THE STATE



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# ALASKA

GOVFR:-':OR SEA:-': PAR"F.U.

March 14,2014
Mr. Kevin Schlemmer Chief, Essential Air Service Division Office of Aviation Analysis U.S. Department of Transportation 1200New Jersey Avenue, SE Washington, DC 20590
Re: ATNEP to the Gty ofDiomede, Alaska Docket 2009-0260
Dear Mr. Schlemmer, 

## Department'of Commerce, Community, and Economic Development
DIVISION OF COM:VILii'iITYAND REGIONAL AFFAIRS
550 West Seventh Avenue. Suite 1640

Anchorage. Alaska 99501 Main: 907.269.4501607.269.4581 Programs fax: 90i .269.4539

Little Diomede isan extremely remote island in the Bering Strait, two and ahalfmiles from Russia. During a shon period of time inthe winter an icerunway fonns that isthick enough to pennit fixedwing aircraft to land. Other than that, during the spring, summer, and fallthere isNO scheduled passenger service except for subsidized helicopter service. Before the subsidized helicopter service, Diomede would have extended periods with no access to outside food or medical facilities. Under Essential Air Service (EAS) alloffunding necessary to ensure acommunity access to the national transportation system isprovided by the Federal Government. However because Diomede did not have scheduled air service when EAS program was created, itwas NOT listed as anEASeligible community. Thus this vital helicopter service is subsidized under the 49 U.S.C ~41736, Air Transportation to Non-eligible Places (ATNEP), which requires that any federal expenditures be matched on aone-for-one basis by anon-federal entity. Currently Diomede's service and subsidy under ATNEP is set by Order 2013-6-11, June 11,2013, which selected Evergreen Helicopters Inc., to provide the service through June 30,2014, when the selection expires. Order 2013-6-11 subsidizes one round trip per week bem-een Diomede and Nome and between Diomede and Wales for 44weeks per year. US-DOT provides $188,760 annual subsidy and Kawerak, Inc., Diomede's community representative, via agrant from the State ofAlaska, alike amount. The State ofAlaska proposes to continue that arrangement. In the past several years local-match funding was provided under agrant from the Alaska Division 

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Affa~ug!T Kawerak;inc. O:mendy dIe A1aska-S1:I~te~------ Legislature isin the budget process and so itisunclear what 

### ifany funding may be made available as amatch to the federal share. Although Governor Parnell's budget proposes $200,000 for Diomede, the final budget willhave to be approved by the legislature and signed bythe Governor to make any funds available for match. When we have an approved budget and agrant agreement later this spring, we would present the grant agreement to US-DOT for approval. This isthe same process that happened inthe past with air service to Diomede.Letter to Mr. Schlemmer

Diomede ATNEP Funding March 14,2014 Page Two

As mentioned, the current rate expires onJune 30, 2014, and so the time allotted for US-DOT to execute the agreement and issue an Order willbe very tight. We are diligently working to do our pan to maintain this literallylife-saving service, and we askthat you act on our proposal after we present itto you quickly aspossible.
We .lookforward to continuing to work closely with the US-DOT to keep Diomede linked to the rest ofthe United States.

cc: Kevin Adams, U.S. DOT Rich Sewell, State ofAlaska, DOT&PF