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[Federal Register: February 18, 2010 (Volume 75, Number 32)]
[Notices]               
[Page 7256-7264]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18fe10-24]                         

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DENALI COMMISSION

 
Denali Commission Fiscal Year 2010 Draft Work Plan

AGENCY: Denali Commission.

ACTION: Denali Commission Fiscal Year 2010 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 2010.

DATES: Comments and related material must be received by March 15, 
2010.

ADDRESSES: Submit comments to the Denali Commission, Attention: Valerie 
Boyd, 510 L Street, Suite 410, Anchorage, AK 99501.

FOR FURTHER INFORMATION CONTACT: Valerie Boyd, Denali Commission, 510 L 
Street, Suite 410, Anchorage, AK 99501. Telephone: (907) 271-1414. E-
mail: vboyd@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.
    The Work Plan is adopted on an annual basis in the following 
manner, which occurs sequentially as listed:
     Commissioners first provide an approved 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.

FY10 Appropriations Summary

    The Denali Commission has historically received several Federal 
funding sources. These fund sources are governed by the following 
general principles:
     In FY 2010 no project specific earmarks were directed.
     The Energy and Water Appropriation 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

[[Page 7257]]

prior fiscal year Congressional direction has indicated that the 
Commission should fund renewable and alternative Energy Program 
activities from the available Energy and Water 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 Energy 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, and the Commission is using historic funding 
percentages to provide the appropriations and program available 
estimate for RUS in the FY10 Work Plan and funding chart below.
    All Energy and Water Appropriation 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 or a specific project.
    All U.S. Department of Health and Human Services--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 table below provides the following information, by fund source:

    Total FY10 Budgetary Resources provided in the Omnibus Bill: 
These are the figures that appear in the rows marked by an asterisk 
(*) 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, RUS, 
etc.) The grand total for all appropriations appears at the end of 
the chart.
    Total FY10 Program Available Funding: These are the figures that 
appear in the rows entitled ``FY10 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 Energy and Water 
appropriation in FY10 allows the Commission to retain more than 5% 
of the Energy and Water for operational activities as it deems 
appropriate and prudent: ``* * * notwithstanding 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 Draft FY10 Work Plan recommends, within each 
program fund source for program components.
    Project Funding: These are the figures that appear in the rows 
entitled with the specific Program and Sub-Program area and in 
italics and are the amounts of funding the Draft FY10 Work Plan 
recommends within each program fund source for specific projects.

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 FY10 
Program Available Funding.

                 Denali Commission FY 2010 Funding Table
------------------------------------------------------------------------
                                                   Totals ($)
------------------------------------------------------------------------
* FY 2010 Energy & Water               11,965,000.
 Appropriation.
For expenses of the Denali Commission
 including the purchase,
 construction, and acquisition of
 plant and capital equipment as
 necessary and other expenses,
 $11,965,000, to remain available
 until expended, notwithstanding the
 limitations contained in section
 306(g) of the Denali Commission Act
 of 1998.
------------------------------------------------------------------------
FY 2010 Energy & Water Appropriation-- 9,965,000.
 Program Available (less overhead--
 not limited to 5% in FY 2010 and
 designated as ``up to'').
Energy...............................  8,665,000.
     Emerging Technology       2,241,607 (up to).
     Projects.
     Construction Contingency  2,193,393 (up to).
     Funds.
     Hoonah--Rural Power       3,330,000.
     System Upgrade.
     Brevig Mission/Teller     900,000.
     Intertie.
Training Program.....................  1,000,000 (up to).
     AK Dept. of Labor (A-     500,000.
     DOL) Denali Training Fund.
     A-DOL Youth Initiatives.  500,000.
Pre-Development Program..............  150,000 (up to).
Sponsorship Program..................  150,000 (up to).
    Sub-total........................  9,965,000.
------------------------------------------------------------------------
* FY 2010 USDA, Rural Utilities        8,000,000.
 Service (RUS)--Estimate.
FY 2010 USDA--Rural Utilities Service  7,680,000.
 (RUS)--Program Available (less 4%
 overhead)--Estimate.
Stebbins/St. Michael--Bulk Fuel        730,630.
 Facility Construction.
Igiugig--Rural Power System Upgrade..  1,350,000.
Yakutat--Rural Power System Upgrade..  3,150,000.
Pending Bulk Fuel or RPSU project to   1,500,000.
 be selected per Energy Program
 Prioritization Process as outlined
 in the FY 2010 Work Plan.
Conceptual Planning/Design for Bulk    949,370.
 Fuel and RPSU.
                                      ----------------------------------
    Sub-total........................  7,680,000.
------------------------------------------------------------------------
* FY 2010 Trans Alaska Pipeline        7,084,606.
 Liability (TAPL) Trust.
FY 2010 Trans Alaska Pipeline          6,730,370.
 Liability (TAPL)--Program Available
 (less 5% overhead)--Estimate.
Stebbins/St. Michael--Bulk Fuel        6,730,370.
 Facility Construction.
                                      ----------------------------------
    Sub-total........................  6,730,370.
------------------------------------------------------------------------
*FY 2010 DHHS--Health Resources &      10,000,000.
 Services Administration (HRSA).

