FY2008-45 Letter of Agreement with Lobbyist Robertson, Monagle & Eastaugh - Brad GilmanANCHORAGE OFFICE ROBERTSON, MONAGLE . EASTAUGH
1400 WEST BENSON BLVD., SUITE 315
ANCHORAGE, ALASKA 99503 A PROFESSIONAL CORPORATION
PHONE: (907) 277-6693.:' - ATToII s AT LAW
FACSIMILE: (907) 279-1959
LEROY J. BARKER
L.G. BERRY
JULIA B. BOCKMON
STAGY K. STEINBERG
WASHINGTON, D.C. AND VIRGINIA OFFICE
ARLINGTON COURTHOUSE PLAZA II
2300 CLARENDON BLVD., SUITE 1010
ARLINGTON, VIRGINIA 22201
PHONE: (703) 527-4414
FACSIMILE: (703) 527-0421
STEVEN W. SILVER
CARL W. WINNER
BRADLEY D. GILMAN
• RICK E. MARKS
August 24, 2007
Rick Gifford, Borough Manager
Kodiak Island Borough
710 Mill Bay Rd.
Kodiak, AK 99615
Dear Rick:
C7�o?o4�-�5
U OFFICE
GOLDBELT PLACE, SUITE 300
801 WEST 10TH STREET
PO. BOX 21211
JUNEAU, ALASKA 99802
PHONE: (907) 586-3340
FACSIMILE: (907) 586-6818
ROYAL ARCH GUNNISON (1873-1918)
R.E. ROBERTSON (18851961)
M.E. MONAGLE (1902-1985)
F.O. EASTAUGH (1913-1992)
JAMES F. CLARK
PAUL M. HOFFMAN
ROBERT P BLASCO
TERRY L THURBON
RUTH R. HAMILTON
ADMITTED IN VIRGINIA'
AND ALASKA
ADMITTED IN VIRGINIA
WASHINGTON. D.C. AND ALASKA
ALL OTHERS ADMITTED
IN ALASKA
NON LAWYER, PROFESSIONAL
This letter sets forth the terms between the Kodiak Island Borough and Robertson,
Monagle, & Eastaugh that have been in effect for the last ten years, as follows—
This term of this agreement is mouth -to -month. Either party may cancel the
agreement upon thirty days notice to the other party.
The Borough defines its own Federal agenda, which is communicated to
Robertson, Monagle, & Eastaugh by the Borough Manager or other designated
BorCi.gh CMC—'. This agenda 1. normally dP`7e!oned via Be! ough resollrtion m
the December -February timeframe. The Borough is permitted, however, to add
projects at any time during the calendar year.
• We submit an invoice at the end of each month. Such bill shall be due and
payable within thirty days.
The retainer has been $2250 per month for many years. We cover traditional
business costs within this amount (fax, copying, cab fare). The costs of required
travel outside of the D.C. area will be extra and added to the following month's
invoice. Any outside travel lruist meet with the prior approval of the Borough. A
Pod example of outside travel is a Borough request to us to travel to Kodiak to
the Assembly.
j AUG 2 8 2001
KIB MANAGER
As always, Robertson, Monagle, & Eastaugh sincerely appreciates the
longstanding relationship it has enjoyed with the Kodiak Island Borough.
Sincerely,
Brad Gilman
Vice President
Robertson, Monagle, & Eastaugh
To: The Honorable Pat Branson
The Honorable Scot Arndt
The Kodiak Island Borough Assembly
The Kodiak City Council
Aimee Williams, Borough Manager
Mike Tvenge, City Manager
Josie Bahnke, Asst. City Manager
Dave Conrad, Borough Engineering & Facilities Director
Meagan Christiansen, Borough Special Projects Director
From: Sebastian O'Kelly & Brad Gilman
Re: Washington Update
Date: January 9, 2024
FY 2024 Appropriations
Just before Thanksgiving, Congress agreed to a two-part Continuing Resolution "CR" to keep
the government funded for several agencies through January 19; and to February 2 for the
remaining agencies (incl. Commerce & NOAA). The House & Senate Congressional leadership
from both parties have now agreed on "top -line" FY 2024 funding levels which will pave the
way for negotiations on individual appropriations bills. The timeframe is short and it is unknown
at this point whether Congress will need to extend the current CR. While there is always a
possibility of a government shutdown, we think it is unlikely.
FY 2025 Appropriations — Congressionally -Directed Spending (CDS) Proiect Requests
The FY 2025 appropriations process will get underway soon. We will handle completion of the
online forms used by Senator Murkowski and Rep. Peltola to solicit CDS requests and will work
off previous or new Federal priorities resolutions respectively approved by the Council and
Assembly. If it's a new resolution, please submit to us in the mid to late February timeframe.
Defense Community Infrastructure Program Expansion
Senator Sullivan was able to include language in the Senate's version of the FY 2024 National
Defense Authorization Act (NDAA) that made Coast Guard communities such as Kodiak
eligible to apply for grants from DOD's Defense Community Infrastructure Program.
Unfortunately, the provision was dropped in the House -Senate Conference on the final NDAA.
We will need to advocate for this provision again in the FY 2025 process.
Housing Issues & Borough Property
At the request of the Borough, in December the AK Congressional Delegation sent a letter to the
Interior Department seeking a determination from the Department on whether the Borough can
use the property and former mental health clinic for development into seafood processing worker
housing. The Department's determination is relevant given the public purpose deed
requirements associated with the property's original transfer from the Federal government.
Essential Air Service (EAS)
FAA programs, including EAS, are operating on a short-term extension while a long-term FAA
reauthorization bill is being worked on (the House passed a bill last year but the Senate did not
take action). Both the House and Senate FY 2024 appropriations bills include full funding for
EAS.
Tcehreakers
The House and Senate FY 2024 Homeland Security Appropriations Bills have included $125
million for purchase of a commercially -available icebreaker. This item is pending in
negotiations on final FY 2024 appropriations bills. The funding was in both bills last year but
inexplicably was dropped in Conference. It is likely to go through this year. In December
testimony in the House, the USCG witness affirmed the Commandant's testimony from earlier in
the spring and summer that the USCG will need eight to nine PSCs to meet mission
requirements. This is an increase of two to three PSCs from the current Program of Record (six
vessels). The non-partisan Congressional Research Service has issued an updated report on the
PSC program which be found here -- https://news.usni.org/2023/12/15/report-to-congress-on-
coast- ug ard-polar-security-cutter-22
Infrastructure Grant Opportunities
Here are some recent Federal agency infrastructure opportunities that have come out along with
links to grant applications.
• MARAD Port Infrastructure Development Program: $650 million in 2024 PIDP
grants are available. The link is:rg ants.gov/search-results-detail/351643. Grant
application deadline is April 30. Separately, Congress has amended the PIDP's
authorizing law to direct it to give greater consideration to port infrastructure projects that
benefit seafood -dependent ports, including loading/unloading of fish, seafood processing,
and cold storage.
• DOT RAISE Grants: $1.5 billion (50 percent rural set aside, 80/20 cost -share) is
available with a deadline of Feb. 28 --
hl�2s://www.transportation.gov/sites/dot.gov/files/2023-
I I/RAISE%202024%20NOF0%2011.30.23_O.pdf
• DOT Bridge Replacement & Planning Grants: A total of $9.7 billion is available.
There are a series of rolling deadlines over the next two years, with the Feb 19 for
planning grant and March 19 for construction -ready projects -- https:// rg ants.gov/search-
results-detail/351567
• EPA Environmental and Climate Justice Community Change: $2 billion is available
for community -driven projects to address environmental and climate challenges
in communities facing disproportionate and adverse health, pollution, and environmental
impacts, and suffering from generations of disinvestment.. Applicants must be partners,
for example, a local government in partnership with a tribe and are due Nov. 1 --
haps://www.epa.gov/system/files/documents/2023-11/epa-community-change- rg ants -
notice -of -funding -opportunity -november -2023 .pdf
• USDA Community Connect Broadband Grants: $80 million is available with
applications due Feb. 20 -- https://www.govinfo.gov/content/pkg/FR-2023-12-
19/pdf/2023-27813.pdf
Fisheries & Oceans
• Trident Seafoods Proposed Sale of AK Processing Plants — Citing market conditions,
including low prices, declining demand, excess supply and foreign competition, Trident
Seafoods has announced that it is seeking to sell its seafood processing plants and support
facilities in in Kodiak, Ketchikan, Petersburg, False Pass, Naknek and Chignik. Attached
separately is information regarding NOAA's Fisheries Finance Program which can be
used to secure Federal loan financing for the purchase of seafood processing plants.
• Biden Administration Restrictions on Russian Seafood Imports into the U.S. -- On
December 22"d the Biden Adminstraton added further restrictions to prohibit Russian
seafood imports into the U.S. The Alaska Congressional Delegation was pressing hard for
added restrictions. The Administration amended E.O. 14068 (which prohibited direct
Russian seafood exports into the U.S.) to also include the importation of Russian seafood
products processed outside Russia and exported to the U.S. by a third country. The
Department of the Treasury is expected to publish a list of specific seafood products
covered by this executive action in early 2024.
• Heart of the Ocean "PRIME" Alaska Marine Sanctuary -- Back in a July 2023
hearing on the NOAA budget and in response to a question from Senator Sullivan,
NOAA Administrator Spinrad stated that the agency has "no plans to initiate the
designation process." for the HOA proposal. In December, NOAA staff reiterated that
the agency has no plans to proceed with formal designation.
• Crab Fisheries Disaster Relief — We are still awaiting OMB to approve the Red King
Crab and Snow Crab 2021-2022 funding plan. After that the plan goes to the Pacific
States Fisheries Commission (PSMFC) for funding distribution. Direct payments will be
able to go to AK local governments to replace lost fish tax revenues provided the State of
Alaska includes those foregone revenues in its expenditure plan. NOAA is reviewing a
disaster declaration request for the 2023-24 Bering Sea Snow Crab fishery.
• SIMP Expansion Rule Withdrawn -- On November 14, 2023, NOAA Fisheries
announced it would withdraw its Seafood Import Monitoring Program proposed rule and
will conduct a broad program review to enhance and strengthen the program's overall
impact and effectiveness, including a review of the current program covering the existing
13 species/groups. As part of the review process, NOAA is hosting a series of public
listening sessions to solicit feedback from stakeholders.
• North Pacific Right Whale Critical Habitat: In response a petition from the Center for
Biological Diversity and Save The North Pacific Right Whale, NOAA is considering
expanding ESA critical habitat for the North Pacific Right Whale (NPRW) which could
lead to future restrictions on vessel traffic, speed and fishing activity (including pot gear
fisheries to reduce the possibility of whale entanglements) in the region.
• NOAA To Revise National Standard Guidelines for 4, 8 & 9 ---As you will recall from
our last DC report NOAA is considering revising the implementing guidelines for
National Standards 4 (allocation), 8 (impacts to communities), or 9 (bycatch, including
"practicability" standard), of the Magnuson -Stevens Fishery Conservation and
Management Act (MSA). The Agency had issued a Notice of Proposed Rulemaking
(ANPRM) on May 15th (See 88 FR 30934) to take comments from interested
stakeholders to help decide if revisions are necessary. In December NOAA staff
indicated they are currently reviewing comments received on the ANPRM and intend to
proceed with a Proposed Rule in spring 2024 that could include a formal definition of the
term "practicable" as it relates to bycatch. There will be opportunity to offer public
comment at that time.
• FISHES Act Update -- In October 2023 the House Natural Resources Committee held a
legislative hearing on several bills including H.R. 5103 --"Fishing Impacts to Streamline
untimely Regulatory Hurdles Post Emergency Situation Act" (FISHES Act; H.R. 5103) to
put a statutory timeline requirement of 30 -days on OMB to render a decision on a fishery
disaster spend plan submitted to the agency. Many Members of Congress remain
concerned over the length of time it takes in the Federal fisheries disaster process for aid
to reach recipients.
• Conserved Areas in the U.S. EEZ — In June 2023 the Regional Fishery Management
Councils formally released a synthesis of conservation areas in the US EEZ. The report,
titled An Evaluation of Conservation Areas in the U.S. Exclusive Economic Zone,
identifies 648 conservation areas covering 72% or nearly 3.4 million acres of federal
waters for consideration as part of the Biden Administration's America the Beautiful
Initiative which aims to conserve at least 30% of U.S. lands and waters by 2030. The
Administration is developing the American Conservation and Stewardship Atlas
("Atlas") to highlight the conserved areas. ROMEA staff has gotten an early indication
the initial version of the Atlas will be published in spring 2024. It remains unclear at this
time if there will be any further public comment opportunities on the "Atlas" or the
"30x30" initiative.
• Alaskan Arctic Coast Port Access Route Evaluation -- The USCG is continuing its
review of the northern portion of the Arctic Coast vessel traffic route study. The Coast
Guard is coordinating with the U.S. State Department and Canadian officials as port of
this ongoing process. Any questions can be directed to the USCG at
Michael.D.Newellguscg•mil
• U.S. State Department on the Outer Continental Shelf -- On December 19, 2023, the
U.S. Department of State announced geographic coordinates defining the outer limits of
the U.S. continental shelf in areas beyond 200 nautical miles from the coast. These new
areas are known as the Extended Continental Shelf ("ECS") and collectively encompass
approximately one million square kilometers spread across seven regions, including
Alaska.
• National Working Waterfronts Legislation Currently Under Development –
Comments Welcome -- Senator Murkowski is working on new legislation for 2024 to
address a wide range of coastal environmental and commercial fishing/seafood related
issues. The draft legislation is provided below for your convenience. If you would like to
comment, please forward any comments to ROMEA's Rick Marks at rem(ahs bg law-
dc.com or Sebastian O'Kelly at tarponkhsgblaw-dc.com by the end of the month and we
will pass them on to the Senator's staff.
DRAFT "Working Waterfronts Act"
TITLE I - COASTAL ENERGY
Sec. 101 – Tax Credit for Marine Energy Projects
The Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2023 (S. 2994)
establishes a tax credit equal to 30% of eligible projects that maintain and enhance hydroelectric
facilities, namely hydroelectric dams and associated infrastructure. This provision would amend
S. 2994 to expand the tax credit to marine energy projects, including projects that produce
electricity from waves, tides, and ocean currents. The definitions that would be added to S. 2994
are as follows:
A marine energy project is defined as "a project which produces electricity from(i) waves,
tides, and currents in oceans, estuaries, and tidal areas, (ii) free flowing water in rivers, lakes,
streams, and man-made channels, (iii) differentials in salinity and pressure gradients, or (iv)
differentials in water temperature, including ocean thermal energy conversion," as well as
any associated interconnection property.
A marine energy technology project is defined as "a project which the Commission
determines—(i) will produce electricity from a generator that converts the potential energy of
flowing water, (ii) will utilize a generating technology that is not in widespread, utility scale
use in the United States as of the date of enactment of this section, (iii) will not be, based on
information available to the Commission, likely to jeopardize the continued existence of any
species listed as a threatened species or an endangered species under the Endangered Species
Act of 1973, and (iv) will not be, based on information available to the Commission, likely to
result in the destruction or adverse modification of an area designated as critical habitat for
any species listed as a threatened species or an endangered species under such Act," as well
as any associated interconnection property.
Sec. 102 — Fishing Vessel Alternative Fuels Pilot Program
To provide resources necessary to transition fishing vessels from diesel to alternative fuel
sources such as electric or hybrid, this provision establishes a pilot grant program at EPA to 1)
transition fishing vessels to alternative fuels, 2) acquire and deploy shoreside infrastructure
necessary for such transition, which may include charging stations for electric fishing vessels or
other alternative fuel -specific refueling stations, and 3) provides grant funds for research and
development of alternative fuel technologies for fishing vessels.
The current version of this provision authorizes $20 million per year for fiscal years 2025-2030.
Of that $20 million, 30% ($6 million) would be for costs associated with fishing vessel
transitions, 30% ($6 million) for necessary shoreside infrastructure, and 40% ($8 million) for
research and development of alternative fuel technologies for commercial fishing vessels.
Additionally, the bill authorizes $2 million for a joint study with EPA and DOE on "(1) methods
to further develop alternative fuels for use with commercial fishing vessels; (2) how to improve
existing alternative fuel technologies in commercial fishing vessels; (3) the fuel sources available
for commercial fishing vessels, and the limitations of those fuel sources; and (4) opportunities
for the use of hybrid technologies in commercial fishing vessels."
TITLE II - FISHERIES AND SEAFOOD
Sec. 201— USDA Loan Guarantees for Commercial Fishermen and Fish Processors
Opening USDA Loan programs to commercial fishermen and fish processors would improve
access to needed food security and economic opportunities for coastal residents and businesses.
This provision would expand eligibility for USDA Farm Ownership Loans and Farm Operating
Loans to commercial fishermen and fish processors to acquire, operate, and maintain commercial
fishing vessels and fish processing facilities. Commercial fishermen would also be able to use
farm ownership loans to acquire fishing permits associated with their fishing operation.
This provision combines two working waterfronts provisions you previously approved for
inclusion: 1) expanding USDA loan guarantees and 2) including wild -caught fish and shellfish in
the definition of "agricultural commodity or product" for the purposes of the Farmers' Markets
and Local Food Promotion Program.
Sec. 202 — Fishing Industry Credit Enhancement Act
Currently, Farm Credit is available for farmers ranchers, and fishermen, as well businesses that
provide support services for farmers and ranchers. However, businesses providing support
services to fishermen were not included in the legislation. This provision corrects that apparent
oversight by expanding Farm Credit eligibility to fishing industry support businesses.
Sec. 203 — Testing for Shellfish Mariculture
Amends the Harmful Algal Bloom and Hypoxia Research and Control Act (HABHRCA) to
expand the scope of NOAA's National Harmful Algal Bloom and Hypoxia Program (NHABHP)
to 1) support shellfish mariculture and 2) provide access to testing for harmful algal bloom toxins
for subsistence and recreational shellfish harvesters through innovative methods that increase the
efficiency and effectiveness of such testing in rural and remote areas.
Shellfish mariculture is defined as "the cultivation of shellfish in their natural habitat for human
consumption" for the purposes of this section.
Sec. 204 — Domestic Seafood Marketing and Promotion
Amends the Saltonstall-Kennedy Act to modify how funds in the Promote and Develop
American Fisheries Products and Research Pertaining to American Fisheries Fund (P&D
account) are apportioned.
This provision would:
1. Amend the portion of funds within the P&D account available solely for the Saltonstall-
Kennedy competitive grant program from "all moneys" in the account to 25%,
2. Specify that, of the 25% of funds made available in the P&D account, 75% shall be
reserved for direct industry grants under the S -K grant program, 20% shall be used to
carry out the Young Fishermen's Development Act (YFDA), and the remaining 5% shall
be used for the National Fisheries Research and Development Program.
3. Allows any remaining funds to be used in subsequent fiscal years, but directs the
Secretary to obligate funds so that the balance remaining does not exceed $10 million,
which amends the current $3 million. This would allow the Secretary to allocate funds in
a way that allows for more to carry over to subsequent fiscal years that the current
language, thereby providing greater inter -annual flexibility for both the agency and the S-
K grant program.
Sec. 205 — Electronic Monitoring Innovating Prize
Establishes an innovation prize for the development of advanced electronic fisheries monitoring
equipment and data analysis tools, including improved fish species recognition software.
Sec. 211-214 — Coastal Seaweed Farming Act
This provision establishes two key programs to promote coastal seaweed farming and support
Indigenous seaweed farming efforts:
1. Section 212 directs the Under Secretary of Commerce for Oceans and Atmosphere, in
collaboration with the Secretary of Agriculture, to offer technical assistance to eligible
entities engaged in seaweed farming. This includes aiding in farming design,
development, species selection, and operation while ensuring minimal negative impact on
marine ecosystems and communities.
2. Section 213 sets up an Indigenous Seaweed Farming Fund to provide grants for various
purposes related to seaweed farming, such as farm establishment, equipment purchases,
ecological impact mitigation, and habitat provision for native species.
Authorized funding for technical assistance is set at a total of $5 million for fiscal years 2025 to
2029, while $20 million per year is authorized for the Indigenous Seaweed Farming Fund for
fiscal years 2025 to 2029.
TITLE III — SHORESIDE INFRASTRUCTURE
Sec. 301-304 – Rural Coastal Community Processing and Cold Storage Grant
Increases support for community infrastructure such as cold storage, cooperative processing
facilities, and mariculture/seaweed processing facilities by establishing a competitive grant
program through the Department of Commerce for rural and small-scale projects. The new grant
program would allow the Secretary of Commerce to make grants or enter into cooperative
agreements to support pilot projects relating to the construction of new seafood and mariculture
processing and cold storage infrastructure, or the rehabilitation, repair, or retrofitting of existing
infrastructure.
Rural coastal community uses the definition provided in the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991(a)), which states that "rural" means "any area other than—(i) a
city or town that has a population of greater than 50,000 inhabitants; and (ii) any urbanized area
contiguous and adjacent to a city or town described in clause (i)."
Of the $10 million authorized for the grant program for fiscal years 2025-2029, 50% is reserved
for "small-scale" rural facilities that have 50 or fewer employees.
Sec. 311 – Working Waterfronts Development Act
Establishes a grant program at the Economic Development Administration in the Department of
Commerce for infrastructure improvements for facilities benefitting commercial and recreational
fishermen, mariculturists, and the boatbuilding industry.
Eligible projects for the grant program include construction or repair of wharfs and related
infrastructure; access points; improvements to boost resilience to climate change; projects that
permanently designate property as a working waterfront area; or projects that have been
approved by the relevant state government entity that regulates fishery management and coastal
areas. Eligible entities are coastal state or local governments, nonprofits, or individual
participants in the fishing industry. Additionally, the eligible entity must be able to meet a 50%
cost sharing requirement.
