Key Performance Indicators

Department of Commerce, Community, & Economic Development

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Mission

Promote a healthy economy, strong communities, and protect consumers in Alaska. AS 44.33.020

Key Performance Indicators

• Target: By 2025, 50% of electricity generation is from renewable sources.

• Target: Reduce the number of communities (public entities) that are noncompliant with management sustainability indicators by five percent each year.

• Target: Increase the number of users trained on the Utility Management training courses.

• Target: 100 percent of tariff matters are reviewed and processed within regulatory timelines.

• Target: Manage licensure of Alaska businesses and professionals.

• Target: Charter, license or register entities and persons in regulated financial services industries.

Performance Detail

Target #1: Maintain first place ranking of Alaska Seafood among the most popular food brands on U.S. restaurant menus. Methodology: Dataessentials Research. Analysis of results and challenges: In 2019, Alaska Seafood maintained the #1 ranking for the fourth consecutive year. In 2016 Alaska Seafood, for the first time, obtained the #1 most commonly named protein brand called out on restaurant menus, surpassing Angus Beef. In another study of United States consumers conducted by Datassentials in August of 2019, 64% of consumers reported being more likely to order a fish/seafood dish if the Alaska Seafood logo is on the menu and 62% of consumers reported being more likely to order a fish/seafood dish when the word “Alaska” is on the menu.

Target #2: Issue $35 million in new loans each year. Methodology: Data is compiled from AIDEA’s Loan management and reporting system. Analysis of results and challenges: The past few years have shown steady use of the AIDEA Loan Participation program by the State’s commercial lenders. The commercial real estate market has been stable for the last several years. If oil prices remain at current levels, there is the possibility of a slowing economic environment. Decisions on the state budget deficit may also impact the commercial real estate market in the future. Lenders are currently highly liquid and the low interest rate environment is assisting in stabilizing demand. The significant increase in new loans approved during FY2019 is caused by the low interest rate environment and clients’ needs to stabilize their debt service requirements over time. This program will continue to allow the statewide business base to expand, allowing job growth and steadily increasing assessed values so long as the AIDEA Revolving Fund continues to grow apace.

Target #3: Review and authorize marijuana licenses for qualified persons and entities. Methodology: Data from the Marijuana Licensing Database, shows applications received by AMCO for the six license types through June 30, 2019. License types are further broken down by status. Applications that have been initiated by applicants but not yet submitted are not included. Active, Complete, and Delegated Marijuana Licenses by Type Fiscal Year Lmtd Cultivation Fac Std Cultivation Fac Concentrate Mfg Fac Product Mfg Fac Retail Store Testing Fac FY 2019 124 +25.25% 146 +8.96% 9 +50% 41 +51.85% 145 +62.92% 5 +25% FY 2018 99 +115.22% 134 +47.25% 6 +200% 27 +170% 89 +32.84% 4 0% FY 2017 46 +187.5% 91 +93.62% 2 0% 10 +233.33% 67 +235% 4 +100% FY 2016 16 47 2 3 20 2 Analysis of results and challenges: Under 3 AAC 306, there are six possible marijuana establishment licenses. Due to the complexity of marijuana statutes and regulations, application review is a lengthy process that often requires several contacts with the applicant regarding required corrections. The marijuana license application system is an electronic database custom created for AMCO by the DCCED information technology (IT) team. The database allows applicants to progress through statuses including new, initiated, under review, incomplete, complete, delegated, and active, as well as void, rescinded, tabled, and denied. AMCO’s website also contains application instructions and forms, detailed FAQs, board meeting dates, agenda and board packets, statutes and regulations, and the latest information for both marijuana and liquor license applicants. There are two license examiners currently assigned to the marijuana program. In 2019, AMCO began to see a slowdown in new license applications and an increase in license transfer applications and change requests for operating establishments. Related links:    • https://www.commerce.alaska.gov/web/Portals/9/pub/MCB/MarijuanaApplication/MarijuanaFlowChart.pdf

Target #1: By 2025, 50% of electricity generation is from renewable sources. Methodology: U.S. Energy Information Administration “Net Generation by State by Type of Energy Source” (EIA-906, EIA-920 and EIA-923). CY2018 is estimated. Analysis of results and challenges: Alaska’s renewable energy portfolio continues to grow steadily due in part to the impacts of the REF, a grant fund administered by AEA. The percentage of electrical need met by renewable generation has increased from 21.5% in 2010 to an estimated 31.17% in 2018 (final net generation figures for 2018 are not available from the Energy Information Administration until early 2020). Of the renewable generation, about 90% is produced by hydropower and 10% by wind power. Because so much renewable generation comes from hydropower, there are year-to-year fluctuations in overall renewable contribution based on weather. In years with little snow and low precipitation, there will be a decrease in total renewable generation with no change in installed capacity. There was a increase in the estimated percentage of total renewable generation in 2018 because of modest increases in wind and hydro production, 1% and 9% respectively, and an approximately 9% decrease in the absolute production from both oil and natural gas. Total generation dropped by almost 4%. In addition to the gains in electricity generation from renewable energy depicted in the graph above, the REF grant program has also funded renewable energy systems in rural locations whose utilities are not required to report to the Energy Information Administration. REF projects also provided gains in renewable heat energy, such as biomass and heat recovery. Heat recovery projects typically displace costly heating fuel in schools, water systems and other community facilities located in relatively close proximity to the powerhouse. Biomass projects displace heating fuel in non-residential buildings and bring energy security through local sourcing as well as job creation at the local level. Several renewable projects have been completed recently or are slated for near term construction including 900-kW wind turbines in Bethel and St. Mary’s (funded through the REF), a 563-kW solar farm in Fairbanks, a 1-MW solar farm in Willow (funded through a PPF loan), and AEA’s expansion of the Bradley Lake hydroelectric facility on the Railbelt. Increasing the percentage of electricity generated from renewable sources has been achieved by the following action items under way: • Local, regional and statewide energy planning efforts that emphasize the need for data-driven decision making and use of most cost effective, locally available resources; • REF projects; • Private capital in conjunction with REF grant money; • Additional state appropriations for renewable energy projects; • PPF loan program support of renewable energy projects; • Recapitalization of the PPF loan program to support additional projects; • Federal funding of renewable energy projects, including Denali Commission, Department of Energy, and by the United States Department of Agriculture (USDA); • Energy efficiency and conservation programs such as AEA’s Village Energy Efficiency Program (VEEP), Alaska Commercial Building Energy Audit Program, and public education and outreach activities that lower overall energy consumption, thereby increasing the percentage of power that is generated by renewables.