[[Page 7258]]


The Committee provides $10,000,000
 for the Denali Commission. The
 fiscal year 2009 comparable level
 was $19,642,000 and the budget
 request for fiscal year 2010 did not
 include funding for this program.
 These funds support the construction
 and renovation of health clinics,
 hospitals and social service
 facilities in rural Alaska, as
 authorized by Public Law 106-113, to
 help remote communities in Alaska
 develop critically needed health and
 social services to Alaskans in
 remote rural communities as they are
 in other communities throughout the
 country. The Committee expects the
 Denali Commission to allocate funds
 to a mix of rural hospital, clinic,
 long-term care and social service
 facilities, rather than focusing
 exclusively on clinic funding.
------------------------------------------------------------------------
FY 2010 DHHS-Health Resources &        9,500,000.
 Services Administration (HRSA)--
 Program Available (less 5% overhead).
Primary Care.........................  7,267,400.
    Igiugig--Primary Care Clinic.....  1,000,000.
    Ekwok--Primary Care Clinic.......  1,600,000.
    Kasaan--Small Primary Care Clinic  800,000.
    Kaltag--Primary Care Clinic......  1,818,400.
    Design Pool and Program            2,049,000.
     Management, ANTHC.
Behavioral Health....................  492,900 (up to).
 [Projects are undergoing due
 diligence and vetting process at
publication. No specific projects are
 named at this time.]
Primary Care in Hospitals............  734,700 (up to).
    Petersburg--Radiology Equipment..  36,733.
    Bartlett Regional Hospital--Blood  52,500.
     Chemistry Analyzer.
    Mt. Edgecumbe--Fluoroscopy         100,000.
     Radiography.
    Wrangell Medical Center--          43,000.
     Mammography Equipment.
    Kanakanak Hospital--CT Scan        100,000.
     Equipment.
    Providence Seward--Electronic      100,000.
     Health Records.
    Providence Kodiak--Infant          28,919.
     Security System.
    Ketchikan General Hospital--       76,500.
     Breast Biopsy Equipment.
    Central Peninsula Hospital--       97,976.
     Medication Verification System.
    Providence Valdez--Patient         7,996.
     Services Equipment.
    Sitka Community Hospital--         91,076.
     Surgical Equipment.
Elder Supportive Housing.............  $805,000 (up to).
    Kenai Peninsula Housing            770,000.
     Initiatives, Soldotna (6 units).
Program Management, AHFC.............  35,000.
Health Program: Technical Assistance   200,000 (up to).
 Contract to Alaska Summit
 Enterprises.
                                      ----------------------------------
    Sub-total........................  9,500,000.
------------------------------------------------------------------------
*FY 2010 Federal Transit               $5,000,000.
 Administration (FTA)--Estimate.
$5,000,000 from section 3011 (FTA)
 for docks and harbors;
*FY 2010 Federal Highway               17,784,000.
 Administration (FHWA)--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 2010 Additional Transportation     2,200,000.
 Funding--Estimate.
FY 2010 Transportation--Program        23,644,800.
 Available (less 5% overhead)--
 Estimate.
    Transportation Program: Docks &    13,644,800.
     Harbors--Estimate.
    Transportation Program: Roads -    10,000,000.
     Estimate.
    Sub-total........................  23,644,800.
                                      ----------------------------------
    *TOTAL FY 2010 Federal             62,033,606.
     Appropriations--Estimate.
                                      ----------------------------------
        TOTAL FY 2010 Federal Program  57,520,170.
         Available--Estimate.
------------------------------------------------------------------------

