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 percent 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 2020, Alaska Seafood maintained the #1 ranking for the fifth 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 Datassential in August of 2019, 64 percent of consumers reported being more likely to order a fish/seafood dish if the Alaska Seafood logo is on the menu and 62 percent 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 current low interest rate environment and clients' needs to stabilize their debt service requirements over time has resulted in significant usage of the AIDEA Loan Participation program over the past six years. Despite continually decreasing oil prices starting in FY2015, this program has aided in expanding economic activity statewide, resulting in job and wage growth as well as steadily increasing AIDEA Revolving Fund values. Usage of the AIDEA Loan Participation program by the State's commercial lenders remained relatively flat in FY2020. This fiscal year included one quarter of economic disruption associated with the COVID-19 pandemic, however, the total amount of new loan participations funded still increased from the prior year by nearly $5 million.

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, 2020. 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 2020 125 +0.81% 151 +3.42% 11 +22.22% 45 +9.76% 162 +11.72% 5 0% 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 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 2020, AMCO continued to see a slowdown in new license applications and an increase in license transfer applications and change requests for operating establishments. However, on average 98% of applicants renew their license each year. Related links:    • https://www.commerce.alaska.gov/web/Portals/9/pub/MCB/MarijuanaApplication/MarijuanaFlowChart.pdf

Target #1: By 2025, 50 percent 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 Renewable Energy Fund (REF), a grant fund administered by AEA. The percentage of electrical need met by renewable generation has increased from 21.5 percent in 2010 to an estimated 30.0 percent in 2019. Of the renewable generation, about 90 percent is produced by hydropower and 10 percent 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. The estimated percentage of total renewable generation in 2019 was essentially flat from 2018. Total generation dropped by over one percent. 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), solar farms in Kotzebue and Deering, 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 PPF loan program to support additional projects; - Federal funding of renewable energy projects, including the Denali Commission, the Department of Energy, and 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. Change in entities monitored beginning in FY2020. 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. While these indicators still prove useful for determining the health of a community, the entities previously selected and measured since 2009 are no longer relevant. Some entities have since dissolved while new ones have incorporated. A new list of 352 entities in a total of 212 communities have been chosen to more accurately reflect the contact and assistance offered by DCRA. These include: cities and non-home rule boroughs with a population under 2,500; entities that have received Community Assistance Payments for the past three years; and Federally Recognized Tribes located within communities that are neither abandoned or with a population above 2,500. The compliance rate of the new entities for FY2020 is 79.8%. Of the seven indicators, the highest percentage of noncompliance was found within the metrics that measure lien and PERS debt compliancy with 32% and 28% noncompliant, respectively. DCRA will further examine the efficacy and reliability of these seven indicators in upcoming years considering staff's reduced resources to work with communities, accuracy of data, timeliness of information reported, community resources, and new Best Practice methodologies.

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 continuing education units and are often presented in conjunction with regional health corporations and other regional entities. In FY2020, Rural Utility Business Advisor (RUBA) staff presented additional classes in QuickBooks and Bulk Fuel Financial Management. Nine classes were taught in three different regional hubs training 151 utility management managers, elected officials and staff. The COVID-19 health crisis resulted in the cancellation of at least 3 courses, which likely would have added 50-75 participants. However, in FY2021, courses are being converted to an online format.

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 FY2020, 264 tariff filings that required RCA review were processed. All of the FY2020 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.

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 the statutorily mandated licensing and examination functions promptly 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. 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, 2020