In weighing projects, the Secretary of Commerce must consider the economic significance of the
project, demonstrated need for the project, if alternate adequate waterfront access exists in the
community, permanence of the project's compatibility with the community's fishing uses, and if
the entity has a business plan for the area.
The bill authorizes $20 million per year from 2025-2029.
TITLE IV — WORKFORCE DEVELOPMENT
Sec. 401 – Maritime Workforce Grant Program
Establishes a Maritime Workforce Grant Program, directing the Secretary of Transportation,
through the Maritime Administrator, to award competitive grants supporting entities engaged in
recruiting, educating, or training the maritime workforce.
Eligible applicants can receive grants for various activities, including creating or improving
training programs, providing technical training leading to maritime credentials, offering maritime
education to high school students, supporting teacher development, establishing scholarships or
apprenticeships, conducting outreach to schools and underrepresented communities, and
generally enhancing the maritime workforce. The Secretary must consult with industry
representatives, ensure broad participation across rural, suburban, and urban areas, and allocate
at least 25% of the annual grant funds to entities in rural regions.
An annual appropriation of $25,000,000 for fiscal years 2025 through 2029 is authorized for this
program.
Sec. 402 — Fishing Industry Safety, Health, and Wellness Improvement (FISH Wellness) Act
Expands the Coast Guard and CDC's National Institute for Occupational Safety and Health
(NIOSH) Fishing Safety Research and Training (FRST) Grant Program to include projects
supporting behavioral health in addition to the projects currently supported dedicated to
occupational safety research and training.
This provision would also increase total authorized funding from $6 million to $12 million for
the fiscal years 2025 and 2026.
TITLE V - MISCELLANEOUS
Sec. 501-503 — Ocean Regional Opportunity and Innovation Act
This provision would require the Secretary of Commerce, acting through the administrator of
EDA and in consultation with the administrator of NOAA, to designate at least one ocean cluster
in each of the five domestic NOAA Fisheries regions, as well as the Great Lakes and Gulf of
Mexico regions.
The ocean cluster model fosters collaboration between different sectors — including public,
private, and academic — within a geographic region to promote economic growth and
sustainability in the Blue Economy. Ocean clusters offer members physical workspaces, as well
as networking, funding and investment, and programmatic opportunities. While the ocean cluster
model is increasingly popular for developing the Blue Economy, the U.S. currently lacks an
overarching federal strategy for cluster development and investment in the blue economy.
$10 million per fiscal year is authorized to award grants for the operation and administration of
ocean clusters with the goal of helping them become membership -based, self-sustaining entities.
Sec. 511-514 — Vegetated Coastal Ecosystem Inventory
This section establishes the Interagency Working Group on Vegetated Coastal Ecosystems under
the National Science and Technology Council for the creation and maintenance of a
comprehensive national map and inventory detailing vegetated coastal ecosystems. This
inventory encompasses habitat types, species, ecosystem conditions, ownership, protected status,
size, salinity and tidal boundaries, carbon sequestration potential, and impacts of climate change.
The Interagency Working Group is tasked with incorporating existing data, engaging regional
experts, and utilizing this inventory to evaluate carbon sequestration, assess emissions from
degraded ecosystems, aid in regional assessments and technical assistance, identify restoration
opportunities, predict sequestration rates in changing conditions, and explore coastal vegetation's
role as natural infrastructure against climate hazards.
Additionally, the inventory aids in understanding the effectiveness of different coastal vegetation
in diverse climates, including the Arctic, and informs the EPA's annual Inventory of U.S.
Greenhouse Gas Emissions and Sinks.
This provision also authorizes $3 million per fiscal year (2025-2026) for cold -climate coastal
natural infrastructure research and pilot projects.
Sec. 521-523 — Coastal Communities Ocean Acidification Act
Amends the Federal Ocean Acidification Research and Monitoring Act of 2009 to enhance
collaboration on ocean acidification research and monitoring. The amendments introduce
ongoing mechanisms for stakeholder engagement — including industry members, coastal
stakeholders, Indigenous groups, and non -Federal scientific experts — to provide input on
necessary research and monitoring.
This provision would also establish two Advisory Board seats for "Two representatives from
Indian Tribes, Native Hawaiian organizations, Tribal organizations, and Tribal consortia affected
by ocean acidification and coastal acidification."
Sec. 531 —Marine Invasive Species Research and Monitoring
With warming ocean conditions, invasive species, like the European green crab in the Pacific
Northwest and Southeast Alaska, colonize new habitats to the detriment of native species. To
provide resources and tools to mitigate the impact of invasive species and help limit their spread,
this provision authorizes grant funds for research and monitoring funds for local, Tribal, and
regional marine invasive prevention work. This includes training, outreach, and equipment for
early detection and response to invasions.
This provision also transfers the Coastal Aquatic Invasive Species Mitigation Grant Program and
Mitigation Fund from the Vessel Incidental Discharge Act of 2018 to the Nonindigenous Aquatic
Nuisance Prevention and Control Act of 1990 for better alignment across marine invasive
species response and research.
To: The Honorable Scot Arndt
The Honorable Pat Branson
The Kodiak City Council
The Kodiak Island Borough Assembly
Aimee Williams, Borough Manager
Josie Bahnke, Acting City Manager
Dave Johson, Harbormaster
Dave Conrad, Borough Engineering & Facilities Director
Meagan Christiansen, Borough Special Projects Director
From: Sebastian O'Kelly & Brad Gilman
Re: Washington Update
Date: May 20, 2024
FY 2025 Appropriations
The FY 2025 appropriations process is underway. Appropriations Committee markups will
occur over the next several weeks, but due to the differences between the parties on overall
spending levels as well as defense and non-defense spending, we do not anticipate any bills
being enacted before the start of the Oct 1 fiscal year. We believe a short-term Continuing
Resolution will be passed in the late summer and that Congress will return after the election for a
lame duck session to address the appropriations bills and other must -pass legislation. We do not
foresee a government shutdown, at least not before the election.
On behalf of the City/Borough, we submitted the following CDS/CP funding requests with
Senator Murkowski and Rep. Peltola — St. Hermans Harbor; Hospital Replacement; New Fire
Vehicle; Wastewater Lift Station Replacement; New Wastewater Treatment Plant Design &
Engineering; and Army Corps Feasibility Study Near Island Breakwater. We also submitted
programmatic requests supporting National Wildlife Refuge/PILT funding; NOAA groundfish
trawl surveys; Essential Air Service; and North Pacific fisheries observers funding.
U.S. Coast Guard Issues
The enacted FY 2024 appropriations bill includes $125 million for the Coast Guard to purchase a
commercial icebreaker. This has been a AK Congressional Delegation priority for some time.
The icebreaker to be bought is expected to be the Aiviq which was built during Shell Oil's OCS
oil exploration initiative in the Bering and Chukchi Seas. Once purchased, it will need shipyard
modifications in order to meet Coast Guard standards and will be homeported in Juneau. This
icebreaker is meant to be a "bridge" icebreaker to add to icebreaking capacity with the Healy and
Polar Star, the only two U.S. icebreakers in operation.
Meanwhile, the Congressional Budget Office and Government Accountability Office offered
critical Congressional testimony this month about the Coast Guard's management of the Polar
Security Cutter (PSC) program and stated that the new PSCs are behind schedule and over
budget. The Coast Guard has received criticism by its Congressional oversight committees for
its management of the PSC procurement (as well as for the Offshore Patrol Cutters (OPC), also
over budget and behind schedule). Despite the criticism, Congressional support for the both
vessel programs remains strong, including with the AK Delegation. The recent House -passed
Coast Guard Authorization Bill includes an increase in authorized funding to cover the cost -
overruns as well as additions of one more vessel in each program.
Use Of Borough Property
The AK Congressional Delegation has received a response to its letter to DOI urging an
interpretation of the deed requirement to permit seafood workforce housing development of the
former mental health clinic property. The letter permits such development, with some
conditions. Copy has been provided to the Borough Manager.
St. Hermans Harbor
DOT MARAD's Pacific Gateway Director provided a briefing to City officials on the FY 2025
Port Infrastructure Development Program grant opportunity. City officials also briefed senior
MARAD officials on the project during their DC visit this spring. A draft support letter to the
DOT Secretary is pending with the Delegation.
Essential Air Service (EAS) Extension
The FAA Reauthorization Bill, just enacted, includes an extension of the EAS program through
FY 2028 at level funding. The enacted FY 2024 Appropriations Bill package also fully funds
EAS.
Arctic National Security
We continue to see heightened DOD interest in the Arctic in recent months. There appears to be
greater interest in conducting DOD Innovative Readiness Training missions in Alaska. Outreach
efforts have picked up, for example Stevens Center officials recently attended/spoke at AFN's
DC Conference and Anchorage's 2024 Arctic Encounter Symposium. DOD is expected to
release its updated Arctic Security Strategy soon. The U.S.S. Ted Stevens is holding assignment
visits in Alaska this month for an appropriate location of its commissioning. The Delegation in
press releases, hearings, and other venues continue to raise the importance of Alaska to national
security and the need for increased DOD investment in the State and region to deter Russian and
Chinese aggression. We will continue to monitor these developments as they unfold.
Denali Commission — Transportation Funding
The enacted FY 2024 Transportation -Housing & Urban Development Appropriations Bill
includes $18 million to the Commission for transportation funding. Waterfront/dock projects are
eligible for $4.5 million of this amount, while $13.5 million is for rural surface transportation.
National Wildlife Refuge Funds (Refuge Revenue Sharing)/PILT
Both programs were fully funded in the final FY 2024 appropriations bill. The Borough should
receive its PILT payment from DOI soon.
Fisheries & Oceans
• AK Trawl Surveys/North Pacific Observers: The final FY 2024 appropriations bill
package maintain the existing number of NOAA AK groundfish trawl surveys and North
Pacific Observers.
• FY 2024 NOAA Fisheries Finance Program As part of the final FY2024 funding bill,
Congress increased the Traditional loan authority for NOAA's Fisheries Finance Program
(FFP) to $150,000,000. This is the highest amount the program has been provided since
1991. There is also an additional $24,000,000 provided for IFQ-related loans. The FFP is
a NOAA-managed federal loan program designed to provide fixed rate, long-term
financing to the commercial fishing industry. Traditional loans are used for vessel
maintenance, reducing engine emissions, and safety compliance, debt refinancing, and for
construction, refinancing, refurbishment and the purchase of shore side processing plants
and aquaculture facilities. According to NOAA's Financial Services Division, here is the
breakdown of FFP usage during 2020-2023.
STATE
# APPROVED
AMOUNT
WASHINGTON
46
$69.5M
ALASKA
92
$52.8M
NEW JERSEY
3
$50.9M
FLORIDA
7
$8.8M
TEXAS
1
$6.OM
NEW HAMPSHIRE
1
$5.8M
OREGON
6
$5.7M
CALIFORNIA
2
$4.5M
ALABAMA
1
$3.5M
NORTH CAROLINA
3
$2.3M
• AK Fishery Disasters: Here is the general status for several AK fishery disasters
pending at the Federal level. The timing for each of these disasters is unclear as NOAA
made changes to their business system which is contributing to process delays. The AK
Congressional Delegation is well aware of the problems constituents are having related to
these delays and they are engaged with the Agency to expedite the grants.
• 2019 Norton Sound Red King Crab Disaster is first in the cue but still awaiting a
final award from NOAA. Once awarded the grant goes to the Pacific States Marine
Fisheries Commission (PSMFC) for processing.
2018 Upper Cook Inlet East Side Set Net & 2020 Upper Cook Inlet Salmon
Disaster is awaiting a final award from NOAA before it moves to the PSMFC. We
expect this will move after the 2019 Norton Sound Red King Crab disaster moves
through the process.
• 2018 & 2020 Copper River and Prince William Sound Salmon Disaster; similar
status as the above Cook Inlet disasters.
• 2019-20 Bering Sea Tanner Crab Disaster is part of the same grant as the Norton
Sound Disaster; and still waiting on a final award from NOAA before going to the
PSMFC for processing.
• 2020 Gulf of Alaska Pacific Cod Disaster; still waiting on a final award from
NOAA before going to the PSMFC for processing. This is expected to move after the
2019 Norton Sound Disaster moves through the system.
• 2020-21 Statewide Salmon Disaster; still waiting on the final award from NOAA
before going to PSMFC for processing.
• 2023 Alaska Upper Cook Inlet East Side Setnet Salmon Fishery: Request has
been submitted by the Governor, the Secretary scheduled to make determination by
July 23.
• 2022 Chignik Salmon Fishery: Request has been submitted by the Governor, the
Secretary scheduled to make determination by July 23.
• 2023/24 Alaska Bering Sea Snow Crab Fishery: Request has been submitted by
the Governor, the Secretary was supposed to make determination by May 3.
• 2022 Nelson Lagoon Salmon Fishery: The Secretary did not approve the
Governor's request.
• 2022 Alaska Kuskokwim River Chinook, Chum, and Coho Salmon Fisheries:
The Dept approved the request in April. The next step is the determination of funding
amount and State development of an expenditure plan.
• 2021/22 Upper Cook Inlet Setnet Sockeye Salmon Fishery: The Dept approved
the request in April. The next step is the determination of funding amount and State
development of an expenditure plan.
• North Pacific Right Whale Critical Habitat: In response a petition from the Center for
Biological Diversity and Save The North Pacific Right Whale, NOAA is considering
expanding ESA critical habitat for the North Pacific Right Whale (NPRW) which could
lead to future restrictions on vessel traffic, speed and fishing activity (including pot gear
fisheries to reduce the possibility of whale entanglements) in the region. A formal
proposed rule is expected in 2024.
• AK Salmon Bycatch Petition 2.0 -- A group of AK Yukon Tribes filed a second (and
similar petition) on January 17, 2024 with the Secretary of Commerce requesting the
Department close the 2024 AK pollock trawl fishery due to chinook bycatch levels. The
Secretary on April 18th ruled the petitioners rejected the petition. See NOAA link here:
https://www. fisheries.noaa. gov/feature-story/noaa-fisheries-denies-request-emergency-
action-bering-sea-chinook-salmon-b. c
• Alaskan Arctic Coast Port Access Route Evaluation: The USCG is continuing its
review of the northern portion of the Arctic Coast vessel traffic route study. The Coast
Guard is coordinating with the U.S. State Department and Canadian officials as port of
this ongoing process. Any questions can be directed to the USCG at
Michael.D.Newellguscg.mil
• Steller Sea Lion Western DPS ESA 5 -Year Review: NOAA announced initiation of a
5 -year ESA review for the Western SSL DPS. Comments are due by June 17th. See 89 FR
27417.
• NOAA to Manage Salmon in Cook Inlet: Effective May 1St NOAA asserted Federal
management authority in the Cook Inlet EEZ for commercial and recreational salmon
fishing activities. See details at this link: https://www.fisheries.noaa.gov/feature-
story/noaa-fisheries-issues-final-rule-implementing-federal-management-salmon-fishing=
cook?utm medium=email&utm_source=govdeliveiy
• NOAA To Revise National Standard Guidelines for 4, 8 & 9: NOAA has indicated
they do intend to revise the implementing guidelines for National Standards 4
(allocation), 8 (impacts to communities), and 9 (bycatch, including the "practicability"
standard), of the Magnuson -Stevens Fishery Conservation and Management Act (MSA).
NOAA is expected to publish a formal Proposed Rule for public comment in spring 2024.
• National Aquaculture Draft Plans: On February 201h NOAA released two national
aquaculture documents for public comment — (1) Overview of a National Aquaculture
Development Plan (NADP); and (2) Strategic Plan for Aquaculture Economic
Development. The comment period closed on April 51h
• FISHES Act Update: As noted in our last report, many Members of Congress,
including the AK Congressional Delegation, remained concerned over lengthy delays in
the fisheries disaster relief process. Legislation has now been introduced in the House
and Senate to further streamline the Federal fisheries disaster review and approval
process by limiting the review period of fisheries disaster spend plans by the Office of
Management & Budget (OMB) to 30 days. OMB's involvement in the fisheries disaster
process has been an impediment to timely and efficient distribution of funding.
• NOAA on Seafood Labor: Since October 2022, NOAA officials have been working
with a number of labor and fisheries representatives, NGOs and retailers to address labor -
related issues and working conditions throughout the seafood supply chain, including on
U.S. vessels and in domestic seafood processing plants. As part of this ongoing effort
NOAA convened a national summit on labor in the seafood industry called "Charting the
Course: CALM -CS Seafood Labor Summit" in Washington, DC, back on February 281h
You can direct any questions to Calm.CSknoaa.gov.
• NOAA To Revise Data Confidentiality Regulations: NOAA has announced its intent
to streamline the existing data/information confidentiality standards. Comments were due
April 25th, see link here -- https://www. ovg info.gov/content/pkg/FR-2024-03-
11/pdf/2024-05106.pdf. On April 25th a coalition of seafood groups (including AGDB,
APA, GFF, MTC & UCB) submitted a comment letter to NOAA on the rule. There are
changes proposed for observer information as it relates to MMPA/ESA protected species
interactions on both fishing vessels and in shore -side plants, information related to
LAPPs, data availability to RFMC AP members, among other things.
• Call for Nominations to NOAA's National S -K Grant Committee: NMFS is
soliciting positions for 9 openings on its American Fisheries Advisory Committee. This
is the entity responsible for advising NMFS on the development and award of Saltonstall-
Kennedy grants. Details on applying (deadline June 21) are at the link --
https://www.fisheries.noaa. og v/topic/partners/american-fisheries-advisory-committee
To: The Honorable Pat Branson
The Honorable Scot Arndt
The Kodiak Island Borough Assembly
The Kodiak City Council
Josie Bahnke, Acting City Manager
Aimee Williams, Borough Manager
Dave Johson, Harbormaster
Dave Conrad, Borough Engineering & Facilities Director
Meagan Christiansen, Borough Special Projects Director
From: Sebastian O'Kelly & Brad Gilman
Re: Washington Update
Date: September 9, 2024
FY 2025 Appropriations & Congressionally Directed Spending/Community Proiects
(CDS/CP)
Congress has made progress on developing its FY 2025 appropriations bills as all 12 bills
(except for one in the Senate) have been marked up by the House and Senate Appropriations
Committees. However, none of the bills will make it into law by the start of the October 1 new
fiscal year. This is par for the course (only 4 times in the last 50 years have all appropriations
been enacted on time).
Congress will consider a short-term Continuing Resolution (CR) to keep the Federal government
operating while it negotiates the final bills. The CR will extend until either the end of this year
or the first quarter of 2025. While a government shutdown can never be ruled out, it seems
unlikely just prior to the election. Congress is in session only until the end of this month, then
adjourns until mid-November to return for a post-election lame duck session.
Included in the pending FY 2025 appropriations bills is the following CDS/CP project that was
part of the submissions to Senator Murkowski and Rep. Peltola earlier in the year — St. Hermans
Harbor ($10 million) in the Senate Transportation Housing & Urban Development
Appropriations Bill. The funds were requested by Senator Murkowski The funding for the
project now awaits final outcome of the FY 2025 appropriations process. Senator Murkowski
also requested $1 million in planning and design funding for the Kodiak Hospital improvement
project and $1.9 million in planning and design funding for a new Waste Water Treatment Plant
but the Senate Appropriations Committee did not fund the requests.
St. Hermans Harbor
In addition to the pending CDS funding, DOT is expected to make its FY 2025 Port
Infrastructure Development Program grant decisions soon. In June, the Delegation sent a letter
to DOT Secretary Buttigieg in support of the City's application.
Essential Air Service (EAS) Extension
As noted in our last report, the FAA Reauthorization Bill includes an extension of the EAS
program through FY 2028 at level funding. The pending House and Senate Transportation
Housing Appropriations Bills fully fund EAS for FY 2025.
National Wildlife Refuge Fund (Refuge Revenue Sharing) & PILT
The Biden Administration again requested no funding for the National Wildlife Refuge Fund in
its FY 2025 budget request. Both the House and Senate Appropriations Committees rejected the
request and level fund the program for FY 2025.
The Department of Interior made its FY 2024 PILT payments in late June, with the Borough's
payment totaling $1,862,889, about a $100,000 increase over last year's level. Both the House
and Senate Appropriations Committees fully fund PILT in their FY 2025 Interior Appropriations
Bills.
Defense Community Infrastructure Program Expansion
Senator Sullivan was again able to include language in the Senate's version of the annual
National Defense Authorization Act (NDAA) that makes Coast Guard communities such as
Kodiak eligible to apply for grants from DOD's Defense Community Infrastructure Program.
Currently, only communities with traditional military service bases may apply. The House and
Senate will conference their bills this fall are expected to pass a final NDAA toward the end of
the year.
EPA Climate Pollution Reduction Grant — Heat Pumps
The Southeast Conference teamed up with AML and the non-profit Alaska Heat Smart to win
$39 million in EPA grant funding from the Inflation Reduction Act's (IRA) new Climate
Pollution Reduction Grant Program. The funds will be used by the Conference for Southeast,
Southcentral and Kodiak community households to apply for reimbursement for the installation
of energy-efficient heat pumps. The reimbursable amount will vary from $4,000 up to $8,500,
depending on household income level. Heat pumps can save households 25% to 50% on heating
bills. Separately, homeowners can qualify for up to $2,000 in Federal tax credits for the
installation of some model heat pumps.
Fisheries & Oceans
• AK Trawl Surveys/North Pacific Observers: The Senate's FY 2025 Commerce Justice
Science appropriations bill maintains the existing number of NOAA AK groundfish trawl
surveys and funding of North Pacific Observers at the FY 2024 level. This has been a
consistent request from Senators Murkowski and Sullivan over the years.