FY10 Program Details and General Information

    The following section provides narrative discussion, by each of the 
Commission Programs identified for FY10 funding in the table above, in 
the following categories:
     Program History and Approach.
     FY10 Project Description.
     FY10 Project Selection Process.
     FY10 Program and Project Policy Issues (as applicable).
    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 
FY10, 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.

[[Page 7259]]

Energy Program

Legacy Program
    The Energy Program is the Commission's original program and is 
identified as a ``legacy'' program. The program focuses on bulk fuel 
facilities (BFU) and rural power system upgrades/power generation 
(RPSU) across rural Alaska. About 94% of electricity in rural 
communities is produced by diesel and about half the fuel storage in 
most villages is used for these power plants for distribution. 
Alternative means of generating power can reduce the capacity needed 
for fuel storage and ultimately reduce the cost of power to the 
community.
Alternative/Renewable Program
    The Energy Policy Act of 2005 established new authorities for the 
Commission's Energy Program with an emphasis on alternative and 
renewable energy projects. 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 Energy and Water 
appropriation funding. To date, the Commission has co-funded a number 
of renewable projects and each year new initiatives are considered. In 
2007, the State of Alaska passed legislation and funded the Renewable 
Energy Program (REP) which modeled the project selection process set 
forth by the Commission's early investment.
Emerging Technologies
    With the advent of the REP, more resources to meet commercial-ready 
renewable technology needs are now available. The area of emerging 
technologies, meaning pre-commercial yet post-research/development, has 
become an appropriate role for the Commission. A solicitation was 
conducted in FY 2009 identifying over $50 M in project requests (and 
only $4 M in available funds). Similar to the REP, this initiative is a 
leveraging opportunity with the State of Alaska in considering the 
development of an emerging technology fund that could accept funds from 
multiple sources to meet these ongoing needs. The goal of the program 
is to fund pilot projects for applied research and further technologies 
focusing on replication in rural Alaska so they are commercially viable 
and ultimately eligible for REP.
Other Renewable Initiatives
    In addition to the emerging technology program, the Commission has 
funded energy efficiency efforts with the goal of energy cost reduction 
and leveraging of funding sources. The Commission will continue to 
track opportunities under the American Revitalization and Recovery Act 
(ARRA) and to provide supportive incentives, financial or otherwise, to 
utilize such opportunities. For example, in FY 2009 the Commission 
provided match funding to tribes that submitted group applications to 
the Energy Efficiency and Conservation Block Grant program under the 
Department of Energy. In doing so, the barrier of administering grants 
by small tribes was minimized and potential funding losses were 
avoided. The Commission received 8 eligible group applications, 
representing 106 Alaskan tribes, totaling $456,710 in Commission 
funding and leveraging over $4 M of Federal funding. While the FY 2010 
Work Plan allocates all renewable funds toward emerging technologies, 
it also recommends that if funds become available to support efforts to 
incentivize energy efficiency or other stimulus opportunities around 
energy for rural Alaska be considered allowable. No funds are currently 
set aside for these needs.
    The FY 2010 Work Plan outlines a strategy to balance the Energy 
Program in both legacy and renewable components, providing up to $2.24 
M of available program funds specifically toward the emerging 
technology program which is pending passage by the Alaska State 
Legislature. If match for this program is not provided, this funding 
shall be reallocated to legacy projects.
    The project amounts listed below are estimates and final award 
documents may vary based on changes in match by project and receipt of 
funding.

