HomeMy WebLinkAboutREF RegulationsArticle 4
Renewable Energy Grant Program
3 AAC 107.600. Purpose
The purpose of 3 AAC 107.600 - 3 AAC 107.695 is to establish procedures and criteria for grant
applications, the evaluation of applications, recommendations to the legislature for the award of grants,
and the administration of grants from the renewable energy grant fund under AS 42.45.045 .
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.605. Public purpose requirements of renewable energy grants
The authority may take actions it determines are appropriate to protect the public purpose of
renewable energy grants and the public interest in and benefit from the use of grant funds, including
(1) limiting recommendations for grants to preliminary development phases, until the authority
determines that subsequent phases are feasible, will result in sufficient benefit to the public, and are
otherwise appropriate for grants;
(2) seeking repayment of some or all of a grant if the grantee fails to comply with the terms and
conditions of the grant or, without the prior approval of the authority, sells, conveys, or encumbers a
project constructed with renewable energy grant money;
(3) requiring review and approval by the Regulatory Commission of Alaska or, if the Regulatory
Commission of Alaska does not have or exercise jurisdiction, review and approval by the authority, of
rates charged for the use of assets funded in whole or in part with a renewable energy grant and for
energy generated by those assets;
(4) determining whether an applicant that is not a governmental entity and not a utility regulated by the
Regulatory Commission of Alaska will own and operate the project in a manner that will provide
sufficient public benefit to support a recommendation under AS 42.45.045 and 3 AAC 107.600 - 3 AAC
107.695 for a grant; in making a determination under this paragraph, the authority will consider the
applicant's previous experience, its ownership and financial resources, proposed financial oversight, and
other factors relevant to the analysis of public benefit.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.610. Eligible applicants
(a) To apply for a renewable energy grant, a person must
(1) be an eligible applicant within the meaning given in AS 42.45.045 (l); and
(2) demonstrate, to the satisfaction of the authority and subject to (b) of this section, that the applicant
will
(A) own the renewable energy project;
(B) own, lease, or otherwise control the site upon which the project is located; and
(C) upon completion of the project, operate and maintain it for its economic life for the benefit of the
public.
(b) The authority may authorize conveyance of an ownership interest or of operations or maintenance
responsibilities if the authority determines that the conveyance protects the public interest in and
benefit from the grant.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.615. Eligible projects
(a) A project that meets the requirements of AS 42.45.045 (f) - (h) is eligible for a renewable energy
grant.
(b) For purposes of AS 42.45.045 (f)(2)(B), a project is a direct use of renewable energy resources if it
uses renewable energy resources to generate energy or to make a fuel used to generate energy.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.620. Public notice of application period; solicitation of grant applications
(a) The authority will provide public notice of the application period by publishing notice on the
authority's website and on the Alaska Online Public Notice System established under AS 44.62.175 .
(b) The authority will publish on its website a request for grant applications that includes the date, time,
place, and method for delivering applications, and a description of the application requirements.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.625. Grant applications
(a) An applicant must submit an application to the authority within the time specified in the request
for applications with the documentation and in the format required in the request for grant
applications. The application must include
(1) information showing to the satisfaction of the authority that the applicant is an eligible applicant
within the meaning given in AS 42.45.045 (l) and under 3 AAC 107.610;
(2) information showing to the satisfaction of the authority that the project is eligible under AS
42.45.045 (f) - (h) and 3 AAC 107.615;
(3) information showing to the satisfaction of the authority that the project is technically and
economically feasible;
(4) a description of the public benefit from the project;
(5) a description of the project scope of work, schedule, milestones, and budget; the description must
include an estimate of total project costs, the amount of grant money requested, and identification of
other money or resources that are committed to the purposes of the grant;
(6) a description of the applicant's financial resources and financial capability of developing the project,
including matching resources and other financing necessary for project development; and
(7) additional information as required in the request for grant applications or under 3 AAC 107.670.
(b) As it considers necessary to obtain complete or additional information, the authority will require
applicants, including applicants who have previously received grants for preliminary development
phases or partial grants, to submit new applications for each solicitation to which the applicants are
responding.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.630. Disclosure of applications and other materials submitted to the authority;
confidentiality
(a) A grant application and other materials submitted to the authority under AS 42.45.045 and 3 AAC
107.600 - 3 AAC 107.695 are subject to disclosure under AS 40.25.100 - 40.25.295 (Alaska Public Records
Act) and 2 AAC 96, unless the authority determines that the material is protected from disclosure under
AS 40.25.120 .
(b) A person submitting a grant application or other material under AS 42.45.045 and 3 AAC 107.600 - 3
AAC 107.695 may request that the authority keep certain information confidential. The request must
(1) clearly designate the specific information to be kept confidential; and
(2) specifically describe the basis for asserting that the information is protected from disclosure under
AS 40.25.120 ; if the person believes the information is protected as a trade secret or business
proprietary information, the description must include analysis of whether the person's commercial
privacy interest in protecting the information from disclosure outweighs the public interest in obtaining
the information.
