[Federal Register: December 5, 2008 (Volume 73, Number 235)]
[Notices]
[Page 74152-74159]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05de08-60]
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DENALI COMMISSION
Fiscal Year 2009 Draft Work Plan
AGENCY: Denali Commission.
ACTION: Denali Commission Fiscal Year 2009 Draft Work Plan request for
comments.
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SUMMARY: The Denali Commission (Commission) is an independent Federal
agency based on an innovative federal-state partnership designed to
provide critical utilities, infrastructure and support for economic
development and training in Alaska by delivering federal services in
the most cost-effective manner possible. The Commission was created in
1998 with passage of the October 21, 1998 Denali Commission Act (Act)
(Title III of Pub. L. 105-277, 42 U.S.C. 3121). The Denali Commission
Act requires that the Commission develop proposed work plans for future
spending and that the annual Work Plan be published in the Federal
Register, providing an opportunity for a 30-day period of public review
and written comment. This Federal Register notice serves to announce
the 30-day opportunity for public comment on the Denali Commission
Draft Work Plan for Federal Fiscal Year 2009.
DATES: Comments and related material must be received by January 15,
2009.
ADDRESSES: Submit comments to the Denali Commission, Attention: Tessa
Rinner, 510 L Street, Suite 410, Anchorage, AK 99501.
FOR FURTHER INFORMATION CONTACT: Ms. Tessa Rinner, Denali Commission,
510 L Street, Suite 410, Anchorage, AK 99501. Telephone: (907) 271-
1414. E-mail: trinner@denali.gov.
Introduction: Rural Alaska is an American treasure. Scattered
across vast tundra, tucked away along rugged coastlines and forests and
deep within Alaska's Interior, people living in over 300 communities
raise families, educate their children, and work to provide
opportunities for all. Alaska Native people rely heavily on subsistence
hunting, fishing and gathering as a central part of both culture and
economic sustenance. Values of sharing, love of family and country and
traditional cultures run deep.
Rural Alaska still resembles the United States at the time of Lewis
& Clark. Major rivers are undammed, unbridged and lack even basic
navigational aids. Many health and social indicators still resemble
those in developing countries.
No where else in our country can people live amidst wilderness,
largely disconnected from highway and road connections and from
regional power grids. Here, resilience and innovation are required both
to survive and thrive. Reliance on air and river transportation is
essential for everyday living. And where else in the country would
women, in their third trimester of pregnancy, be required to fly into a
regional center and wait to have their babies safely delivered, given
the lack of local medical facilities?
The Denali Commission has now invested nearly a billion dollars in
ten years on basic infrastructure projects at the local level. We know
lives have been improved through greater access to primary health care,
through safe and reliable energy projects, through job training
programs, sanitation and landfill improvements and basic surface and
water transportation improvements. We know the taxpayer benefits from
an emphasis on coordinating the planning, construction and delivery of
capital projects and through a focus on sustainability.
We see innovation everywhere. The regional corporations formed by
the Alaska Native Claims Settlement Act, for example, are becoming
economic powerhouses in their own rights. Major investments in private-
sector anchors in each region complement the Commission's work in basic
community infrastructure. Many regional non-profit corporations provide
an array of effective health and social services. The Alaska
Marketplace competition, now in its fourth year, proves again that
local people have great ideas and with a small infusion of capital and
technical assistance, have real potential for making positive and
lasting change. The Community Development Quota program, for example,
offers opportunities for residents in over 60 coastal communities to
benefit directly from offshore fishing revenues.
We are buoyed by the sense of progress over the last ten years, at
the resurgence of traditional culture, by the progress in celebrating
diversity at all levels and by the awareness among leaders to reduce
dependency on government and eliminate social ills that seem to come
with long winters and isolation found in northern countries. We take
delight in working with many progressive and innovative partners, grant
recipients and local champions whose leadership and inspiration is
critical for village survivability.
We are alarmed, however, at the recent convergence of several
issues which threaten the survival of many Alaskan communities and
provide urgent impetus for the Commission to improve our investment
strategies. These issues include the impacts of climate change,
unpredictable and unaffordable energy costs at the village level, the
expectation of declining federal revenues to support rural investment
in Alaska, evidence of out-migration from many small communities into
larger regional centers and urban areas such as Anchorage, and the
urgent need to find regional and systemic solutions to bolster long-
term community viability. The global financial crisis will also strain
an already thin social service delivery system and bring other
consequences yet unseen.
The following are some of the critical issues which frame the
debate over the Denali Commission's FY09 Work Plan:
Climate Change
Evidence is now overwhelming that climate change is impacting
Alaska and the north faster than elsewhere in the nation. Temperatures
have been rising, plant and animal species have been moving north, and
permafrost is melting, resulting in major challenges for all
infrastructure programs. Denali Commission funded wind turbines for
example, are major engineering challenges for successfully placing a
vertical wind tower in a permafrost setting. The Denali Commission is
committed to participating fully with the State of Alaska, the U.S.
