[Federal Register Volume 77, Number 96 (Thursday, May 17, 2012)]
[Notices]
[Pages 29317-29320]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-11936]


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DENALI COMMISSION


 Fiscal Year 2012 Draft Work Plan

AGENCY: Denali Commission.

ACTION: Notice.

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SUMMARY: The Denali Commission (Commission) is an independent federal 
agency based on an innovative federal-state partnership designed to 
provide critical utilities, infrastructure and support for economic 
development and in training in Alaska by delivering federal services in 
the most cost-effective manner possible. The Commission was created in 
1998 with passage of the October 21, 1998 Denali Commission Act (Act) 
(Title III of Pub. L. 105-277, 42 U.S.C. 3121). The Denali Commission 
Act requires that the Commission develop proposed work plans for future 
spending and that the annual Work Plan be published in the Federal 
Register, providing an opportunity for a 30-day period of public review 
and written comment.
    This Federal Register notice serves to announce the 30-day 
opportunity for public comment on the Denali Commission Draft Work Plan 
for Federal Fiscal Year 2012.

DATES: Comments and related material to be received by June 12, 2012.

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

FOR FURTHER INFORMATION CONTACT: Ms. Sabrina Hoppas, Denali Commission, 
510 L Street, Suite 410, Anchorage, AK 99501. Telephone: (907) 271-
1414. Email: [email protected].
    Background: 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 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 Commission's mission is to partner with tribal, federal, state, 
and

[[Page 29318]]

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 forward 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 
notice 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.

FY 2012 Annual Work Plan (Amended)

    In FY 2011, the typical annual Work Plan process was not carried 
out. Several factors contributed to this including continuing 
resolutions (CRs) passed by Congress late in the fiscal year resulting 
in latent consideration of the FY 2011 annual Work Plan by the 
Commissioners (Commissioners met on June 2, 2011 to consider the FY 
2011 annual Work Plan). In addition, the final FY 2011 budget included 
a rescission of $15,000,000 in prior year unobligated funds and 
uncertainty on how the rescission may impact the FY 2011 Work Plan was 
not resolved until September 2011.
    With concurrence from the Office of Management and Budget (OMB) and 
the Secretary of Commerce, the amended FY 2011 Work Plan will be 
processed concurrently with the FY 2012 Work Plan. The FY 2011 Work 
Plan and the amended budget for the FY 2011 Work Plan are not included 
as part of this FY 2012 Work Plan document.

FY 2012 Appropriations Summary

    The Denali Commission has historically received several federal 
funding sources (identified by the varying colors in the table below). 
These fund sources are governed by the following general principles:
     In FY 2012 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.
     All other funds outlined below may be used only for the 
specific program area and may not be used across programs. For 
instance, Federal Transit Administration funding, which has in the past 
been appropriated for the Transportation 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 may not 
be provided until later this spring.
     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, if 
they are not fully expended in a program component area or a specific 
project.
     Total FY 2012 Budgetary Resources provided:
    These are the figures that appear in the rows entitled ``FY 2012 
Appropriation'' and are the original appropriations 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 
FY 2012 Funding Table.
     Total FY 2012 Program Available Funding:
    These are the figures that appear in the rows entitled ``FY 2012 
Appropriations--Program Available'' and are the amounts of funding 
available for program(s) activities after Commission overhead has been 
deducted. The grand total for all program available funds appears at 
the end of the FY 2012 Funding Table.
     Program Funding:
    These are the figures that appear in the rows entitled with the 
specific Program and Sub-Program area, and are the amounts of funding 
the Draft FY 2012 Work Plan recommends, within each program fund source 
for program components.
     Subtotal of Program Funding
    These are the figures that appear in rows entitled ``subtotal'' and 
are the subtotals of all program funding within a given fund source. 
The subtotal must always equal the Total FY 2012 Program Available 
Funding.

