[Federal Register Volume 72, Number 74 (Wednesday, April 18, 2007)]
[Notices]
[Pages 19478-19485]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-7344]


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DENALI COMMISSION


 Denali Commission Fiscal Year 2007 Work Plan Request for 
Comments

AGENCY: Denali Commission.

ACTION: Denali Commission Fiscal Year 2007 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 for a 30 day period, providing an opportunity for public 
review and comment.
    This Federal Register notice serves to announce the 30 day 
opportunity for public comment on the Denali Commission Work Plan for 
Federal Fiscal Year 2007.

DATES: Comments and related material must be received by May 18, 2007.

ADDRESSES: Submit comments to the Denali Commission, 510 L Street, 
Suite 410, Anchorage, AK 99501.

FOR FURTHER INFORMATION CONTACT: Mr. Krag Johnsen, Denali Commission, 
510 L Street, Suite 410, Anchorage, AK 99501. Telephone: (907) 271-
1414. E-mail: [email protected].

Background

    The Commission's mission is to partner with tribal, federal, state, 
and local governments and collaborate with all Alaskans to improve the 
effectiveness and efficiency of government services, to develop a well-
trained labor force employed in a diversified and sustainable economy, 
and to build and ensure the operation and maintenance of Alaska's basic 
infrastructure.
    By creating the Commission, Congress mandated that all parties 
involved partner together to find new and innovative solutions to the 
unique infrastructure and economic development challenges in America's 
most remote communities.
    Pursuant to the Denali Commission Act, as amended, the Commission 
determines its own basic operating principles and funding criteria on 
an annual federal fiscal year (October 1 to September 30) basis. The 
Commission outlines these priorities and funding recommendations in an 
annual Work Plan.
    Pursuant to the Act, the Work Plan is first provided in draft for 
Commissioner discussion, recommended via motion by the Commission for 
publication in the Federal Register for a period of no less than 30 
days and for broad dissemination for written public comment. Commission 
staff is responsible for compiling written public comment and 
forwarding it to the Commission's Federal Co-Chair (Mr. George J. 
Cannelos).
    The Federal Co-Chair then adopts a final version of the Work Plan, 
which includes, to the degree the Federal Co-Chair deems appropriate, 
modifications, additions and deletions based on the policy and program 
recommendations of the full Commission and public comment. The final 
version of the Work Plan is adopted by the Commission, forwarded to the 
Secretary of Commerce and through the Secretary of Commerce to the 
Federal Office of Management and Budget (OMB), on behalf of the Federal 
Co-Chair. The Work Plan is also disseminated widely to Commission 
program partners including, but not limited to the Bureau of Indian 
Affairs (BIA), the Economic Development Administration (EDA), and the 
United States Department of Agriculture--Rural Development (USDA-RD).
    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.
    In past Federal fiscal year the Commission would provide a draft 
Work Plan for Commissioners' review, discussion, and forwarding to the 
Federal Register and public posting in the early fall or late winter. A 
revised final version of the plan would then be released by the Federal 
Co-Chair in late spring or early summer. However, due to the Continuing 
Resolution (CR) that affected all federal appropriations in FY 07, and 
which was not passed until February 15, 2007, the publication of

[[Page 19479]]

the draft Work Plan has not followed the typical timeline.
    The Federal Co-Chair may enter into grants for the FY 07 period 
after publication of the draft Work Plan, and before all public comment 
is received. This is necessary to ensure that construction, barge and 
project schedules are not compromised and that project costs do not 
escalate due to delays. If appropriations are passed within ordinary 
fiscal year timelines outlined above, this step would ordinarily not be 
necessary.
    The Commission is also in the process of completing its first ever 
Program Evaluation, and will be using its findings to embark on a 
Strategic Planning initiative. References in this document to ``the 
Strategic Planning'' process refer to that activity which the 
Commission will begin undertaking in the summer of calendar year 2007.

