HomeMy WebLinkAboutREFAC 6.28.16 for meetingPhoto by: Cassandra Cerny, GVEA
REFAC June 28, 2016
Cady Lister clister@aidea.org
Changes to REF in Round X
Statute requires a solicitation.
Common sense tells us we need to change how we assist
communities to reflect our changed reality.
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REF Round X
39 projects recommended for funding
28 had B/C ratios above 1.0
11 of those were above 1.5
AEA has reached out to these applicants to offer TA support to assist in moving the projects forward
The remaining 11 had B/C ratios below 1.0
AEA will continue to seek grant funding to assist in the development of these less financeable projects.
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How to handle REF Round IX
Round IX recommended projects can resubmit applications for Round X by providing:
1)a form indicating intent,
2)any new information (if available) and
3)new information required in the Round X RFA
Additional documentation of full financing
Points assigned to community support based on inclusion in regional energy plans
Round IX applicants who resubmit may or may not end up with the same score in Round X. Updated fuel price models will be used to rescore economics, and additional requirements for financing documentation and points for inclusion in regional energy plans could all impact scores.
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How to handle REF Round IX
Transitioning from grant funded energy infrastructure to a
financed future will be challenging for rural Alaska.
AEA has the expertise needed to help move projects forward
1.Engineering assistance
2.Planning assistance
3.Financial assistance
4.Project management assistance
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Transition from grants to financing
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Changes this year that do not require regulatory and/or
statutory changes
Allow recommended Round IX applicants to resubmit their applications by notifying AEA of intent and supplying additional new required information and any changes, if applicable.
Use regional plans to assign points for community support and readiness.
Require distributed generation projects to provide utility integration policies showing that the project is allowed. If utility policies do not exist, provide utility acknowledgment and non-objection to project.
Require additional, specific information on “other financing” that demonstrates applicant ability to fully finance the project.
Require that applicants secure total financing package for current phase prior to disbursement of grant funds.
Cap grant amount at dollar value needed to create a financeable project.
Regulatory change
Benefit: leverages government investment more effectively, creates opportunity for private investors
Limit funding for targeted phases of development, e.g. no more than 50% of total funding for construction.
Potential statutory change
Benefit: Focuses available REF funding on developing project phases that private sector and financing won’t typically fund
The percentage would vary based on program funding level each year
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Recommended regulatory and/or statutory changes
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AIDEA Infrastructure Financing
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Greatest leveraged
use of grant funds
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0%10%20%30%40%50%60%70%80%90%100%
Recon
Feasibility
Design
Construction
Percent of projects operational, active and not continuing to operation by phase of
last REF funding
Operational Active Not Continuing to Operation
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0%5%10%15%20%25%30%
No agreement with Utility
Insufficient Resource
Unspecified technical issues
Land Use Restrictions
Insufficient demand
Challenging economics
Insufficient funding
No community champion/low priority
Barriers to project completion -primary reason
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AKEnergyAuthority.org