clarifying
information and the applicant will have a specified amount of time to provide the requested
information. Failure to respond timely or provide an adequate explanation will result in the
application being rejected.
Stage 2 Review: Project Feasibility and Benefits
For all applications that pass Stage 1 the Authority will perform a benefit and feasibility review in
accordance with 3 AAC 107.645 and the criteria below:
Application
must
substantially
meet these
criteria to be
considered
further.
1. Project Management, Development, and Operation
a. The proposed schedule is clear, realistic, and described in
adequate detail.
b. The cost savings estimates for project development,
operation, maintenance, fuel, and other project items are
realistic.
c. The project team’s method of communicating, monitoring, and
reporting development progress is described in adequate
detail.
d. Logistical, business, and financial arrangements for operating
and selling energy from the completed project are reasonable
and described in adequate detail.
2. Qualifications and Experience
a. The applicant, partners, and contractors have sufficient
knowledge and experience to successfully complete and
operate the project.
b. The project team has staffing, time, and other resources to
successfully complete and operate the project.
c. The project team is able to understand and address technical,
economic, and environmental barriers to successful project
completion and operation.
d. The project uses local labor and trains a local labor workforce.
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:
Application in other areas of the state, or another
specific benefit of the proposed project, is likely;
need for this project is shown (vs. the ability to use
existing technology); and
the risks of the proposed system are reasonable and
warrant demonstration.
4. Economic Feasibility and Benefits
a. The project is shown to be economically feasible (net savings
in fuel, operation and maintenance, and capital costs over the
AEA 13-006 Page 26 of 27 7/5/12
life of the proposed project).
b. The project has an adequate financing plan for completion of
the grant-funded phase and has considered options for
financing subsequent phases of the project
c. Other benefits to the Alaska public are demonstrated.
The Authority 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 the Authority 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 35; otherwise the project will
not be recommended for funding and will not be considered for Stage 3 review.
Stage 3 Review - Evaluation of Individual Applications
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
1. Cost of energy per resident in the effected project area relative to
other areas.
2. The type and amount of matching funds and other resources an
applicant will commit to the project.
3. A statewide balance of grant funds. (For example, if there is two or
more similar competing projects in a given area the Authority may
only recommend one.)
4. Economic and technical feasibility (Stage 2 evaluation).
5. Public Benefits including economic benefit to the Alaska Public.
6. Sustainability – the ability of the applicant to finance, operate and
maintain the project for the life of the project.
7. Local Support for the project.
8. The readiness of the applicant to proceed with phases of the project
proposed for the grant.
9. Compliance with previous grant awards in previous phases of
project development.
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.
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Stage 4 Review: Final Ranking Recommendations
All applications recommended for grants as a result the Stage 3 evaluation will be ranked in
accordance with 3 AAC 107.660.
To establish a statewide balance of recommended projects, the Authority 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 the Authority 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 project within each region, regional rank, and statewide rank of each application.
In its final decision on an application the Authority 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, the Authority may limit its recommendation
to a grant for one or more preliminary project phases before recommending a grant for project
construction.
5. Appendices
Application Form
Standard Grant Agreement