• USDA Financial Support & Commercial Fisheries: The Delegation has become
increasingly interested in seeing if a program could be developed to financially support
commercial fisheries in times of low prices and/or supply that would be based on some of
the USDA's crop insurance or commodity support programs. Senator Sullivan has a
pending Government Accountability Office study on the subject, while also pending in
FY 2025 Senate appropriations is $1 million for a similar study by the National Academy
of Public Administration. Our firm has drafted a concept paper on how a "commodity
support -type" program could work in commercial fisheries and provided it to the
Delegation. A copy is attached separately for your review and distribution as you see fit.
• Rep. Peltola Fisheries Bills: Over the last few weeks, Rep. Peltola has introduced
several pieces of fisheries -related legislation. As of the time of this report, no Committee
action on the bills has been scheduled. They include —
o The Bycatch Reduction and Mitigation Act would provide increased funding for
NOAA's Bycatch Reduction and Engineering Program (BREP); and create a
national grant program which could accept donations to promote bycatch
reduction technology, including on smaller fishing vessels.
o The Bycatch Trawl Clarity Act would require the Regional Fishery Management
Councils to limit use of any mobile gear with "substantial" bottom contact to only
certain areas of the ocean.
o The FISH Act would address fisheries and ecological resilience, regional seafood
infrastructure and industry competitiveness issues
o The Domestic Seafood Production Act would require the USDA to develop an
action plan to increase U.S. seafood processing of seafood and mariculture
through the use of grants and cooperative agreements. The bill also includes a
ban on offshore aquaculture.
• AK -BC Transboundary Waters: On August 16, the AK Delegation sent a letter to the
President urging greater Administration engagement on the threats posed to certain AK
watersheds by mining in British Columbia. The letter seeks a referral to the International
Joint Commission to negotiate an enforceable framework between the U.S. and Canada to
reduce the environmental risks raised by these mines. Text of the letter can be found at
the first link. Separately, the U.S. Geological Survey has been conducting water quality
monitoring on a number of Southeast Alaska transboundary rivers. Details including on
that work, including scientist POC info can be found at the second link.
o https://www.murkowski.senate.gov/imo/media/doc/transboundga mining letter.
pdf
o hM2s://www.usgs.gov/centers/alaska-science-center/science/stikine-river
• Endangered Species Act ESA Petition — Gulf of Alaska King Salmon Petition: The
Washington State -based non-profit Wild Fish Conservancy has filed a petition with
NMFS seeking an ESA listing for GOA King Salmon. NMFS made the petition
available for public comment which closed July 23rd. NMFS has determined that the
petition presents enough information on population declines that "listing may be
warranted." The next step in the process is for NMFS to conduct a more in-depth
scientific review that could eventually lead to either a proposed threatened, endangered,
or no listing. NMFS's review and decision could break out populations into sub -groups
(i.e. runs by specific watersheds) with some populations receiving listing designations of
either threatened or endangered and others not. An ESA -listing would close directed
commercial, recreational and subsistence of the listed GOA King Salmon species. It
would impact other fisheries as well where there is incidental take of the listed King
Salmon — including other salmon fisheries and non -salmon fisheries where there is
bycatch. Follow-on identification and protection of critical habitat would require Federal
reviews and additional permitting requirements for any human activities impacting waters
and rivers systems where listed Kings live and spawn. The Wild Fish Conservancy also
is responsible for the lawsuit seeking to close the Southeast Alaska King Salmon troll
fishery (see next bullet) to protect prey for Puget Sound orcas (aka Southern Resident
Killer Whales).
• Southern Resident Killer Whale Southeast AK King Salmon Troll Fishery Lawsuit:
In August, the Ninth Circuit of Appeals issued a ruling that has allowed the troll fishery
to continue to operate while NMFS works on a new Biological Opinion which the Court
has requested be completed by December 1. The Alaska Delegation has filed two amicus
briefs in support of the troll fishery position. The completion of the BiOp is only the next
step in the process and depending on its findings and recommendations, additional
litigation by the Wild Fish Conservancy is possible.
• SCOTUS Rules on Fisheries Cases and the "Chevron Deference:" In June, the U.S.
Supreme Court (SCOTUS) ruled 6-3 in favor of two related commercial fisheries cases
regarding NOAA's ability to place industry -funded observers on vessels, and more
broadly, on court deference to Federal agencies. The ruling overturned the 40 -year
statutory framework cited as the "Chevron Deference" whereby the courts often sided
with Federal agencies in implementing laws passed by Congress where the statutory
language was ambiguous (or silent). The practical effects of the ruling on fisheries
remain to be seen. Many industry stakeholders feel the ruling will curtail the power of
NOAA and other agencies because Federal judges can more easily overturn agency
decisions whenever there is a lack of statutory clarity. Other opponents (the
Administration and NGOs included) believe there will be a proliferation of litigation, and
that Federal judges could become more active in overturning agency rules and decisions
thereby weakening the ability of the Federal government to address such challenges as
COVID, climate change, and environmental protection.
• FISHES Act UPDATE: One important fisheries bill that remains pending is S.
4262/H.R. 5103 --"Fishing Impacts to Streamline untimely Regulatory Hurdles Post
Emergency Situation Act" ("FISHES" Act) to put a statutory timeline requirement of 30 -
days on OMB to render a final decision on a fishery disaster spend plan submitted to
NOAA. OMB has been identified as a significant choke point in the timeline for the
approval and distribution of Federal fisheries disaster relief funds. On this same topic,
Rep. Nancy Mace (SC -R -1St) recently circulated a draft bill to further amend the fishery
disaster provisions by adding "economic cause" (i.e. the result of impacts on U.S.
seafood markets due to activities of a foreign entity) as a justifiable Federal fishery
disaster. Since the draft is new there is no indication yet as to how it will be viewed in the
broader fishery disaster reform debate.
• Magnuson Stevens Act (MSA) Reauthorization: On June 27th former HNR WWF
Subcommittee chairman (and current WWF Subcommittee Ranking Member) Rep. Jared
Huffman (CA -D-2" d) reintroduced his MSA reform bill titled "Sustaining America's
Fisheries for the Future Act" (SAFFTFA). Joining Mr. Huffman on the bill are Rep. Case
(D -HI) and Rep. Peltola (D -AK) The bill is similar to the legislation of the same name
from 2020 & 2022. The bill will not pass Congress this year but would likely see
movement in the next Congress should the Democrats take control of the House in this
year's elections.
To: The Honorable Scott Arndt
The Honorable Pat Branson
The Kodiak Island Borough Assembly
The Kodiak City Council
Aimee Williams, Borough Manager
Josie Bahnke, Acting City Manager
Dave Johson, Harbormaster
Dave Conrad, Borough Engineering & Facilities Director
Meagan Christiansen, Borough Special Projects Director
From: Sebastian O'Kelly
Re: Washington Update
Date: December 31, 2024
1191—h Congress
Republicans were successful in securing control of the Presidency and both bodies of Congress
in this year's elections. President-elect Trump will be sworn in on January 20th and the
Members -elect of Congress will be sworn in on January P. On that day, the House of
Representatives will elect its Speaker. Speaker Mike Johnson (R -LA) will be running again but
given the close parry margins and dissatisfaction with his leadership by a few House
Republicans, his return to the Speakership is uncertain.
Congress will be in session more than usual for the first few months of 2025 and will have a
busy agenda. The Senate will be considering confirmation of Trump Cabinet nominees. Both
bodies will also be developing legislation to implement the major elements of the Trump
Campaign platform concerning immigration, energy production and 2017 tax cuts extension.
These parts of the Trump agenda will be considered in a process called "reconciliation" which is
a mechanism that can bypass a Senate filibuster provided certain tax and spending criteria are
met and deemed "in order" by the Senate Parliamentarian. The President-elect's plans for tariff
increases do not require Congressional approval and will proceed on a separate track.
The Republican margins of control in both the House and Senate will be very close. In the
Senate, Republicans were able to gain 4 seats and will have a 53-47 seat advantage. In the
House of Representatives, the Democrats gained one seat. Three House Republicans have
resigned or are resigning after being re-elected to pursue positions in the Trump Administration.
So at the start of next year, the Republicans will have 217-215 margin, the closest margin of
party control in the House since 1930. The three vacant House seats will be filled by special
elections in 2025, with the general election for the two Florida vacancies held April 1 and the
New York vacancy later in the year. Republicans will be favored in the three races. With
Senator Marco Rubio (R -FL) nominated as Secretary of State and Senator J.D. Vance (R -OH)
becoming Vice President, those seats will be filled by Gubernatorial appointment. Under those
States' laws, appointments to fill Senate seats can serve until the next election cycle.
In Alaska, Rep. Peltola lost a close race to Nick Begich. Mr. Begich is in the process of hiring
staff and getting his DC office set up. His Committee assignments have not been made yet but
will be decided shortly. He is reportedly seeking assignment to the Transportation &
Infrastructure and Natural Resources Committees. These are the same Committees Rep. Young
and Rep. Peltola served on and are good Committees to sit on from an Alaska perspective. Ms.
Peltola has not declared her future political plans.
In the Senate, Senator Murkowski will likely Chair the Interior Appropriations Subcommittee as
well as the Indian Affairs Committee. She will also be a senior member of the Energy & Natural
Resources Committee. When Senator McConnell (R -KY) retires in 2026, she will move up the
number two position on the Senate Appropriations Committee. Depending on whether Senator
Susan Collins (R -ME) decides to run for re-election in 2026, Senator Murkowski could then
become Chair (or Ranking Member) of the full Appropriations Committee, the position that
Senator Stevens held his last few years of service. Senator Murkowski is up for re-election in
2028. She has not indicated her plans and is unlikely to do so until after the 2026 mid-term
elections.
Senator Sullivan will retain his seats on the Armed Services; Commerce, Science &
Transportation; and Environment & Public Works Committees. As a Member of the Commerce,
Science & Transportation Committee, he is currently Ranking Member of its Oceans, Fisheries,
Climate Change, and Manufacturing Subcommittee and will likely be its Chair next year. He
will also likely Chair the Armed Services Committee's Readiness and Management Support
Subcommittee. He has also joined the Senate DOGE Caucus (see below). Senator Sullivan will
be running for re-election in 2026. There is currently no announced opponent.
FY 2025 Appropriations & Congressionally Directed Spending/Community Proiects
(CDS/CP)
Congress has pushed final consideration of the FY 2025 appropriations bills into the first quarter
of next year. While not ideal from an agency budgeting and management standpoint, delay in
enactment of the annual appropriations bills until Q1 is not unusual and has occurred three of the
last four years. The Federal government is currently operating under a Continuing Resolution
(CR) that extends until March 14. The CR also includes disaster relief funding (including for
fisheries — see Oceans & Fisheries section) as well as a one year extension of Farm Bill
programs.
Included in the pending FY 2025 appropriations bills is the following CDS/CP project that was
part of the submissions to Senator Murkowski and Rep. Peltola earlier in the year — St. Hermans
Harbor ($10 million) in the Senate Transportation Housing & Urban Development
Appropriations Bill. The funds were requested by Senator Murkowski The funding for the
project now awaits final outcome of the FY 2025 appropriations process. I have requested a one -
pager from the City on how these funds can supplement the Port Infrastructure Development
Program grant award made this fall.
FY 2026 Appropriations & Congressionally Directed Spending/Community Proiects
CDS/CP
The turnaround to submit CDS/CP project requests for the FY 2026 appropriations bills will
happen quickly. Senator Murkowski's online submission portal will open on January 2nd and
close on February 14th. Senator Sullivan does not submit CDS/CP project requests to the
Appropriations Committee. We don't know yet what will be Rep. Begich's policy. For any City
and Borough requests, we will handle the online submissions but recommend that the projects be
ranked in order of priority by you and endorsed in a resolution.
St. Hermans Harbor
DOT has awarded $11.2 million FY 2024 Port Infrastructure Development Program grant
funding for this project. In June, the Delegation sent a letter to DOT Secretary Buttigieg in
support of the City's application. See FY 2025 appropriations section on effort to retain the CDS
funding as well.
Essential Air Service (EAS) Extension
The pending House and Senate Transportation Housing Appropriations Bills fully fund EAS for
FY 2025.
National Wildlife Refuge Fund (Refuge Revenue Sharing) & PILT
Both the House and Senate Appropriations Committees fully fund PILT in their FY 2025 Interior
Appropriations Bills and level fund the National Wildlife Refuge Fund. They are pending
Defense Community Infrastructure Program Expansion
Senator Sullivan was again able to include language in the Senate's version of the annual
National Defense Authorization Act (NDAA) that makes Coast Guard communities such as
Kodiak eligible to apply for grants from DOD's Defense Community Infrastructure Program.
Unfortunately, the provision was again stripped from the final NDAA in the House -Senate
Conference due to opposition from the House Armed Services Committee (HASC) due to its
view that spending for the Department of Defense should not be used to support projects from
another Department. Rep. Peltola supported the provision but was not a member of the HASC.
USCG Icebreaker Update
There have been several developments regarding icebreakers. This summer the U.S., Finland
and Canada announced Icebreaker Collaboration Effort, or ICE Pact, a trilateral memorandum of
understanding between the United States, Canada and Finland to design and develop icebreakers.
It's unclear whether the effort will lead to shared procurements or lease/purchases of icebreakers
from each other. Separately, Congress and GAO continued to exercise oversight and hold
hearings on the delays and cost increases incurred with the Polar Security Program.
Appropriations for procurement of the Polar Security Cutters (PSCs) were initially secured in
anticipation of covering the cost of construction of two vessels now will go toward the purchase
of just one vessel. At this point there are no additional appropriations for more PSCs. GAO has
estimated construction of the first PSC will not be completed until 2030 at the earliest and that
construction of the first Arctic Security Cutters, the medium class vessels, will not be completed
until the 2040s. The USCG has previously announced that the first PSCs will be homeported in
Seattle. Lastly, this December the USCG announced that it has approved procurement of a
commercially -available icebreaker, the Aiviq for $125 million. The Aiviq has been renamed
Coast Guard Cutter Storis. It will need to be retrofitted in a shipyard but it is expected to
operational sometime in 2026. The USCG has announced its eventual homeport will be in
Juneau but is considering a temporary location while the shoreside infrastructure in Juneau is
being built.
Department of Government Efficiency (DOGE)
Under the leaderships of tech entrepreneurs and businessmen Elon Musk and Vivek Ramswamy,
President-elect Trump has formed the Department of Government Efficiency (DOGE) to develop
recommendations to streamline Federal government operations; cut wasteful spending; reduce
regulations; and eliminate, restructure or privatize certain departments and agencies.
DOGE is not actually a department per se, but an outside advisory body that will make
recommendations. Those recommendations will be non-binding and it will be up the Executive
and Legislative Branches (or both) to consider and decide on them. The DOGE will be in
operation until July 4, 2026, the date of America's 2501h anniversary. We will closely monitor
and report on the DOGE's activities, given that its recommendations could have significant costs
or benefits for Alaska communities. DOGE has already had an impact on the timing, substance
and enactment of the latest CR.
Social Security Benefits Legislation For State & Local Government Employees
Congress has passed legislation to address Social Security benefit inequities in many Federal,
State and local government pension plans (including in Alaska) impacting almost 3 million
retirees nationwide. The legislation repeals the Windfall Elimination Provision (WEP) and the
Government Pension Offset (GPO). Under current law, the WEP reduces the Social Security
payments for an individual receiving a public pension from a job not covered by Social Security.
For example, a public school teacher who does not earn Social Security but works during the
summer in another job covered by Social Security gets a lesser benefit, even though they pay
into the system for enough quarters to be eligible for Social Security benefits. Likewise, the GPO
affects the spousal benefits of people who work as Federal, State, or local government employees
— including police officers, firefighters, and educators — if the job is not covered by Social
Security. The GPO reduces by two-thirds the benefit received by surviving spouses who also
collect a government pension.
The cost of the bill is estimated at $196 billion over 10 years and is not "paid for" and therefore
will move forward the projected insolvency of Social Security Trust Fund by 6 months. The
legislation passed on a bipartisan vote and is strongly supported by the Alaska Congressional
Delegation.
Department of Transportation Grant Opportunities
Federal DOT has announced two new grant opportunities as follows.
USDOT's Rebuilding American Infrastructure with Sustainability and Equity
(RAISE) program provides grants for surface transportation infrastructure projects with
significant local or regional impact. The FY2025 RAISE NOFO is now open.
Applications are due no later than 11:59 p.m. ET on January 30, 2025. Visit the
RAISE webinar series page to join an upcoming webinar or find recordings and materials
from past webinars.
FHWA has posted the Fiscal Years (FY) 2024-2026 NOFO for the Promoting Resilient
Operations for Transformative, Efficient, and Cost -Saving Transportation
(PROTECT) Discretionary Grant Program, a competitive grant program created by
BIL to help make surface transportation more resilient to natural hazards, including
climate change, sea level rise, flooding, extreme weather events, and other natural
disasters. This NOFO offers a total of up to $876 million in funding through two
application periods, including up to $576 million for FYs 2024 and 2025, and up to $300
million for FY 2026. The FY 2024-2025 application period opened on October 25,
2024, and will remain open for applications through February 24, 2025. Visit the
PROTECT Discretionary Grant Program Website to find recordings and slides from
webinars FHWA hosted in November on the PROTECT grant opportunity.
Fisheries & Oceans
• AK Trawl Surveys/North Pacific Observers: The Senate's FY 2025 Commerce Justice
Science appropriations bill maintains the existing number of NOAA AK groundfish trawl
surveys and funding of North Pacific Observers at the FY 2024 level. This has been a
consistent request from Senators Murkowski and Sullivan over the years and is pending
final outcome of FY 2025 appropriations.
• Ballast Water Management on Commercial Fishing Vessels: Back on October 91h the
EPA published the Final Rule on national ballast water management program
requirements including on commercial fishing boats. The definition of ballast water is
very comprehensive and included any liquid stored in any manner that may affect
stability. ROMEA staff worked on this issue for years (EPA mtg early 2019, webinar &
comments 2020 & 202 1) to secure an exemption for the industry from these requirements
for liquids/ice/brine/fresh water/chilled sea water taken on board commercial fishing
vessels. The October 2020 Trump Administration proposed rule contained our preferred
industry exemption and that language was ultimately retained by the Biden EPA. See this
quote from the Rule (89 FR 82074 at page 82091 ... EPA is clarifying here that the
definition of "ballast water" does not include discharges otfresh water, sea water, or
ice carried onboard a vessel for food safety and product qualiU purposes and as such are
not subiect to the ballast water requirements in the flnal rule. Since 2006 ROMEA staff
helped to secure exemptions from both EPA's incidental discharge AND ballast water
requirements for Clients in the commercial fishing industry from AK and the rest of the
country. We can finally close the books on these issues!
• Fisheries Disaster Assistance: The Continuing Resolution includes $300 million in
funding for fisheries disasters. These funds will cover fisheries disasters that have been
declared by the Secretary of Commerce but not yet funded, including for a number of
Alaska fisheries.
• North Pacific Right Whale Critical Habitat Designation: We continue to expect
NOAA to issue a revised and expanded ESA critical habitat (CH) area for Eastern North
Pacific right whales off AK. So far, there is no clear indication of when this proposed
rulemaking will occur.
• Western North Pacific Gray Whale DPS: NOAA has issued a revised but non -
substantive description of the WNP Gray Whale Distinct Population Segment (89 FR
102000). While the population is listed as "endangered", there is currently no critical
habitat designated in U.S. waters. In the past and rarely, individual WNP gray whales
have wandered into the U.S. EEZ off the West Coast & Alaska. At this time, we do not
consider the conservation and management of this DPS to be a threat to AK fisheries.
• Rep. Peltola Fisheries Bills: None of the fish bills introduced by AK Rep. Peltola
received any House committee action and none passed Congress this year. These
included --
o The Bycatch Reduction and Mitigation Act would provide increased funding for
NOAA's Bycatch Reduction and Engineering Program (BREP); and create a
national grant program which could accept donations to promote bycatch
reduction technology, including on smaller fishing vessels.
o The Bottom Trawl Clarity Act would require the Regional Fishery Management
Councils to limit use of any mobile gear with "substantial" bottom contact to only
certain areas of the ocean.
o The FISH Act would address fisheries and ecological resilience, regional seafood
infrastructure and industry competitiveness issues
o The Domestic Seafood Production Act would require the USDA to develop an
action plan to increase U.S. seafood processing of seafood and mariculture
through the use of grants and cooperative agreements. The bill also includes a
ban on offshore aquaculture.
• FISHES Act Update: Congress has passed S. 4262/H.R. 5103 --"Fishing Impacts to
Streamline untimely Regulatory Hurdles Post Emergency Situation Act" ("FISHES" Act)
to put statutory timeline requirements on approval and funding of fishery disaster spend
plans submitted to NOAA. On a related topic, earlier this fall Rep. Nancy Mace (SC -R-
I") introduced a bill (H.R. 10010; the "Protect American Fisheries Act of 2024") to
further amend the fishery disaster provisions by adding "economic cause" (i.e. the direct
result of impacts on U.S. seafood markets due to activities of a foreign entity) as a
justifiable Federal fishery disaster. For this Congress, the Mace provision will not
become part of the national fishery disaster reform effort.
• Magnuson Stevens Act (MSA) Reauthorization: The MSA reauthorization effort for
the 118th Congress never fully materialized. You will recall back on June 27th former
HNR WWF Subcommittee chairman (and current WWF Subcommittee Ranking
Member) Rep. Jared Huffman (CA -D -2nd) reintroduced his MSA reform bill titled
"Sustaining America's Fisheries for the Future Act" (SAFFTFA). Joining Mr. Huffinan
on the bill was Rep. Peltola (D -AK). House Natural Resources Committee staff has
already reached out to ROMEA staff to discuss MSA reforms under a Republican -
controlled Congress in 2025. The Democratic Caucus has selected Rep. Huffman to be
the Ranking Member of the Full Committee in the next Congress.
