[Federal Register: January 15, 2008 (Volume 73, Number 10)]
[Notices]
[Page 2461-2466]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15ja08-33]
=======================================================================
-----------------------------------------------------------------------
DENALI COMMISSION
Fiscal Year 2008 Draft Work Plan
AGENCY: Denali Commission.
ACTION: Denali Commission Fiscal Year 2008 Draft Work Plan request for
comments.
-----------------------------------------------------------------------
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 in-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 2008.
DATES: Comments and related material must be received by February 14,
2008.
ADDRESSES: Submit comments to the Denali Commission, Attention:
[[Page 2462]]
Automme Circosta, 510 L Street, Suite 410, Anchorage, AK 99501.
FOR FURTHER INFORMATION CONTACT: Ms. Automme Circosta, Denali
Commission, 510 L Street, Suite 410, Anchorage, AK 99501. Telephone:
(907) 271-1414. E-mail: acircosta@denali.gov.
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 08 Appropriations Summary
The FY 08 Draft Work Plan has been developed based on the
appropriations approved by Congress for Fiscal Year 2008 (FY08), as
detailed in the FY08 Denali Commission Funding Summary Table below.
Some appropriations have been identified as ``Estimates.'' These
figures will be updated in the final Work Plan upon receipt of FY08
appropriations by the Commission.
The Denali Commission has historically received several federal
funding sources (identified by the varying colors in the table below).
These fund sources, commonly referred to as ``appropriations,'' are
governed by the following general principles:
In FY 08 no project specific earmarks were provided in any
appropriations;
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 appropriations 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 be
moved to the Economic Development Program.
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.
Final transportation appropriations received are typically slightly
reduced due to agency modifications, reductions and fees determined by
the U.S. Department of Transportation.
The table below provides the following information, by
appropriation:
Total FY 08 Appropriations:
These are the figures that appear in the rows entitled ``FY 08
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 08 Program Available Funding:
These are the figures that appear in the rows entitled ``FY 08
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 FY 08 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 08
Program Available Funding.
Denali Commission FY 08 Appropriations Funding Table
------------------------------------------------------------------------
------------------------------------------------------------------------
FY 08 Energy & Water Appropriation.................... $21,800,000
FY 08 Energy & Water Appropriations (``Base'')-- 20,511,620
Program Available (less 5% Commission overhead)......
Energy Program: bulk fuel, RPSU, etc.............. 10,000,000
Energy Program: alternative & renewable energy.... 9,000,000
(up to)
Teacher Housing Program: design & construction.... 1,000,000
Economic Development Program: various............. 511,620
-----------------
Sub-total $................................... 20,511,620
------------------------------------------------------------------------
FY 08 USDA, Rural Utilities Service (RUS)............. 15,000,000
[[Page 2463]]
FY 08 USDA--Rural Utilities Service (RUS)--Program 14,400,000
Available (less 4% overhead).........................
Energy Program: high energy cost communities...... 14,400,000
-----------------
Sub-total $................................... 14,400,000
------------------------------------------------------------------------
FY 08 Trans Alaska Pipeline Liability (TAPL) Trust.... 4,201,398
FY 08 Trans Alaska Pipeline Liability (TAPL)--Program 3,991,328
Available (less 5% overhead) ESTIMATE................
Energy Program: bulk fuel......................... 3,991,328
-----------------
Sub-total $................................... 3,991,328
------------------------------------------------------------------------
FY 08 DHHS--Health Resources & Services Administration 39,283,200
(HRSA)...............................................
FY 08 DHHS--Health Resources & Services Administration 37,319,040
(HRSA)--Program Available (less 5% Commission
overhead)............................................
Health Program: Primary Care Clinic Design, 23,319,040
Planning, and Construction.......................
Health Program: Behavioral Health................. 5,000,000
Health Program: Primary Care in Hospitals......... 4,000,000
Health Program: Domestic Violence Facilities...... 1,000,000
Health Program: Hospital Designs.................. 4,000,000
-----------------
Sub-total $................................... 37,319,040
------------------------------------------------------------------------
FY 08 Department of Labor (DOL)....................... 6,875,000
FY 08 Department of Labor (DOL)--Program Available 6,531,250
(less 5% Commission overhead)........................
Training Program: Various......................... 6,531,250
-----------------
Sub-total $................................... 6,531,250
------------------------------------------------------------------------
FY 08 Federal Transportation Administration (FTA)-- 5,000,000
Estimate.............................................