                                                              FY 2010 Project Descriptions
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    Denali commission     Cost share match        Project selection
  Recipient/impacted community       Project description     Total project cost         cost ($)               (S) *                 methodology
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Bulk Fuel Projects
--------------------------------------------------------------------------------------------------------------------------------------------------------
TBD.............................  TBD.....................  TBD.................  1,500,000...........  TBD................  TBD
Stebbins/St. Michael............  AEA--Bulk Fuel Facility   8,290,000...........  7,461,000...........  $829,000...........  AVEC nominated.
                                   Replacement serving
                                   both communities in
                                   conjunction with power
                                   plant, standby power
                                   plant, distribution
                                   modifications,
                                   recovered heat and
                                   intertie between
                                   villages.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      RPSU Projects
--------------------------------------------------------------------------------------------------------------------------------------------------------
Yakutat.........................  AEA--Rural Power System   3,500,000...........  3,150,000...........  350,000............  AEA nominated.
                                   Upgrade. New powerhouse
                                   and distribution
                                   system. Waste heat
                                   recovery to school and
                                   pool..
Hoonah..........................  AVEC--Rural Power System  3,700,000...........  3,330,000...........  370,000............  AEA nominated.
                                   Upgrade. New diesel
                                   powerhouse and heat
                                   recovery system in
                                   conjunction with
                                   pursuant hydro,
                                   geothermal, wood
                                   heating and intertie to
                                   Pelican.
Brevig Mission/Teller...........  Submarine Cable Intertie  1,000,000...........  900,000.............  100,000............  AVEC nominated.
Igiugig.........................  AEA--Rural Power System   1,500,000...........  1,350,000...........  150,000............  AEA nominated.
                                   Upgrade. Renewal of
                                   existing powerhouse
                                   including waste heat
                                   recovery to washeteria
                                   and water plant in
                                   conjunction with
                                   hydrokinetic project.
Contingency **..................  Commission to hold......  2,193,393...........  2,193,393...........  0..................  N/A.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                If Additional Funds Become Available the Following Bulk Fuel and RPSU Projects May Proceed (Not Listed in Priority Order)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Chenega Bay.....................  RPSU....................  TBD.................  TBD.................  TBD................  AEA nominated.

[[Page 7260]]


Ekwok...........................  Bulk Fuel Facility......  TBD.................  TBD.................  TBD................  AEA nominated.
Emmonak/Alakanuk................  Intertie (State funded),  TBD.................  TBD.................  TBD................  AVEC nominated.
                                   BF Facilities and Power
                                   Plant in Emmonak.
Kipnuk..........................  Bulk Fuel Facility......  TBD.................  TBD.................  TBD................  AEA nominated.
Levelock........................  RPSU....................  TBD.................  TBD.................  TBD................  AEA nominated.
Mekoryuk........................  RPSU....................  TBD.................  TBD.................  TBD................  AVEC nominated.
Napakiak........................  RPSU....................  TBD.................  TBD.................  TBD................  AEA nominated.
Red Devil/Sleetmute.............  Intertie................  TBD.................  TBD.................  TBD................  AEA nominated.
Ruby............................  RPSU....................  TBD.................  TBD.................  TBD................  AEA nominated.
Stebbins/St. Michael............  AVEC--main power plant    TBD.................  TBD.................  TBD................  AVEC nominated.
                                   in Stebbins,
                                   distribution mods.,
                                   stand-by power plant in
                                   St. Michael, recovered
                                   heat and Intertie
                                   Construction.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Alternative/Renewable Energy Projects
--------------------------------------------------------------------------------------------------------------------------------------------------------
Emerging Technology Program.....  Applied Research          2,241,607...........  TBD.................  pending............  Selection process in SB150
                                   renewable energy pilot                                                                     and accompanied HB.
                                   projects.
--------------------------------------------------------------------------------------------------------------------------------------------------------