(c) If the authority receives a public records request and determines the information requested is
protected from disclosure under AS 40.25.120 , the authority will not release the information except to
authority personnel and contractors for purposes of evaluating the person's application. If the authority
determines the information may not be protected from disclosure under AS 40.25.120 , the authority
will notify the person submitting the information, who is responsible at the person's own expense for
seeking judicial relief or taking other action necessary to protect the material from disclosure under AS
40.25.100 - 40.25.295.
History: Eff. 10/16/2009, Register 192
Authority: Art. 1, sec 22,
Ak Const
AS 40.25.110
AS 40.25.120
AS 42.45.045
AS 44.83.080
3 AAC 107.635. Acceptance of applications for consideration; eligibility review
The authority will accept for consideration, for a recommendation for a grant, each application
received on or before the deadline established in the request for applications. The authority will
determine if the application is complete, is submitted by an eligible applicant within the meaning given
in AS 42.45.045 (l) and under 3 AAC 107.610, and is for a project that is eligible under AS 42.45.045 (f) -
(h) and 3 AAC 107.615. The authority will reject applications that fail to meet those requirements, and
will notify each applicant whose application is rejected of the authority's decision.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.645. Feasibility and public benefit review of grant applications
(a) For each application not rejected under 3 AAC 107.635, the authority will perform a benefit and
feasibility review, in which the authority will review
(1) project management, development, and operations, including whether
(A) the proposed schedule is clear, realistic, and described in adequate detail;
(B) the costs and 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; and
(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, including whether
(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; and
(D) the project uses local labor and trains a local labor workforce;
(3) technical feasibility, including whether
(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; and
(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;
(ii) the need for the project is shown; and
(iii) the risks of the proposed system are reasonable and warrant demonstration; and
(4) economic feasibility and benefits, including whether
(A) the project is shown to be economically feasible;
(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; or
(C) other public benefits are demonstrated.
(b) The authority will reject applications that it determines under (a) of this section not to be technically
and economically feasible, or not to provide sufficient public benefit, and will notify each applicant
whose application is rejected of the reasons for rejection.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.650. Requests for reconsideration
(a) An applicant whose application is rejected in the eligibility review or the feasibility and public
benefit review may request that the executive director of the authority reconsider the decision of the
authority's staff to reject the application. The request for reconsideration must be in writing, including
by electronic mail, must state the basis for reconsideration, and must be received by the authority no
more than 10 days after the applicant has been provided written notice of the rejection, including notice
by electronic mail.
(b) The executive director may concur with the decision of staff and reject the application, request
additional information from the applicant before making a decision, or require further consideration of
the application under 3 AAC 107.645 or 3 AAC 107.655 if the executive director determines that the
authority erred in its rejection of the application.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.655. Evaluation of grant applications
(a) For each application not rejected under 3 AAC 107.645, the authority will perform an evaluation
for the purpose of ranking applications and making recommendations to the legislature for grants. The
evaluation criteria include
(1) the extent to which the proposed project serves an area of the state in which the average cost of
energy to each resident of the area exceeds the average cost to each resident of other areas of the
state; the authority will give the most weight to the criterion in this paragraph;
(2) the extent to which the applicant will provide matching resources for the project; the authority will
give significant weight to the criterion in this paragraph;
(3) the extent to which a grant to the project, considered with other recommended grants, achieves a
statewide balance of grant money; the authority will give significant weight to the criterion in this
paragraph;
(4) the likely economic and technical feasibility of the project; as part of its evaluation under this section,
the authority will consider the results of the review performed under 3 AAC 107.645;
(5) the public benefits of the project, including economic benefits; as part of its evaluation under this
section, the authority will consider the results of the review performed under 3 AAC 107.645;
(6) 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 the phases of the project proposed for a grant;
(9) the applicant's previous compliance with the requirements of AS 42.45.045 , 3 AAC 107.600 - 3 AAC
107.695, requests for applications, and grant agreements; and
(10) other project-specific criteria as identified in the request for applications.
(b) As a result of the evaluation under (a) of this section, the authority may recommend a grant in the
amount requested by the applicant, decline to recommend a grant for a project, or recommend a grant
in an amount or 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.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.660. Ranking of applications
(a) To establish a statewide balance of recommended projects, the authority will provide to the
advisory committee established in AS 42.45.045 (i) a statewide and regional ranking of all applications
recommended for grants.
(b) In consultation with the advisory committee established in AS 42.45.045 (i), the authority will
(1) make a final prioritized list of all recommended projects, giving significant weight to providing a
statewide balance of grant money, and taking into consideration the amount of money that may be
available, number and types of projects within each region, regional rank, and statewide rank;
(2) include in the final prioritized list any changes to the recommendations made following the
evaluation under 3 AAC 107.655; and
(3) include in the final prioritized list a list of applications that were rejected under 3 AAC 107.635 - 3
AAC 107.645.
