HomeMy WebLinkAboutREF Evaluation Process
1
REF Evaluation Process
This document is intended to give a very high level explanation of the REF evaluation process which includes four stages:
1) completeness, 2) feasibility and public benefit, 3) project ranking and 4) regional spreading. A more detailed
explanation of scoring is here http://www.akenergyauthority.org/Programs/RenewableEnergyFund in the most recent
REF Request for Applications document.
Request for Applications
Each round AEA drafts a new Request for Applications (RFA) to reflect the current year’s deadlines, grant requirements,
and changes to the evaluation process including guidance from the REFAC. The RFA is typically issued at the beginning of
July with grant applications due mid-September of the same year. This is a relatively short application period for the
level of detail required in an REF application; it has worked because the cycle was annual, communities expected it and
could prepare. If the State were to solicit another round of applications, more notice would be needed.
Stage 1 – Completeness and Eligibility Review
Once the application deadline has passed, AEA staff conduct the first stage of the evaluation to determine whether the
project is eligible for REF funding and the application is sufficient for a complete review. If the application fails any of the
criteria in the first stage, the applicant will be notified and the application will not continue to the next stage of the
evaluation process. Applicants may request reconsideration. Stage 1 is scored according to the following criteria:
# Criterion Weight
1 Eligible applicant Pass/Fail
2 Eligible project Pass/Fail
3 Documented authorization Pass/Fail
4 Project description Pass/Fail
5 Complete application Pass/Fail
6 Site control Pass/Fail
7 Submission deadline Pass/Fail
Stage 2 – Feasibility and Public Benefits Scoring
In the next stage, AEA staff evaluates the application to determine whether the project is technically and economically
feasible. Stage 2 is scored according to the following criteria:
# Criterion Weight
1 Project management, development, and operation 20%
2 Qualifications and experience of project team 20%
3 Technical feasibility 20%
4a Economic feasibility 25%
4b Financing plan 5%
4c Other public benefits 10%
The application must receive a weighted score of at least 40 out of 100 possible points to proceed to stage 3. Once
again, applicants may request reconsideration if their application does not pass stage 2.
If the application meets or exceeds a score of 40 in this stage, AEA staff will recommend the application for: full or
partial funding. AEA may also recommend conditions on the grant funding.
2
Stage 3 – Ranking of Projects
If an application is recommended, AEA staff evaluates the project’s merits according to criteria that reflect the intent
and purpose of the REF grant program. The weighted score in this stage will determine the application’s funding priority
in the current round of funding. Stage 3 is scored according to the following criteria:
# Criterion Weight
1 Cost of energy 35%
2 Matching funds 15%
3 Project feasibility (Levelized Stage 2 score) 20%
4 Project readiness 5%
5 Public benefits 15%
6 Sustainability 5%
7 Local support 5%
8 Regional balance Pass/Fail
9 Compliance Pass/Fail
There are two pass/fail criteria in this stage. Regional balance refers to a situation in which two applications are
designed to meet the same need. In these cases, the project which scores higher will pass this stage (exceptions can be
made for non-construction projects). Compliance is also a pass/fail criteria and refers to applicant compliance with prior
grant awards.
Stage 4 – Regional Spreading and Final Ranking
Once stage 3 has concluded, AEA staff compile a ranked list of all recommended projects. The final change in
prioritization of project recommendations is regional spreading. In consultation with the REFAC, AEA move projects in
the ranking list in order to provide greater balance in the spread of grant funds by energy region. Regional spreading
incorporates both location and the Energy Cost Burden in each region which is calculated annually.
Recommendations to the Legislature
The final recommendation to the legislature is delivered in the form of the legislative status report which is printed for
delivery to the legislature and posted on the AEA website. This report is due to the legislature within 10 business days
after the first day of the regular legislative session.
Final recommendation to the legislature may also contain specific information for each project as requested by the
legislature and a summary of each project. Applicants and/or AEA reviewers may be required to provide additional
information to the Legislature upon request.
Role of the REFAC
AEA requests and receives input from the REFAC regarding the application and evaluation process and final funding
recommendations. The REFAC is a statutorily required advisory body made up of nine members. Two members are
appointed by the Speaker of the House, two appointed by President of the Senate and the remaining five are appointed
by the Governor.