• Aleutian Islands Oil Spill Recovery And Planning: The Natural Resources Disaster
Act Federal Trustees led by NOAA and the U.S. Fish & Wildlife Service has issued for
public comment its Draft Damage Assessment and Restoration Plan for recovery and
prevention measures from the oil spill caused by M/V Selendang Ayu accident. The
recommendations are intended to benefit the entire region. The plan recommends
creation of a new Aleutian Watch Program along with communications upgrades to better
monitor and track vessel traffic through the Aleutian Islands.
• Heart of the Ocean "PRIME" AK Marine Sanctuary: Back in a July 2023 hearing on
the NOAA budget and in response to a question from AK Senator Sullivan, NOAA
Administrator Richard Spinrad stated that the agency has "no plans to initiate the
designation process." for the HOA proposal. In December 2023 NOAA again reiterated
the agency had no plans to proceed with a formal designation. However, these statements
do not remove the sanctuary from potential monument designation by executive action
pursuant to the Antiquities Act. On this same topic -- a national industry coalition (one
that ROMEA staff participate with on behalf of our clients) sent a letter to President
Biden opposing the designation of marine monuments in the waning days of the
Administration. Over 150 commercial fishing associations, companies, and coastal
communities, including from Alaska, signed the letter. A copy of the final version was
provided to you on November 24th by ROMEA staff.
• NOAA To Revise National Standard Guidelines for 4, 8 & 9: We understand NOAA
is still considering revising the implementing guidelines for National Standards 4
(allocation), 8 (impacts to communities), and 9 (bycatch, including the "practicability"
standard), of the Magnuson -Stevens Fishery Conservation and Management Act (MSA).
The Agency had issued a Notice of Proposed Rulemaking (ANPRM) back in May 2023
(See 88 FR 30934). A Proposed Rule was reportedly at OMB for final review this fall
and was expected to publish in December 2024 or January 2025 for public comment.
However, we note that the rulemaking is geared toward issues related to climate change
and environmental justice — thus, it remains to be seen whether the initiative survives the
change in Administration. We will continue to monitor the issue.
•
11213 Visa News: On November 12th Kentucky Senator Rand Paul introduced S.5299, the
"Paperwork Reduction for Farmers and H2A Modernization Act" which would give the
seafood industry access to workers with H2A Visas. The bill did not move out of the
Senate Judiciary Committee and thus, will not become law this year. In related news --
back on November 21" Maine Senators Susan Collins and Angus King announced that
Department of Homeland Security (DHS) Secretary Alejandro Mayorkas and Department
of Labor (DOL) Acting Secretary Julie Su are expected to make an additional 64,716 H-
213 temporary nonagricultural worker visas available for Fiscal Year 2025 (FY 25), on
top of the congressionally mandated 66,000 H -2B visas that are available each fiscal
year. Additional program details are expected in a pending rulemaking.
• Coastal Habitat Conservation Act of 2023 Becomes Law: The Coastal Habitat
Conservation Act of 2023 passed Congress and was signed into law on December 11th as
P.L. 118-138. The bipartisan legislation (composed of elements from H.R. 2950 and S.
1381) enables the USFWS to provide funding for projects related to coastal habitat
restoration, monitoring and protection.
• USCG Merchant Mariner Online Credentialing: The USCG has issued a final rule
that will implement a new online system for mariners to apply and pay for their
credentialing. The rule also removes the requirement for in-person oath -taking.
• NOAA's Seafood Import Monitoring Program (SIMP) Update: In November NOAA
Fisheries announced the outcomes of its successful comprehensive review of the U.S.
Seafood Import Monitoring Program (SIMP) with issuance of an action plan to
strengthen and enhance the Program's ability to combat illegal, unreported, and
unregulated (IUU) fishing and seafood fraud. The actions we have identified address
concerns and recommendations raised by more than 7,000 diverse stakeholders in
industry, governments foreign and domestic, academia, fishery managers, and the
public. This plan aims to ensure parity for the domestic seafood industry, and improve
our ability to ensure U.S. seafood imports are legally harvested.
o NOAA Fisheries plans to make changes to SIMP that will fundamentally improve
the program and our ability to meet the following goals:
o Enhance NOAA Fisheries' ability to combat IUU fishing through improved
traceability and risk detection, strengthening the sustainability of seafood
globally
o Contribute to government -wide efforts to address forced labor in the global
seafood supply chain
o Strengthen the integrity and fairness of global seafood supply chains by
promoting fair seafood trade practices around the world
o Improve NOAA Fisheries implementation of SIMP and building our capacity to
maintain and grow the Program
o Program changes will require updating, expanding, and modernizing the
technology that SIMP uses. All of these improvements can be made internally or
through regulatory changes, and do not require new statutory authorities. NOAA
Fisheries intends to publish a proposed rule outlining these changes for public
comment followed by a final rule thereafter. This fall, NOAA Fisheries will begin
implementing certain actions, including rulemaking and technical and
programmatic updates, as resources allow. The timeline of these actions is subject
to change.
o As NOAA Fisheries implements the action plan, existing SIMP requirements and
reporting obligations remain active. In implementing changes to SIMP, NOAA
Fisheries will continue to support industry to minimize disruptions, reduce the
effort needed to satisfy program requirements, identify supply chain risks, and
increase confidence in the compliance process.
To: The Honorable Pat Branson
The Honorable Scot Arndt
The Kodiak City Council
The Kodiak Island Borough Assembly
Aimee Williams, Borough Manager
Mike Tvenge, City Manager
Josie Bahnke, Asst. City Manager
Dave Conrad, Borough Engineering & Facilities Director
Meagan Christiansen, Borough Special Projects Director
From: Sebastian O'Kelly & Brad Gilman
Re: Washington Update
Date: May 12, 2023
FY 2024 Appropriations
The FY 2024 appropriations process has started slowly. Neither the House nor Senate have
passed a Budget Resolution setting "top -line" spending amounts. Appropriations levels will be
established through the "deeming process" set by the respective House and Senate
Appropriations Committees. The House has passed legislation that includes an increase in the
debt limit that sets overall appropriations caps for Federal spending at the FY 2022 enacted level.
This will mean spending cuts in the House for most Federal agencies, with the exception of the
Dept of Defense. Both the House and Senate Appropriations Committees will include
Congressionally Directed Spending (CDS for short in the Senate, called Community Projects in
the House) in their respective appropriations bills.
House and Senate leadership on both sides of the aisle have started to sit down with the President
to negotiate a raising of the debt limit with Republicans seeking to link it to an agreement on a
final spending deal. That process has begun with a kick-off meeting this month. These
negotiations will likely occur over the next few weeks/months. The Treasury has forecast that
without an increase in the debt limit by June I it will run out of cash to meet its debt obligations.
Other analysts indicate that the timeframe may run a little longer, possibly into August,
depending on how robust IRS tax receipts are from annual and quarterly tax filings. Either way,
it is likely that at least a short-term extension of the debt limit will be necessary while
negotiations continue between the White House and Congressional leadership on overall
spending levels.
Concurrently, the House Appropriations Committee will start marking up bills this spring, with
bills being considered by the full House in the late spring and summer. The bills will fall under
the FY 2022 appropriated level cap and will be opposed by the Administration and House
Democrats. They will need adjustments later in the year based on the outcome of the debt
limit/spending level negotiations. The Senate appropriations bills will be developed later in the
year and may wait for the outcome of the big negotiation.
Senator Murkowski and Rep Peltola are both seeking CDS/Community Project requests for FY
2024, with Rep. Peltola limited to submitting 15 requests (this limit applies to all House
Members. In the Senate, while there is no numeric request limit, the Committee does encourage
Senators to exercise discretion in project request number/amounts). Senator Murkowski has
submitted the following CDS requests to the Appropriations Committee -- $1.9 million to
upgrade the City's wastewater treatment plant and $1.293 million for a new fire ladder truck.
St Herman Harbor
The three Members of Alaska's Congressional Delegation have written a letter of support to the
Secretary of Transportation on behalf of the City's Port Infrastructure Development Program
grant application for renovation of St. Herman Harbor.
Alaska Marine Highway Ferry Grants
Earlier this year, DOT's Federal Transit Administration announced six ferry grants to AMHS
totaling just over $285 million. These funds will go toward replacement of the Tustumena,
separate construction of an electric ferry, marine terminal and existing ferry upgrades, planning
for construction of a diesel-electric hybrid vessel, and operating funding support.
Defense Community Infrastructure Program Expansion
Senator Sullivan is interested in expanding the Department of Defense's Defense Community
Infrastructure Program to include grants to local governments that support Coast Guard Bases
such as Kodiak. The program is currently limited to just traditional military bases. The City has
sent him a letter of support for his effort. The logical places for him to advance his proposal are
either as part of the FY 2024 National Defense Authorization Act (NDAA) or the next Senate
Coast Guard Reauthorization Bill. The NDAA is expected to be marked up by the Senate Armed
Services Committee in June.
Transportation Grant Opportunities
The Department of Transportation continues to roll out transportation grant opportunities and
announcements that have been funded by a combination of Bipartisan Infrastructure Law funds
and regular annual appropriations. The deadlines for FY 2023 RAISE and Port Infrastructure
Development Program grant submissions have closed but the following program deadlines are
upcoming.
• Safe Roads & Streets For All -- $1.2 billion. Deadline July 10
• Wildlife Crossings Pilot Program -- $112 million. Deadline August 1
• Promoting Resilient Operations for Transformative, Efficient, and Cost -Saving
Transportation (PROTECT) Program -- $848 million. Deadline August 18
Other DOT programs of interest to rural communities who have not issued their FY 2023 grant
opportunities yet but are expected to later in the year include — Bridge Investment Program;
Nationally Significant Federal Lands and Tribal Projects; National Culvert Removal,
Replacement, and Restoration Grant Program; and Rural Surface Transportation Grant Program.
We will keep you apprised as they come open.
Below is a good link to keep track of rural transportation grant opportunities and awards.
hlt2s://www.transi2ortation.gov/rural/funding-oi2i2ortunities
Energy
USDA continues to take grant/loan funding application for rural renewable and energy efficiency
projects. Local governments, small businesses as well as AK native/village corporations are
eligible to apply. The Inflation Reduction Act provided just over $1 billion in funding for the
program which includes both grants and loans. The application window runs on a quarterly
basis.
This program does include funding for energy audits of buildings as well as energy efficiency
upgrades.
The USDA POC for energy project discussions is below.
Misty Hull, USDA Rural Development
800 E Palmer Wasilla Hwy, Suite 201
Palmer, AK 99645-6539
Tel: (907) 761-7768
misty.hull&usda.gov
http://www.rd.usda. og v/ak
Denali Commission — Waterfront Infrastructure Program
The Bipartisan Infrastructure Law along with regular annual appropriations have enabled the
Denali Commission to set up a new program to fund small waterfront infrastructure projects.
The Commission proposed spending $5 million this year on such projects. The application
period closed in April but there will be future opportunities to apply for funding.
Fisheries & Oceans
• Wild Fish Conservancy Lawsuit and the 2023 Salmon Troll Season in Alaska — A
lawsuit, won last year by the Washington -based Wild Fish Conservancy (WFC), requires
NOAA Fisheries to rewrite of the BiOp governing management of the endangered
Southern Resident Killer Whale. This population resides in Washington waters and has a
diet that includes King Salmon that are caught in the Southeast AK troll fishery. In its
filing, WFC requested suspending the Incidental Take Statement (ITS) for the Southeast
troll fishery rather than wait for the revisions to the BiOp. NOAA is pressing to revise
the BiOp and submit it to the U.S. District Court — Western Washington so that the
fishery might open this year. In March 2023, the Alaska State House of Representatives
voted 35-1 to support the fishery; and the AK Congressional delegation filed a friend of
the court brief to keep the fishery open as well as a follow-on press release condemning
the court's decision.
• NOAA Proposes to ESA list Sunflower Sea Star off the West Coast & Alaska -- On
March 16th NOAA issued a proposed rule/request for comments on a threatened listing
for the Sunflower Sea Star. Public hearings were held this month in Petersburg and
Kodiak. Although there is some bycatch of the Sea Star in pot gear fisheries, NOAA is
not considering at this time any new fishing restrictions other than a requirement that Sea
Stars be gently removed and released from fishing gear and returned to the water.
• NOAA to Hold Public Hearing on Federal Management of Salmon in AK --
According to NOAA -- under a 2016 Ninth Circuit ruling, and the 2022 summary
judgment opinion of the Alaska District Court in UCIDA, et al. v. NMFS, NOAA
Fisheries must implement an amendment to the Salmon FMP by May 1, 2024 to federally
manage the salmon fisheries that occur in Federal waters of upper Cook Inlet. At its April
2023 meeting, the NPFMC considered amending the Salmon FMP to manage the salmon
fishery in Cook Inlet Federal waters, but chose not to take action. Absent a Council
recommendation NOAA is preparing the amendment/implementing regulations pursuant
to MSA section 304(c) to meet the court deadline.
• Heart of the Ocean "PRIME" Alaska Marine Sanctuary — As reported earlier, on
June 8, 2022 NOAA officially added to the National Marine Sanctuary Inventory the
Aleut Community of St. Paul's request for a 100 -mi sanctuary encircling the two Pribilof
Islands in the Bering Sea. On February 23, 2023 the AK Senators sent a joint letter to
NOAA Administrator Richard Spinrad requesting the agency rescind the decision to add
PRIME to the NMSA Inventory. On April 6th NOAA convened a Roundtable on National
Marine Sanctuary Nominations in Alaska. At this time, we understand the agency has no
immediate plans to initiate formal designation. Should NOAA change course and
propose a formal designation, there will be a lengthy formal rulemaking process with
further opportunity for public input.
• NOAA to Initiate ESA Consult on BSAI/GOA Groundfish Fisheries -- In late 2022
NOAA signaled its intent to reinitiate an ESA Section 7 consultation on the effects of
Bering Sea and Gulf of Alaska groundfish fisheries on listed species and critical habitat.
The GOA fisheries review is expected to start in 2023, with the BSAI analysis to follow
in 2024.
• Earth Justice Files Tribal Lawsuit on BSAI Groundfish Fisheries -- On April 10th the
Association of Village Council Presidents (AVCP) and Tanana Chiefs Conference
(TCC), represented by Earth Justice, filed a suit in U.S. District Court in Alaska to
reexamine the 2023-24 NOAA groundfish catch limits for BSAI fisheries. The NGO has
alleged the 2023 and 2024 groundfish specification are arbitrary, capricious and
inconsistent with NEPA requirements. The plaintiff requested the current specifications
be vacated and fishing delayed until a new NEPA analysis can be completed.
• USDA Seafood Buy — The Delegation has announced a planned buy by the USDA under
its Section 32 authority of up to $120 million in Alaska seafood products for its school,
childcare and food bank feeding programs. The buy includes sockeye salmon (canned --
$37.5 million, fillets -- $30 million) and Pacific groundfish ($52 million).
• FY 2024 President's Budget Request — National Marine Fisheries Service (NMFS)
The budget request is seeking $1,286,653,000 for NMFS, an increase of 17.7 percent
above the enacted level. Budget increases for base programs are more modest and
generally reflect below inflationary increases. Specialty initiatives such as offshore wind
(+$32.4 million) and climate -ready fisheries (+$10 million) fare better.
• NOAA Organic Act -- The House Science Committee is working on legislation
proposed by Chairman Rep. Frank Lucas (OK -R -3rd) to make NOAA an independent
agency (like the EPA & NASA) and remove it from the Department of Commerce. The
bill also calls for a GAO study to shift all ESA/MMPA responsibilities from NOAA to
the USFWS. The House bill is not expected to move quickly as there is shared
jurisdiction between Science and Natural Resources Committees. In the Senate, a
counterpart bill from Chairwoman Cantwell (D -WA) which does not make NOAA an
independent agency is expected in June.
• NOAA 3000 Advisory Committee -- In January NOAA closed the nomination period
for stakeholders to serve on a new advisory body titled the Marine and Coastal Area
Management Advisory Committee related to the Biden Administration's goal of
"conserving" at least 30% of the US EEZ by 2030. The agency has not published the
final membership list for this body. For additional information, visit
www.noaa.gov/marine-area-based-management-committee
• New National Academies Committee on Offshore Wind Energy and Fisheries holds
its inaugural meeting April 26-27 -- The new committee of the National Academies of
Science, Engineering and Medicine (NASEM) held its first meeting in Washington, D.C.
during April 26-27. The committee was established to expand and improve BOEM's
engagement and communication with the fishing community on offshore wind energy
activities. For more information visit: hgps://www.nationalacademies.or /g our-
work/standing-committee-on-offshore-wind-energy-and-fisheries
• S. 1227, the "Fighting Foreign Illegal Seafood Harvests Act of 2023" or the "FISH
Act of 2023" -- Sen. Sullivan (R -AK) has introduced a bill to combat illegal, unreported,
and unregulated fishing at its sources globally. It was introduced on April 20th and
referred to the Senate Commerce, Science, and Transportation Committee. There is no
House counterpart.
• SIMP Expansion Proposed Rule -- Back On December 281h NOAA published a
proposed rule (See 87 FR 79836) that would amend the existing Seafood Import
Monitoring Program (SIMP) by adding a number of species or species groups to the
current program for importation of these products. The comment period was extended
and finally closed on April 27th. A final rule is expected later this year.
• NOAA's National Seafood Strategy -- On February 14th NOAA released for comment
its draft National Seafood Strategy to assist the competitiveness and growth of the
domestic commercial fishing/seafood industry. This action is the next to final step from
the May 7, 2020 Executive Order 13921 from the Trump Administration. The public
comment period was extended and finally closed on March 31St
• Biden Administration's Climate Agenda Activities -- On March 21St the White House
announced a suite of climate -related actions. The Administration releasee a final Ocean -
Climate Action Plan; the plan for the creation of a Pacific Remote Islands National
Monument; the 2022 status report on the "America the Beautiful" initiative (which
includes the "3000" component); and federal guidance for agencies to address
ecological connectivity and wildlife corridors (including in the ocean). To review the
White House statement on these issues please visit this link:
https: //www.whitehouse. gov/briefing-room/statements-releases/2023/03/21 /fact-sheet-
biden-harris-administration-takes-new-action-to-conserve-and-restore-americas-lands-
and-waters/
• NOAA To Revise Magnuson -Stevens Act National Standard Guidelines for 4, 8 & 9
-- On March 2nd NOAA announced it is initiating a national review of the guidance for
National Standards 4, 8, and 9 which outline the principles related to allocation,
communities, and bycatch. Step one will be the publishing of an Advance Notice of
Proposed Rulemaking (ANPR) this spring to gather initial input to inform next steps the
agency might take. The agency has indicated the goals of this ANPR will be two -fold:
1. To receive public input on the current National Standard 4, 8, and 9 guidelines and
areas/issues that may benefit from further consideration and/or revisions, as
appropriate; and
2. To ensure the National Standard 4, 8, and 9 guidelines remain relevant given existing
and emerging issues facing U.S. fisheries management.
There will be opportunity for public input during this comprehensive rulemaking process.
• U.S. Supreme Court to Hear NJ Commercial Fishing Case with National
Implications -- A group of NJ commercial fishermen filed a 2022 case against NOAA
and the agency's requirements that fishing operations pay for on -board observers in the
East Coast Atlantic herring & mackerel fisheries. The Supreme Court will hear the case
in the term that runs from fall 2023 to spring 2024. The lower court D.C. Circuit decision,
if affirmed, would permit the agency to mandate that arrangement in any fishery where
industry funding is "necessary and appropriate" for fulfilling a fishery management
measure and would continue the status quo. However, if the Supreme Court overturns
the decision, it may have implications for all industry -funded observer program in
Federally -managed fisheries.
To: The Honorable Scot Arndt
The Honorable Pat Branson
The Kodiak Island Borough Assembly
The Kodiak City Council
Mike Tvenge, City Manager
Josie Bahnke, Asst. City Manager
Aimee Williams, Borough Manager
Dave Conrad, Borough Engineering & Facilities Director
Meagan Christiansen, Borough Special Projects Director
From: Sebastian O'Kelly & Brad Gilman
Re: Washington Update
Date: September 12, 2023
FY 2024 Appropriations
Congress will not enact its appropriations bills by the start of the Oct I new fiscal year. It most
likely will enact a short-term Continuing Resolution to keep the Federal government operating
until late 2023 while the House and Senate negotiate their differences. The Senate
Appropriations Committee has marked up all 12 of its appropriations bills, while the House
Appropriations Committee has marked up 10 of the 12 bills. Major differences exist between the
two bodies on "topline" spending levels which portend for difficult negotiations ahead, so a
government shutdown later in the year cannot be ruled out. Senator Murkowski submitted the
following CDS requests to the Senate Appropriations Committee -- $1.9 million to upgrade the
City's wastewater treatment plant and $1.293 million for a new fire ladder truck — but the
Committee chose not to fund them.
St Herman Harbor
We are still waiting for DOT to make its decisions on MARAD's Port Infrastructure
Development Program grant awards for this fiscal year. Last year's announcement came at the
end of October. Earlier, the three Members of Alaska's Congressional Delegation have written a
letter of support to the Secretary of Transportation on behalf of the City's grant application for
renovation of the Harbor.
Defense Community Infrastructure Program Expansion
Senator Sullivan was able to include language in the Senate's version of the FY 2024 National
Defense Authorization Act (NDAA) that makes Coast Guard communities such as Kodiak
eligible to apply for grants from DOD's Defense Community Infrastructure Program. Currently,
only communities with traditional military service bases may apply. The House and Senate have
both passed their NDAAs. A final bill will emerge later this year.
Essential Air Service (EAS)
The House -passed FAA Reauthorization Bill includes an extension of the EAS program. Both
the House and Senate FY 2024 Transportation, Housing and Urban Development Appropriations
Bills fully fund the program. An amendment on the House floor to terminate its appropriations
was overwhelmingly defeated on a bipartisan basis.