FY 2010 Program & Project Policy Issues
Cost Share Match *
    The approved FY 2008 Denali Commission Policy Document requires and 
prioritizes cost share match for funded projects. In implementing this 
policy, the Energy Advisory Committee (EAC) has provided guidance on 
the appropriate match requirements. In general, projects with match 
will be prioritized, and a final match policy will be implemented once 
other match funding sources are known for FY 2010.
Sustainability Policy
    As a renewed effort toward sustainability, all energy design and 
construction grants will proceed after business plans are reviewed and 
approved by Commission staff. Additionally, Commission staff is 
expected to be engaged throughout the planning process of projects to 
assure policy requirements are adhered to earlier in the process.
Construction Contingency Pool**
    The Commission has historically handled construction cost overruns 
on an ongoing basis, with the requirement that those in excess of 10% 
be reported to Commissioners via an ``exceptions report''. 
Concurrently, Commission staff has been critical of project budgets in 
keeping with the investment policy requirements that per unit costs be 
considered as part of due diligence when making project decisions. 
Consequently, either risks are taken on part of program partners in 
their original project budgets, or extra contingency is worked into 
project budgets. In an effort to spread available funds further the 
project budgets listed above do not include contingency funds. Instead, 
a Construction Contingency Pool in the amount of up to $2,193,393 is 
dedicated for the Commission to meet these needs.
FY 2010 Project Selection Process
Legacy Program (Bulk Fuel/RPSU)
    Due to the nature of the due diligence requirement of energy 
projects, seasonal logistics in Alaska and funding restrictions (i.e., 
TAPL funds may only be used for bulk fuel projects)--a project may not 
progress as quickly as another. Further, cost estimates may change from 
the FY 2010 Work Plan development to the actual grant execution. The 
projects are prioritized in the list above, and will progress to 
construction as a project attains all due diligence requirements; 
projects may proceed out of priority order and costs may vary from the 
above numbers to the actual grant document. All match requirements will 
remain intact given these considerations.
Emerging Technologies Program
    Pending State legislation creates a project selection process 
involving two phases. A review committee was established with 
representatives name-identified in the legislation. The Commission 
replicated the process and suggests the same process be used in FY 
2010, pending State funding for the program. In summary, applicants in 
the first round submit a letter of interest which the review committee 
narrows to a list of second round applicants that are invited to submit 
a more thorough proposal and present to the review committee face to 
face. The review process will to the extent possible follow that set 
forth in pending State legislation however final project/grant approval 
is subject to approval by the Federal Co-chair.

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 FY10 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, 95 clinics have been completed; 
29 are in construction; and approximately 110 are in the conceptual 
planning/business planning/design phases.

[[Page 7261]]

    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. In priority order, those stages of completion 
are:
    1. Having a recently approved business plan.
    2. Having a completed (100%) design.
    3. Cost share match status.
    4. Ranking in the 2000 Rural Health Facility Needs Assessment.
    Finally, all of these are considered in regard to the 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 (populations of 
less than 100) as an area for improvement in terms of cost containment 
and sustainability. Consequently, the Commission has funded a pilot 
design project to create a cost effective, energy efficient clinic 
prototype for these small communities. The result of work to-date is 
the 35% designs of three small clinics--one around 700 square feet, one 
approximately 850 square feet, and the third close to 1,000 square 
feet. These 65% design documents for three prototype clinics will allow 
the construction of right-sized, energy efficient community health 
clinics in small communities. It is common for health services in small 
Alaskan communities to be provided by part-time Community Health Aides/
Practitioners.
    Furthermore, emergency medical services and preventive health 
services are of paramount importance to the residents of these small 
villages, and these clinics will allow for the safe, consistent 
provision of these. The design team has included a professional 
architect/engineering firm and representatives from a diversity of 
interests and expertise, including the tribal health system, 
practitioners, eventual owners/operators, and funding agencies. The 65% 
designs are anticipated in late spring, with a pilot project being 
constructed from one of the three designs in a rural Alaska location in 
early fall 2010.
    The Health Facilities Program is evolving. What began ten years ago 
with an assessment of rural Alaska health facility needs grew into a 
$40 M a year infrastructure program by 2005. Over the course of its 
history, the Commission has invested $191 M in health projects, 
contributing to the construction of 95 clinics and the planning efforts 
of another 100.
    The projects presented here reflect the process for prioritization 
recommended and endorsed by the Health Steering Committee. In 
compliance with recently adopted procedures for the Denali Commission 
Work Plans, the Health Program must propose specific projects for FY 
2010 funding. Projects presented here are aligned with the 
appropriation conference language, as follows:

    The Committee expects the Denali Commission to allocate funds to 
a mix of rural hospital, clinic, long-term care and social service 
facilities, rather than focusing exclusively on clinic funding.

