[Federal Register: April 2, 2009 (Volume 74, Number 62)]
[Notices]
[Page 14968-14974]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02ap09-41]
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DENALI COMMISSION
Fiscal Year 2009 Revised Draft Work Plan
AGENCY: Denali Commission.
ACTION: Denali Commission fiscal year 2009 revised 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 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 revised draft
Work Plan for Federal fiscal year 2009.
DATES: Comments and related material must be received by May 3, 2009.
ADDRESSES: Submit comments to the Denali Commission, Attention: Adison
Smith, 510 L Street, Suite 410, Anchorage, AK 99501.
FOR FURTHER INFORMATION CONTACT: Adison Smith, Denali Commission, 510 L
Street, Suite 410, Anchorage, AK 99501. Telephone: (907) 271-1414. E-
mail: asmith@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 over 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.
However, for the first time in nearly ten years the Commission's
annual appropriations have been significantly reduced. As a result the
Commission will be able to fund fewer critical infrastructure projects
in the most remote communities, have limited resources to fund economic
and workforce development initiatives, and be forced to make
challenging program and policy decisions regarding the prioritization
of projects that are critical foundations of community viability and
sustainability.
At the same time 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 round,
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 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 pressing 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 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. Our interagency Planning Work Group, for example, oversees
relocation efforts in several communities, and the Commission funded a
relocation community plan last year.
[[Page 14969]]
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 alter or 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.
The Work Plan is adopted on an annual basis in the following
manner, which occurs sequentially as listed:
Commissioners first provide a draft version of the Work
Plan to the Federal Co-Chair.
The Federal Co-Chair approves the draft Work Plan for
publication in the Federal Register providing an opportunity for a 30-
day period of public review and written comment. During this time the
draft 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).
Public comment concludes and Commission staff provides the
Federal Co-Chair with a summary of public comment and recommendations,
if any, associated with the draft Work Plan.
If no revisions are made to the draft the Federal Co-Chair
provides notice of approval of the Work Plan to the Commissioners, and
forwards the Work Plan to the Secretary of Commerce for approval; or,
if there are revisions the Federal Co-Chair provides notices of
modifications to the Commissioners for their consideration and
approval, and upon receipt of approval from Commissioners, forwards the
Work Plan to the Secretary of Commerce for approval.
The Secretary of Commerce approves the Work Plan.
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.
Written public comments regarding the FY09 Revised Draft Work Plan
may be submitted via e-mail, fax or hard copy to the following by Close
of Business (COB) May 3, 2009: Ms. Adison Smith, Denali Commission, 510
L Street, Suite 410, Anchorage, AK 99501. asmith@denali.gov. Phone:
907.271.1640. Fax: 907.271.1415.
FY 09 Appropriations Summary
The Omnibus Bill was approved by Congress on March 10, 2009, and
was signed by President Obama on March 11, 2009. The Omnibus Bill
provides significantly different appropriations to the Commission then
the FY09 Continuing Resolution, which the first draft of the FY09 Work
Plan was based on.
The Denali Commission has historically received several Federal
funding sources. These fund sources are governed by the following
general principles:
In FY 2009 no project specific earmarks were defined.
Energy and Water Appropriations (commonly referred to as
Commission ``Base'' funding) are eligible for use in all programs, but
have 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 be
moved to the Economic Development Program.
Final transportation funds received may be reduced due to agency
modifications, reductions and fees determined by the U.S. Department of
Transportation. Final program available figures will not be provided
until later this spring.
Final USDA-Rural Utility Services (RUS) funds received may be
reduced based on the amount made available to the Commission.
Historically, the Commission has received ~50% of the total RUS funds
available nationally. This year RUS is receiving $17.5 MM for the
national program, and the Commission is using historic funding
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percentages to provide the appropriations and program available
estimate for RUS in the FY09 Work Plan and funding chart below. Final
RUS figures will not be provided until later this spring.
All Energy and Water Appropriation (Base) funds, including
operational funds, designated as ``up to'' may be reassigned to the
Legacy Energy program (Bulk Fuel and Rural Power System Upgrades
(RPSU)) if they are not fully expended in a program component area.
All U.S. Department of Health and Human Services--Health Resources
and Services Administration (HRSA) funds designated as ``up to'' may be
reassigned to the primary care clinic program if they are not fully
expended in a program component area.