Corps of Engineers and other partners in a coordinated approach to
policy formulation and the execution of adaptation measures for climate
change.
The most immediate challenge is the urgent need to protect and
relocate many coastal communities impacted by the lack of sea ice, the
repetition of major storm events, flooding and erosion of coastlines.
While Congress provides no funds to the Commission to support
relocation efforts, we coordinate closely with other agencies and
tribes.
[[Page 74153]]
Our interagency Planning Work Group, for example, oversees relocation
efforts in several communities, and the Commission funded a relocation
community plan last year.
Unaffordable Energy at the Local Level
We recognize the urgent need to find breakthrough solutions to the
widespread unaffordable energy costs in Alaska's rural communities. One
study reveals that rural residents earning the lowest 20% of income
spend almost half that income on home heating and electricity.
While the Commission's energy strategy remains a combination of
completing bulk fuel and power system upgrades, an emphasis on
conservation and energy efficiency projects and renewable energy, we
continue to look for breakthrough solutions that can be replicated.
We'll also focus on pursuing regional grids that can reduce the need
for stand-alone generation in Alaska's small villages. We remain a
strong partner as the State of Alaska prepares an overall Energy Plan
for submission to the Alaska State Legislature this session.
Green Building Design and Construction Cost Containment
High construction costs in rural Alaska result from a combination
of vast distances, harsh climates and the rising cost of construction
materials. We are committed to carrying out innovative, cost-effective
and creative design and construction solutions. This year we anticipate
engaging in more diverse and experimental partnerships, and we'll be
seeking more innovative design, construction and program and project
management practices. We may enhance our normal project scopes to allow
for greater energy efficiencies. We anticipate undertaking several
pilot projects focusing on green design, cost containment and the
combined use of facility activities.
A Focus on Community, Regional Planning and Government Coordination
The Commission is committed to a greater emphasis on community and
regional planning to ensure long-term viability of our infrastructure
investments. Last year, we worked with the State of Alaska, for example
to help reopen a tribal clinic that had closed its doors for lack of
capacity. This may be the first instance of a Denali Commission project
which had suspended service. Through our efforts in government
coordination, we work to ensure our projects fit within a framework of
a local and regional plan, and are designed, sized and placed in the
most optimum locations and setting for long-term success.
Background: The Commission's mission is to partner with tribal,
federal, state, and local governments and collaborate with all Alaskans
to improve the effectiveness and efficiency of government services, to
develop a well-trained labor force employed in a diversified and
sustainable economy, and to build and ensure the operation and
maintenance of Alaska's basic infrastructure.
By creating the Commission, Congress mandated that all parties
involved partner together to find new and innovative solutions to the
unique infrastructure and economic development challenges in America's
most remote communities.
Pursuant to the Denali Commission Act, as amended, the Commission
determines its own basic operating principles and funding criteria on
an annual federal fiscal year (October 1 to September 30) basis. The
Commission outlines these priorities and funding recommendations in an
annual Work Plan.
Pursuant to the Act, the Work Plan is first provided in draft by
the Commission for publication in the Federal Register providing an
opportunity for a 30-day period of public review and written comment.
The Work Plan is also disseminated widely to Commission program
partners including, but not limited to the Bureau of Indian Affairs
(BIA), the Economic Development Administration (EDA), and the United
States Department of Agriculture--Rural Development (USDA-RD).
Commission staff are responsible for compiling written public comment
and forwarding it to the Commission's Federal Co-Chair (Mr. George J.
Cannelos).
The Federal Co-Chair then adopts a final version of the Work Plan,
which includes, to the degree the Federal Co-Chair deems appropriate,
modifications, additions and deletions based on the policy and program
recommendations of the full Commission and public comment. The final
version of the Work Plan is forwarded to the Secretary of Commerce for
approval on behalf of the Federal Co-Chair.
The Work Plan authorizes the Federal Co-Chair to enter into grant
agreements, award grants and contracts and obligate the federal funds
identified by appropriation below.
FY 09 Appropriations Summary
Public Law 110-329, Consolidated Security, Disaster Assistance, and
Continuing Appropriations Act, 2009, was signed by President Bush on
September 30, 2008. The Continuing Resolution section of that law
provides for Fiscal Year (FY) 2009 funding for named agencies at the
same levels utilized in the first two quarters of FY 2008 (October 1,
2007 to March 31, 2008), through to March 6, 2009.
Since a new Administration will take office in January 2009, it is
unknown at this time if there will be a new budget presented to
Congress, or if this Continuing Resolution will be extended to
September 2009 or modified in some other way. For the Commission, this
may result in budgetary resources as high as $113,879,591 for FY 2009.
