[Federal Register Volume 80, Number 103 (Friday, May 29, 2015)]
[Notices]
[Pages 30667-30669]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-13010]


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DENALI COMMISSION


Denali Commission Fiscal Year 2015 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 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 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 2015 (FY 2015).

DATES: Comments and related material to be received by July 1, 2015.

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

FOR FURTHER INFORMATION CONTACT: Ms. Sabrina Cabana, Denali Commission, 
510 L Street, Suite 410, Anchorage, AK 99501. Telephone: (907) 271-
1414. Email: [email protected]

SUPPLEMENTARY INFORMATION: 
    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 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 Act, 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:
     Project proposals are solicited from local government and 
other entities.
     Commissioners forward a draft version of the Work Plan to 
the Federal Co-Chair.
     The Federal Co-Chair approves the draft Work Plan for 
publication in the Federal Register providing an opportunity for a 30-
day period of public review and written comment. During this time, the 
draft Work Plan is also disseminated widely to Commission program 
partners including, but not limited to, the Bureau of Indian Affairs 
(BIA), the Economic Development Administration (EDA), and the United 
States Department of Agriculture--Rural Development (USDA-RD).
     Public comment concludes and Commission staff provides the 
Federal Co-Chair with a summary of public comment and recommendations, 
if any, associated with the draft Work Plan.
     If no revisions are made to the draft, the Federal Co-
Chair provides notice of approval of the Work Plan to the 
Commissioners, and forwards the Work Plan to the Secretary of Commerce 
for approval; or, if there are revisions the Federal Co-Chair provides 
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.
     The Federal Co-Chair then approves grants and contracts 
based upon the approved Work Plan.

FY 2015 Appropriations Summary

    The Commission has historically received federal funding from 
several sources. These fund sources are governed by the following 
general principles:
     In FY 2015 no project specific direction was provided by 
Congress.
     The Energy and Water Appropriation (i.e. discretionary 
funding) is eligible for use in all programs.
     Certain appropriations are restricted in their usage. 
Where restrictions apply, the funds may be used only for specific 
program purposes.
     Final appropriation funds received may be reduced due to 
Congressional action, rescissions by the Office of Management and 
Budget, and other federal agency action.
     All Energy and Water Appropriation funds, including 
operating funds, designated as ``up to'' may be reassigned to other 
programs, if they are not fully expended in a program component area or 
a specific project.
     Total FY 2015 Budgetary Resources provided:
    These are the figures that appear in the rows entitled ``FY 2015 
Appropriation'' and are the original appropriations amounts which do 
not include Commission operating funds. These funds are identified by 
their source name (i.e., Energy and Water Appropriation, TAPL, etc.). 
The grand total for all appropriations appears at the end of the FY 
2015 Funding Table.
     Total FY 2015 Program Available Funding:
    These are the figures that appear in the rows entitled ``FY 2015 
Appropriations--Program Available'' and are the amounts of funding 
available for program(s) activities after Commission operating funds 
have been deducted. The FY 2015 appropriations bill contains language 
that the

[[Page 30668]]

Commission may utilize more than five percent for operating costs, 
Notwithstanding the limitations contained in section 306(g) of the 
Denali Commission Act of 1998.
    However only, five percent of Trans Alaska Pipeline Liability 
(TAPL) Trust Funds are used for agency operating purposes. The grand 
total for all program available funds appears at the end of the FY 2015 
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 2015 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 2015 Program Available 
Funding.

------------------------------------------------------------------------
  Denali Commission FY 2015 funding
                table                               Totals
------------------------------------------------------------------------
FY 2015 Energy & Water Appropriation  $10,000,000.
FY 2015 Energy & Water                $3,000,000.
 Appropriation--Operating Funds.
FY 2015 Energy & Water                $7,000,000.
 Appropriation--Program Available.
Energy:
     Bulk Fuel Tank           $0.
     Replacements (to be funded in
     full with TAPL funding).
     Rural Power System       $7,000,000.
     Upgrades *.
                                     -----------------------------------
    Total Energy Projects...........  $7,000,000.
                                     -----------------------------------
    Sub-total, FY 2015 Energy &       Not to exceed $7,000,000.
     Water--Program Available.
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* Funding for the two initiatives, programs and projects are listed as
  an upper amount and it is possible that several of these initiatives
  may require less funds than listed in the table. Under these
  circumstances, the remaining Energy and Water appropriations will be
  used for Rural Power System Upgrades.


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FY 2015 TAPL Trust......................................      $4,000,000
FY 2015 TAPL--Program Available (less 5% operating             3,800,000
 funds).................................................
Bulk Fuel Planning, Design & Construction...............       3,800,000
                                                         ---------------
  Sub-total.............................................       3,800,000
                                                         ---------------
      TOTAL FY 2015 PROGRAM AVAILABLE...................      10,800,000
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FY 2015 Program Details and General Information

    The following section provides narrative discussion for each of the 
Commission Programs identified for funding in the FY 2015 funding table 
above.