FY 08 Federal Highway Administration (FHWA)--Estimate. 19,000,000
FY 08 Transportation (less 5% Commission overhead)-- 22,800,000
Estimate.............................................
Transportation Program: Docks & Harbors........... 9,000,000
Transportation Program: Roads..................... 13,800,000
-----------------
Sub-total $................................... 22,800,000
------------------------------------------------------------------------
FY 08 USDA, Solid Waste............................... 437,000
FY 08 USDA--Solid Waste--Program Available (less 5% 415,150
Commission overhead).................................
Solid Waste Program: planning, design and 415,150
construction.....................................
Sub-total $................................... 415,150
-----------------
TOTAL FY 08 Appropriations--Estimate...... $111,596,598
-----------------
TOTAL FY 08 Program Available--Estimate... $105,968,388
------------------------------------------------------------------------
FY 08 Program Details & 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 08 funded program activities; the last
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 also includes a general summary of the
Commission's potential role in erosion and relocation in Alaska, as
well as a summary of the Commission's goals regarding agency-wide
program evaluation in FY 08.
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 (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 reachable by road or rail.
The needs in the bulk fuel and power generation projects are
presently estimated at $198 million and $211 million, respectively, in
2004 construction costs. At FY 06 funding rates, it will take another
eight to nine years for BFU and ten to eleven years for RPSU before
these programs are completed. The Commission has also funded a very
successful program of competitively selected energy cost reduction-
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
Commission's 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-
[[Page 2464]]
wind power generation systems. In FY 07 the Commission issued a request
for proposals for alternative and renewable energy projects. The FY 08
Work Plan outlines a strategy to rebalance the Energy Program in both
legacy and renewable systems, providing up to $9,000,000 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 include these types of energy infrastructure also. Each
community and project must be evaluated holistically. Program partners
also perform initial due diligence and Investment Policy 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 policy considerations, site availability,
the timing of funding decisions, etc.
It is anticipated that alternative/renewable projects will be
selected via a Request for Proposal (RFP) process, similar to the RFP
utilized in FY 07. Commission staff and an independent body will review
and select projects submitted via RFP. The Energy Advisory Committee,
provides policy guidance to the Program. The Energy Advisory Committee
does not select or prioritize individual projects.
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 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, 70 clinics have been completed
(either new construction or renovation), 33 are in construction and 62
are in planning/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.
The Health Facilities Program anticipates two major policy changes
in FY 08, 1) the development of size guidelines for large clinics, as
well as potential changes to the existing size guidelines for medium
and large clinics, and 2) issuance of an RFP for the design of a
multipurpose clinic/facility for communities with less than 100 year
round residents.
Training Program
In a majority of rural communities unemployment rates exceed 50%
and per 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 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
knowledge necessary to work on the construction of projects funded by
the Denali Commission. In addition the Commission builds sustainability
into the development of infrastructure by providing training for the
long term management, operations and maintenance of facilities and thus
increasing local employment at the same time.
The Program's mission is to increase the employment and wages of
unemployed or underemployed Alaskans through training for careers in
construction, operations and maintenance of public facilities.
The Program is also guided by the following principles:
Priority on training for construction, operations and
maintenance of public infrastructure.
Training will be tied to a job.
Training will encourage careers not short term employment.
Funding will support a ``Training System''.
To date the Commission has dedicated training funds to the 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 Training Program's primary purpose is to support the
Commission's investment in infrastructure development by providing
training for the careers related to the Commission
[[Page 2465]]
infrastructure programs (such as Energy and Health Facilities).
The Commission anticipates that the general priority areas of
construction, operations and maintenance of Commission Projects;
management training for Commission Projects; youth initiatives in
support of Commission projects; and construction, operations and
maintenance training of ``other public infrastructure'' will continue
to be funded in FY 08. Projects are selected through various RFP
processes with partners, and at the recommendation of Commission staff,
and policy guidance and priority areas for funding are set by the
Training Advisory Committee.
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.
Transportation
On August 10, 2005, the President signed into law new highway
program reauthorization legislation titled Safe, Accountable Flexible
Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU).
This Act provides the Commission with $15 million annually for fiscal
years 2005-2009 for a Denali Access System program. The Act also
provides the Commission $10 million annually for Fiscal Years 2005-2009
for docks, harbors and related waterfront development projects. The Act
also outlined the array of road projects Denali Access System is
designed to target, rural community streets and roads, roads between
rural communities, state highway system; and roads to access resource
development.