Polar Security Cutter (PSC)
The GAO has released a report that indicates that the PSC program is behind schedule and likely
over budget in its construction of the first two PSCs, with the GAO criticizing the Coast Guard
for using a design/build model for the procurement. While not the best news, delays and cost
increases are not unusual for major new Federal procurements. The silver lining is it will give
communities such as Kodiak that are interested in PSC homeporting more time to address the
issues that the Coast Guard will assess in its homeporting decisions. For Kodiak development of
a dock and breakwater with adequate water depth is of significant importance. Separately, the
House and Senate FY 2024 Homeland Security Appropriations Bills have included $125 million
for purchase of a commercially -available icebreaker. Lastly, in Senate testimony, the
Commandant revealed that the Coast Guard believes that it needs eight or nine new icebreakers.
The current program of record and authorization in law calls for six new PSCs. The
Commandant's testimony may lead to an effort by lawmakers to increase the current
authorization.
New USDA Clean Energy Forgiveable Loan Program
USDA has rolled out its Inflation Reduction Act -funded rural renewable energy programs, with
two new initiatives, one aimed at traditional rural energy cooperatives totaling $9.7 billion and
the second aimed at rural renewable energy developers totaling a $1 billion. The PACE program
provides up to 60 percent forgiveable loans up to $100 million with a sliding scale of percentage
forgiveness with the highest percentage forgiveness for underserved populations and tribal
government. The process is triggered by potential applicants submitting a Letter of Interest by
Sept. 29. The LOI has to be submitted then approved by USDA before inviting submission of a
loan application. Details are at the link with the USDA POC for AK projects, including
technical assistance on submitting an LOI, below.
Rodney Peach
STOP 1560, Rm 5165
1400 Independence Ave., SW
Washington, DC 20250-1560
Rodney.Peachgusda. gov
Cell Phone: (509) 309-6923
https://www.rd.usda. gov/media/file/downloadlusda-rd-sa-usda-pace-new-era-technical-
corrections-06-16-2023.ndf
https: //www. govinfo. gov/content/pkg/FR-2023-06-16/pdf/2023-12848.pdf
DOT Infrastructure Grant Opportunities
DOT's Reconnecting Communities Pilot (RCP) and Neighborhood Access and Equity (NAE)
programs are being combined into one NOFO called the Reconnecting Communities and
Neighborhoods (RCN) Program, with links below. Applications are due Sept. 28. This is a
much larger pot of money ($3.53 billion) than was available last year in the RCP. The NAE is a
new program created by the Inflation Reduction Act. DOT is also creating an entity called the
Reconnecting Communities Institute that is supposed to provide technical assistance in grant
preparation. This third link has some details, but the Institute is not yet up and running.
haps://www.transportation. gov/grants/rcnprogramlrcn-notice-funding-opportunity
file:///C:/Users/Sebastian/Downloads/FY23 %20RCN%2OFina1%20NOF0%2007-05 -23 .pdf
https://www.transportation. goo/grants/reconnecting-communities/reconnecting-communities-
in sti tote-rei
This next link is for technical assistance grants to rural communities to prepare BCA's and other
analyses associated with applying to DOT grant programs. There is no cost -share and
applications are accepted on a rolling basis.
haps://www.federalre ig ster.gov/documents/2023/06/15/2023-12774/rural-and-tribal-assistance-
pilot-program
Alaska Native Vietnam Veterans Land Withdrawals
The BLM has issued a revised notice on the land withdrawal process and eligibility for AK
Native Vietnam Vets. Details are at the link.
haps://www.federalre ig ster.gov/documents/2023/08/09/2023-16979/public-land-order-no-7929-
partial -revocation -of -public -land -order -nos -5169-5173 -5174-5178-5179-5180
Tribal Home Electrification and Appliance Rebates Program
DOE has published the tribal allocations for public notice and comment from the new tribal
home energy appliance rebate program created in the Inflation Reduction Act. The notice is for
public comments on the program, so it is not yet at the point for actual distribution of the funds.
The allocations are determined by formula, with a minimum allocation of $150,000 per tribe and
larger amounts going to higher population tribes.
DOD Innovative Readiness Training Program Applications
The next round of IRT applications are due Sept 30th. The application process uses an online
form and is less complicated than many Federal grant programs.
https://irt.defense.gov/Communiiy/#overview
Fisheries & Oceans
• Wild Fish Conservancy Lawsuit and the 2023 King Salmon Troll Fishery -- A 2020
lawsuit won by the Washington -based Wild Fish Conservancy requires a rewrite of the
2019 BiOp which provides Endangered Species Act coverage to all Southeast Alaska's
salmon fisheries. The ruling threatened the opening of the 2023 Southeast Alaska 2023
salmon troll season. In its filing, WFC requested that the court suspend the Incidental
Take Statement (ITS) for the Southeast troll fishery rather than wait for the revisions to
the BiOp. On December 13, 2022, Judge Michelle Peterson agreed with the plaintiffs and
issued a second Report and Recommendation to invalidate the ITS. On June 21St the 9th
Circuit Court of Appeals permitted the 2023 fishery to open on time while the court hears
the merits of the case. A decision is expected later this year.
• Rep. Peltola Online Bycatch Survey — Rep. Peltola has published on her web site an
online survey to gather feedback on ideas to reduce salmon bycatch. Ideas she has listed
include -- increasing funding for gear research; lowering caps on allowable bycatch;
decarbonizing the fishing fleet; increasing trawl fleet monitoring; mandating 100% catch
retention; applying penalty fees or taxes for bycatch; and providing incentives for
innovative bycatch reduction techniques with a box to make other suggestions. The link
to the survey is here -- htt2s://peltola.house.gov/forms/form/?ID=4
• Alaska Salmon Research Task Force: NOAA has made the appointments to the 19 -
member Task Force. The Delegation issued a press release welcoming the appointments
and will be monitoring its progress closely. Its responsibilities include -- reviewing and
reporting on research about Pacific salmon in Alaska; prioritizing scientific research
needs for Pacific salmon in Alaska; identifying applied research needed to better
understand salmon migration and declining salmon returns in some regions of Alaska;
and supporting collaboration and coordination for Pacific salmon conservation efforts in
Alaska. In addition to the Task Force, NOAA has created a Yukon/Kuskokwim working
group. NOAA has created a separate web page for the Task Force which includes a list
of its members -- https://www.fisheries.noaa.gov/alaska/ecosystems/alaska-salmon-
research-task-force
• National Seafood Supply Act: Senator Sullivan has introduced legislation to expand the
eligibility for USDA farm loans to include commercial fishing. It also modifies the
country -of -origin labeling requirements to include cooked king and tanner crab, as well
as cooked and canned salmon.
• United States -Russian Federation Seafood Reciprocity Act: Senators Sullivan and
Murkowski (Rep. Peltola is the cosponsor of the House counterpart bill) have introduced
a bill that would prohibit the importation of seafood and seafood products from Russia.
The bill would also block Russian seafood that has been substantially transformed in
another country through reprocessing.
• Wild USA Seafood Act: Senators Murkowski and Sullivan have introduced a bill that
expands USDA's role in supporting U.S. seafood through establishing use of a "wild
American/USA seafood" label.
• Heart of the Ocean "PRIME" Alaska Marine Sanctuary — In a July hearing on the
NOAA budget and in response to a question from Senator Sullivan, NOAA
Administrator Spinrad stated that the agency has "no plans to initiate the designation
process" for the HOA proposal.
• NOAA Organic Act -- On June 91h House Science Committee Chairman Frank Lucas
(R -3rd -OK) formally introduced the "NOAA Act of 2023" with 14 Republican co-
sponsors. The bill removes NOAA from the Department of Commerce and makes it an
independent entity like the EPA & NASA. The bill has a heavy weather/space focus and
calls for a NAS study to potentially shift all ESA/MMPA responsibilities from NOAA to
another agency/department.
• NOAA EEJ Strategy: On May 22nd NOAA Fisheries released its first-ever
national Equity and Environmental Justice (EEJ,) Strategy. According to the Agency, this
strategy reflects a "deep commitment to advancing equity and environmental justice,
including equal treatment, opportunities, and environmental benefits for all people and
communities, while building on continuing efforts and partnerships with underserved and
underrepresented communities. We make that commitment tangible by describing the
path that NOAA Fisheries will take to incorporate equity and environmental justice into
the vital services we provide to all communities."
• NOAA To Revise National Standard Guidelines for 4, 8 & 9 -- NOAA is considering
revising the implementing guidelines for National Standards 4 (allocation), 8 (impacts to
communities), or 9 (bycatch, including "practicability" standard), of the Magnuson -
Stevens Fishery Conservation and Management Act (MSA). Agency issued a Notice of
Proposed Rulemaking (AMPR) on May 15th (See 88 FR 30934) to take comments from
interested stakeholders to help decide if revisions are necessary. The agency has indicated
the goals of this ANPR will be two -fold: 1) To receive public input on the current
National Standard 4, 8, and 9 guidelines and areas/issues that may benefit from further
consideration and/or revisions, as appropriate; and 2) To ensure the National Standard 4,
8, and 9 guidelines remain relevant given existing and emerging issues facing U.S.
fisheries management.
• Report on Conserved Areas in the U.S. EEZ -- On June 14th the Regional Fishery
Management Councils formally released a synthesis of conservation areas in the US EEZ.
The report, titled An Evaluation of Conservation Areas in the U.S. Exclusive Economic
Zone, identifies 648 conservation areas covering 72% or nearly 3.4 million acres of
federal waters. According to the Councils Coordinating Committee, the report was
developed with the goal of identifying conservation areas that should be included in the
American Conservation and Stewardship Atlas (Atlas) being developed by the Biden
Administration as part of the "America the Beautiful initiative", which aims to conserve
at least 30% of U.S. lands and waters by 2030. For more information visit the CCC Area -
Based Management webpage.
• Ocean Innovation Legislation — Senator Murkowski has introduced legislation whose
purpose it to establish Ocean Innovation Clusters to strengthen the coastal communities
and the ocean economy of the United States through technological research and
development, job training, and cross -sector partnerships.
NOAA Climate Governance: On 9/27/23 NOAA will hold a national webinar on Draft
Fisheries Climate Governance Policy Procedural Directive for MSA 304(f); RFMC
geographic authority. The agency will accept public comments to 11/17/23.
• ARCTIC Act: On 7/18/23 the `Improving Agriculture, Research, Cultivation, Timber &
Indigenous Commodities " (ARCTIC Act) was introduced by Sen. Murkowski) to expand
USDA's support for domestic seafood; with 5.2182 "Wild USA Seafood Act" (by Sens.
Sullivan/Murkowski); for wild caught/GMO labels, processor grants/USDA assistance.
We understand these pieces of legislation may become amendments to the 2023 FARM
bill.
• AIS Legislation: On 7/26/23 the Senate Homeland Security Committee passed S.2248,
"Vessel Tracking for Sanctions Enforcement Act of 2023 " (Sen. Hassan, NH -D) requiring
CBP/NOAA establish a 4 -yr pilot program to identify vessels that disable/manipulate AIS
transponders. AIS is currently required on vessels >65 -ft operating in the US EEZ,
including on domestic commercial fishing vessels.
• National Seafood Strategy: On 8/9/23 NOAA published the final and I" ever National
Seafood Strategy to help the domestic commercial fishing/seafood sector.
• North Pacific Humpback Stocks: In August NOAA issued its final 2022 MMPA Stock
Assessment Reports (SARs) for North Pacific Humpback whales. The number of stock
units increased from 3 stocks to 5, with 4 of the stocks being considered "strategic".
These new stock delineations could precipitate NGO litigation and complicate the
management situation in the region.
o Former Central NP & West NP (AK) and CA/OR/WA (Pacific) become...
o WNP + HI + Mex/NP (AK); Cent. Ameri/So. Mex (CA/OR/WA); Mainland
Mex/CA/OR/WA (Pacific)
• Ballast Water Management: In December 2018 passage of P.L. 115-282 required the
EPA within 2 -yrs to create national ballast water management standards, incl. on
commercial fishing vessels. Ballast water is defined broadly as "any liquid, carried in anX
manner, that may affect stability and thus, could include ice, ice -sea water slurry, and
recirculating ambient seawater taken on board a commercial fishing vessel. In late July
the EPA submitted a Supplemental Rule to OMB for review. The SR will be out for
public comment in the fall with a final rule expected by the end of the year.
To: The Honorable Pat Branson
The Honorable Bill Roberts
The Kodiak City Council
The Kodiak Island Borough Assembly
Mike Tvenge, City Manager
Josie Bahnke, Asst. City Manager
Roxanne Murphy, Borough Manager
Meagan Christiansen, Borough Special Projects Director
From: Brad Gilman & Sebastian O'Kelly
Re: Washington Update
Date: May 6, 2022
1. FY 2022 Federal Budget/Appropriations: Congress has enacted an Omnibus
Appropriations bill for FY 2022. It includes a 6.7 percent increase in non-defense spending over
FY 2021 levels and a 5.6 percent increase for defense. The bill includes Congressionally -
Directed Spending in USDA Community Facilities funding for the City's Fire Station Project ($7
million, requested by Rep. Young) and in EPA State Tribal Assistance Grants for the Waste
Water Lift Station ($3.25 million, requested by Senator Murkowski). We are awaiting guidance
from the USDA and EPA on how to access the funding for the projects. The bill also includes
program funding at either level amounts or incremental to moderate increases for the following --
Groundfish Trawl Surveys (see #8); PILT; National Wildlife Refuge Fund (Refuge Revenue
Sharing); Essential Air Service; and Rural Broadband.
2. FY 2023 Federal Budget/Appropriations: The President has submitted his budget
request for FY 2023. As was the case for the beginning of the FY 2022 appropriations process,
there are significant differences between the parties on the level of increases for defense and
non-defense spending that will need to be negotiated before any appropriations bills can be
enacted. While individual appropriations bills may move through the Appropriations
Committees and pass the House, it is highly unlikely that any appropriations bills will be enacted
by the start of the Oct 1 fiscal year. We are likely to see consideration of a final Omnibus
Appropriations Bill, considered in either a post-election Lame Duck session, or at the start of the
new Congress in the first quarter of 2023. This has become standard operating procedure.
Senator Murkowski will submit Congressionally -Directed Spending requests for FY 2023.
Consistent with FY 2022, Senator Sullivan will not submit requests this year. The Office of the
At Large Congressional District of Alaska (see #3) cannot submit CDS requests.
On behalf of the Borough and City, we have submitted and advised on the following project and
program requests to Senator Murkowski — PILT; National Wildlife Refuge Fund (Refuge
Revenue Sharing); Safe Pathways To The North Star Elementary School Project; MV Tustumena
Replacement Vessel; Groundfish Trawl Surveys; Essential Air Service; Rural Broadband; City
Fire Station Project; Waste Water Treatment Plant; St. Hermans Harbor Construction; and
Baranof Park Recreational Facilities.
3. Office of the At Large Congressional District of Alaska: After the passing of Rep.
Young, the Clerk of the House, under procedures for vacant seats, now administers what is called
the Office of the At Large Congressional District of Alaska until Alaska voters select an interim
replacement to serve out the remainder of the Congressman's term. The Office remains staffed
by former Rep. Young staffers but can no longer have legislative responsibilities, take policy
positions or conduct policy analysis. The Office can assist with requests for information. It can
also continue to work on casework that had been initiated prior to the Congressman's passing.
New casework requests should be directed to Alaska's Senators. A full description of the
Office's duties is at the link below.
htips://clerk.house.gov/members/AKOO/vacgpcy
4. The Infrastructure Investment and Jobs Act/Bipartisan Infrastructure Law (BIL)
Implementation: Funding from a number of programs in the BIL is beginning to roll out, some
in the form of formula funding to SALT governments, other in the form of competitive grant
announcements. A number of other BIL initiatives will come out later over the next three
quarters. It is worth keeping in mind that while a few programs will distribute all of their
funding in the first year since BIL was enacted, most will do so in tranches over a 5 year period.
We will continue to watch out for agency Notices of Financial Assistance (NOFA) and pass
them along to the Managers and staff.
A few of the latest developments are as follows.
• Dept of Transportation ROUTES Initiative: As referenced in our last report, we
encourage signing up for the Department's Rural Opportunities to Use Transportation for
Economic Success (ROUTES) initiative through this link. It is free. Registering enables
participation in DOT webinars on rural transportation grant opportunities and application
procedures as well as email notices of grant opportunities.
• Senator Murkowski Grant Symposium: Senator Murkowski and her staff organized a
grants symposium in Anchorage in April to advise SALT governments and non -profits on
how to access the funding in the BIL. A number of Federal agencies participated. The
Senator's web site includes links to the agencies' presentations, several of which have
information on programs available, criteria, and timing of NOFAs.
- Denali Commission
- U.S. Department of the Interior
U.S. Department of Transportation
U.S. Department of Energy
- Economic Development Administration
Federal Communications Commission
FEMA
Indian Health Services
- NOAA
- NTIA
U.S. Department of Agriculture
U.S. Department of Defense/Army Corps
• Rural Surface Transportation Grant Program: This is one of the new grant programs
created in the BIL that should be of interest to AK communities. It includes typical
surface transportation projects such as roads and bridges. $300 million is available for
the first year, with grant applications due on May 23rd. The NOFO is being combined
with the Mega and INFRA grant programs but can be applied for on a stand-alone basis.
The BIL provided $2 billion for this program over five years.
https://www.transportation. gov/sites/dot. gov/files/2022-
03/FY22%20Multimodal%20Proj ect%20Discretionary%20Grant%20-
%20NOFO final O.ndf
• MARAD Marine Highways Grants: Southeast Alaska along with the Gulf of Alaska
stretching along the southside of the Aleutian Islands to Unalaska has just been officially
designated as a Marine Highway by the Department of Transportation. As such,
communities that have maritime infrastructure projects that support commerce and
shipping along this route can now apply for funding from the Marine Highways Program.
$39 million is available this year, about three times the amount typically available in the
program. Applications are due June 17, with NOFA at the link --
https://www.federalre ig ster.gov/documents/2022/04/26/2022-08830/notice-of-funding-
opportunity-for-americas-marine-highwayproj ects
• DOT Carbon Reduction Formula Grant Program: This is a 5 year program with $1.2
billion available this year with funds awarded to States on population -weighted basis then
further to localities for activities like pedestrian walkways, bike paths, electric vehicle
charging, promotion of non -motorized transport, harbor/port electrification or other
transportation activities that reduce emissions. The State of Alaska will receive a total
amount of $82 million under the formula, 65 percent of which is required to be
distributed to AK localities on a population -weighted basis. Details at the link --
https://www.fhwa.dot. og v/bipartisan-infrastructure-law/crp 5year funding by state.cfm
5. Build Back Better Bill (BBBB): Media reports have indicated an effort to revive the
BBBB, with a reduced funding amount that focuses on its clean energy provisions. Despite these
reports, we have seen no sign of any substantive negotiations.
6. Fisheries & Oceans
• Fishery Disaster Assistance: We are still waiting on NOAA Fisheries to allocate the
$200 million in fishery disaster assistance funding provided by the Congress as part of
last year's Continuing Resolution. The allocations would be provided to fishery disasters
approved by the Secretary of Commerce which have not yet been funded.
Separately, the House and the Senate are working on a final version of legislation to
reform the national Federal fisheries disaster process. That legislation includes eligibility
for fisheries -dependent localities to receive future direct fisheries disaster relief for
foregone raw fish taxes. We expect a final version of the bill to surface within the next
few months and the bill likely to pass this Congress.
Lastly, in January, the Secretary of Commerce approved nine Alaska region fishery
disaster petitions, making these fisheries eligible for federal disaster assistance funding.
These are biological fishery disasters, not social and economic disasters relating to the
COVID Pandemic. The fisheries are
• Upper Cook Inlet East Side Set Net (2018) and Upper Cook Inlet salmon fisheries
(2020)
• Copper River Chinook and sockeye salmon fisheries (2018)
• Prince William Sound salmon fisheries (2020)
• Copper River Chinook, sockeye, and chum salmon fisheries (2020)
• Eastern Bering Sea Tanner crab (2019/2020)
• Pacific cod in the Gulf of Alaska (2020)
• Alaska Norton Sound, Yukon River, Chignik, Kuskokwim River, and Southeast
Alaska salmon fisheries (2020)
• Yukon River salmon fishery (2021)
Alaska fisheries disaster requests currently under review by the Secretary but not yet
declared include:
• 2021 Chignik salmon fisheries
• 2021/2022 Bering Sea crab fisheries
• 2021 Norton Sound chum and coho salmon fisheries
• 2020 and 2021 Norton Sound red king crab fisheries
• Marine Debris Foundation Appointments: NOAA has appointed 12 individuals to
oversee the new Marine Debris Foundation created by the Save Our Seas Act 2.0.
Senator Sullivan, the Senate sponsor of the law, praised the appointments, which include
two representatives from Alaska.
• Electronic Monitoring In North Pacific Fisheries: The FY 2022 Consolidated
Appropriations Bill includes Senator Lisa Murkowski's CDS request of $2 million for
electronic monitoring in the North Pacific. The funds are designated to the Pacific States
Marine Fisheries Commission for implementation.
• American Fisheries Advisory Committee: This legislation, authored by Senator
Sullivan and Rep. Young and cosponsored by Senator Murkowski, has now passed the
House and Senate and awaits the President's signature. It establishes a group of outside
fisheries experts to review and guide NMFS's selections of Saltonstall-Kennedy grants
and priorities.
• Alaska Groundfish Surveys: As requested by Senator Murkowski, the FY 2022
Consolidated Appropriations Act includes funding and a directive that NMFS conduct no
less than six groundfish trawl and cooperative research surveys, one of which shall be to
capture fish movements out of historic survey areas. This is the same number of surveys
funded in FY 2021.