If FY 2009 congressional appropriations are significantly different
from the amounts in this Work Plan the Commission will develop an
alternate Work Plan for FY 2009.
The Denali Commission has historically received several federal
funding sources. These fund sources are governed by the following
general principles:
In FY 2008 no project specific earmarks were defined.
Energy and Water Appropriations (commonly referred to as
Commission ``Base'' funding) is eligible for use in all programs, but
has historically been used substantively to fund the Energy Program.
The Energy Policy Act of 2005 established new authorities
for the Commission's Energy Program, with an emphasis on renewable and
alternative energy projects. No new funding accompanied the Energy
Policy Act, and prior fiscal year Congressional direction has indicated
that the Commission should fund renewable and alternative Energy
Program activities from the available ``Base'' appropriation.
All other funds outlined below may be used only for the
specific program area and may not be used across programs. For
instance, Health Resources and Services Administration (HRSA) funding,
which is appropriated for the Health Facilities Program, may not fund
the Economic Development Program.
Final transportation funds received are typically slightly reduced
due to agency modifications, reductions and fees determined by the U.S.
Department of Transportation.
The figures appearing in the table below include an administrative
deduction of 5%, which constitutes the Commission's 5% overhead. In
instances where the overhead differs from the 5% it is due to the
requirements related to that appropriation. For example, USDA-Rural
Utilities Services (RUS) funding is limited to 4% overhead.
[[Page 74154]]
The table below provides the following information, by
appropriation:
Total FY 09 Budgetary Resources provided in the Continuing
Resolution:
These are the figures that appear in the rows entitled ``FY 09
Appropriation'' and are the original appropriation amounts which do not
include Commission overhead deductions. These appropriations are
identified by their source name (i.e., ``Energy and Water
Appropriation; USDA, Rural Utilities Service, etc.)
Total FY 09 Program Available Funding:
These are the figures that appear in the rows entitled ``FY 09
Appropriations--Program Available'' and are the amounts of funding
available for program(s) activities after Commission overhead has been
deducted.
Program Funding:
These are the figures that appear in the rows entitled with the
specific Program and Sub-Program area, and are the amounts of funding
the Draft FY09 Work Plan recommends, within each appropriation.
Subtotal of Program Funding:
These are the figures that appear in the rows entitled ``subtotal''
and are the subtotals of all program funding within a given
appropriation. The subtotal must always equal the Total FY 09 Program
Available Funding.
Denali Commission FY 09 Appropriations Funding Table
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FY 09 Energy & Water Appropriation................ $21,800,000
FY 09 Energy & Water Appropriations (``Base'')-- 20,511,620
Program Available (less 5% Commission overhead)..
Energy Program: bulk fuel, RPSU, etc.............. 10,750,000
Energy Program: alternative & renewable energy.... (up to) 4,261,620
Teacher Housing Program: design & construction.... 4,750,000
Economic Development Program: various............. 500,000
Recruitment and Retention of Health Workers....... (up to) 250,000
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sub-total..................................... 20,511,620
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FY 09 USDA--Rural Utilities Service (RUS)......... 10,000,000
FY 09 USDA--Rural Utilities Service (RUS)--Program 9,600,000
Available (less 4% overhead).....................
Energy Program: high energy cost communities...... 9,600,000
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sub-total $................................... 9,600,000
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FY 09 Trans Alaska Pipeline Liability (TAPL) Trust 5,830,940
FY 09 Trans Alaska Pipeline Liability (TAPL)-- 5,539,393
Program Available (less 5% overhead)--Estimate...
Energy Program: bulk fuel......................... 5,539,393
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sub-total $................................... 5,539,393
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FY 09 DHHS--Health Resources & Services 38,596,726
Administration (HRSA)............................
FY 09 DHHS--Health Resources & Services 36,666,889
Administration (HRSA)--Program Available (less 5%
Commission overhead).............................
Health Program: Primary Care Clinic Design, 29,000,000
Planning, and Construction.......................
Health Program: Behavioral Health................. 2,000,000
Health Program: Primary Care in Hospitals......... 3,000,000
Health Program: Elder Housing/Assisted Living 2,666,889
Facilities--Construction.........................
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sub-total $................................... 36,666,889
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FY 09 Department of Labor (DOL)................... 6,754,894
FY 09 Department of Labor (DOL)--Program Available 6,417,149
(less 5% Commission overhead)....................
Training Program: Various......................... 6,417,149
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sub-total $................................... 6,417,149
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FY 09 Federal Transportation Administration (FTA)-- 5,000,000
Estimate.........................................
FY 09 Federal Highway Administration (FHWA)-- 25,463,091
Estimate.........................................
FY 09 Transportation (less 5% Commission 28,939,936
overhead)--Estimate..............................