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.
The table below provides the following information, by fund source:
Total FY 09 Budgetary Resources provided in the Omnibus
Bill:
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 funds are identified by
their source name (i.e., ``Energy and Water Appropriation; USDA, Rural
Utilities Service, etc.). The grand total, for all appropriations
appears at the end of the chart.
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. Traditionally, the Commission's overhead rate has been
limited to 5%, except in the case of RUS funds, where it is limited to
4%. The following appropriations language for the Base funds in FY09
allows the Commission to retain more than 5% of the Base for
operational activities as it deems appropriate and prudent: ``* * * not
withstanding the limitations contained in section 306(g) of the Denali
Commission Act of 1998.'' The grand total, for all program available
funds appears at the end of the chart.
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 Revised Draft FY09 Work Plan recommends, within each program fund
source for program components.
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 fund
source. The subtotal must always equal the Total FY 09 Program
Available Funding.
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Denali Commission FY09 Funding Table Totals
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FY 09 Energy & Water Appropriation............. $11,800,000
For expenses of the Denali Commission including
the purchase, construction, and acquisition of
plant and capital equipment as necessary and
other expenses, $11,800,000, to remain
available until expended, notwithstanding the
limitations contained in section 306(g) of the
Denali Commission Act of 1998.
FY 09 Energy & Water Appropriations (``Base'')-- 8,800,000
Program Available (less Commission overhead--
not limited to 5% in FY09 and designated as
``up to'')....................................
Energy Program: bulk fuel, RPSU, etc....... 5,800,000
Energy Program: alternative & renewable 850,000 (up to)
energy....................................
Pre-Development Program.................... 150,000
Teacher Housing & Health Professional 1,500,000
Housing Program: design & construction....
Economic Development Program: various...... 250,000 (up to)
Healthcare Infrastructure Initiatives...... 250,000 (up to)
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sub-total $............................ 8,800,000
FY 09 USDA, Rural Utilities Service (RUS)-- 8,925,000
Estimate......................................
FY 09 USDA--Rural Utilities Service (RUS)-- 8,568,000
Program Available (less 4% overhead)--Estimate
Energy Program: high cost energy 8,568,000
communities...............................
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sub-total $............................ 8,568,000
FY 09 Trans Alaska Pipeline Liability (TAPL) 5,830,940
Trust.........................................
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
FY 09 DHHS--Health Resources & Services 19,642,000
Administration (HRSA).........................
Provided further, that of the funds provided,
$19,642,000 shall be provided to the Denali
Commission as a direct lump payment pursuant
to Public Law 106-113.
FY 09 DHHS--Health Resources & Services 18,659,900
Administration (HRSA)--Program Available (less
5% Commission overhead).......................
Health Program: Primary Care Clinics-- 14,758,102
Design, Planning, and Construction........
Health Program: Behavioral Health.......... 1,017,831 (up to)
Health Program: Primary Care in Hospitals.. 1,526,746 (up to)
Health Program: Elder Housing/Assisted 1,357,221 (up to)
Living Facilities--Construction...........
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sub-total $............................ 18,659,900
FY 09 US Department of Labor (DOL)............. 3,378,000
There is authorized to be appropriated such
sums as may be necessary to the Denali
Commission through the Department of Labor to
conduct job training of the local workforce
where Denali Commission projects will be
constructed. $3,378,000 for the Denali
Commission, which shall be available for the
period July 1, 2009 through June 30, 2010.
FY 09 US Department of Labor (DOL)--Program 3,209,100
Available (less 5% Commission overhead).......
[[Page 14971]]
Training Program: Various.................. 3,209,100
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sub-total $............................ 3,209,100
FY 09 Federal Transit Administration (FTA)-- $5,000,000
Estimate......................................
$5,000,000 from section 3011 (FTA) for docks
and harbors;
FY 09 Federal Highway Administration (FHWA)-- 21,900,000
Estimate......................................
For necessary, expenses for the Denali Access
System Program as authorized under Section
1960 of Public Law 109-59, $5,700,000, to
remain available until expended and $4,800,000
from section 1934 (FHWA) for docks and
harbors; and $11,400,000 from section 1960
(FHWA) for Denali Access System Program.