The Act requires the formation of the Denali Access System
Transportation Advisory Committee (TAC) to advise the Commission with
members appointed by the Governor of Alaska. The nine member committee
includes by law, four members who represent existing regional Native
corporations, native non-profit entities, tribal governments and four
members who represent rural Alaska regions or villages. The committee
chair is Denali Commission Federal Co-Chair, George J. Cannelos.
The TAC is a central feature of the amendments to the Denali
Commission Act of 1998 that defines the Denali Access System. Section
309 defines key committee responsibilities that include: recommend
transportation priorities and funding strategies; develop public
involvement and coordinating planning programs; develop annual capital
budget recommendations; and coordinate multi-region projects.
As a result of a TAC-directed public outreach and agency
coordination effort, the program has now begun to focus attention on
two important transportation needs: roads and boardwalks, and barge
landing moorage systems. Village connector roads and roads to local and
regional resources will continue to receive significant attention, but
to the extent practical each year, local roads and boardwalks in small
rural communities will receive primary attention. The program will also
maintain its focus on dust control in villages. In the waterfront
development program, docks and harbors in small coastal communities
will continue to receive attention, but there is a significant need for
barge landings in coastal and riverine communities to improve
operational safety and efficiencies. This class of project will receive
primary consideration each year to the extent funding and construction
schedules allow.
Another evolution in Program development, especially in the road
Program, has been a shift from maximizing financial leveraging
opportunities with other transportation agencies, to fully fund, as
necessary, the program's highest priority projects. In FY 06, the $23
million transportation program leveraged almost $100 million in
projects. In coming years, while striving to leverage funding
opportunities, an emphasis on priorities over funding partnerships will
likely reduce the overall program joint-fund total. This has been
critical because of the nature of the projects the Commission is able
to fund. These projects are typically very important, but may not rise
to prioritization for funding on State or other Federal transportation
systems.
The TAC reviews project nominations on a semi-annual basis, once in
December for project selections and once during the summer to monitor
project development.
In addition to meeting transportation-specific criteria and
processes, the Program fully incorporates Denali Commission policies
including a commitment to sustainable community projects, and a
commitment to the Commission's Investment Policy.
Solid Waste
The Commission began receiving solid waste funding in FY 06. The
Commission partners with USDA Rural Development to address deficiencies
in solid waste disposal sites which threaten to contaminate rural
drinking water supplies.
Proper solid waste collection, processing and disposal are an
essential public service that often presents a difficult challenge in
rural Alaska. Due to several factors, including limited rural Alaska
local government budgets, community remoteness, limited transportation
infrastructure and obstacles posed by Alaska's severe climate, solid
waste service is a prominent widespread deficiency in the context of
Alaska's wide array of environmental issues and public health and
quality of life issues.
The program relies on a competitive RFP process to select and
identify projects, and utilizes a multidiscipline review panel to
ensure that projects meet all Commission due diligence and policy
requirements. Program partners administer individual grant awards on
behalf of the Commission. Typically this RFP process occurs once or
twice in a given year depending on need and project eligibility.
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 FY 04, 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
[[Page 2466]]
project. Acquisition, rehabilitation, new construction, and multi-site
rehabilitation are eligible development activities under this program.
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. It is anticipated that
FY 08 funds will be made available via an RFP process.
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 FY
08 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.
Other Emerging Issues
The Commission anticipates an active role in the emerging issues
and challenges related to erosion and relocation in Alaska in the
future. The Commission is committed to partnering with other Federal,
State and tribal entities to ensure that public policy solutions are
developed in the most expedient, responsive and culturally-appropriate
manner. While no funds are appropriated for the Commission for this
purpose in FY 08, Commission staff are working diligently to ensure
that communities that may experience erosion or relocation issues are
being vetted and reviewed appropriately prior to infrastructure
development occurring.
The Commission is committed to innovative, cost-effective and
creative design and construction solutions. To that end, the Commission
anticipates engaging in more diverse and experimental partnerships in
FY 08, and will be seeking innovative design, construction and program
and project management practices.
In FY 08 the Commission will be creating an ongoing, agency wide
evaluation system to measure the outcomes of Commission programs. It is
anticipated that this work will begin in late spring or early summer,
and would be designed to provide by empirical and qualitative data
regarding Commission programs, 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.
Dated: January 9, 2008.
George J. Cannelos,
Federal Co-Chair.
[FR Doc. E8-519 Filed 1-14-08; 8:45 am]
BILLING CODE 3300-01-P