------------------------------------------------------------------------
 Denali Commission FY 2011 Funding Table              Totals
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FY 2012 Energy & Water Appropriation....  $10,679,000.
FY 2012 Energy & Water Appropriation--    $3,294,000.
 Administrative Funds.
FY 2012 Energy & Water Appropriation--    $7,385,000.
 Program Available.
Energy..................................  $7,385,000.
Emerging Energy Technology Program......  $2,400,000.
Bulk Fuel/RPSU Planning, Design &         $3,770,350.
 Construction.
Renewable Energy Technical Assistance...  Up to $300,000.
                                         -------------------------------
    Total Energy Projects...............  $6,470,350.
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[[Page 29319]]

 
Health..................................  $0.
Training Program........................  $0.
Economic Development....................  $0.
Solid Waste Program.....................  $0.
Sponsorship Program.....................  $0.
                                         -------------------------------
    Sub-total $.........................  $8,120,350.
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FY 2012 USDA, Rural Utilities Service     $2,900,000.
 (RUS)--pending estimate.
FY 2012 USDA, Rural Utilities Service     $2,784,000.
 (RUS)--Program Available (less 4%
 overhead).
Bulk Fuel/RPSU Planning, Design &         $2,784,000.
 Construction.
                                         -------------------------------
    Sub-total $.........................  $2,784,000.
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FY 2012 Trans Alaska Pipeline Liability   $6,800,000.
 (TAPL) Trust.
FY 2012 Trans Alaska Pipeline Liability   $6,460,000.
 (TAPL)--Program Available (less 5%
 overhead).
Bulk Fuel Planning, Design &              $6,460,000.
 Construction.
                                         -------------------------------
    Sub-total $.........................  $6,460,000.
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FY 2012 Federal Transit Administration    $5,000,000.
 (FTA)--Estimate: $5,000,000 from
 section 3011 (FTA) for docks and
 harbors.
FY 2012 Federal Highway Administration    $0-$24,700,000.
 (FHWA)--Estimate: For necessary,
 expenses for the Denali Access System
 Program as authorized under Section
 1960 of Public Law 109-59.
FY 2012 Transportation Program            $4,750,000-$28,215,000.
 Available--(less 5%).
Transportation Program: Docks & Harbors.  $4,750,000.
Transportation Program: Roads--Estimate.  $0-$23,465,000.
                                         -------------------------------
    Sub-total $.........................  $4,750,000-$28,215,000.
                                         -------------------------------
    Total FY 2012 Federal Program         $21,379,000-$44,844,000.
     Available.
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FY 12 Program Details & General Information
    The following section provides narrative discussion, by each of the 
Commission Programs identified for funding in the FY 2012 funding table 
above.
Government Coordination
    The Commission is charged with the special role of increasing the 
effectiveness of government programs by acting as a catalyst to 
coordinate the many federal and state programs that serve Alaska. In FY 
2011 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 Sustainable Rural 
Communities initiative. Strategies and next steps for this effort will 
be formulated as the Denali Commission leads this unique collaborative 
effort. No funding is dedicated to this activity.
Energy Program

Basic Rural Energy Infrastructure

    The Energy Program is the Commission's original program and 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 generators 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 and Emerging Technologies

    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 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. 
After providing seed funding toward the initiative, in 2007, the State 
of Alaska passed legislation and funded the Renewable Energy Fund 
(REF).
    With the advent of the REF, State resources to meet commercial-
ready renewable technology needs are available, yet a gap in meeting 
the emerging energy technology needs was identified. Similar to the REF 
partnership, the newly established Emerging Energy Technology Fund 
(EETF) was provided seed funding to support demonstration projects for 
applied research and further technologies focusing on deployment in 
rural Alaska. The EETF has since passed the State Legislature, has 
formed its selection process and is proceeding with project selection.

Other Renewable Initiatives

    As the Renewable Energy Fund and Emerging Energy Technology Fund 
proceed, the Commission strives to support their success. In 2011, the 
Commission funded $300,000 toward Renewable Energy Technical 
Assistance, which resulted in match funding from the Department of 
Energy toward the newly established State Technical Assistance Response 
Team (START). The START effort provides technical assistance to a 
select number of communities to help assess energy needs, deal with 
barriers and identify funding options. To keep with the 2005

[[Page 29320]]

direction to fund renewable and alternative energy, the FY 2012 Work 
Plan includes $300,000 toward this effort in 2012. The FY 2011 Work 
Plan outlines a strategy to balance the Energy Program in both legacy 
and renewable components, providing up to $2.4 million of available 
program funds specifically toward the emerging technology program 
pending state match. If match for this program is not provided, this 
funding shall be reallocated to legacy projects.