FY 09 Transportation--Program Available (less 25,555,000
5% Commission overhead)--Estimate.............
Transportation Program: Docks & Harbors.... 5,000,000
Transportation Program: Roads.............. 20,555,000
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sub-total $............................ 25,555,000
FY 09 USDA, Solid Waste........................ 434,000
There is hereby appropriated $434,000 to remain
available until expended for the Denali
Commission to address deficiencies in solid
waste disposal sites which threaten to
contaminate rural drinking water supplies.
FY 09 USDA--Solid Waste--Program Available 412,300
(less 5% Commission overhead).................
Solid Waste Program: planning, design and 412,300
construction..............................
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sub-total $............................ 412,300
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TOTAL FY 09 Appropriations-- 76,909,940
Estimate..........................
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TOTAL FY 09 Program Available-- 70,743,693
Estimate..........................
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FY 09 Program Details & General Information
The following section provides narrative discussion, by each of the
Commission Programs identified for FY09 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 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 other program
and policy 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
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.
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 reliable and
efficient 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 $850,000 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
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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) 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 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.
The Energy Program anticipates the revised Commission policy
document, which was adopted in November of 2008, will impact the
current project prioritization and development process. Specifically
the Investment Guidance section that promotes regional planning and
prioritizes regional or multi-community connectivity versus stand alone
projects, evaluates similar infrastructure projects in communities with
populations less than 100 residents, and prioritization of projects
that include a cost share match. The policies will change the
development and design of several communities on the Bulk Fuel Upgrade
and Rural Power System Upgrade needs lists which meet the definition of
having ``stand alone facilities'' and/or ``under 100 residents''.
Projects that meet these definitions will require communities and
partner organizations to develop multi-community solutions (i.e.
Interties, cooperative management or regional management) before
construction can proceed. This may lead to delays in projects on the
needs list or projects not being constructed in several communities.
Historically, the Bulk Fuel and Rural Power System Upgrade programs
have had no cost share match requirements, under the new policy
projects with cost share will be prioritized over projects without.
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.
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.
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, the Rasmuson Foundation 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 the Commission policy
document, which was adopted in November 2008, will impact the clinic
prioritization process, specifically for those communities located on
the road system, and within proximity to one another, and for
communities with populations less than 100. In 2008 the program
identified small communities as an area for improvement in terms of
cost containment and sustainability.
Consequently, for communities with populations of less than 100,
only projects already in the pipeline have been proceeding while the
Commission has funded pilot projects to design a more cost effective,
potentially re-locatable clinic prototype to serve small communities.
Finally, an emphasis on renovation over new construction has emerged as
a means for overcoming high construction costs.
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 FY09 Work Plan.
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
[[Page 14973]]
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 communities 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.
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 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 Transportation Program anticipates the adopted Commission
policy document will impact the project selection process, specifically
for those communities located within proximity to one another, and for
communities with populations less than 100.
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.
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
Corp of Engineers have prepared a barge landing analysis that is 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.
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 underserved 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
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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 the 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.
Other Program and Policy Issues
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.
Pre-Development has historically been funded out of the
Commission's operational budget; however, given its direct correlation
and benefit to program functions, it has been moved to the program
funding section of the Work Plan. The amount of $150,000 will provide
funding for the pre-development program for the last quarter of FY09,
and FY10.
Strategic Planning & 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, 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 FY 2009-2015
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.
Healthcare Infrastructure Initiatives
Recognizing the significant need for electronic health records
(EHRs) and health technology infrastructure in Alaska, and the funding
that has been made available for this initiative nationally through the
American Recovery and Reinvestment Act (ARRA) and the Obama
administration the Commission will provide up to $250,000 to the Alaska
Health Information Network (AHIN). These funds shall be used in
conjunction with program funds already secured by AHIN to carry out EHR
and health information technology activities in Alaska. Additionally,
the funds provided by the Commission shall be used to support
operational and administrative activities undertaken by AHIN in
coordinating, implementing and developing a state-wide EHR and
technology infrastructure system for Alaska.
Dated: March 27, 2009.
George J. Cannelos,
Federal Co-Chair.
[FR Doc. E9-7382 Filed 4-1-09; 8:45 am]
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