FY 07 Appropriations Summary

    The Denali Commission receives several federal funding sources 
(identified by the varying colors in the table below). These fund 
sources, commonly referred to as ``appropriations,'' are governed by 
the following general principles:
     In FY 07 there are no project specific earmarks in any 
appropriations;
     Energy and Water Appropriations (commonly referred to as 
Commission ``Base'' funding) is eligible for use in all programs, but 
has historically been used substantively to fund the Energy Program.
     The Energy Policy Act of 2005 established new authorities 
for the Commission's Energy Program, with an emphasis on renewable and 
alternative energy projects. No new funding accompanied the Energy 
Policy Act, and Congressional direction has indicated that the 
Commission should fund renewable and alternative Energy Program 
activities from the available FY 07 ``Base'' appropriation.
     All other appropriations outlined below may be used only 
for the specific program area and may not be used across programs. For 
instance, Health Resources and Services Administration (HRSA) funding, 
which is appropriated for the Health Facilities Program, may not be 
moved to the Economic Development Program.
    A 1% federal rescission was passed in the CR for FY 07. The 
application of this rescission is noted below. It is applied at the 
appropriation level, as is the Commission's 5% overhead. In instances 
where the rescission and/or overhead differs from the rates discussed 
above (1% and 5% respectively) it is due to the requirements related to 
that appropriation. For example, TAPL is not from an appropriation, so 
it is not subject to a rescission.
    Final transportation appropriations received will be slightly 
reduced due to agency modifications, reductions and fees determined by 
the U.S. Department of Transportation.
    Some appropriation figures are estimates, pending receipt of funds, 
and clarification of the passage of the February 15, 2007 CR. Program 
appropriations that fall into this category have been identified by the 
term ``estimate.''
    The table below provides the following information, by 
appropriation:
     Total FY 07 Appropriations:
    These are the figures that appear in the rows entitled ``FY 07 
Appropriation'' and are the original appropriation amounts which not 
include federal rescissions or Commission overhead deductions. These 
appropriations are identified by their source name (i.e., ``Energy and 
Water Appropriation; USDA, Rural Utilities Service, etc.)
     Total FY 07 Program Available Funding:
    These are the figures that appear in the rows entitled ``FY 07 
Appropriations--Program Available'' and are the amounts of funding 
available for program(s) activities after all federal rescissions and 
Commission overhead has been deducted.
     Commission Staff Recommended 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, 
within each appropriation, recommended by Commission staff for program 
funding (i.e., from the ``Base'' appropriation staff has recommended 
funding the Economic Development Program in the amount of $3,000,000).
     Subtotal of Program Funding:
    These are the figures that appear in the rows entitled ``subtotal'' 
and are the subtotals of all Commission staff recommendations within a 
given appropriation (i.e., the sub-total of recommendations in the 
``Base'' is $47,025,000). The subtotal must always equal the Total FY 
07 Program Available Funding.
    The last column on the table also provides the appropriation 
information for FY 06, and serves as a program comparison for 
recommendations in FY 07.

          Denali Commission FY 07 Appropriations Funding Table
------------------------------------------------------------------------
 
------------------------------------------------------------------------
FY 07 Energy & Water Appropriation....................       $50,000,000
FY 07 Energy & Water Appropriations (``Base'')--              47,025,000
 Program Available (less 1% federal rescission and 5%
 Commission overhead).................................
Energy Program: Bulk fuel, RPSU, etc..................        26,025,000
Energy Program: Alternative & renewable energy........         5,000,000
Teacher Housing Program: Design & construction........         5,000,000
Health Facilities: Planning, design & construction....         8,000,000
Economic Development Program: Various.................         3,000,000
Multi-Use Program.....................................                 0
Public Broadcasting Program...........................                 0
Washeteria Program....................................                 0
                                                       -----------------
    Sub-total.........................................        47,025,000
                                                       =================
FY 07 USDA, Rural Utilities Service (RUS).............        15,000,000
FY 07 USDA--Rural Utilities Service (RUS)--Program            14,400,000
 Available (less 4% overhead) ESTIMATE................
Energy Program: High energy cost communities..........        14,400,000
                                                       -----------------
    Sub-total.........................................        14,400,000
                                                       =================
FY 07 Trans Alaska Pipeline Liability (TAPL) Trust....         4,227,257
FY 07 Trans Alaska Pipeline Liability (TAPL)--Program          4,015,895
 Available (less 5% overhead) ESTIMATE................