Transportation Program: Docks & Harbors........... 8,804,686
Transportation Program: Roads..................... 20,135,250
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sub-total $................................... 28,939,936
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FY 09 USDA--Solid Waste........................... 433,940
FY 09 USDA--Solid Waste--Program Available (less 412,243
5% Commission overhead)..........................
Solid Waste Program: planning, design and 412,243
construction.....................................
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sub-total $................................... 412,243
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Total FY 09 Appropriations--Estimate...... 113,879,591
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Total FY 09 Program Available--Estimate... 107,987,230
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[[Page 74155]]
FY 09 Program Details and General Information
The following section provides narrative discussion, by each of the
Commission Programs identified for FY 08 funding in the table above, in
the following categories:
Program History and Approach
Applicant/Grant Process
Program Project Selection Process
Program Policy Issues (as applicable)
In addition to the FY 09 funded program activities; the first
section of the narrative provides an update on the Commission's
Government Coordination Program. The Program is not funded by
Commission appropriations, but is an integral component of the
Commission's mission, the success of other programs, and the legacy of
the Commission's work in Alaska.
The final section includes a general summary of other issues facing
the Commission, statements of support by the Commission for the funding
requests and activities of other program partners which the Commission
works in partnership with, and detail regarding the Commission's
evaluation and reporting efforts.
Government Coordination
The Commission is charged with the special role of increasing the
effectiveness of government programs by acting as a catalyst to
coordinate the many federal and state programs that serve Alaska. In
FY09 the Commission will continue its role of coordinating State and
Federal agencies and other partner organizations to accomplish its
overall mission of developing Alaska's communities. Particular focus
will be given to the collaborative efforts of the Commission's Federal
and State Memorandum of Understanding (MOU) and the various workgroups
and planning sessions and forums that occur as a result of the MOU
meetings. The Commission intends to engage, along with MOU members, in
at least two regional forums in FY09. These sessions will be regionally
focused, and will provide regional partners and community members with
an opportunity to discuss projects successes, failures and
opportunities, and provide direct feedback to the Commission and other
funding organizations regarding their policies and funding processes.
Additionally, the Commission continues to recognize the issues
related to erosion, relocation and climate change which are effecting
Alaskan communities and policy decisions. The Commission plays an
active role in the Immediate Action Working Group and has also worked
to build relationships with the Innovative Readiness Training (IRT)
program which includes the various military branches.
Energy Program
The Energy Program is the Commission's oldest program and is often
identified, along with the Health Program, as a ``legacy'' program. The
Program focuses on bulk fuel facilities (BFU) and rural power system
upgrades/power generation (RPSU) across Alaska. The purpose of this
program is to provide code-compliant bulk fuel storage and
electrification throughout rural Alaska, especially for communities
``off the grid'' and not accessible by road or rail.
The needs in the bulk fuel and power generation projects are
presently estimated at $250 million and $135 million, respectively. The
Commission has also funded a very successful program of competitively
selected energy cost reduction and alternative energy projects. In
three completed rounds of funding, approximately $6 million in grant
funds have leveraged $8.1 million in participant funding, with
estimated life-cycle cost savings (generally diesel fuel avoided over
the life of the project) of $29 million.
The Energy Policy Act of 2005 established new authorities for the
Commissions Energy Program, with an emphasis on alternative and
renewable energy projects, energy transmission, including interties,
and fuel transportation systems. Although the 2005 Energy Policy Act
did not include specific appropriations, the Commission is expected to
carry out the intent of the Act through a portion of its ``Base''
funding. To date, the Commission has co-funded a number of renewable
projects, including hydroelectric facilities, a geothermal power plant,
a biomass boiler, and a number of diesel-wind power generation systems.
The FY09 Work Plan outlines a strategy to balance the Energy Program in
both legacy and renewable systems, providing up to $4,261,620 for
alternative and renewable projects. About 94% of electricity in rural
communities which receive Power Cost Equalization (PCE) payments is
produced by diesel and about half the fuel storage in most villages is
used for the power plants. Any alternative means of generating power
can reduce the capacity needed for fuel storage. This reduces capital
costs and operations and maintenance (O&M) and repair and renovation
(R&R) costs for fuel storage facilities and may reduce the cost of
power to the community.
The Energy Program has historically used a ``universe of need''
model to determine project and program funding. Specifically, the
Program is focused on using the existing statewide deficiency lists of
bulk fuel facilities and power generation/distribution systems to
prioritize project funding decisions. A program partnership model is
utilized for project management and partners are actively involved in
the design and construction of projects. Partners coordinate project
funding requests with the Commission to balance the relative priority
or urgency of bulk fuel and power generation needs against available
funding, readiness of individual communities and project participants
for the project(s), and capacity of the partners to carry out the work.