    For historical context, the following reflects the allocation of 
Health Facilities Program appropriations across the program component 
areas:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Primary care     Primary care in    Elder supportive                       Other program
                       Fiscal year                              clinics           hospitals           housing       Behavioral health        areas
--------------------------------------------------------------------------------------------------------------------------------------------------------
2007.....................................................        $37,119,040         $2,500,000                 $0         $5,063,000           $637,000
2008.....................................................         23,319,040          4,000,000          5,840,890          5,000,000                  0
2009.....................................................         14,758,102          1,526,746          1,901,420          1,017,831                  0
--------------------------------------------------------------------------------------------------------------------------------------------------------


                         Allocation of Program Resources Across Program Component Areas
----------------------------------------------------------------------------------------------------------------
    Primary care clinics      Primary care in hospitals    Elder supportive housing        Behavioral health
----------------------------------------------------------------------------------------------------------------
               $7,267,400                      734,700                     805,000                     492,900
----------------------------------------------------------------------------------------------------------------

    Up to $200,000 will be made available for the technical 
consultation contract which assists communities through the due 
diligence application process.
    This allocation scenario, recommended by the Health Steering 
Committee, distributes available funds across the breadth of program 
areas.

                                    FY 2010 Prioritized Project Descriptions
----------------------------------------------------------------------------------------------------------------
                                                                                      Denali
               Community                   Project description      Total est.      commission      Cost share
                                                                   project cost    share (est.)    match (est.)
----------------------------------------------------------------------------------------------------------------
Igiugig...............................  1,600 SF primary care         $2,000,000      $1,000,000      $1,000,000
                                         clinic.
Ekwok.................................  1,600 SF primary care          2,000,000       1,600,000         400,000
                                         clinic.
Kasaan................................  900 SF primary care            1,000,000         800,000         200,000
                                         clinic.
Kaltag................................  2,058 SF primary care          2,273,000       1,818,400         454,600
                                         clinic.
Chistochina...........................  6,000 SF Multi-use             3,443,120       2,754,496         688,624
                                         facility; 3,000 SF
                                         clinic.
Chalkyitsik...........................  1,642 SF primary care          1,855,373       1,484,299         371,074
                                         clinic.
Shaktoolik............................  2,650 SF primary care          2,700,000       2,160,000         540,000
                                         clinic.
Arctic Village........................  2,067 SF primary care          1,694,016       1,524,614         169,402
                                         clinic.
Akiachak..............................  3,200 SF primary care          3,094,400       2,784,960         309,440
                                         clinic.

[[Page 7262]]


Takotna...............................  900 SF primary care            1,000,000         800,000         200,000
                                         clinic.
Wales.................................  Relocation & renovation          855,000         769,500          85,500
                                         of primary care clinic.
Venetie...............................  2,147 SF primary care          1,751,952       1,576,757         175,195
                                         clinic.
Napakiak..............................  2,600 SF primary care          2,514,200       2,262,780         251,420
                                         clinic.
Circle................................  1,647 SF primary care          1,343,952       1,209,557         134,395
                                         clinic.
Tyonek................................  2,580 SF primary care          2,146,560       1,931,904         214,656
                                         clinic.
Willow................................  8,000 SF Community             4,808,000       4,327,200         480,800
                                         Health Center.
Hoonah................................  4,000 SF primary care          3,116,000       2,804,400         311,600
                                         clinic.
----------------------------------------------------------------------------------------------------------------
Total.................................  ........................  ..............      31,608,867  ..............
----------------------------------------------------------------------------------------------------------------