[[Page 19480]]

 
Energy Program: Bulk fuel.............................         4,015,895
                                                       -----------------
    Sub-total.........................................         4,015,895
                                                       =================
FY 07 DHHS--Health Resources & Services Administration        39,680,000
 (HRSA)...............................................
FY 07 DHHS-Health Resources & Services Administration         37,319,040
 (HRSA)--Program Available (less 1% federal rescission
 and 5% Commission overhead)..........................
Health Program: Primary Care clinic design, planning,         29,119,040
 construction.........................................
Health Program: Behavioral Health.....................         5,063,000
Health Program: Primary Care in Hospitals.............         2,500,000
Health Program: Equipment.............................           637,000
Health Program: Hospital Designs......................                 0
Health Program: Elder Supportive Housing/Assisted                      0
 Living...............................................
                                                       -----------------
    Sub-total.........................................        37,319,040
                                                       =================
FY 07 Department of Labor (DOL).......................         6,944,000
FY 07 Department of Labor (DOL)--Program Available             6,530,832
 (less 5% Commission overhead)........................
Training Program: Construction, Operations &                   4,000,000
 Maintenance Training.................................
Training Program: Management Training For Commission           1,000,000
 Projects.............................................
Training Program: Youth Initiatives...................         1,000,000
Training Program: Construction, Operations &                     530,832
 Maintenance Training of ``Other Public
 Infrastructure''.....................................
                                                       -----------------
    Sub-total.........................................         6,530,832
                                                       =================
FY 07 Federal Transportation Administration (FTA).....        12,500,000
FY 07 Federal Highway Administration (FHWA)...........        12,500,000
FY 07 Transportation (less 5% Commission overhead)--          24,000,000
 ESTIMATE.............................................
Transportation Program: Docks & Harbors...............        11,500,000
Transportation Program: Roads.........................        12,500,000
                                                       -----------------
    Sub-total.........................................        24,000,000
                                                       =================
FY 07 USDA, Solid Waste...............................           750,000
FY 07 USDA--Solid Waste--Program Available (less 5%              705,375
 Commission overhead).................................
                                                       -----------------
Solid Waste Program: planning, design and construction           705,375
    Sub-total.........................................           705,375
                                                       =================
    Total FY 07 Appropriations--ESTIMATE..............       141,601,257
------------------------------------------------------------------------

FY 07 Program Summaries

    The following section provides narrative discussion, by each of the 
Commission Programs identified for FY 07 funding in the table above, in 
the following categories:

 Program Background
 Program Approach
 FY 07 Program Funding
 FY 07 Program Implementation
 FY 07 Outputs & Outcomes

    The following programs, or sub-program areas, which have been 
funded by the Commission in previous federal fiscal years are not 
recommended for funding in FY 07 and do not appear in the narrative 
below:

 Washeterias
 Health Facilities:
    [cir] Elder Supportive Housing/Assisted Living
    [cir] Domestic Violence
    [cir] Hospital Designs
 Multi-Use Facilities
 Public Broadcasting

    In addition to the FY 07 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.

Energy Program

    Program Background: The Energy Program is the Commission's oldest 
program and is often identified, along with the Health Program, as a 
``legacy'' program. The Program focuses on bulk fuel (BFU) and rural 
power system upgrades/power generation (RPSU) across Alaska.
    Since 1999, approximately 48% of all Commission funds have been 
allocated to the energy program ($337 million). This amount includes 
all energy projects in the legacy program, as well as some alternative 
energy projects. In FY 06, $21.7 million went to legacy BFU, $17.6 
million to RPSU plus $4.9 million to wind and $2.3 million to interties 
related to the RPSU projects. The needs in the bulk fuel and power 
generation projects are presently estimated at $198 million and $211 
million, respectively, in 2004 construction costs. At FY 06 funding 
rates, it will take another eight to nine years for BFU and ten to 
eleven years for RPSU before these programs are completed. The 
Commission has also funded a very successful program of competitively 
selected energy cost reduction-alternative energy projects. In three 
completed rounds of funding, approximately $6 million in grant funds 
have leveraged $8.1 million in participant funding, with estimated 
life-cycle cost savings (generally diesel fuel avoided over the life of 
the project) of $29 million.
    The Energy Policy Act of 2005 established new authorities for the 
Commission's Energy Program, with an emphasis on alternative and 
renewable energy projects, energy transmission, including interties, 
and fuel transportation systems. Although the 2005 Energy Policy Act 
did not include specific appropriations, the Commission is expected to 
carry out the intent of the

[[Page 19481]]