Communities are identified by partners and through the deficiency list
process. Legacy program (RPSU, bulk fuel and intertie) projects are
selected and reviewed by Commission staff and program partners. Thus, a
renewable project sometimes is proposed in conjunction with a
deficiency list project to reduce the dependence on diesel fuel, and
the concomitant fuel storage requirements. So too, an intertie, can
remove the need for a new power plant, and reduce fuel storage
requirements in the intertied communities. Therefore, the legacy
program may also include these types of energy infrastructure. Each
community and project must be evaluated holistically. Program partners
also perform initial due diligence and Denali Commission's Investment
Guidance screenings, as well as assisting in development of the
business plans for the participants as the designs are underway. The
Program is dynamic: Priorities fluctuate throughout the year based on
design decisions, due diligence and investment guidance considerations,
site availability, the timing of funding decisions, etc.
In 2008 the Commission completed a study on intertie/transmission
lines between communities, regions and statewide. The study summarized
the vast amount of research, planning and studies that have occurred to
date and identified the policy and economic considerations for
investment in intertie infrastructure. The program will continue to
support projects where connections via intertie are feasible. The
program will also be further defining the role of the Denali Commission
in intertie planning, development and execution statewide as
recommended in the study.
[[Page 74156]]
Health Facilities Program
The Denali Commission Act was amended in 1999 to provide for the,
``planning, constructing and equipping of health facilities.'' Since
1999, the Health Facilities Program has been methodically investing in
the planning, design and construction of primary care clinics across
Alaska.
Primary care clinics have remained the ``legacy'' priority for the
Program. However, in 2003 the ``Other Than'' primary care component of
the Program was adopted in response to Congressional direction to fund
a mix of other health and social service related facility needs. Over
time, the Program has developed Program sub-areas such as Behavioral
Health Facilities, Domestic Violence Facilities, Elder Housing, Primary
Care in Hospitals, Emergency Medical Services Equipment and Hospital
Designs. The FY09 Draft Work Plan emphasizes the priority of the
Primary Care Clinic Program as the legacy program area, with the
majority of funding dedicated to clinics. Under the scenario in which
the Commission receives apportioned funds in advance of appropriations
under a Continuing Resolution, staff recommends these funds be
dedicated solely to the clinic program.
The Program utilizes a ``universe of need'' model for primary care
and a competitive selection process for other sub-program areas. In
1999 the Program created a deficiency list for primary care clinics,
which totaled 288 communities statewide in need of clinic replacement,
expansion and/or renovation. Currently, 110 clinics have been completed
or are in construction and approximately 40 are in design.
The Program is guided by the Health Steering Committee, an advisory
body comprised of the following membership organizations: The State of
Alaska, Alaska Primary Care Association, the Alaska Native Tribal
Health Consortium, the Alaska Mental Health Trust Authority, the Alaska
Native Health Board, the Indian Health Service, the Alaska State
Hospital and Nursing Home Association, and the University of Alaska.
Projects are recommended for funding by Commission staff if they
demonstrate project readiness, which includes the completion of all due
diligence requirements. This includes an approved business plan,
community plan, site plan checklist, completed 100% design,
documentation of cost share match, and realistic ability to move the
project forward in a given construction season.
In addition to construction challenges, the health program has
indicated that a major sustainability risk to health projects is
workforce recruitment and retention. Recommendations on this challenge
are made in the ``Other Issues'' section of the Work Plan.
Additionally, the Health Program is committed to assisting in the
discussion regarding access to primary care facilities and services for
veterans. The Health Steering Committee will engage in discussions
about this issue during FY 09.
Training Program
In a majority of rural communities unemployment rates exceed 50%
and personal capita income rates are over 50% below the national
average. When job opportunities in rural Alaska do become available,
rural residents often lack the skills, licensing and certifications
necessary to compete and often lose those jobs to people from outside
the community, region or even state. With the limited number of jobs
available, the Commission believes it is imperative to ensure that
local residents have the skills and essential certifications necessary
to work on the construction of projects funded by the Denali
Commission. Through the Training Program, the Commission builds
sustainability into their investments by providing training for the
long term management, operations and maintenance of these facilities
and thus increasing local capacity and employment.
The Training Program's mission is to build a community's capacity
through training and increase the employment and wages of unemployed or
underemployed Alaskans. The Training Program's primary purpose is to
support the Commission's investment by providing training for the
careers related to the Commission infrastructure programs (such as
Energy and Health Facilities).
The Training Program is also guided by the following principles:
Priority on training for Denali Commission infrastructure,
projects and priorities
Training will be tied to a job
Training for construction, operations and maintenance for
other public infrastructure
Training will encourage careers not short term employment
Each year, the Commission dedicates training funds to careers
associated with infrastructure development and long-term sustainability
in rural Alaska. The Commission has funded construction, operations and
maintenance training in communities statewide with large success.