    Due to the nature of the due diligence requirement of Primary Care 
projects, a project may not progress as quickly as another. The 
projects are prioritized in the list above, and will progress to 
construction as a project attains all due diligence requirements; 
projects may proceed out of priority order.
    The competitive proposal processes for the elder supportive housing 
and primary care in hospitals programs were completed in January 2010. 
Specific projects proposed for FY 2010 funding are included in the FY 
2010 Funding Table.
    The Commission's major program partner for behavioral health 
projects is the Alaska Department Health and Social Services (A-DHSS), 
which maintains a prioritized list of infrastructure needs related to 
behavioral health. The Health Facilities Program will continue to work 
with A-DHSS to address the prioritized needs, as projects attain the 
due diligence standards of the Commission.
    As denoted above, if viable, sustainable, and vetted projects in 
the behavioral health, primary care in hospitals, and elder supportive 
housing programs will not utilize all of the allotted funds in those 
component areas (by June 2010), the remaining funds will be re-
programmed to the legacy primary care clinic program.
    Prior Year Reprogramming of Project Funds:
    While care is taken to obligate program funds to viable projects 
with reliable cost estimates, occasionally a project will not move 
forward to construction, or will experience a cost savings. In those 
instances, the Commission staff will identify to Commissioners and the 
Federal Co-Chair how prior year project funds will be utilized. 
Historically the Health Facilities Program has funded a mix of health 
projects. Prior work plans have indicated unexpended funds in Health 
component areas other than primary care would revert back to primary 
care projects. As the legacy focus of the Health Facilities program is 
primary care clinics, a large percentage of funds will be re-programmed 
to that component area. However, consideration is typically given to 
ensure that a wide variety of projects in the areas of rural hospitals, 
clinics, long-term care and social service facilities is supported.
    The Denali Commission Health Facilities Program must at this time 
re-program $6,871,470 in unexpended prior year funds. The funds to be 
re-programmed are time-limited (they must be expended within five years 
of the original appropriation), so the money must be used for projects 
that will be ready to move to construction in calendar year 2010 or 
early 2011. The following three primary care clinic projects have a 
high probability of moving into construction in 2010 or early 2011:

----------------------------------------------------------------------------------------------------------------
                                                                                         Denali Commission share
                   Community                               Project description                    (est.)
----------------------------------------------------------------------------------------------------------------
Chistochina....................................  3,000 SF primary care clinic..........               $2,754,496
Chalkyitsik....................................  1,642 SF primary care clinic..........                1,484,299
Akiachak.......................................  3,200 SF primary care clinic..........                2,784,960
                                                                                        ------------------------
                                                                                                      7,023,755*
----------------------------------------------------------------------------------------------------------------
* This amount exceeds the available balance of reprogrammable funds by $152,285--which will be transferred from
  the design pool budget line in the FY 2010 Work Plan.

    If these projects should not proceed to construction as expected 
the Commission will utilize the prioritization methodology outlined in 
the health facilities program section above to identify other projects.

Training Program

    The Training Program was instituted by the Commissioners as a 
standalone program in 1999 to ensure local residents were trained to 
construct, maintain and operate Commission investments in rural Alaska. 
From 1999 to 2003, it was the general policy of the Commission to 
appropriate 10% of Energy and Water funds to support the Training 
Program. In 2004, US Department of Labor (USDOL) began direct 
appropriations to the Commission to support rural training and 
continued this support through 2009.
    In 2010, the Commission was not appropriated training funds from 
USDOL, but the FY 2010 includes funding for the program in the amount 
of $1,000,000 from the Energy and Water appropriation for the 
continuation of workforce development in rural Alaska.
    The Commission's Training Program has been critical to building the 
capacity of rural communities through training and employment. In 
February 2009 the Alaska Department of Labor (A-DOL), Research and 
Analysis Section released an employment and training report that 
specifically evaluated the participants who completed training funded 
through the Commission between FY 2001 and FY 2007. This report 
concluded that the participants' wages increased 64.4%

[[Page 7263]]

and their employability increased 12.1%.
    The following is a list of training partners who have been funded 
by the Commission to carry-out training programs responsive to the 
Training program goals:
     Alaska Department of Labor and Workforce Development.
     University of Alaska.
     Alaska Works Partnership.
     Associated General Contractors/Construction Education 
Foundation (CEF).
     First Alaskans.
    The FY 2010 Draft Work Plan is based on the two primary goals. 
First to use the remaining FY 2009 funds in the amount of $3,209,100.00 
to continue to support legacy partners who have an excellent reputation 
of delivering applicable training to rural Alaskans that supports the 
construction, maintenance and operation of Denali Commission 
investments.
    Secondly, in response to an early policy of the agency, that 
approximately 10% ($1 M) of the Energy and Water appropriation be 
provided to the FY 2010 Training Program to ensure its continuation. 
When combined with prior year funds that were only recently received by 
the agency from Federal USDOL, this will allow the Commission to 
continue the program and fund substantial workforce development in 
rural Alaska.