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 FY 07 draft Work Plan offers 
a strategy to rebalance the Energy Program in both legacy and renewable 
systems. About 94% of electricity in rural communities which receive 
Power Cost Equalization (PCE) payments is produced by diesel and about 
half the fuel storage in most villages is used for the power plants. 
Any alternative means of generating power can reduce the capacity 
needed for fuel storage. This reduces capital costs and operations and 
maintenance (O&M) and repair and renovation (R&R) costs for fuel 
storage facilities) and may reduce the cost of power to the community.
    Thus, a renewable project sometimes is proposed in conjunction with 
a deficiency list project to reduce the dependence on diesel fuel, and 
the concomitant fuel storage requirements. So too, an intertie, can 
remove the need for a new power plant, and reduce fuel storage 
requirements in the intertied communities. Therefore, the legacy 
Program may include these types of energy infrastructure too. 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.
    Program Approach: 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.
    FY 07 Program Funding: The Commission has historically directed 
that the Program continue to concentrate on completion of the legacy 
program of BFU and RPSU for communities on the statewide deficiency 
lists. In FY 07 the Program has received funding requests exceeding $93 
million, primarily for deficiency list projects.
    As has always been the case in the Program, the funding requests 
exceed funds available. The legacy of BFU and RPSU remain integral to 
completing the Program mission, but they cannot and should not be 
accomplished in a vacuum which prevents applying appropriate technology 
and reducing rural dependence on diesel for energy needs. A well-
balanced portfolio of BFU, RPSU and renewable/alternative energy 
projects will accomplish the overall program mission, and result in 
increased savings over the long term.
    Provide up to $26,025,000 to BFU and RPSU from the ``Base'' 
appropriation; and up to $5,000,000 from the ``Base'' appropriation to 
alternative/renewable energy projects for competitive selection and 
requiring a 1:1 match to Commission funding.
    Provide approximately $14,400,000 to BFU and RPSU in communities 
with extremely high energy costs >275% of the national average from the 
USDA-RUS appropriation; and $4,015,895 to the BFU sub-program area from 
the TAPL funding. A total of up to $49,440,895 in FY 07 program funding 
is planned.
    In FY 07 the Commission intends to establish a new Energy Advisory 
Committee to make recommendations on future partners, organizations, 
and projects. The Committee will be comprised of a broad selection of 
individuals that are knowledgeable about energy in Alaska.
    FY 07 Outputs & Outcomes: Program funding at the level identified 
above is likely to result in the following outputs:

 Completion of 2 interties
 1 wind-diesel project
 10 RPSU and 10 BFU projects
 Continuing design efforts
 Small number of energy cost reduction projects
 Small number of renewable/alternative energy projects

    Completion of code-compliant bulk fuel storage facilities and power 
plant or distribution systems by definition has improved access to 
energy and created more safe and healthy rural communities. Program 
partners have collected anecdotal information on improved efficiencies 
and reduced costs at their upgraded facilities for the last several 
years. Additionally, the Commission has begun to gather and collate 
data more formally to quantify savings realized by individual projects 
and the Program.
    Additional outcome measurements will be developed for the Program, 
and will largely be determined during the upcoming Strategic Planning 
process. Specifically, it is intended that the Program will develop 
more outcomes related to access and cost reduction.

Health Facilities Program

    Program Background: 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.
    Program Approach: The Program utilizes a ``universe of need'' model 
for primary care and a competitive selection process for other sub-
program areas. In 1999 the Program created a deficiency list for 
primary care clinics, which totaled 288 communities statewide in need 
of clinic replacement, expansion and/or renovation. Currently, 70 
clinics have been completed (either new construction or renovation), 33 
are in construction and 62 are in planning/design.
    The Program is guided by the Health Steering Committee, an advisory 
body comprised of the following membership organizations: The State of 
Alaska, Alaska Primary Care Association, the Alaska Native Tribal 
Health Consortium, the Alaska Mental Health Trust Authority, the Alaska 
Native Health Board, the Indian Health Service, the Alaska State 
Hospital and Nursing Home Association, and the University of Alaska.
    Projects are recommended for funding 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