• Alaska Salmon Research Taskforce: Legislation introduced by Rep. Young to
establish an outside panel of salmon experts and researchers to examine the cause of
decline of Pacific salmon returns in a number of Alaska's waters has now passed the
House. Senator Sullivan is the sponsor of the counterpart Senate bill
• North Pacific Observer: The FY 2022 Consolidated Appropriations Act includes
$7,500,000 for the North Pacific Observers Program. Report language was included to
encourage NMFS to support the transition to electronic monitoring and reporting and to
identify and implement any efficiencies that would mitigate the cost burden shouldered
by small vessel operators in the fixed -gear fleet.
• Ringed Seals: The National Marine Fisheries Service has issued a final rule designating
critical habitat for the Arctic subspecies of the ringed seal under the Endangered Species
Act. The critical habitat designation comprises an area of marine habitat in the Bering,
Chukchi, and Beaufort seas. There are references to commercially valuable cod species
being important prey for the ringed seals, and several comments raised concerns about
potential commercial fishing impacts on the subspecies.
• National Academy of Sciences Bottom Trawl Study: In January, the Academy
released a study on the impacts of bottom trawling on marine ecosystems. The
investigators obtained data from 24 large marine areas worldwide to look at the
relationship between distribution and intensity of trawling activities and the biological
state of seabeds. The study concluded that seabeds are in good health where trawl
fisheries are sustainably managed.
• Russian Seafood: Senator Dan Sullivan (R -AK) introduced S. 3614, "United States -
Russia Federation Seafood Reciprocity Act of 2022". The legislation is cosponsored by
Senators Lisa Murkowski (R -AK) and Marco Rubio (R -FL). The bill would impose a
ban on the import of all Russian seafood products into the United States in response to
Russia's own prohibition on the import of U.S. and other western seafood products. The
prohibition would terminate at the point in the time that Russia terminates its current
import sanctions on U.S. seafood products. The bill does not appear to address the
import of Russian seafood products which are re -processed in China and imported into
the United States as Chinese seafood products.
• Offshore Aquaculture: Representatives Steven Palazzo (R -MS) and Ed Case (D -HI)
introduced H.R. 6258, the "Advancing Quality and Understanding of American
Aquaculture (AQUAA) Act. The purpose of the bill is to support the development of a
sustainable marine aquaculture industry in federal waters. The bill would require the
development of a national aquaculture plans; create a process for the designation of
aquaculture opportunity areas; and provide national standards to evaluate aquaculture
permit applications and proposed aquaculture opportunity areas. Additionally, the
Secretary of Commerce would develop aquaculture management plans to regulate federal
aquaculture activities. The bill has been referred to the House Natural Resources
Committee.
• Seafood Processor Pandemic Block Grants: In March, USDA announced the award of
$50 million in grants to eligible States to help defray the pandemic costs borne by
seafood processors, processing facilities and processing vessels. The grant funding was
awarded to state agencies and commissions which, in turn, will manage the distribution
of funds to eligible participants. $30,694,746 was provided to Alaska for further
distribution to eligible processors.
• Seafood Import Monitoring Program (SIMP): Included in House -passed legislation
(The America Competes Act) to address economic and technological competitiveness
with China is a measure to apply the existing SIMP to all U.S. seafood imports within
two years and apply traceability standards to cover the entire seafood supply chain all the
way to the point of final sale. The Department of Commerce would also be required to
develop import auditing procedures with a focus on identifying seafood produced by
human trafficking, forced or child labor which are currently banned from importation
under existing law. A coalition of thirteen fisheries and seafood associations nationally
sent a letter to the House Leadership opposing the expansion of SIMP due its projected
increase in paperwork and compliance burdens. The America Competes Act is in House -
Senate Conference.
• Miscellaneous Fisheries Legislation: The House -passed version of the America
Competes Act contains a number of other fisheries -related measures, including -- a ban
on the commercial use of shark fins; denial of U.S. port privileges for violation of the
high seas driftnet ban, IUU fishing or fishing with forced labor; $5 million in authorized
funding to support fishing vessel purchase of AIS systems with an inclusion requiring
AIS for fish processing and tendering vessels > 65 feet; a fee system for halibut IFQs in
the recreational fishing sector; and the previously passed Driftnet Modernization and
Bycatch Reduction Act aimed at phasing and buying out the California swordfish driftnet
fishery. The bill also creates a Marine Mammal Health Monitoring and Analysis
Platform to collect data on marine mammal deaths. It authorizes DOC to make grants to
promote the consumption of seafood products that are local or domestic, climate -friendly,
minimize marine mammal bycatch or focus on invasive or less known species.
• Magnuson -Stevens Act Reauthorization: In response to the passing of Rep. Young,
WOW Subcommittee Chairman Jared Huffman (D -CA) announced a pause in further
consideration of his legislation, H.R. 4690, "Sustaining America's Fisheries for the
Future Act of 2021", and Rep. Young's MSA bill — HR 59, "Strengthening Fishing
Communities and Increasing Flexibility in Fisheries Management Act". Mr. Huffman
has indicated that he will wait for the results of the special election in Alaska to replace
Mr. Young. The new Representative will not be seated until after the August special
election, leaving little time in this Congress for the legislation to move forward. There
has been no activity on MSA legislation in the Senate.
• Coast Guard Reauthorization Legislation: The House has passed its version of the
Coast Guard reauthorization bill. The bill would require all vessels operating in U.S.
waters and U.S. vessels greater than 65 feet overall in length that are fishing, fish
processing or fish tendering in U.S. waters, to be equipped with and operate an automatic
identification system under Transportation Department -prescribed regulations. The bill
would authorize $5 million for FY 2022 for the Commerce Department to purchase
automatic identification systems for those vessels greater than 50 feet in length. Ships
operated by the Russian government or owned or operated by a Russian national would
be barred from entering or operating in U.S. waters or transferring cargo in a U.S. port or
place under U.S. jurisdiction, unless the State Department determines that it is in the U.S.
national security interest.
To: The Honorable Bill Roberts
The Honorable Pat Branson
The Kodiak Island Borough Assembly
The Kodiak City Council
Dave Conrad, Acting Borough Manager
Meagan Christiansen, Borough Special Projects Director
Mike Tvenge, City Manager
Josie Bahnke, Asst. City Manager
From: Brad Gilman & Sebastian O'Kelly
Re: Washington Update
Date: August 4, 2022
1. FY 2023 Federal Budget/Appropriations: The appropriations process has been moving
gradually, with all the appropriation bills through Committee in the House, with several passing
as a group by the full House last month. The Senate Appropriations Committee released its bills
in draft form at the end of the July. They include $1.6 billion in funding ($850 in defense
spending, $653 billion in non-defense). These figures represent an 8.7 percent and 10.1 percent
increase, respectively, above FY 2022 levels. There are still differences between the Democrats
and Republicans on increases for defense and non-defense spending. We are likely to see
passage of a short-term Continuing Resolution in late September to keep the Federal government
operating past the November election. Once the parties reach agreement on "topline" spending,
there will most likely be consideration of a final Omnibus Appropriations Bill, considered in
either a post-election Lame Duck session, or at the start of the new Congress in the first quarter
of 2023. This has become standard operating procedure.
Of the City's and Borough's FY 2023 project requests, Senator Murkowski submitted an $8
million request for extension of the Anton Larsen Bay Road (this was actually a carry-over from
an FY 2022 request) but the Appropriations Committee did not fund the project. As there is no
Alaska Representative, there are no AK community projects in the House Appropriations Bills.
2. FY 2022 Federal Congressionally Directed Spending (CDS) Appropriations —
Wastewater Lift Station: The EPA has finally issued guidance and webinar information to
enable the City to access the $3.25 million in CDS funding for this project.
3. The Infrastructure Investment and Jobs Act/Bipartisan Infrastructure Law (BIL)
Implementation: The Department of Transportation, along with other relevant agencies,
continues to roll out grant opportunities in a number of areas funded in the BIL. Some of the
more recent opportunities and awards are highlighted below. In some programs, funds are being
made available to the States for further distribution to local governments and projects, while
others are available for direct applications from localities. Should the community submit an
application for funding, please keep us informed as we can inquire as to whether the Alaska
Senators will submit a letter of support to the agency.
• Rural Ferry Funding: As part of implementing its requirements and funding under the
BIL, DOT's Federal Transit Administration has announced $200 million in grant
application availability for States seeking both capital and operating assistance for ferry
service that operated a regular schedule at any time during the five-year period ending
March 1, 2020 and served not less than two rural areas located more than 50 sailing miles
apart. An additional $800 million will be available over the next 4 years. The States will
make the decision on what routes to expand through the operating funds available but
there remain open questions about whether States will use the funds to backfill existing
funding that will then be spent elsewhere. There is also a separate tranche of DOT
funding totally $342 million nationally dedicated specifically for ferry boat/dock projects.
Both programs can be used for ferry boat construction and go toward a new vessel to
replace the Tustumena.
• PROTECT Formula Grants: DOT has announced the distribution to the States $1.4
billion in funds from this new program to help make surface transportation more resilient
to natural hazards, including climate change, sea level rise, flooding, extreme weather
events, and other natural disasters through support of planning activities, resilience
improvements, community resilience and evacuation routes, and at -risk costal
infrastructure. Project decisions will be made by the States. An additional $5.9 billion
will be available over the next 4 years.
• Airport Terminals Program: DOT has announced $1 billion in FY 2022 grant awards
for airport terminal upgrades from this program nationally, with one award in AK ($2.4
million for Ted Stevens International Airport). $4 billion in funding will be spent over
the next 4 years. Rural air terminals are eligible to apply provided they are eligible to
receive FAA Airport Improvement Program funding.
• Bridge Investment Program: DOT has announced a grant opportunity for a new
program that focuses on funding improvement or replacement of existing bridges to
reduce the overall number of bridges in poor or fair condition. $2.5 billion is available
this year, with an additional $10 billion over the next 4 years. Local governments are
eligible to apply for this competitive funding. The deadline for bridge construction
projects is on Sept. 8, with details at the link. A separate formula bridge program to the
States has already been awarded by DOT, with the State of Alaska receiving $45 million
this year. https://www.fhwa.dot. og vibridge/bip/ga.cfm
• Safe Streets For All: This program is focused on transportation projects that will
improve vehicle, pedestrian and bicycle safety. Local governments can apply directly,
with applications due September 15. Up to $1 billion is available this year, with another
$4 billion over the next 4 years. htips://www.transportation.gov/grants/SS4
4. PILT: The Department of Interior released PILT payments for FY 2022 in June, with the
Borough receiving $1,635,659. Both the House and Senate Interior Appropriations Bills fully
fund PILT for FY 2023.
5. National Wildlife Refuge Fund: The Department of Interior is again seeking to
terminate appropriations in FY 2023 for this program that provides revenue sharing payments to
local governments that have wildlife refuges within their borders. However, both the House and
Senate Appropriations Committee have decided to level fund the program again for FY 2023 and
rejected the Department's request.
6. Build Back Better Bill 3.0 — Port Emissions Grants: Now titled the Inflation
Reduction Act, the Senate Democratic Leadership has reached an agreement with Senator Joe
Manchin (D -WV) on clean energy, healthcare, prescription drug reform, minimum corporate tax
and deficit reduction legislation. The bill will be considered under reconciliation procedures to
avoid a Senate filibuster but still must receive support from all 50 Democrats and almost all
Democrats in the House in order to pass. It is not expected to receive any Republican votes.
Included in the measure is $3 billion for a new EPA grant program to reduce port emissions.
This program will present funding opportunities for Alaska coastal communities with cruise ship
and cargo vessel visitation that are interested in setting up plug in power facilities to reduce
vessel emissions while in port. A pair of summaries of the 745 page bill are below.
htips://www.democrats.senate.gov/imo/media/doc/summary closing tax_ loopholes_ in the_infla
tion reduction act of 2022.pdf?utm_source=substack&utm_medium=email
https://www.democrats.senate.gov/imo/media/doc/summary of the energy security and_climat
e change investments in the inflation_ reduction_ act_ of_2022.pdf?utm_source=substack&utm
medium=email
7. Alaska Broadband Summit & USDA Rural Broadband Funding: Senator Sullivan is
holding a broadband summit in Anchorage on August 9 to discuss funding opportunities and
planning for broadband deployment and upgrades in the State. Attendance can be in person or
virtual and is free. USDA, NTIA and FCC broadband officials will be in attendance. Details
and registration at the link.
//www. eventbrite.com/e/alaska-broadband-summit-workshop-tickets-3 81046910567
Separately, USDA's Rural Utilities Service has come out with its latest NOFA to provide
funding for rural broadband. Both tribes and ANCs are eligible for funding at a rate of 100
percent Federal cost -share. Application details at the link below.
haps://www. ovg info.gov/content/pkg/FR-2022-08-04/pdf/2022-16694.pdf
8. Landfill Tree Removal Permit: At the urging of Senator Sullivan's office, the U.S.
Fish & Wildlife Service expedited approval of a permit request from the Borough to remove a
tree with a long -abandoned eagle's nest so it can proceed with its landfill upgrade project.
9. COVID Relief — American Rescue Plan (ARP): The House Budget Committee has
issued a State -by -State analysis of the funds provided in the main initiatives from the ARP. For
Alaska, they include -- $1.4 billion to State and local governments; $358.8 million for AK K-12
schools and $42.3 million for its colleges and universities; $880 million in economic impact
payments to 355,339 Alaskans; and $94.7 million in aid to 385 AK restaurants from a total of
937 applications to the Restaurant Revitalization Fund.
10. Fisheries & Oceans
• GOA Groundfish Surveys: Per the Brough's request, the FY 2023 Senate Commerce -
Justice -Science Appropriations Bills includes a directive that NMFS to contract no
fewer than six surveys for Alaskan bottom trawl surveys and cooperative research,
including a survey to capture movement of fish populations out of historic
survey areas.
• North Pacific Observer Coverage: The FY 2023 Senate Commerce -Justice -Science
Appropriations Bill provides $8.5 million for the North Pacific Observers Program
with a directive that $1 million in funds be used to offset observer costs normally paid
for by harvesters in fisheries that are under- taking a transition to electronic
monitoring. In addition, NMFS is urged to identify and implement any efficiencies
that would mitigate the cost burden shouldered by small vessel operators in the fixed -
gear fleet.
• Fishery Disaster Assistance: NOAA has allocated a little more than $131 million to
recently declared Alaska fishery disasters. The next step will be for ADF&G to develop
expenditure plans. The fisheries receiving funding are—
• Upper Cook Inlet East Side Set Net (2018) and Upper Cook Inlet salmon fisheries
(2020)--$9,414,087
• Copper River and Prince William Sound salmon fisheries (2018 and 2020)--
$34,360,624
• Eastern Bering Sea Tanner crab (2019/2020)--$12,948,148
• Pacific cod in the Gulf of Alaska (2020)--$17,790,330
• Alaska Norton Sound, Yukon River, Chignik, Kuskokwim River, and Southeast
Alaska salmon fisheries (2020 and 2021)--$55,984,834
These are pending Alaska fisheries disaster requests under review by the Secretary of
Commerce.
o Alaska Kuskokwim River Salmon Fishery, 2021
o Alaska Norton Sound Red King Crab Fisheries, 2020 and 2021
o Alaska Norton Sound Chum & Coho Salmon Fisheries, 2021
o Alaska Bering Sea Crab Fisheries, 2021/2022
o Alaska Chignik Salmon Fishery, 2021
The House and the Senate are still working on a final version of legislation to reform the
national Federal fisheries disaster process, including expediting the multiple steps in the
relief process.
• Alaska Salmon Research Task Force: The House has passed H.R. 6651, the Alaska
Salmon Task Force Act. This was Representative Don Young's (R -AK) final legislative
initiative and passed the House after his death. Senator Dan Sullivan (R -AK) was
successful in moving the companion measure, S. 3429, out of the Senate Commerce
Committee in May. The bill is intended to prioritize research needs for Pacific salmon in
Alaska; create a coordinated salmon research strategy; and promote collaboration and
coordination of Pacific salmon conservation efforts in Alaska. The Task Force would be
comprised of representatives from NOAA, the North Pacific Council, the U.S. Section of
the Pacific Salmon Commission, the State of Alaska, subsistence users, harvesters,
processors, charter and recreational users, prohibited species salmon bycatch users,
hatcheries, and scientists with specific expertise in Pacific Salmon.
Pribilof National Marine Sanctuary Nomination: NOAA's Office of National Marine
Sanctuaries has issued a notice in the Federal Register adding the proposed Alagum
Kanuux (Heart of the Ocean) national marine sanctuary nomination to the inventory of
acceptable nominations. The NOAA action does not create a new national marine
sanctuary, but it does make the proposal eligible for consideration in the future. The St.
Paul Tribal Government originally requested a sanctuary designation within a 100
nautical mile circular boundary around St. Paul and St. George Island. This was
subsequently amended to drop specific boundary recommendations in favor of future
discussions between St. Paul and St. George on future boundaries and co -management
arrangements. The Heart of the Ocean proposal is now part of the inventory of potential
new national marine sanctuaries.
NOAA Equity and Environmental Justice Strategy: NOAA has issued its draft
Equity and Environmental Justice Strategy to guide the agency's actions in promoting
these concepts. The stated goals are to prioritize identification, equitable treatment, and
meaningful involvement of underserved communities; provide equitable delivery of
services; and prioritize equity and environmental justice in NOAA's mandated and
mission work. The agency has requested public comments on the draft strategy.
Comments are due August 19.
• Kuskokwim River Subsistence Lawsuit: The Federal Government has sued the State of
Alaska over conflicting interpretations of federal and state authority to regulate
subsistence salmon on the Yukon River. The Federal Government's position is that the
Alaska National Interest Lands Act ("ANILCA") provides only for subsistence use by
rural residents on the river within the boundaries of the Yukon Delta National Wildlife
Refuge. The State's position is that the Alaska constitution requires the State to allow
for subsistence by all residents of the State, not just rural subsistence users. The
Federal Government is seeking an injunction to limit the subsistence fishery to rural
residents pursuant to its interpretation of ANILCA.
• IUU Fishing and Forced Labor: On June 27 the White House issued a National
Security Memorandum to combat Illegal, Unreported, and Unregulated Fishing
("IUU"), including an expansion of U.S. policy to address forced labor in the seafood
supply chain. The Memorandum provides specific instructions to multiple Federal
Departments on actions to be taken. NOAA is to seek resources to post law
enforcement officials to areas which would aid regional efforts to combat IUU fishing.
NOAA has been instructed to go forward with a rulemaking by the end of 2022 to
expand the Seafood Import Monitoring Program to include additional species. The
departments have also been instructed to evaluate existing trade tools and statutory
authorities to combat forced labor in the seafood supply chain.
Fish Passage Funding: The Bipartisan Infrastructure Law provided significant Federal
funding to improve fish passage in the Nation's streams, rivers and other waterways.
From its amount of $200 million, the Fish & Wildlife Service National Fish Passage
Program has announced the award this year of $38 million to 40 projects in 23 States
and Puerto Rico, including 13 projects in AK, ID, OR and WA. Separately, NOAA has
issued Notices of Funding Availability for grant applications for $87 million in fish
passage funding, with $12 million of that amount reserved for Tribes. Grant awards are
expected to range from $2 million to $5 million and will be administered by the
Community-based Restoration Program within the NOAA Office of Habitat
Conservation with a focus on improved passaged for ESA -listed and NOAA Fisheries -
managed species.
Alaska Seafood Buy: The USDA has announced a $52 million buy in Alaska groundfish
products for its Section 32 food assistance programs. Section 32 purchases of Alaska
seafood products have grown in recent years as they have shown to be both popular and
nutritious in school lunch, emergency food assistance and other hunger programs across
the U.S.
Coast Guard & Magnuson -Stevens Act (MSA) Reauthorization: There have been no
significant new developments since our last report. The Senate Coast Guard Bill is
expected to be introduced in September. Rep. Jared Huffman (D -CA), the lead House
sponsor of MSA reauthorization has withheld further legislative action on the bill until
he has an opportunity to engage with the new Representative elected by Alaskan voters
later this month.
To: The Honorable Pat Branson
The Honorable Aimee Williams
The Kodiak City Council
The Kodiak Island Borough Assembly
Mike Tvenge, City Manager
Josie Bahnke, Asst. City Manager
Dave Conrad, Acting Borough Manager
Meagan Christiansen, Borough Special Projects Director
From: Brad Gilman & Sebastian O'Kelly
Re: Washington Update
Date: December 31, 2022
FY 2023 Federal Budget/Appropriations
Congress has reached agreement on an FY 2023 Omnibus Appropriations Bill to fund the
Federal government for the remainder of this fiscal year. Total appropriations are estimated at
$1.7 trillion. Defense spending is $858 billion, a 10 percent increase above FY 2022 levels.
Non-defense spending will increase just over 8 percent to $744 billion and includes a 22 percent
increase for veterans' medical care. $85 billion in emergency funding is provided for natural
disasters (including fisheries disasters) and Ukraine assistance.
118' Congress
The new Congress will begin on January 3rd. Republicans picked up enough victories in this
year's election to take control the House with a narrow majority of 222 to 212, with one special
election remaining due to the recent passing of Democrat Member from Virginia. The
Democrats gained one seat in the Senate and will have a 51-49 majority.