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 Federal 
Co-Chair 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 consensus among agencies and communities that the 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 
partners.
    The Program is generally a competitively-bid contractor or 
materials-based system grounded in Title 23 CFR. These strict project 
development and construction guidelines have presented some challenges 
to the 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 program partner sponsors to 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.
    In FY10 the program will increase its focus on barge landings at 
rural communities. These projects range from one or two mooring points 
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 the U.S. Army Corps of 
Engineers (USACE) have prepared a barge landing analysis that will be 
utilized to identify projects in FY10. The universe of need for the 
first generation of projects is in the range of $40,000,000.
    The Committee met on January 13-14, 2010 to select the road and 
waterfront development projects and program priorities for FY10. Final 
project approvals and funding amounts will be provided in early 
February 2010 upon review and approval by the Commission's Federal Co-
Chair.

Broadband

    Alaska Governor Sean Parnell designated the Denali Commission 
(Commission) as the lead entity for the Broadband Mapping and Planning 
initiative which is being funded by the National Telecommunications and 
Information Administration (``NTIA'') of the United States Department 
of Commerce.
    The Commission is charged to lead this important effort to plan 
broadband in Alaska. The State intends to be an active participant and 
major partner in this proposed mapping and planning effort with direct 
involvement by the State Co-Chair, Governor and appropriate State 
agencies and State personnel. The Commission will partner with 
broadband mapping leader, Connected Nation, to implement the Connect 
Alaska program. In addition the Commission will support the creation 
and management of the Broadband Steering Committee, which will be 
comprised of State, Federal, non-profit, and State of Alaska 
telecommunications providers.
    The scope of work seeks to employ industry-standard GIS toolsets 
and experienced personnel to deliver comprehensive and accurate 
broadband mapping data, develop State-level broadband maps, aid in the 
development and maintenance of a national broadband map, and fund 
statewide initiatives directed at broadband planning. The Connect 
Alaska suite of deliverables will include datasets as required by the 
NTIA as well as Web-based, interactive broadband maps to inform State 
and local government officials, consumers, broadband providers, 
community development organizations, researchers, and other 
stakeholders. This interactive Web site will be critical to ensure 
accessibility of the broadband data, but it will also be key to 
increasing awareness of the mapping program and the benefit of 
broadband. It will also play an important role in ensuring local 
verification of the mapping data.
    NTIA is providing $1.4 M for broadband mapping in Alaska and 
$492,000 to manage the Broadband Steering Committee for five years.

Other Program and Policy Issues

Pre-Development Program
    The Commission intends to continue to engage in the Pre-Development 
program in FY 2010. Pre-Development is a joint collaboration between 
the Alaska Mental Health Trust Authority, the 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 projects 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.
    The amount of $150,000 will provide funding for the pre-development 
program for FY 2010.

[[Page 7264]]

Sponsorship Program
    The Commission plans to continue conference sponsorships in FY 
2010. Commissioners reinstated Conference sponsorship funding for 
events that were consistent with the Commission's mission and values in 
2006.
    Sponsorship activities provide a positive venue for communicating 
Commission activities. Sponsorship opportunities also provide 
Commission outreach to a wide variety of events and audiences. Events 
sponsored by the Commission promote key programmatic areas that are key 
to the Commission's values and mission, including efforts in 
alternative-renewable energy conferences, health, training and 
leadership and transportation.
    In FY 2010 this program will be funded in the amount of $150,000. 
Events funded will be in line with the major program areas at the 
Commission and will have a statewide focus.

    Dated: February 4, 2010.
Joel Neimeyer,
Federal Co-Chair.
[FR Doc. 2010-3135 Filed 2-17-10; 8:45 am]
BILLING CODE 3300-01-P
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