[[Page 19482]]

of cost share match, and realistic ability to move the project forward 
in a given construction season.
    FY 07 Program Funding: The language in the HRSA Appropriations bill 
for FY06 read as follows: The Committee provides $39,680,000 for the 
Denali Commission. The fiscal year 2005 comparable level was 
$39,680,000 and the administration did not request funding for this 
program in fiscal year 2006. These funds support 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 
service infrastructure for which no other funding sources are 
available, thereby providing 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 exclusively on clinic funding.
    Provide a total of up to $44,699,103 in clinic construction is 
provided. Of this total an estimated $24,211,201 are ready to move 
forward to construction and another $20,487,902 have met most due 
diligence requirements and have a strong likelihood of being 
construction ready this summer. In addition, some 40 communities are 
actively completing planning and design requirements and will likely be 
ready for the 2008 construction season. The Program's model of 
planning, design and construction has been very successful, and has 
resulted in the significant need described above.
    No funds are provided for hospital designs. The Commission has been 
actively engaged in hospital designs in partnership with the Indian 
Health Service for several years. While the Commission recognizes the 
ongoing need for construction funding for hospitals, the recommendation 
is that the Commission's health funding be limited only to design need.
    Provide a total of up to $5,063,000 for the sub-program area of 
behavioral health. The behavioral health facilities sub-program has 
successfully developed a functional process for allowing organizations 
to expand capacity for serving a specific population of youth in 
residential treatment with the goal of keeping them closer to their 
homes in Alaska.
    Provide a total of up to $2,500,000 to the primary care in 
hospitals sub-program area. Primary care improvements in hospitals 
focus on the primary care repair, renovation and equipment needs within 
a hospital setting. Project selection, prioritization and due diligence 
determined through a competitive process.
    Provide a total of up to $637,000 to the emergency medical services 
(EMS) equipment sub-program. Since its inception the Health Program has 
funded EMS equipment needs across the state of Alaska. This sub-program 
area receives wide support and cost share matching from other funding 
organizations in Alaska. A condition for funding is that projects 
proceed to award within a timely manner, consistent with other program 
areas.
    The FY 07 Program funding strategy is based on a total of 
$37,119,040 in HRSA appropriations and additionally up to $8,000,000 in 
``Base'' appropriations for a total of up to $47,680,000 in program 
funding.
    FY 07 Outputs & Outcomes: Program funding at the level identified 
above is likely to result in the following outputs:

 Clinics
    [cir] 18 construction projects
 Behavioral Health
    [cir] 4 construction projects
 Primary Care in Hospitals
    [cir] 9 equipment/renovation projects
 EMS Equipment
    [cir] Unknown; pending selection

    Outcome goals related to increased access and reduction in cost are 
anticipated for FY 2008 and will be developed in response to the 
Program Evaluation and pending Strategic Planning efforts.

Training Program

    Program Background: 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 necessary to compete 
and often lose those jobs to people from outside the community, region 
or even state. With the limited number of jobs available the Commission 
believes it is imperative to ensure that local residents have the 
skills and knowledge necessary to work on the construction of projects 
funded by the Denali Commission. In addition the Commission builds 
sustainability into the development of infrastructure by providing 
training for the long term management, operations and maintenance of 
facilities and thus increasing local employment at the same time.
    The Program's mission is to increase the employment and wages of 
unemployed or underemployed Alaskans through training for careers in 
construction, operations and maintenance of public facilities.
    The Program is also guided by the following principles:

 Priority on training for construction, operations and 
maintenance of public infrastructure
 Training will be tied to a job
 Training will encourage careers not short term employment
 Funding will support a ``Training System''

    Program Approach: To date the Commission has dedicated training 
funds to the careers associated with infrastructure development and 
long-term sustainability in rural Alaska. The Commission has funded 
construction, operations and maintenance training in communities 
statewide with large success.
    The Training Program's primary purpose is to support the 
Commission's investment in infrastructure development by providing 
training for the careers related to the Commission infrastructure 
programs (such as Energy and Health Facilities).
    Following are the Program's priorities related to training 
activities that support infrastructure:

 Priority 1--Training for Construction, Operations and 
Maintenance of Commission Projects

    Description: At the core of the Training Program is the 
continuation of training related to the construction, operations and 
maintenance of Commission funded projects. The Commission training 
program centers on the goal of creating employment opportunities for 
local residents to construct Commission funded projects and develop the 
skills necessary to operate and maintain Commission facilities.