Energy Program

Basic Rural Energy Infrastructure

    The Energy Program is the Commission's original program and focuses 
on bulk fuel facilities 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 of 
the fuel storage in most villages is used for these power plants. The 
majority of the Commission's work in the energy program is carried out 
by two of our long-standing partners: Alaska Energy Authority (AEA), an 
agency of the State of Alaska, and the Alaska Village Electric 
Cooperative (AVEC), a non-profit member Organization serving 56 
communities.
    Since inception of the agency, the Commission has partnered with 
AEA on rural energy investments, and shortly thereafter, AVEC also 
became a program partner to address deficiencies in fuel storage and 
generation in the cooperative's communities. In recent years, a single 
combined list of energy projects has been compiled for both bulk fuel 
and RPSU programs. AEA maintains documents on their Web site that 
identify the universe of need for each of the programs and provides 
project status updates (see following links):  http://www.akenergyauthority.org/Content/Programs/RPSU/Documents/RPSUStatusDec2014.pdf, http://www.akenergyauthority.org/Content/Programs/RPSU/Documents/RPSUStatusDec2014.pdf.

FY 2015 Project Selection Process

Bulk Fuel and RPSU Projects
    The legacy projects prioritized for FY 2015 funding are listed 
below within the two energy program themes: Bulk fuel and RPSU. The 
selected projects in the table below exceed FY 2015 funding levels 
(both TAPL and Energy and Water Appropriation), with the understanding 
that projects may proceed out of order due to factors such as the 
extended period of time between project selections, draft Work Plan 
development, and grant execution; match funding availability; and due 
diligence requirements.
    Beginning in FY 2012, Energy and Water Appropriations were subject 
to a statutory cost share requirement for construction activities of 
20% for distressed communities and 50% for non-distressed communities. 
That cost share match requirement has since been applied to all energy 
program funding sources. All projects prioritized for FY 2015 funding, 
with the exception of Shungnak bulk fuel upgrade, are in distressed 
communities and will include at least a 20% project cost share match.
    In FY 2015, the Commission, AEA, and AVEC will investigate 
opportunities with existing bulk fuel storage facilities to refurbish 
the infrastructure resulting in code compliance and significant 
extension of the life of the facilities at a reduced cost versus 
complete replacement. The Commission provided funding to AEA to update 
the statewide bulk fuel inventory assessment, which will help inform 
all parties of the potential for refurbishment of facilities. The 
updated assessment is scheduled to be completed by the end of FY 2015 
and therefore applied to FY 2016 investments if applicable. The 
refurbishment approach was considered for the AVEC projects listed in 
the bulk fuel project table.

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                                          Total project
           Bulk fuel projects                 cost         Cost share      DC funding        Program partner
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Pilot Station Community Tanks **.......      $4,456,000        $891,200      $3,564,800  AVEC.
Chalkyitsik............................       2,600,000         520,000       2,080,000  AEA.

[[Page 30669]]

 
Togiak AVEC Tanks......................       4,656,000         931,200       3,724,800  AVEC.
Togiak Community Tanks.................       6,045,000       1,209,000       4,836,000  AVEC.
Beaver.................................       2,300,000         460,000       1,840,000  AEA.
Shungnak...............................       1,100,000         550,000         550,000  AVEC.
Venetie................................       2,100,000         420,000       1,680,000  AEA.
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** There is a recent dispute between the City of Pilot Station and the current vendor for gasoline products
  (Pilot Station, Incorporated). The City desires to enter into direct completion with the vendor for gasoline
  sales. This is a concern for the Denali Commission as this outcome would mean that the Commission funded bulk
  fuel improvements would result in direct competition with the private sector, Commission staff are working
  with community stakeholders on this matter. If a solution cannot be reached the Pilot Station project will be
  passed over for the next prioritized project.


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                                          Total project
            RPSU projects **                  cost         Cost share      DC funding        Program partner
----------------------------------------------------------------------------------------------------------------
Togiak.................................      $7,409,000      $1,481,800      $5,927,000  AVEC.
Koliganek..............................       2,900,000         580,000       2,320,000  AEA.
Clark's Point..........................       2,600,000         520,000       2,080,000  AEA.
----------------------------------------------------------------------------------------------------------------


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                                          Total project
           Project management                 cost         Cost share      DC funding        Program partner
----------------------------------------------------------------------------------------------------------------
AEA/AVEC Project Management............     $10,800,000             N/A    *** $932,688  AEA/AVEC.
----------------------------------------------------------------------------------------------------------------
*** Project management costs have been estimated pending final project selection.


Joel Neimeyer,
Federal Co-Chair.
[FR Doc. 2015-13010 Filed 5-28-15; 8:45 am]
 BILLING CODE 3300-01-P