The Commission anticipates that the general priority areas of
construction, operations and maintenance of Commission Projects;
management training for Commission Projects; youth initiatives that
support employability skills; and construction, operations and
maintenance training of ``other public infrastructure'' will continue
to be funded in FY09. These projects are selected through a competitive
Request for Grant Application (RGA) process with partners, and at the
recommendation of Commission staff, and policy guidance and priority
areas for funding are set by the Training Advisory Committee (TrAC).
In 2008, the TrAC recommended several new initiatives for the FY09
Work Plan. These new initiatives are explained in the following
paragraphs.
The Commission and the TrAC recognize the threat of out migration
due to high costs of living and joblessness in Alaska communities. For
this reason, the Training Program recommends expanding its priorities
to include ``Funding `other' training that contributes to the
survivability of a community''. However, funding for these projects
will be facilitated through the RGA competitive process and funding
will be substantially less than the other priority areas.
The Commission and TrAC support regional employment and training
entities and recommend a shift of workforce development ownership and
responsibility in that direction. These local training entities know
first-hand the workforce needs and challenges and resources available.
The TrAC recommended that funding be directed to Regional Training
Centers/Campuses, Community Development Groups (CDQ), Regional Health
Corporations and rural Job Centers for training related to Denali
Commission investments.
Historically the Commission has provided funding directly to
organizations that are able to deliver results in the priority areas as
described above. These organizations have typically been selected by
the Commission directly or through competitive requests for proposals
managed by partner organizations. This process is recommended to
continue in the FY09 Work Plan.
Transportation
Section 309 of the Denali Commission Act 1998 (amended), created
the Commission's Transportation Program, including the Transportation
Advisory Committee. The advisory committee is composed of nine members
appointed
[[Page 74157]]
by the Governor of the State of Alaska including the Chairman of the
Denali Commission; four members who represent existing regional native
corporations, native nonprofit entities, or tribal governments,
including one member who is a civil engineer; and four members who
represent rural Alaska regions or villages, including one member who is
a civil engineer.
The Transportation Program addresses two areas of rural Alaska
transportation infrastructure, roads and waterfront development. There
is a solid base of 114 projects underway, with the FY09 project
nomination and selection process likely to add another 15 to 20
projects. Up to 10 projects currently in the design phase in the
Commission program will also move to construction in FY09.
There is a consensus amongst agencies and communities that the
Transportation Program is successfully addressing improvements to local
and regional transportation systems. This is largely a function of the
Transportation Advisory Committee's success at project selection and
monitoring, and the success of the program's project development
agencies.
The program is generally a competitively-bid contractor or
materials-based system grounded in Title 23 CFR. These strict project
development and construction rules have presented some challenges to
the Denali Commission's ability to respond quickly to targets of
opportunity, but they have also had the positive effect of ensuring
project design and construction is executed at a professional level.
The program operates under a reimbursable payment system that requires
local and state sponsors pay close attention to accounting procedures
prior to their payments to contractors and vendors. This system helps
ensure project payments are eligible when submitted to the Commission.
Four important trends are emerging as the program enters its fourth
year of operations:
Fewer project partners, with fully developed project
development capabilities
Narrowing focus on core project types
Commission's use of State of Alaska General Funds to match
Title 23 CFR funds
Preparation for federal highway reauthorization
legislation
Project Partners
As the transportation program began its work in FY 2006, the
Commission, responding to local and regional interests sought to
encourage local sponsor project development through tribal governments
and regional non profits, cities and boroughs, as well as traditional
state and federal transportation agencies.
Through experience, the level of project management oversight
needed for small cities and tribes to succeed in the Title 23 CFR
environment is not sustainable under the limited personnel resources
available to the Commission. Therefore, partnerships with state and
federal transportation agencies will increasingly become the
Commission's primary project development partners; they have the level
of expertise and resources needed to successfully execute project
development.
Core Project Types
As the transportation program got underway in FY06, a wide array of
rural transportation projects was undertaken. As the road program has
evolved under the guidance of the Transportation Advisory Committee,
the original emphasis on local street improvements has been confirmed.
Local street improvements in villages, including board roads in tundra
communities are a necessary focus area. While a mix of projects is
still likely, it is clear that local roads, sometimes including access
between communities and/or access to local resources, including gravel
and rock, will increasingly become the focus of the road program.
In the waterfront development program, there will continue to be
limited contributions to major small boat harbor projects and regional
port developments. In these cases, the Commission is often providing
needed funds in the range of $500,000-1,000,000 for projects with other
fund sources in the range of $4,000,000-12,000,000. There is currently
an array of these successful projects underway and it is expected that
there will continue to be a mix of these projects in the program.