(c) The authority will publish the final prioritized list on its website, and will provide it to the legislature
in accordance with AS 42.45.045 (d)(3). Award of a grant is subject to legislative appropriation.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.670. Additional information from applicant or grantee
(a) As it considers necessary to perform a complete review of an application or project, and at any
stage in the review, evaluation, recommendation, or award process under 3 AAC 107.600 - 3 AAC
107.695, the authority will request that an applicant or grantee provide additional information.
Requests for information may include a request for information sufficient for the authority to confirm
that an
(1) application meets the requirements of the request for applications; or
(2) applicant or grantee is willing and able to adjust the project scope and budget as required by the
authority in making a recommendation or as required by the legislature in approving a grant.
(b) If an applicant or grantee fails to provide timely or adequate information in response to a request
from the authority, the authority may reject the application, modify the authority's recommendations to
the legislature, or cancel a notice of intent to award a grant.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.675. Grant agreement
(a) As a condition for a grant under AS 42.45.045 and 3 AAC 107.600 - 3 AAC 107.695, the applicant
must sign a grant agreement that the authority prepares and that contains the terms and conditions of
the grant, including
(1) a description of the project to be financed with the grant;
(2) a project schedule; the authority may make one or more disbursements of grant money conditional
upon
(A) completion and approval by the authority of pre-construction phases of the project;
(B) the grantee demonstrating that it has site control for the project;
(C) the grantee demonstrating that it has one or more permits or authorizations required for
construction of the project;
(D) the grantee's successful completion of other activities or objectives set under the project schedule;
(3) requirements for project management;
(4) a description of allowable costs;
(5) requirements for the documentation of expenditures and procurements;
(6) procedures for making grant payments to the grantee;
(7) requirements for the grantee's accounting and reporting;
(8) requirements for the grantee's maintenance and retention of project records;
(9) hiring preferences applicable under AS 36.10.150 - 36.10.180 and 8 AAC 30.064 - 8 AAC 30.088 to the
grantee and its agents, contractors, and subcontractors;
(10) procedures for verifying the provision of the grantee's matching resources to the project; and
(11) other terms and conditions that the authority determines are appropriate to ensure the public
purpose of and maximize the public benefit from the grant.
(b) If an applicant fails to execute the grant agreement within 30 days after receiving it from the
authority, the authority may cancel a notice of intent to award the grant and may offer the grant money
to another eligible applicant, subject to appropriation and approval by the legislature.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.680. Grant closeout; return of unexpended grant money
Upon completion of the grant-financed or termination of the grant, the authority will close out the
grant and the grantee shall return to the authority any grant money and interest on grant money not
spent on project work under the terms and conditions of the grant agreement. The grant agreement
may provide that specified obligations of the grantee survive grant closeout.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.685. Project operations and maintenance reporting
For a project constructed with a renewable energy grant, the grantee shall provide to the authority
reports on project operations and maintenance for the periods and with the information that the
authority specifies in the grant agreement. The authority may require information on project operations
and maintenance activities and cost, other costs of the project, energy output, estimated fuel
displacement resulting from the energy output, discussion of operational issues, and other information
useful to the authority for its evaluation of the project and the grant. If the grantee fails to provide
information as required under this section and in the grant agreement, the authority may determine the
grantee ineligible for recommendations for future renewable energy grants or ineligible for other future
grants from the authority.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.690. Dispute resolution
A person who has a claim concerning a grant awarded under AS 42.45.045 and 3 AAC 107.600 - 3
AAC 107.695 may submit that claim in accordance with 3 AAC 108.915 - 3 AAC 108.920.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080
3 AAC 107.695. Definitions for AS 42.45.045 and 3 AAC 107.600 - 3 AAC 107.695
(a) In AS 42.45.045 ,
(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;
(2) "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.
(b) In AS 42.45.045 and 3 AAC 107.600 - 3 AAC 107.695,
(1) "matching funds" or "matching resources"
(A) means those resources that the grantee dedicates for the completion of the project;
(B) includes
(i) cash;
(ii) loan proceeds; and
(iii) grantee-provided equipment, labor, or other materials or services needed for the completion of the
project;
(2) "preliminary development phase" includes
(A) feasibility studies;
(B) reconnaissance studies;
(C) energy resource monitoring;
(D) design phases; and
(E) obtaining required permits and authorizations;
(3) "renewable energy resources" has the meaning given in AS 42.45.045 (l).
(c) In 3 AAC 107.600 - 3 AAC 107.695, unless the context requires otherwise, "grant" or "renewable
energy grant" means a grant recommended or awarded under AS 42.45.045 and 3 AAC 107.600 - 3 AAC
107.695.
History: Eff. 10/16/2009, Register 192
Authority: AS 42.45.045
AS 44.83.080