Target #1: Reduce the number of communities (public entities) that are noncompliant with management sustainability indicators by five percent each year. Methodology: Data from Community and Regional Affairs internal portal of Community Database On-line. Analysis of results and challenges: Public services are critical to the health and long-term viability of communities. A local government’s ability to provide adequate and sustainable public services can be accurately predicted by examining essential management indicators. DCRA gathers public entity data used by staff to conduct service assessments necessary to understand the existing level of governance and to provide any assistance necessary to them. In FY2009, the division began measuring compliance of a set number of entities using a standardized set of indicators. These indicators and compliance standards are: 1. Workers’ Compensation policy – If an entity has an active policy or not. 2. Municipal elections – If the required election was properly held and certified. 3. Financial Audits – If the required state or federal financial audits have been completed and filed. 4. Liens - If liens or judgments are filed against the entity. 5. PERS Debt - If an entity is current on their PERS payments. 6. Fuel Loans - If an entity borrowed loans for purchase of fuel and is current on its payment; and 7. Financial Documents (budgets, audits/certified financial statements) – if an entity has completed and filed these documents. The total number of non-compliant entities has decreased by 9% in FY2019. Though progress has been made in the total number of entities that are compliant, 46% of those that were non-compliant were not compliant in at least one or more of the following indicators: had active Liens or were not current with Fuel Loan or PERS Debt payments. Which could be an indicator of the entity unable to keep up with their financial obligations. The reduced resources to work with communities, accuracy of data, timeliness of information reported by agencies, community resources, and commitment to issue resolution will continue to be a challenge. Most indicators will require the entity to make changes in procedures, policies, and or staffing to rectify issues.

Target #2: Increase the number of users trained on the Utility Management training courses. Methodology: Data from Rural Utility Business Advisor (RUBA) Grant Annual Progress Report. Analysis of results and challenges: Eight 32-hour utility management courses were developed to build local capacity for operations and maintenance of local infrastructure. These courses are approved for CEUs and are often presented in conjunction with regional health corporations and other regional entities. In FY2019, Rural Utility Business Advisor (RUBA) staff presented additional classes in QuickBooks and Bulk Fuel Financial Management. Fourteen classes were taught in four different regional hubs training 215 utility management managers, elected officials and staff. Partnerships with Denali Commission and the US EPA RUBA grant helped expand the frequency and reach of instruction.

Target #1: 100 percent of tariff matters are reviewed and processed within regulatory timelines. Methodology: STAR database report “Annual Report-Disposition of Tariff Filings (v02). Analysis of results and challenges: The Regulatory Commission of Alaska (RCA) reviews tariff filings for each regulated utility and pipeline carrier. A tariff controls the conduct of business by utilities and pipeline carriers. If review of a tariff filing is not completed within the established timeline, the requested change in rules, rates, or procedure automatically goes into effect by force of law. In FY2019, 313 tariff filings that required RCA review were processed. All of the FY2019 tariff filings were reviewed within the regulatory timelines.

Target #2: Manage licensure of Alaska businesses and professionals. Methodology: DCCED, CBPL, CBP Portal. Analysis of results and challenges: Alaska benefits by increasing the number of companies and availability of competent, qualified practitioners doing business in the state. A variety of contributing factors can often cause the number of licensees to fluctuate, such as changes in competency requirements, fees, demand for the profession, economic climate, etc. In an ongoing effort to refine its processes and more accurately represent its functions, the division improved its method of calculating the number of professional licensees. Beginning in FY2012, the new method implemented includes all license activity over the course of a fiscal year and is one of the reasons the number of professional licensees increased from FY2011. In previous years, professional license numbers were calculated as a “snapshot” of one day—usually the last day of the fiscal year. Beginning in FY2017, a few additional existing transaction types totaling 3,386 licenses, exemptions, or practice plans were included in the license count to better reflect the volume of licensing activity occurring within the division. Administrative adjustments were made again in FY2019, resulting in the appearance of a slight decrease in professional licenses.

Target #3: Charter, license or register entities and persons in regulated financial services industries. Analysis of results and challenges: Continued rapid growth of the financial services challenges the division’s ability to complete timely the statutorily mandated licensing and examination functions along with taking timely enforcement actions to protect Alaskan consumers and promote safe and sound financial systems for economic growth. Significant changes in corporate structuring, financial technologies, expanded use of cryptocurrencies, and offshore management and support functions, require a sufficient number of experienced examiners to manage. Out-of-state travel for examinations and specialized training schools to keep current with industry and regulatory changes is essential to manage ongoing increases in workload. The use of online registries, the STAR database, and other tools enables the division to streamline processing and reduce the regulatory burden on licensees and applicants.

Current as of December 9, 2019