However, the program will specifically increase its focus on barge
landings at rural communities. These projects range from a couple of
mooring piling to secure a barge, to small dock structures, depending
on community size and barge operation characteristics. The value of
these structures lies in improved fuel/freight transfer operations and
improved worker and environmental safety. The Commission and U.S. Army
Corps of Engineers have prepared a barge landing analysis that under
review at this time, with the final report due in December 2008. This
work has turned out to be an excellent analysis of barge operation
needs and it is forming the basis of a design and construction program.
The universe of need for the first generation of projects is in the
range of $40,000,000.
For both road and waterfront development projects, a continuing
planning effort, especially through regional tribal non-profits like
Kawerak, Inc. and the Alaska Village Council Presidents, will provide
valuable information on future program needs.
State General Fund Match
Federal Highway Authority (FHWA) and Federal Transit Administration
(FTA) funds require a match of 9-20%. As the program got underway in FY
2006, it became apparent that the need to provide match funds severely
limited the types of projects the Commission could undertake.
In FY 2007, the state legislature, with information from the
Commission and guidance from Alaska Department of Transportation and
Public Facilities (DOT&PF) leadership at that time, appropriated
$4,500,000 to DOT&PF for the purpose of providing match funds to
Commission projects. This appropriation has been critical to the
success of the Commission's effort to address local street and barge
landing projects where the need is great, but the community resources
to provide sometimes substantial match is often limited.
Using a quarterly report/request method, the Commission provides a
list of projects underway to DOT&PF. Upon approval, DOT&PF transfers
funds to an account at the Commission, which is subsequently assigned
to selected projects. Again, this single action by the State of Alaska
has been critical to being able to provide transportation improvements
to smaller communities.
There are currently informal discussions with DOT&PF regarding the
potential for a separate appropriation to provide for joint funding
between the Commission and DOT&PF for state-owned rural roads. This may
be an opportunity to expand what has been a successful program of
upgrading and surfacing DOT&PF roads in small communities like
Cantwell, Eagle, Circle and Tanana.
Highway Legislation Reauthorization
The Safe, Accountable, Flexible, Efficient Transportation Act: A
Legacy for Users (SAFETEA-LU) expires at the end of FY 2009. Due to
significant transportation policy and program discussions underway in
Congress, it is likely that continuing resolutions will fund existing
programs at FY08 or FY09 levels for at least FY10 and likely FY11.
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In the meantime, the Commission is working with FHWA and FTA to
provide information regarding the emerging focus on local roads and
barge landing projects. Both agencies recognize that the Commission's
transportation program is addressing these categories of projects in a
systematic and statewide manner. There also appears to be a consensus
that it is appropriate to try to address these program elements
directly in new highway funding legislation. Other efforts to address
more efficient funding transfers between the Commission and Western
Federal Lands Highway Division (WFLHD) are also underway.
Solid Waste
The goal of the solid waste program at the Denali Commission is to
provide funding to address deficiencies in solid waste disposal sites
which threaten to contaminate rural drinking water supplies. Solid
waste handling and disposal is one of the most under-served arenas in
the context of rural Alaska's environmental and public health.
The program employs a competitive RFP process to select and
identify projects, and has utilized a multidisciplinary review panel to
ensure that projects meet all Denali Commission due diligence and
policy requirements. The Commission intends to utilize this same
process for selection of FY09 projects.
The Rural Alaska Community Action Program is a program partner with
the Denali Commission Solid Waste Program. The program also coordinates
with USDA Rural Development's Water and Environmental Program and the
U.S. Environmental Protection Agency.
Teacher Housing
Teaching in rural Alaska can be one of the most rewarding and
challenging professions. A critical issue for rural teachers is finding
safe, affordable housing during the school year. Housing availability
varies by community from newer adequate homes, to old housing units
with multiple safety and structural problems, to a lack of enough
available housing, requiring teachers to double-up or even live in the
school.
Teacher turnover rates are high in rural Alaska, with many teachers
citing unavailable or inadequate housing as a factor in their decision
to move. The quality of education received by students is impacted by
teacher retention. By improving the availability and quality of housing
for teachers, the Commission strives to also increase the quality of
education received by the next generation of Alaskans.
In FY04, Congress directed the Commission to address the teacher
housing needs in rural Alaska. The Commission launched a statewide
survey of 51 school districts and rural education attendance areas to
identify and prioritize the teacher housing needs throughout the state.
Urban districts in Anchorage, Fairbanks, Mat-Su and Juneau were not
included in the survey.
The Commission utilizes a program partnership model to implement
the teacher housing program. An annual RFP process identifies eligible
projects and other funding sources, such as debt service, available to
fill the gap between the project's capacity to carry debt and the total
development cost of the project. Acquisition, rehabilitation, new
construction, and multi-site rehabilitation are eligible development
activities under this program.