For Alaska, Senator Murkowski was re-elected for another six year term. She will move up one
spot in seniority on the Appropriations Committee and will be the third highest ranking
Republican on the Committee after Senators Susan Collins (R -ME) and Mitch McConnell (R-
KY) (Note as Minority Leader, McConnell is not allowed to hold the top Republican position on
a Committee). She will retain her position as the top Republican on the Indian Affairs
Committee. She will also serve on the Energy & Natural Resources and Health, Education,
Labor & Pensions Committees. Senator Sullivan will retain his seats on the Armed Services
Committee; Commerce, Science & Transportation Committee; and Environment & Public
Works Committee. Due to retirements of more senior Members, he will gain in seniority on all
three Committees. After the summer special election, Rep. Peltola was assigned to the House
Natural Resources and Education & Labor Committees. She has now been elected to a full two
year term. She is seeking to retain her position on Natural Resources and move to the
Transportation & Infrastructure Committee — the same two Committees Rep. Young served on.
Decisions on those requests will be made in January.
FY 2024 Federal Budget/Appropriations
With Republican takeover in the House and significant increases in Federal spending over the
last few years, House fiscal conservatives will be pressing hard to limit spending growth in the
FY 2024 budget process. How that plays out in terms of consideration and enactment of FY
2024 appropriations bills is too early to predict, but both bodies will continue the practice of
CDS project funding.
For FY 2024, the Senate Appropriations Committee will include CDS projects in its
appropriations bills for the third consecutive year. The House Republican Caucus held an
internal vote recently on a proposal to ban CDS projects starting next year. That proposal was
soundly defeated. We believe the House Appropriations Committee will include CDS projects in
the next Congress although it may adjust the rules and agency accounts in which requests may be
considered and what entities may be eligible. Whatever changes are made, we forecast that
State, local and tribal governments will remain eligible CDS project recipients.
We expect Senator Murkowski to solicit FY 2024 CDS funding requests in the first quarter of
2023. We will fill out the required online forms and work with City & Borough staff if
additional information is needed. Senator Sullivan did not submit CDS requests in FY 2022 and
FY 2023. He will continue to support authorization or other policy requests that benefit Alaska
communities. We anticipate Rep. Peltola will submit CDS requests for FY 2024 but she has not
yet set up a process for doing so. All three Members have been willing submit project letters of
support to Federal agencies where AK communities have pending grant applications.
Coast Guard
There have been a number of important developments regarding Coast Guard matters this last
quarter. The FY 2023 Omnibus Appropriations Bill includes $105 million for USCG Base
Kodiak for the pier project to be ready for the Offshore Patrol and Fast Response Cutters. These
funds are in addition to the $130 million for fuel pier recapitalization and $40 million for Phase
IV housing at the base from the Bipartisan Infrastructure Law.
The FY 2023 Omnibus Appropriations Bill did not fund the Administration's request of $125
million for purchase of an existing commercially -available ice breaker — the Coast Guard's
interim strategy while the new ice breakers are being built — nor did it include the $170 million
requested as a down payment for the purchase of the third heavy ice breaker. The first two heavy
ice breakers have been funded with development and construction contract awarded to VT Halter
Marine in Mississippi. VT Halter Marine was just purchased by Bollinger Shipyards from
Louisiana. Bollinger also builds the Fast Response Cutters for the Coast Guard. For the existing
commercially -available ice breaker, trade media reports indicated that the Coast Guard was
considering purchase of the Aiviq, an ice breaking anchor handling tug supply vessel owned by
Edison Chouest originally built for OCS oil and gas development in the Bering and Chukchi
Seas. Those plans will now be delayed at least one year.
The Coast Guard's program of record calls for three new heavy ice breakers followed by three
medium class ice breakers. Concern has been growing over delays in construction of the new
vessels, with the House Transportation & Infrastructure Committee initiating a Government
Accountability Office review of the Polar Security Cutter program which should be completed in
the first half of 2023. The Coast Guard is expected to announce in the first quarter a timetable
for construction of the first heavy ice breaker. The Omnibus includes $75 million for shoreside
infrastructure investment in Seattle which is where the Coast Guard is planning to homeport the
new heavy ice breakers. No decisions have been made on the homeporting or contracting for the
three medium class ice breakers and won't be for some time.
Separately, the Coast Guard has completed an internal study that evaluated different locations in
Alaska for homeporting the commercially -available ice breaker, with its preferred option Juneau.
The Alaska Delegation has been monitoring the study but has refrained from advocating for one
Alaska Coast Guard community over another. Both Senators have expressed disappointment
over the lack of funding for the commercially available ice breaker purchase and have pledged to
press for it in the FY 2024 appropriations process. They are also strongly interested in seeing
one or more of the new medium class ice breakers being homeporting in Alaska. It should not be
assumed that even if the commercial ice breaker is based in Juneau that the Coast Guard would
locate the medium ice breaker(s) there as well.
Alaska Groundfish Surveys & North Pacific Observers
The Omnibus Appropriations Bill funds and includes a directive that six groundfish trawl and
cooperative research surveys occur in FY 2023, one of which shall be to capture fish movements
out of historic survey areas. It also fully funds the North Pacific Observer Program and carries
forward Senate Appropriations Bill language that encourages NMFS to identify and implement
any efficiencies that would mitigate the cost burden shouldered by small vessel operators in the
fixed -gear fleet.
Department of Transportation (DOT) — Bridge Planning Grant Award
DOT has announced the first round of funding awards from the new Bridge Investment Program
created by the Bipartisan Infrastructure Law. The Borough has been awarded $1,288,000 in
planning funding for replacement of the Sargent Creek and Russian River bridges. Earlier,
Senators Murkowski and Sullivan sent a letter of support to Secretary Buttigiege on behalf of the
Borough's grant application.
Department of Transportation (DOT) — Next RAISE Grant Opportunity
DOT has announced the next opening for RAISE grant application from Bipartisan Infrastructure
Law funding. This round will award $1.5 billion in projects, with half going to rural areas.
Applications are due February 28, with NOFO below.
https://www.transportation. gov/sites/dot. gov/files/2022-
12/FY%202023%20RAISE%20NOF0%2012.14.2022.pdf
ANSCA Contaminated Lands Clean Up
The FY 2023 Omnibus Appropriations Bill provides $20 million to the EPA for the inventory,
verification, assessment, and remediation of ANSCA contaminated sites, as well as related
community outreach and involvement.
Denali Commission — Waterfront Infrastructure
For FY 2023, Senator Murkowski has secured $20 million in DOT funding for the Denali
Commission in the Omnibus Appropriations Bill. This is new funding for a new transportation
initiative. The bill does not lay out the criteria or focus for the funding but there has been strong
interest in seeing its use include grant assistance to support small waterfront infrastructure
projects such as floats, docks, boat ramps, etc that have difficulty competing for RAISE and Port
Infrastructure Develop grants. This could be a good opportunity for the myriad waterfront
infrastructure projects (Papke's Landing, Banana Point, ADA compliant walkway, etc) of
importance to Petersburg. We will monitor implementation and keep you apprised.
Kodiak Community Health Center
The Omnibus includes $7.9 million in CDS spending for the Center to undertake a capital
expansion project and new equipment purchases.
Inflation Reduction Act (IRA) — New Guidebook
The Biden Administration has issued a new guidebook on all the new green energy, resiliency
and climate change -related funding and tax credits contained in the IRA. We recommend
skimming through it and letting us know if there are any specific items you would like us to
follow up on. We will also track many of these programs separately and alert you to
opportunities as they come out (see next item).
haps://www.whitehouse.goylwlwp-content/uploads/2022/ 12/Inflation-Reduction-Act-
Guidebook.pdf
Inflation Reduction Act — USDA Rural Energy For America Program (REAP)
The IRA provided a significant increase in funding for USDA's REAP, totaling $300 million
available in the grant application notice below. The focus will be on smaller rural community
projects to award a total of 3,000 projects with a maximum of $1.5 million for a project. The
deadlines vary depending on type of project with energy audit projects (local government
buildings qualify) due first on Jan 31. USDA's POC for Alaska projects and questions is below
along with application notice.
Misty Hull, USDA Rural Development
E Palmer Wasilla Hwy, Suite 201
Palmer, AK 99645-6539
Tel: (907) 761-7768
misty.hull(d),usda.gov
https://www.rd.usda.goylprograms-serviceslenergy-programs/rural-energy-america-pro rg am -
energy -audit -renewable -energy -development -assistance- rg ants
hitps://www.rd.usda.goylprograms-serviceslenerg -programs/rural-energy-america-pro rg am -
renewable -energy -systems -energy -efficiency -improvement -guaranteed -loans
Rep. Don Young Recognition Act
Congress has passed legislation to honor Don Young and his lifetime of public service through
three actions — renaming Mount Cerberus on Semisopochnoi Island in the Aleutian Islands as
"Mount Young;" naming the Job Corps Center in Palmer the "Don Young Alaska Job Corps
Center;" and naming a Federal office building in Fairbanks the "Don Young Federal Office
Building."
Department of Transportation (DOT) — Rural Surface Transportation Program Awards
DOT has announced funding awards for FY 2023 for this new program created by the Bipartisan
Infrastructure Law. Twelve projects were selected totaling $273 million, with one Alaska
project chosen submitted by the Native Village of Wales. The Rural Program will spend a total
of approximately $2 billion through 2026 for projects that improve highways, bridges, and
tunnels, address highway safety, increase access to agricultural, commercial, energy, or freight
facilities that support the economy, and bring flexible transit services to rural and Tribal areas.
We will keep you informed regarding the next application window. We also recommend signing
up for DOT's ROUTES initiative below to be kept informed on all DOT's rural infrastructure
funding opportunities.
hlps://www.transportation.gov/rural
Federal Land Revenue Sharing Programs (Payment In Lieu Of Taxes, National Wildlife
Refuge Fund, Secure Rural Schools)
The Omnibus Appropriations Bill fully funds PILT for FY 2023. It also level funds the National
Wildlife Refuge Fund. SRS was funded in the Bipartisan Infrastructure Law, with next
payments due to go out in early 2023.
Fisheries & Oceans
On national fishery disaster reform efforts - the "Fishery Resources Disaster Improvement Act"
(S.2923) was included in the fisheries package of the Omnibus bill. The bill improves the overall
national MSA fishery disaster relief processes and specifies several allowable causes of disasters
including hurricane, flood, HAB, tsunami, hypoxic zone, drought, El Nino effects on
temperature, marine heat wave, and disease. Consideration of direct losses to communities (incl.
lost raw fish tax) was included in the bill so communities must ensure the State of AK quantifies
these losses in any fishery disaster spend plan submitted to the Secretary. The bill also includes
consideration of Native subsistence & ceremonial losses and the subsistence impacts are not
subject to the revenue loss thresholds which is beneficial to tribal interests.
The Omnibus also included $300M in national fishery disaster relief assistance. This amount is
added to the existing amount of $50M from previously appropriated but unused disaster
assistance funding.
Further, on December 16' the Secretary of Commerce declared fishery disasters in the following
AK & West Coast fisheries.
2021/2022 Alaska Bristol Bay Red King Crab and Bering Sea Snow Crab Fisheries
2019 Washington Columbia River, Willapa Bay, Puget Sound Salmon Fisheries
2020 Washington Ocean Salmon Fisheries
2021 Alaska Kuskokwim River Salmon and Norton Sound Chum and Coho Salmon
Fisheries
2021 Chignik Salmon Fisheries
2020 Copper River/Prince William Sound Coho and Pink Salmon Fisheries
2020/2021 Alaska Norton Sound Red King Crab Fisheries
2022/2023 Alaska Bristol Bay Red King Crab and Bering Sea Snow Crab Fisheries
Note the Secretary determined that there was no commercial fishery failure or catastrophic
regional fishery disaster for 2021/2022 Bering Sea tanner crab fishery. The Agency estimated
this fishery did not have a revenue loss and therefore did not experience a commercial fishery
failure.
NPFMC Halibut sharing provision — the "Driftnet Modernization and Bycatch Recovery Act"
(5.273) was also included in the Omnibus package, attached to this legislation is a provision to
allow the NPFMC & the Secretary to create a fee collection system for the charter sector to
access halibut quota shares in Areas 2c & 3A.
The Omnibus package contained a number of additional provisions relevant to Alaska
communities. These include but are not limited to the following.
• Continued level funding for ocean mapping and coastal charting, including the ongoing
strategy for mapping the Arctic shoreline and nearshore Alaska
• Funding for sanctuaries and marine protected areas was increased $7M to support
ongoing designation processes
• As noted in another section of this report, fishery surveys were provided funding to
ensure no less than 6 AK bottom trawl surveys and cooperative research efforts would
continue in FY23
• Sea Grant was provided with $1 M to fund grants to fishermen under the previously
passed "Young Fishermen's Act" to assist fishermen with their business operations.
NOAA's Fisheries Finance Program (FFP) was fully funded at $100M for Traditional loans and
$24M for IFQ loans; and the agency was encouraged by Congress to facilitate new vessel
construction/replacement and upgrades using fuel-efficient technology.
Rep. Don Young's bill the "Alaska Salmon Research Task Force" (S.3429) was also passed as
part of the Omnibus package. The bill requires the Secretary and Governor of AK to convene a
stakeholder panel of up to 19 members within 90 -days of passage to help prioritize AK salmon
research needs in the region.
Lastly, the Omnibus includes $1 million in CDS spending for the Island Trails Network to
conduct marine debris clean ups in Kodiak.
What Notable Marine/Natural Resource Legislation did NOT pass the 1171h Congress?
Despite widespread support Congress was unable to pass the "Recovering America's Wildlife
Act" (RAWA; H.R. 2372) that would have dedicated $1.413 to States & Tribes for various
wildlife programs and conservation efforts. The legislation is expected to reemerge in the 1181h
Congress.
H.R. 4690 — House WOW Subcommittee Chairman Jared Huffinan's (D -CA -2nd) comprehensive
MSA reform bill did not make the cut despite endorsement by AK Rep. -elect Mary Peltola (D -
At Large) after the mid-term elections. Note this bill also included the "Forage Fish
Conservation Act" (H.R. 5770) which would have likely defined Alaska pollock as a "forage"
species and mandated commercial quota reductions to provide adequate forage for marine
mammals, birds and other fishes. Despite the House shifting to Republican control these two
pieces of legislation are expected to re-emerge in the 118th Congress.
To: The Honorable Bill Roberts
Honorable Pat Branson
The Kodiak Island Borough Assembly
The Kodiak City Council
Michael Powers, Borough Manager
Mike Tvenge, City Manager
From: Brad Gilman & Sebastian O'Kelly
Re: Washington Update
Date: May 4, 2021
1. FY 2022 Federal Budget/Appropriations: The Biden Administration has released its
preliminary or "skinny" budget request for FY 2022. The full budget request is due to come out
later this spring. The Administration seeks $769 billion in non-defense discretionary spending, a
16 percent increase above FY 2021 levels (this does not count emergency spending to combat
the pandemic), and $753 billion for defense spending, a 1.7 percent increase.
Separately, in the House both parties have agreed to resume the practice of earmarking in some
types of legislation with certain limitations and transparency requirements. Both the
Appropriations Committee and the Transportation & Infrastructure Committee have announced
that they will accept community project submissions for consideration in their bills, with the
Appropriations Committee limiting the number of requests to 10 per Member. Both Committees
have stipulated there is no guarantee that the requests would be funded. The Borough submitted
the Anton Larsen Bay Road Extension as its project request while the City submitted as its
project requests -- Fire House Replacement; Wastewater Lift Stations & Force Main
Replacement; and St. Herman Harbor Infrastructure Replacement. Rep. Young submitted the
Anton Larsen Bay project and the Firehouse project to the Transportation & Infrastructure
Committee and Appropriations Committee, respectively.
In the Senate, Senator Leahy (D -VT), Chairman of the Appropriations Committee, announced
that the Committee will accept community project requests using rules similar to the House but
without a limit on number of requests an individual Senator may submit. The Senate Republican
Caucus decided to maintain its position opposing earmarks, but the position permits individual
Republicans to submit earmark requests. The City's and Borough's project requests are pending
with Senators Murkowski and Sullivan. Neither Senator has decided yet on whether they will
submit community project requests.
After a ten-year moratorium on earmarking, we anticipate Congress will move carefully in the
first year of resuming the practice.
2. COVID State, local, territorial & tribal government (SALT) relief. The Treasury
Department has not yet announced its first tranche of SALT payments under the American
Rescue Plan Act. Those first payments are due out this month. The Treasury Dept has put out
an update noting that all recipients must have current DUNS and System for Award Management
(SAM.gov) numbers. Details are at the link.
haps://home.treasM. gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-
governments/state-and-local-fiscal-recovery-fund
3. Public Infrastructure & Investment Legislation: The Biden Administration has rolled
out its infrastructure proposal -- the American Jobs Plan -- that would include significant new
spending on traditional transportation infrastructure as well as on green energy, broadband,
drinking water, manufacturing, housing, education, the elderly, childcare and other areas. The
proposal's estimated cost is $2.25 trillion over 8 years, plus an additional $500 billion in tax
credits. The proposal is partially "paid -for" through an increase in, among other measures, the
corporate tax rate from 21 percent to 28 percent; establishing a global minimum U.S. multi-
national corporate tax rate of 21 percent; and establishing a corporate minimum tax of 15
percent.
In the transportation sector, the proposal includes $621 billion, the main elements of which
include the following.
• Electric Vehicles & Charging Infrastructure -- $174 billion
• Roads, Highways & Bridges -- $115 billion
• Mass Transit — $85 billion
• Rail (Passenger & Freight) — $80 billion
• Infrastructure Climate Change Resilience -- $50 billion
• Airports -- $25 billion
• National/Regionally Significant Projects -- $25 billion
• Road Safety -- $20 billion
• Disadvantaged Communities/Project Equity -- $20 billion
• Ports (Coastal & Inland) -- $17 billion
• Other -- $10 billion
The Republicans have countered with their own proposal of $568 billion over 5 years focused on
traditional transportation and water systems infrastructure. It also includes $17 billion for coastal
and inland ports. It does not raise taxes. The Congressional bi-partisan Problem Solvers Caucus
has put forward its own proposal and, while it does include a specific amount, it goes the farthest
in terms of advocating for increases in transportation user fees to pay for the increased spending.
There have been on-going bipartisan discussions between leading Congressional Republicans
and the Biden Administration toward producing a compromise, with the President inviting
groups of Republicans including Rep. Young to meet with him at the White House. The
legislation is expected to move more slowly than the American Rescue Plan Act.
4. Return To Cruising: The CDC has issued additional guidance for implementation of its
Conditional Sailing Order to resume cruise ship operations. Media reports have stated that a
return to large cruise ship voyages in Alaska could resume by mid -summer. The guidance does
include modification of local embarkation, CV -testing, housing and medical procedures. The
guidance provides greater guidance and flexibility in these areas and is discussed at the link.
Separately, the Alaska Delegation has introduced the Alaska Tourism Recovery Act to provide a
legislative waiver to allow cruise ships to forego a stop in Canada in transit to Alaska from the
Pacific Northwest. Canada has prohibited those vessels from entrance into the country.
https://www.murkowski. senate. gov/imo/media/doc/CDC%201etter%20to%20cruise%201ine%20i
ndustry.pdf
5. COVID Relief -- Restaurants: SBA has announced the opening for applications for
relief from the new $28.6 billion Restaurant Revitalization Fund included in the American
Rescue Plan Act (the March COVID relief package, abbreviated as ARPA). Restaurants, bars,
caterers, food trucks, carts, stands, bakeries, and other entities with a significant percentage of
eating/drinking sales that experienced or are experiencing losses during the pandemic are
eligible. Applications and program guidance are at the link --
https://restaurants.sba. og v/requestsiborrower/login/?next=/%3Futm_medium%3Demail%26utm_
source%3 D govdelivery
6. COVID Relief -- Community Health Center Construction: HHS has announced a
grant application opening for $1 billion in Community Health Center construction from the
American Rescue Plan Act. The money will be distributed by a formula of $500,000 per HHS -
certified Center, plus $11 multiplied by the number of patients served in 2019. Application at
the link -- file:///C:/Users/SEBAST-1/AEpData/Local/Temp/BPHC%20HRSA-21-
114%20(C8E)%20FY%202021%20ARP-
Capital_Final%200MB%20cleared.4.20.2021 _BPHC%20final%20y2.pdf
7. COVID Relief – Education: The Department of Education has announced the
allocations of ARPA relief using the formulas in law in the Elementary and Secondary Education
Act. This approach is consistent with the distribution of prior relief. The State of Alaska is
slated to receive $359 million, with $323 million required to be distributed to Lower Education
Agencies. Of the $36 million reserved for the State Education Agency, a minimum of 5 percent
is to be used for interventions to address learning loss, 1 percent for summer enrichment
programs, and 1 percent for comprehensive afterschool programs. The State application
template was released on April 21.
8. COVID Relief – Child Care: The Department of Health & Human Services has
announced funding awards to States and tribes from the child care assistance funding provided in
both the Consolidated Appropriations Act of 2021 and ARPA. The State of Alaska has been
allocated $92 million combined. Individual Alaska tribal allocations can be found at the links for
both funding sources.
https://www.acf.hhs. gov/occ/datalarpa-supplemental-stabilization-and-ccdf-discretionga-
funding -allocation -tables -tribes
hlt2s://www.acf.hhs.gov/occ/data/crrsa-202 I -allocations-tribes
9. COVID Relief -- Cultural & Educational Institutions: The National Endowment for
the Humanities has announced grant opportunities for the $135 million in funding it received
under ARPA for cultural and educational institutions impacted by the pandemic. Application
details are at the link -- https://www.neh.gov/news/neh-offers-arp-relief-funding-economic-
recovery-cultural-and-educational-institutions
10. COVID Relief — Public TV & Radio: The Corporation for Public Broadcasting has
announced its allocation of $175 million in ARPA funding for local public TV and radio stations,
with the allocation split 50-50 between the two. These are funds that are in additional to regular
annual funding. KMXT in Kodiak is due to receive $204,513.