 Priority 2--Management Training for Commission 
Projects

    Description: A sustainable Commission facility not only requires 
the skills training for operations and maintenance of the physical 
facility but also requires the management training related to the 
operations of such a facility. The skills of planning, reporting and 
accounting are all essential to the survival of rural infrastructure.

 Priority 3--Youth Initiatives in Support of 
Commission Projects

    Description: Preparing Alaskans youth for careers that support the 
Denali Commission's mission of building sustainable communities.

[[Page 19483]]

 Priority 4--Construction, Operations and Maintenance 
Training of ``Other Public Infrastructure''

    Description: In order to build capacity in communities, regionally 
and statewide the Commission invests in the training for projects that 
are not funded by the Commission directly. This investment increases 
the skills and knowledge of rural residents in order to ultimately 
maintain Commission projects and all other publicly funded projects.
    Historically the Commission has provided funding directly to 
organizations that are able to deliver results in the priority areas as 
described above. These organizations have typically been selected by 
the Commission directly or through competitive requests for proposals 
managed by partner organizations
    FY 07 Program Funding: The Commission expects to have available 
$6,530,832 in FY 07 funding for the Training Program. This funding is 
provided by the U.S. Department of Labor to support the program. The 
Commission anticipates receipt of this funding in July 2007.
    Provide up to the following funding amounts in the following 
general categories pursuant to its priority areas:

Priority--1 Construction, Operations and Maintenance          $4,000,000
 Training of Denali Commission Projects....................
Priority--2 Management Training for Commission Projects....    1,000,000
Priority--3 Youth Initiatives..............................    1,000,000
Priority--4 Construction, Operations and Maintenance             530,832
 Training of Other Public Infrastructure''.................
 

    In FY 07 the Commission intends to establish a new Training 
Advisory Committee to make recommendations on the partners, 
organizations, and projects that should receive FY 07 funding under the 
priority areas outlined above. This Advisory Committee will be 
comprised of a broad representation of individuals that are 
knowledgeable of and have experience in training in rural Alaska.
    FY 07 Outcomes & Outputs: Program funding at the level identified 
above is likely to result in the following outputs:

 Over 1300 people trained
 Cost per participant trained is less than $5,000
 5% increase in employment 7-12 months after Commission funded 
training
 35% increase in annual earnings 7-12 months after Commission 
funded training

    The following longer term outcome goals have been identified for 
the Program:

 35% increase in annual earnings 5 years after Commission 
funded training

    Additional outcome goals will be developed in response to the 
Program Evaluation and pending Strategic Planning efforts.

Transportation

    Program Background: On August 10, 2005, the President signed into 
law new highway program reauthorization legislation titled Safe, 
Accountable Flexible Efficient Transportation Equity Act: A Legacy for 
Users (SAFETEA-LU). This Act provides the Commission with $15 million 
annually for fiscal years 2005-2009 for a Denali Access System program. 
The Act also provides the Commission $10 million annually for Fiscal 
Years 2005-2009 for docks, harbors and related waterfront development 
projects. The Act also outlined the array of road projects Denali 
Access System is designed to target, including rural community streets 
and roads; roads between rural communities; roads between rural 
communities and state highway system; and roads to access resource 
development.
    The Act requires the formation of an Advisory Committee to advise 
the Commission with members appointed by the Governor of Alaska. On 
November 11, 2005, Governor Murkowski announced appointments to the 
Denali Access Systems Transportation Advisory Committee (TAC). The nine 
member committee includes by law, four members who represent existing 
regional native corporations, native non-profit entities, and tribal 
governments and four members who represent rural Alaska regions or 
villages. The committee chair is Denali Commission Federal Co-Chair, 
George J. Cannelos.
    As a result of a TAC-directed public outreach and agency 
coordination effort, the $24,000,000 program has now begun to focus 
attention on two important transportation needs: roads and boardwalks, 
and barge landing moorage systems. Village connector roads and roads to 
local and regional resources will continue to receive significant 
attention, but to the extent practical each year, local roads and 
boardwalks in small rural communities will receive primary attention. 
In the waterfront development program, docks and harbors in small 
coastal communities will continue to receive attention, but there is a 
significant need for barge landings in coastal and riverine communities 
to improve operational safety and efficiencies. This class of project 
will receive primary consideration each year to the extent funding and 
construction schedules allow.
    Another evolution in Program development, especially in the road 
Program, has been a shift from maximizing financial leveraging 
opportunities with other transportation agencies, to fully funding, as 
necessary, the program's highest priority projects. In FY 06, the $23 
million transportation program leveraged almost $100 million in 
projects. In coming years, while striving to leverage funding 
opportunities, an emphasis on priorities over funding partnerships will 
likely reduce the overall program joint-fund total.
    Program Approach: The TAC is a central feature of the amendments to 
the Denali Commission Act of 1998 amendments that define the Denali 
Access System. Section 309 defines key committee responsibilities that 
include: Recommend transportation priorities and funding strategies; 
develop public involvement and coordinating planning programs; develop 
annual capital budget recommendations; and coordinate multi-region 
projects.
    The TAC reviews project nominations on a semi-annual basis, once in 
December for project selections and once during the summer to monitor 
project development.
    In addition to meeting transportation-specific criteria and 
processes, the Program fully incorporates Denali Commission policies 
including a commitment to sustainable community projects, and a 
commitment to the Commission's Investment Policy.
    FY 07 Program Funding: The Commission will provide up to 
$12,500,000 to the roads component of the Program. Local roads projects 
have immediate benefits for health and quality of life, while having 
minimal impact on the environment. This program element includes 
boardwalks in many river delta and coastal areas of the state.
    Provide up to $11,500,000 to the waterfront development component 
of the program. In the waterfront development program, small community 
harbor rehabilitation and