In FY09 the Commission will expand its teacher housing program to
include housing for health care professionals. This change will be
administered through the Commission's program partner, the Alaska
Housing Finance Corporation (AHFC), and its Greater Opportunity for
Affordable Living (GOAL) process. This expansion shall include the
following provider types: mid-level providers, nurses, mental and
dental health specialists and health aides.
Economic Development
Since its earliest days as a territory of the United States, Alaska
has contributed to the economy of America, largely through supply of
raw materials or partially processed products. Now Alaska's abundant
natural resources, from fossil fuel and mineral products to timber and
fish, must compete in the global marketplace. Innovation and
entrepreneurship have become critical to business success.
One of the purposes of the Commission is economic development. The
Commission firmly believes that sustainable economic development for
Alaska's rural communities, like that of the rest of America, will be
generated in the private, commercial sector, not within government. To
that end, the Commission supports the development of public
infrastructure upon which the private sector creates jobs and wealth,
and helps ensure that good businesses and business ideas have a chance
to become long-term, self-sustaining enterprises.
Over the history of the Program, the Commission has supported and
advanced a wide-array of economic development program activities
ranging from community profile mapping to supporting innovative models
for lending, and equity investment in Alaska.
The Program is guided by Commission staff and the Economic
Development Advisory Committee, which provides general policy guidance
and funding recommendations in broad categories.
Other Policy Issues
Multi-Use Facilities
At this time the Commission is not undertaking a stand-alone
program for multi-use facilities. However, as opportunities arise in
FY09 for the Commission to leverage federal funds for combined use
facilities or to take advantage of placing community infrastructure,
such as clinical facilities, within the confines of existing community
buildings the Commission may utilize program funds for such efforts.
Projects will be selected based on the opportunity for cost savings,
construction readiness and correlation to existing Commission program
activities. Funds will not be used to identify stand-alone multi use
projects.
Pre-Development
The Commission intends to continue to engage in the Pre-Development
program in FY09. Pre-Development is a joint collaboration between the
Alaska Mental Health Trust Authority, the Denali Commission, The
Foraker Group, and the Rasmuson Foundation to assist organizations with
development of plans for successful capital projects.
The funding agencies are concerned that inadequate planning during
the initial project development phase can result in projects that are
not sustainable in the long term. The Pre-Development Program was
created to provide guidance and technical assistance to ensure that
proposed projects: meet documented need, are consistent with strategic
and community plans, consider opportunities for collaboration, have
appropriate facility and site plans and realistic project budgets, are
financially sustainable and will not negatively impact the
sustainability of the proposing organization. Through this partnership
an agency's capital project is better equipped to proceed.
Strategic Planning and Agency Evaluation
In FY09 the Commission will be creating an on-going, agency-wide
evaluation system to measure the outcomes of Commission programs. It is
anticipated that this work will begin January of 2009, and would be
designed to provide by empirical and qualitative data regarding
Commission programs,
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projects and overall goal accomplishments in a broad set of evaluation
criteria. It is the Commission's intent to maintain high-level measures
that are correlated to the Commission's goals related to improving
access, reducing cost and improving the quality of services and
facilities across Alaska. Program Advisory Committees, staff and
Commissioners will play a critical role in shaping this evaluation
methodology.
Specific evaluation and strategic planning undertakings include the
following:
Adoption and implementation of program missions and 2-3
key output and outcome measures for each program.
Development, draft, and application of strategic plan in
accordance with GPRA provisions and Denali Commission needs.
Production of annual performance plan per OMB
requirements.
Establishment of processes to support performance
measurement improvements.
Such processes include:
Compilation and maintenance of projects by community,
Mechanism to obtain feedback about impact of projects,
Semi-annual assessment by key staff and management of
long- and short-term performance by program, and
In-depth and comprehensive evaluation of dedicated program
annually.
Recruitment and Retention of Health Workers
Alaska Rural Human Resources Collaborative (ARHRC) provided
presentations to both the Health Steering Committee and the Training
Subcommittee in 2008. Both advisory committees support the concept
which develops a system for recruitment and temporary staffing of
health professionals. Seed funding in the amount of $250,000 is needed
at this time, with startup funds in the amount of $1.2m over the next
year. This Work Plan includes a challenge grant of up to $250,000 for
this collaborative project. This funding will be provided to the
project from the Energy and Water Appropriations (Base) and will
include an incentive for Regional Health Corporation and other
financial contributors to provide funding (challenge grant). In
conclusion, this initiative cannot be funded through either the
Training Program or the Health Program due to restricted funding
requirements.
Dated: November 25, 2008.
George J. Cannelos,
Federal Co-Chair.
[FR Doc. E8-28810 Filed 12-4-08; 8:45 am]
BILLING CODE 3300-01-P