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: Due to challenges experienced by foodservice providers during the pandemic, seafood on menus declined in 2021. However, Alaska Seafood maintained strong brand recognition as the #2 top brand ranking on U.S. restaurant menus. In a 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 volatile oil prices and recent economic disruptions related to Covid-19, 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 continued to rise moderately in FY2021 and again exceeded the target of $35 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, 2021. 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 2021 132 +5.6% 154 +1.99% 16 +45.45% 44 -2.22% 173 +6.79% 5 0% 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 and staffing challenges, 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 2021, AMCO continued to process a high volume of transfer applications and operating change requests. Additionally, new applications were processed and several are awaiting for review in the AMCO queue. A marijuana license is good for one year and 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 "EIA Data Browser: Net generation for all sectors." 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 needs met by renewable generation has increased from 21 percent in 2010 to an estimated 31.0 percent in 2020. Of the renewable generation, about 90 percent is produced by hydropower, seven percent by wind power, and three percent by other renewable sources (e.g. biomass and solar). 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 relative 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. For Round 13 of the REF, 11 applications further expanding the integration of renewable generation within Alaska's statewide energy portfolio were recommended to the Legislature. All 11 applications were approved and authorized by the Legislature in September 2021. AEA is currently undergoing preparations for Round 14, to begin solicitation for applications in mid-November 2021. Increasing the percentage of electricity generated from renewable sources has been achieved by the following action items underway: - 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; - Energy efficiency and conservation programs such as AEA's Village Energy Efficiency Program, the Commercial Building Energy Audit Program, and public education and outreach activities that lower overall energy consumption, thereby increasing the percentage of power generated by renewables. - The addition of the West Fork Upper Battle Creek Diversion to Bradley Lake has increased renewables on the Railbelt by 37,000 megawatt-hours, which is equivalent to the annual electrical usage of approximately 5,000 homes.

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. Liens - If liens or judgments are filed against the entity. 4. Fuel Loans - If an entity borrowed loans for purchase of fuel and is current on its payment; and 5. Financial Documents (budgets, audits/certified financial statements) - if an entity has completed and filed these documents. DCRA has thoroughly reviewed the indicators used in previous performance metrics and has determined that two of the seven indicators no longer prove to be a reliable metric for community success and are no longer needed as a condition for construction grant funding. These two indicators include Financial Audits and PERS Debt. Financial Audits, which are tracked by the Department of Administration, ensure that any required state or federal audits have been completed and filed. In recent years, less than 6% of entities tracked have been noncompliant in this metric. Further, DCRA's Financial Assistance service ensures that all audits are completed, if applicable for certain state or federal grants. The successful percentage of grant appropriations fully extended will include compliant entities, proof that metric 4A. Target 1 is a better indicator for this particular metric. PERS Debt, which is also tracked by the Department of Administration, determines if an entity is current on their PERS payments. As with Financial Audits, less than 15% of entities tracked have been noncompliant in this metric in recent years. This metric does not hinder the receipt of grants, and the metric of liens compliancy is a much stronger indicator of management sustainability. DCRA will no longer track these metrics. The compliance rate of the 352 entities for the five remaining indicators for FY2021 is 80.9%. Of the five indicators, the highest percentage of noncompliance was found within the financial documents metric with 13.3% non-compliant. This metric indicates whether a community is filing their budgets and audits in a timely manner, which can affect their Community Assistance Payments. Of the 67 non-compliant entities, one entity was noncompliant in three different metrics; nine were noncompliant in two metrics; and the remaining 57 were noncompliant in one metric.

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 often presented in conjunction with regional health corporations and other regional entities. The COVID-19 health crisis resulted in the cancellation of most in-person courses in FY2020 and FY2021. However, in FY2021 four courses were converted to an online format allowing utility management managers, elected officials, and staff to engage remotely. Four utility QuickBooks classes were taught online, for a total of 48 participants representing 31 communities around the state. A total of 150 students were taught in FY2021 through online and in-person trainings.

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 FY2021, 231 tariff filings that required RCA review were processed. All of the FY2021 tariff filings were reviewed within the statutory and 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. The increase in demand for health care workers due to COVID-19, as well as the discontinuation of business license fees in FY2021 due to the pandemic, contributed to the dramatic increase in both types of 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 industries regulated challenges the division's ability to promptly complete statutorily-mandated licensing and examination functions. This continued growth also challenges the division's ability to take timely enforcement actions, which protect Alaskan consumers and promote safe and sound financial systems and economic growth. The division requires a sufficient number of experienced examiners in order to manage significant changes in the industries' corporate structures, financial technologies, expanded use of cryptocurrencies, and offshore management and support functions. 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 16, 2021