[[Page 19484]]

expansion needs are recognized and will continue to receive attention. 
However, as demonstrated in several analyses since 2000, including the 
Alaska Department of Transportation and Public Facilities Yukon-
Kuskokwim Plan and the Northwest Alaska Plan, and the U.S. Army Corps 
of Engineers Yukon-Kuskokwim Regional Port Study, barge landing design 
and construction is the most urgent unmet maritime need in rural 
Alaska.
    FY 07 Outcomes & Outputs: Program funding at the level identified 
above is likely to result in the following outputs:

 Roads
    [cir] 9 projects in design; 15 projects in construction
 Water Front Development
    [cir] 9 projects in design; 11 projects in construction

    Outcome goals related to increased access and reduction in 
transportation costs are anticipated for FY 08 and will be developed in 
response to the Program Evaluation and pending Strategic Planning 
efforts.

Solid Waste

    Program Background: The Commission began receiving solid waste 
funding in FY 06. The Commission partners with USDA Rural Development 
to address deficiencies in solid waste disposal sites which threaten to 
contaminate rural drinking water supplies.
    Proper solid waste collection, processing and disposal are an 
essential public service that often presents a difficult challenge in 
rural Alaska. Due to several factors, including limited rural Alaska 
local government budgets, community remoteness, limited transportation 
infrastructure and obstacles posed by Alaska's severe climate, solid 
waste service is a prominent widespread deficiency in the context of 
Alaska's wide array of environmental issues and public health and 
quality of life issues.
    Program Approach: The program relies on a competitive RFP process 
to select and identify projects, and utilizes a multidiscipline review 
panel to ensure that projects meet all Commission due diligence and 
policy requirements. Typically this RFP process occurs once or twice in 
a given year depending on need and project eligibility.
    Beginning in FY 07 funds will be granted to program partners and 
will not be awarded directly to individual recipients.
    FY 07 Program Funding: Provide up to $705,375 to conduct a 
competitive RFP process to select eligible projects and program 
partners.
    FY 07 Outputs & Outcomes: Program funding at the level identified 
above is likely to result in the following outputs:

Funding of up to 15 projects

    Outcome goals related to increased access and reduction in cost are 
anticipated for FY 08 and will be developed in response to the Program 
Evaluation and pending Strategic Planning efforts.