FY 2012 Program & Project Policy Issues

    The approved FY 2008 Denali Commission Policy Document requires and 
prioritizes cost share match for funded projects. In implementing this 
policy, 10%, match was required in FY 2010 and FY 2011. In FY 2012 new 
statutory match is required in the amounts of 50% for non-distressed 
and 20% for distressed communities and only applies toward construction 
projects using Energy and Water Appropriation funding. In future 
funding years, the Commission will require consistent match for energy 
projects funded with other funding (TAPL, RUS). For FY 2012 funding, 
the Commission will apply the 10% match for RUS and TAPL funding and 
the 50% and 20% match requirements for Energy and Water Appropriation 
funding.

Sustainability Policy

    All energy construction grants will proceed after business plans 
are reviewed and approved by Commission.

FY 2012 Project Selection Process

    The Energy Advisory Committee (EAC) provides guidance to 
Commissioners and staff on the program, and is comprised of members 
involved in energy development in Alaska. Members include 
representatives of Associated General Contractors, Alaska AFL-CIO, 
Department of Energy National Renewable Energy Lab, the University of 
Alaska Institute of Northern Engineering, USDA, Kotzebue Electric 
Association and two public members representing rural Alaska. The EAC 
provided general recommendations supporting the ongoing priority for 
funding Bulk Fuel/Rural Power System Upgrade planning, design and 
construction, providing match funding for the emerging energy 
technology program and for renewable energy regional planning in 
coordination with the Alaska Energy Authority's initiative to meet 
statewide energy infrastructure needs for all of the above.

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. Given the late timing of funding in FY 
2011, summer construction grants are not anticipated. A final project 
list will be developed based on available funds, project readiness, 
available match and other due diligence. Final project lists are 
provided to EAC for feedback prior to final grant execution.

Transportation

    Section 309 of the Denali Commission Act 1998 (amended), created 
the Commission's Transportation Program, including the Transportation 
Advisory Committee. The advisory committee is composed of nine members 
appointed by the Governor of the State of Alaska including the Chairman 
of the Denali Commission; four members who represent existing regional 
native corporations, native nonprofit entities, or tribal governments, 
including one member who is a civil engineer; and four members who 
represent rural Alaska regions or villages, including one member who is 
a civil engineer.
    The Transportation Program addresses two areas of rural Alaska 
transportation infrastructure: Roads and waterfront development. There 
is 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 TAC'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 project opportunity 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 FY 2012 the program will continue its focus on barge landings 
and mooring points in 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) will continue to work 
through the prioritized list of barge landing and mooring point 
projects which were identified in a formal analysis conducted in FY 
2009 and FY 2010. The universe of need for the first generation of 
projects is in the range of $40,000,000.
    The TAC met on January 26-27, 2012 to select waterfront projects 
and will meet in early summer to select road project priorities for FY 
2012. Final project approvals and funding amounts have been approved by 
the Federal Co-Chair and are available on the Commission's Web site.
    As shown in the FY 2012 Funding Table, the estimate for FHWA 
funding ranges from $0 to $24,700,000. In 2011 continuing resolution 
language, the U.S. Secretary of Transportation was assigned the 
responsibility by Congress to identify FHWA projects and programs that 
were sufficiently funded (i.e. completed). In following this 
assignment, the Secretary determined that the Denali Access Program was 
sufficiently funded and $13,300,000 in FY 2011 FHWA funding was 
assigned to the Alaska Department of Transportation. At the request of 
the Denali Commission Inspector General, GAO is presently considering 
whether the Secretary had the authority to make this determination 
regarding the Denali Access Program. At the time of drafting this 2012 
annual Work Plan, the GAO Comptroller General has not yet issued an 
opinion. Therefore, depending upon the forthcoming opinion the 
Commission may receive no FHWA funding or potentially receive both FY 
2011 and FY 2012 FHWA funding-- totaling $24,740,000.

Joel Neimeyer,
Federal Co-Chair.
[FR Doc. 2012-11936 Filed 5-16-12; 8:45 am]
BILLING CODE 3301-01-P