Teacher Housing

    Program Background: Teaching in rural Alaska can be one of the most 
rewarding and challenging professions. A critical issue for rural 
teachers is finding safe, affordable housing during the school year. 
Housing availability varies by community from newer adequate homes, to 
old housing units with multiple safety and structural problems, to a 
lack of enough available housing, requiring teachers to double-up or 
even live in the school.
    Teacher turnover rates are high in rural Alaska, with many teachers 
citing unavailable or inadequate housing as a factor in their decision 
to move. The quality of education received by students is impacted by 
teacher retention. By improving the availability and quality of housing 
for teachers, the Commission strives to also increase the quality of 
education received by the next generation of Alaskans.
    In FY 04, Congress directed the Commission to address the teacher 
housing needs in rural Alaska. The Commission launched a statewide 
survey of 51 school districts and rural education attendance areas to 
identify and prioritize the teacher housing needs throughout the state.
    Program Approach: 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.
    FY 07 Program Funding: Provide up to $5,000,000 from the ``Base'' 
appropriation for ongoing funding of the Teacher Housing Program, via 
competitive annual RFP.
    FY 07 Outputs & Outcomes: Program funding at the level identified 
above is likely to result in the following outputs:

Funding of up to 20 units (renewal & replacement and new construction)

    Outcome goals related to increased access and reduction in cost are 
anticipated for FY 08 and will be developed in response to the Program 
Evaluation and pending Strategic Planning efforts.

Economic Development

    Program Background: Since its earliest days as a territory of the 
United States, Alaska has contributed to the economy of America, 
largely through supply of raw materials or partially processed 
products. Now Alaska's abundant natural resources, from fossil fuel and 
mineral products to timber and fish, must compete in the global 
marketplace. Innovation and entrepreneurship have become critical to 
business success.
    One of the purposes of the Commission is economic development. The 
Commission firmly believes that sustainable economic development for 
Alaska's rural communities, like that of the rest of America, will be 
generated in the private, commercial sector, not within government. To 
that end, the Commission supports the development of public 
infrastructure upon which the private sector creates jobs and wealth, 
and helps ensure that good businesses and business ideas have a chance 
to become long-term, self-sustaining enterprises.
    Over the history of the Program, the Commission has supported and 
advanced a wide-array of economic development program activities 
ranging from community profile mapping to supporting innovative models 
for lending, and equity investment in Alaska.
    Program Approach: The Program has a documented history of 
involvement with numerous partners and program activities. However, the 
Program has lacked a cohesive and well-articulated focus, a project 
selection process, adequate funding, staffing levels, and has yet to 
implement statutory guidance.
    FY 07 Program Funding: Provide up to $3,000,000 from the ``Base'' 
appropriation for the Program.
    In FY 07 the Commission intends to establish a new Economic 
Development Advisory Committee to make recommendation on the partners, 
organizations, and projects that should receive FY 07 funding. In 
addition this Committee, in concert with the Commission would provide 
priority areas for funding and project focus, similar to the process of 
priority identification in the Training Program. The Committee will be 
comprised of a broad selection of individuals that are knowledgeable 
about economic development in rural Alaska, including

[[Page 19485]]

Alaska Natives, and a majority of whom shall be from rural Alaska.
    FY 07 Outputs & Outcomes: Specific outputs have not been recorded 
for the Program. To date output data has been generated on a project-
by-project basis as it related to economic investment, development, job 
creation, income enhancement, quality of life, etc.
    Output and outcome goals related to increased access and reduction 
in cost are anticipated for FY 08 and will be developed in response to 
the Program Evaluation and pending Strategic Planning efforts, and in 
concert with the development of the Program's Advisory Committee.

Government Coordination

    Program Background: 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. The Commission led the way by committing state, federal, and 
non-profit organizations and agencies to this effort in jointly signing 
a Memorandum of Understanding (MOU). This MOU outlines the role of 
agencies in coordinating resources and efforts in areas such as 
community planning, sustainability, information technology and data 
sharing and coordination of pre-construction activities. This MOU 
served as the basis for the creation of several multi-agency work 
groups and cooperative projects that have served to increase the 
agencies' collective effectiveness. The MOU was amended in 2003 with 
increased participation from both the state and federal partners.
    FY 07 Program Goals: The Commission is planning to begin work on a 
revised MOU in FY 07 and anticipates further broadening the partner and 
signatory list to include members of the philanthropic, development and 
Community Development Quota (CDQ) groups. In addition the Commission is 
working actively with other federal and state partners to evaluate the 
current MOU workgroups, update membership as necessary and continue 
critical discussions related to infrastructure, community planning and 
collaborative funding and project selection.

     Dated: April 10, 2007.
George J. Cannelos,
Federal Co-Chair.
 [FR Doc. E7-7344 Filed 4-17-07; 8:45 am]
BILLING CODE 3300-01-P