11. New Federal Revenue Sharing Program For Public Lands Counties/Boroughs —As
we reported previously, ARPA created a new two year payment program of $1.5 billion split
equally for FY 2022 and FY 2023 to counties/boroughs who currently receive Federal revenue
sharing payments. Boroughs who receive SRS and/or PILT payments would be eligible. These
funds would be in addition to existing revenue sharing payments but would be weighted by a
local government's economic losses over time due to a decline in natural resource development
on area Federal lands. The Treasury Department has not yet announced criteria for the program.
12. Fisheries & Oceans
• COVID Fisheries Disaster Relief — CARES Act: Individual applications for Alaska's
share of the CARES Act NOAA fisheries disaster relief were granted a two week grace
period to correct mistakes or omissions on their original application, due April 29. The
final deadline is now May 14 provided the two week extension is requested by the
applicant.
• COVID Fisheries Disaster Relief — Consolidated Appropriations Act of 2021: For
the Consolidated Appropriations Act of 2021 NOAA fisheries disaster relief, NOAA has
made its State allocation decisions. Alaska has been allocated $40 million. The next
step will be for the State to develop its expenditure plan with input from Alaska's fishing
industry. The plan will then be reviewed and approved by NOAA. As with the CARES
Act funds, the Pacific States Marine Fisheries Commission will process individual
applications for relief once the expenditure plans are approved.
• COVID Fisheries Disaster Relief — USDA & Seafood Processors: The USDA has
available over $6 billion to provide to food processors and distributors for COVID relief.
The relief is likely to come in several forms including food commodity purchases as well
as direct grants and loans. Seafood processors will be eligible for a portion of these funds
in amount yet to be determined. They have been petitioning USDA for grants to cover
the cost of COVID testing, PPE, hotel & transportation connected with employee
quarantining, and other workplace -related costs connected to the pandemic during the
2020 and expected 2021 fishing seasons. The USDA has been holding listening sessions
to hear from stakeholders but has not announced funding details, application procedures
or a timeline for relief distribution.
In addition, USDA announced that it is seeking comments on a Department -wide effort
to improve and reimagine the supply chains for the production, processing and
distribution of agricultural commodities and food products.
USDA is taking this action in response to Executive Order 14017, America's Supply
Chains, signed by President Biden on Feb. 24, 2021. The request for comments is
published today in the Federal Register and the comment period will close on May 21,
2021.
In addition to asking about the agricultural supply chain, USDA is interested in
comments about how to target pandemic -related stimulus relief programs and spending
authorized by Congress in the Consolidated Appropriations Act (CAA) and American
Rescue Plan Act (ARPA) toward long term, systemic change that results in food supply
chain resiliency. In particular, the request for comment seeks input on
• bolstering local and regional food systems,
• developing new market opportunities (including for value-added agriculture and
products),
• creating fairer and more competitive markets,
• meeting the needs of the agricultural workforce,
• supporting and promoting consumers' nutrition security, particularly for low-income
populations,
• addressing the needs of socially disadvantaged and small to mid-sized producers, and
• advancing efforts in other ways to transform the food system.
• 2018 Gulf of Alaska Pacific Cod Disaster Relief. The State of Alaska finalized its
expenditure plan at the end of 2020 for relief to the differing fishing sectors impacted by
the disaster. The Pacific States Marine Fisheries Commission will handle the processing
of fishermen's claims but is awaiting final approval from NOAA on grant funding before
it can make application forms available. Reports are that the Office of Management &
Budget (OMB) has prevented NOAA from making a final decision.
• Critical Habitat Designation for Endangered Humpback Whale Distinct Population
Segments (DPS): NMFS has published a final rule designating Critical Habitat (CH) for
three Humpback Whales DPSs. The first link is to the rule and second link is to the
revised map of CH areas. The agency dropped Cook Inlet and Southeast areas that had
been included in the proposed rule, but Kodiak and most of the Aleutian Islands remain
CH for two of the three whale DPSs. It's too early to forecast the fishery impacts in
those areas and the rule text hedges quite a bit on that subject. The fishing industry is
concerned that restrictions on vessel speed, reduction of harvest of whale prey species
such as herring and juvenile pollock, and dynamic area or closed area management for
pot gear to reduce entanglements could be put in place at a future date.
https://www.federalre ig ster.gov/documents/2021/04/21/2021-08175/endangered-and-
threatened-wildlife-and-plants-desi ng ating-critical-habitat-for-the-central-america.
https://www. fisheries.noaa. gov/resource/maplhumpback-whale-critical-habitat-maps-
and- ig s -data
• Magnuson -Stevens Act (MSA) Reauthorization: Rep. Jared Huffman (D -CA),
Chairman of the House Water, Oceans & Wildlife Subcommittee has released a 195 -
page draft MSA reauthorization bill for comment. While it contains many elements,
three major focuses of the bill include — shifting the data collection, research, and
fisheries management regime to better understand and adapt to the impact climate
change is having on our marine fisheries; reforming fishery management council
nominating, voting and operating procedures; and increasing the emphasis on protecting
essential fish habitat and habitat areas of particular concern. We anticipate the bill being
formally introduced this month or in June. ROMEA staff has produced extensive written
comments on the bill which can be made available upon request. There is no action on
this issue in the Senate at this time.
• Senate Forage Fish Bill: Senators Blumenthal (D -CT) and Blunt (R -MO) have
introduced legislation to require the regional fishery management councils to put in place
additional protections for forage fish species that are important food sources to high-
value commercial and recreational harvested species as well as to sea birds and marine
mammals. The forage bill has been incorporated into Mr. Hufftnan's MSA draft
legislation noted in the above bullet.
To: The Honorable Pat Branson
The Honorable Bill Roberts
The Kodiak City Council
The Kodiak Island Borough Assembly
Mike Tvenge, City Manager
Josie Bahnke, Asst. City Manager
Michael Powers, Borough Manager
From: Brad Gilman & Sebastian O'Kelly
Re: Washington Update
Date: August 13, 2021
1. FY 2022 Federal Budget/Appropriations: The House has passed 9 of its 12 FY 2022
appropriations bills on largely party -line votes. The appropriations bills provide an
approximately 16.5 percent increase in the aggregate above FY 2021 levels for non-defense
appropriations (Note: this does not include funding for the separate infrastructure and human
social investment packages). The rate of growth in defense spending slows from that of the past
few years, up 1.7 percent from FY 2021 levels. Republican opposition to the bills is largely due
to the discrepancy in the non-defense versus defense spending growth. The Senate is proceeding
more slowly. As has been the case for many years, Congress is unlikely to pass the
appropriations bills by the October 1 start of the new fiscal year. We are likely to see passage of
a Continuing Resolution to keep the Federal government operating until an Omnibus
Appropriations Bill is considered in late 2021 or early 2022. An added and complicating factor
will be a need to raise the statutory debt limit.
As reported earlier, the House and Senate have reinstated the process of designating projects in
appropriations bills (and the surface transportation reauthorization bill in the House) but with
lower spending amounts and project numbers than when practiced a decade ago. It is easing its
way back into this process. Both the House and Senate Appropriations Committee set 1
percent caps of all FY 2022 appropriations spending with a limit of 10 project requests per
Member. The House's project totals came in it at roughly 0.25% of total appropriations for a
total of $3.7 billion, with roughly 60 percent of the funds going to districts controlled by the
Majority, 40 percent to the Minority. The discrepancy has less to do with party control than to
do with the fact that many Republicans did not request projects. About 1/3rd of House
Republicans made requests versus almost all Democrats. Senator Murkowski and Rep. Young
made project requests this year.
On behalf of the Borough, Rep. Young requested $8 million for the Anton Larsen Bay Road
project as part of the House's surface transportation reauthorization bill but the project was not
included. On behalf of the City, Rep. Young requested $18.6 million for construction of the new
firehouse. The House Appropriations Committee included $7 million for the project under
USDA's Community Facilities Program. On behalf of the City, Senator Murkowski submitted a
$3.3 million request to replace the wastewater lift station. We will not know the fate of that
request until the Senate Interior Appropriations Bill is marked up in the fall.
We recommend submitting community project requests again next year but the list may need
revisions based on the experience and outcome from this year and a better understanding on the
types of projects that have the best chance of being requested by the Delegation and funded by
the Committees.
2. COVID State, local, territorial & tribal government (SALT) relief. The Treasury
Department continues to revise its guidance and FAQs on SALT government use of American
Rescue Plan funding. More recent revisions include an interpretation that funds can be used for
hiring of law enforcement officers and crime prevention programs. A full list of the FAQs is
below and should be periodically checked for future changes.
hl�2s://home.treasM.gov/system/files/136/SLFRPFAQ.pdf
Separately, the Government Accountability Office has issued a report specifying that of the
funds provided in the six enacted COVID relief bills, $1.7 trillion remains unspent. This
includes $210 billion in direct SALT relief funding from the CARES and American Rescue Plan
Acts, with most of the funding coming from the latter given that the Treasury Dept has only
released the first tranche of funding.
Lastly, the State has been using some of its SALT funding from the American Rescue Plan to
compensate some localities for revenue foregone from the Commercial Passenger Vessel (CPV)
Excise Tax shared tax program due to loss of cruise ship visitation.
3. Bipartisan Public Infrastructure Investment Legislation ("The Infrastructure
Investment and Jobs Act"): The Senate bill includes almost $550 billion in new spending
above projected existing program spending over the next 5 years. The total cost estimate of the
bill is approximately $1.2 trillion. This amount represents the most significant increase in
Federal infrastructure spending that we have seen in our professional lifetimes. The bill passed
the Senate this week on a bipartisan vote, including with the support of both of Alaska's
Senators, and will be taken up by the House in the fall, although the House may link it with
passage of the $3.5 trillion human/social investment legislation.
The Senate bill does not have community projects. A separate House -passed bill focused on
reauthorizing surface transportation programs included community projects. A rough breakout
of the new additional funding in the Senate bill is below.
Roads, bridges, and major projects $110 billion
Passenger and freight rail $66 billion
Public transit $39 billion
Airports $25 billion
Ports and waterways $17 billion
Electric vehicles $15 billion
Road safety $11 billion
Reconnecting communities $1 billion
Power infrastructure $73 billion
Broadband $65 billion
Water infrastructure (including lead pipes) $55 billion
Resiliency and western water storage $50 billion
Environmental remediation $21 billion
4. The Infrastructure Investment and Jobs Act — Ferries: The bill includes significant
new ferry funding that should benefit the AMHS, including a new annual operating subsidy
program. Funding includes — an authorization of $912 million for ferry & terminal construction
over 5 years, with $342 million provided in appropriations; a $1 billion operating subsidy
authorized and appropriated for rural ferry service spread over 5 years; and $250 million for
green -powered ferries over 5 years.
5. The Infrastructure Investment and Jobs Act — Army Corps: The bill includes $11.6
billion in Army Corps funding to address the backlog in harbor, flood control, coastal protection
and ecosystem restoration projects. The funding is for construction and includes new starts.
Funding can be used for projects that have been previously authorized in WRDA but have yet to
be built as well as Section 107 small harbor projects. The bill also includes $4 billion in funding
for Corps operations and maintenance projects as well as $150 million for general investigations.
All of this funding is in addition to annual appropriations of $7 billion to $8 billion that the
Corps receives. The funds become available as soon the bill becomes law (i.e. the funds are not
spread over 5 years as is the case for many of the programs in the bill).
6. The Infrastructure Investment and Jobs Act — New Rural Surface Transportation
Program: The bill authorizes funds from the Highway Trust Fund a new surface transportation
program for grants to rural communities totaling $2 billion spread over 5 years with projects to
be focused on traditional road, bridge and tunnel projects. Cost -share is 80-20 with other Federal
funds permissible as part of a local cost -share. Projects that provide access to Federal lands for
tourism and recreation are encouraged, with 90 percent of the funds reserved for projects in
excess of $25 million and 10 percent set aside for projects under that amount. The bill also
includes a separate increase in surface transportation funds that are awarded to the States by
formula and reauthorizes the Federal Lands Access and Tribal Transportation Programs.
7. The Infrastructure Investment and Jobs Act — Dam Safety: The bill includes
significant funding to improve the safety of dams around the country, including $148 million to
States for their dam safety programs and $585 million for grants for the rehabilitation or
replacement of High Hazard classified dams. These are both FEMA programs, with funding
spread over 5 years.
8. The Infrastructure Investment and Jobs Act — Coastal Resilience: To address sea
level rise, coastal erosion and increased flooding brought on by climate change, the bill creates
or expands a number of Federal programs. These funds are in addition to the flood control
funding for the Corps as noted above. $492 million is provided to NOAA for a partnership with
National Fish & Wildlife Foundation for the National Coastal Resileince Fund to support
ecosystem restoration projects that have flood protection and coastal erosion benefits. $491
million is appropriated to NOAA for community-based projects focused on shoreline protection.
$200 million over the 5 year period is provided to NOAA's marine debris program.
9. The Infrastructure Investment and Jobs Act — Port Infrastructure Development
Program (PIDP): The bill includes $450 million per year over the next 5 years for the
Maritime Administration's PIDP. These funds are in addition to PIDP's annual appropriations
which have been between $225 million to $300 million per year. The bill includes a separate
provision that allows States to use funds they receive from the Surface Transportation Block
Grant Program on rural dock and waterfront infrastructure projects. This provision was authored
by Senator Sullivan.
10. The Infrastructure Investment and Jobs Act — Transportation RAISE Grants
(formerly known as BUILD/TIGER): Appropriates $1.5 billion annually over the next 5
years. This amount is in addition to the annual appropriations of approximately $1 billion that
the program receives. The bill also provides $1 billion annually for a new "Safe Streets For All"
program to fund local transportation projects that are specifically aimed at improving community
safety.
11. The Infrastructure Investment and Jobs Act — Denali Commission: The bill
provides $75 million for the Denali Commission as a one-time payment. This is in addition to
annual appropriations.
12. The Infrastructure Investment and Jobs Act — Coast Guard: The bill includes $429
million in funding to address housing, family support, training facilities, and shoreside
construction at Coast Guard bases and stations. This is in addition to annual appropriations.
13. The Infrastructure Investment and Jobs Act — Hydropower/Water Storage: The bill
includes a section increasing funding of credit payments to utilities for investments in
hydropower efficiency up to 30 percent of the project cost. A new Bureau of Reclamation
program authorizing and appropriating $100 million is established to provide grants for small
water storage projects between 2,000 and 30,000 acre feet. Alaska projects would be eligible.
14. The Infrastructure Investment and Jobs Act — Drinking & Wastewater Lines &
Systems: The bill provides $23.4 billion in additional funding spread over 5 years for EPA's
Clean Water and Drinking Water State Revolving Funds for traditional wastewater and drinking
water systems and lines, with the funding split equally between the two programs. These
amounts represent a major infusion of additional funds into both programs and supplement
existing program spending. By way of comparison, the House FY 2022 Interior Appropriations
Bill provides $1.9 billion and $1.4 billion to the Clean Water and Drinking Water State
Revolving Funds respectively. The bill retains the current Federalism framework that has States
administering the Funds and making project decisions. It keeps in place current matching fund
requirements which typically comes from a combination of State and local funding. A separate
$15 billion is provided to the Drinking Water State Revolving Fund to specifically address the
replacement of lead service pipes. Other funding is provided to address Brownfields clean up
along with emerging contaminants and PFAS chemicals in drinking water.
15. The Infrastructure Investment and Jobs Act — Broadband: The bill includes a
substantial amount of funding ($65 billion) to expand broadband into unserved or underserved
areas of the country. These are funds in addition to funding currently provided by USDA, the
FCC, and the Dept. of Commerce's National Telecommunications Information Administration
(see item 22 for funding opportunities this year for tribal broadband). The bill authorizes and
appropriates $42.4 billion for grants to States to bring or improve broadband service to
unserved/underserved areas. An unserved area is defined as having no service or service less
than 25 MB/second download & 3 MB/second upload while underserved is defined as less than
100 MB/second download & 20 MB/second upload. There is a minimum award of $100 million
per State plus an amount equal to the number of unserved areas divided by unserved areas
nationally.
There is a separate $1.5 billion grant program spread over 5 years to address inequities in service
to certain populations and another $1.25 billion competitive grant program with similar purposes.
Local governments may apply for this funding. The bill also authorizes and appropriates $1
billion for a grant program for "middle mile" projects. The bill appropriates $2 billion for
USDA's existing broadband loan and grant programs and $2 billion for the current Tribal
Connectivity Program.
Lastly and separately, as part of receiving $25 million in USDA funding for its fiber optic cable
project from Kodiak through the Aleutian Islands, GCI has issued an environmental assessment
for public comment.
16. Human Infrastructure/Social Investment Legislation: The next major priority of the
Biden Administration is enactment of legislation to provide $3.5 trillion over ten years on
education, housing, childcare, healthcare, immigration, clean energy and other initiatives. The
bill will be financed by increases in taxes on higher income earners and corporations. The Biden
Administration, along with the House and Senate Democratic leadership has agreed to move the
legislation by a process called "reconciliation" which allows budget and revenue -related bills to
bypass the Senate filibuster but cannot included policy -related provisions unless they directly
affect Federal spending or revenues (this restriction is commonly referred to as the Byrd
Amendment and what was most recently invoked against including a minimum wage increase on
the last COVID relief bill). The first step in that process, which the Senate has completed and
the House will take up later this month, involves passage of a budget resolution that sets the
overall spending and revenue caps. The next step is drafting the implementing legislation which
will occur in the fall. These rules combined with the very narrow majorities the Democrats hold
in the House and Senate make passage of this legislation complex and difficult. Unlike the
development of the Infrastructure Investment and Jobs Act, the process has not been bipartisan
and is unlikely to be as we head into the fall.
17. Economic Development Administration (EDA): The EDA has scheduled a series of
webinars in August to discuss its various initiatives for spending the $3 billion provided to it
under the American Rescue Plan Act. It includes a travel, tourism and outdoor recreation as well
as an indigenous community initiative. $3 billion is about 8 times EDA's annual budget. EDA
is expected to use regional economic development entities for much of the distribution. More
information is at the link.
haps://www.eda.gov/ARPA/?utm medium=email&utm source=govdeliveKy
18. PILT: This year's PILT payments have been announced by the Dept. of Interior. The
House FY 2022 Interior Appropriations Bill contains full funding for next year.
19. National Wildlife Refuge Fund ("Refuge Revenue Sharing"): Like the previous two
Administrations, the Biden Administration has proposed terminating annual appropriations for
this program in its budget request. The House Appropriations Committee has rejected the
request and level funds the program in the FY 2022 Interior Appropriations Bill.
20. New Federal Revenue Sharing Program For Public Lands Communities — We
continue to monitor the formation of this new $1.5 billion program created by the American
Rescue Plan Act that we highlighted in our last report. The Treasury Department has not yet
announced criteria for the program and has prioritized distribution of SALT relief, individual
stimulus checks, and child tax credit relief. The funding is equally divided over FY 2022 and
2023.
21. Supreme Court Ruling On Alaska Native Corporation (ANC) Eligibility For
CARES Act Funding -- On June 25, Supreme Court ruled that Alaska Native Regional and
Village Corporations are eligible to receive CARES Act funding designated for tribes. The
ruling also upheld the inclusion of ANCs as an "Indian tribe" under the Indian Self -
Determination and Education Assistance Act. Approximately, $450 million of the $8 billion for
tribal relief in the CARES Act remains unspent and would most likely be put toward ANC
payments.
22. Tribal Broadband: The National Telecommunications and Information Administration
has announced a grant opportunity for Federally -recognized tribes to seek funds for "last mile"
projects to bring high-speed broadband to their communities. Total funding is $980 million with
applications due Sept 1. Alaska tribes may apply individually but some are joining a regional
consortium approach managed by the Alaska Tribal Spectrum (ATS) to apply on their behalf.
Links to the grant notice and ATS web site are below.
hl�2s://broadbandusa.ntia.doc.gov/resources/tribal-nations
hlps://aktribalspectrum.org
23. Essential Air Service: The House FY 2022 Transportation, Housing & Urban
Development Appropriations Bill includes $364 million for EAS. This amount represents an
increase of $50 million in overall funding from FY 2021. The amount includes both
appropriations and overflight fees imposed on foreign airlines transiting U.S. airspace.
24. WOTUS: The Administration (EPA/USACE) issued a notice in June announcing plans
to rescind the Trump Administration changes to the "Waters of the U.S." definition and revisit
associated regulations. A future rulemaking is expected to start later this year.
25. Fisheries & Oceans
• COVID Fisheries Disaster Relief — CARES Act: Due to the large number of
applications submitted with omissions or errors, it has taken longer than expected for the
Pacific States Marine Fisheries Commission to process applications for relief from
Alaska and Washington fishermen. The Commission anticipates that Washington
CARES Act relief will be disbursed on or before 8/13/2021 and that Alaska relief will be
disbursed in late September /early October.
• COVID Fisheries Disaster Relief — Consolidated Appropriations Act of 2021: As
reported previously, Alaska has been allocated $40 million by NOAA for the relief
appropriated in this bill. The next step in the process is for the Alaska Dept of Fish &
Game to develop its expenditure plan. Separately, $30 million was allocated to
Federally Recognized Tribes in coastal States.
• 2018 Gulf of Alaska Pacific Cod Disaster Relief: The State of Alaska finalized its
expenditure plan at the end of 2020 for relief to the differing fishing sectors impacted by
the disaster. The Pacific States Marine Fisheries Commission will handle the processing
of fishermen's claims but is awaiting final approval from NOAA on grant funding before
it can make application forms available. Reports are that the Office of Management &
Budget (OMB) has prevented NOAA from making a final decision.
• Executive Order 14008 — Tackling The Climate Crisis At Home And Abroad:
Section 216 of the E.O. calls for setting aside and permanently conserving 30% of all
land and water in the United States by 2030. There appears to be some ambiguity about
whether this applies to all land and water (including under State jurisdiction or private
ownership) or simply land and water under the jurisdiction of the Federal government.
The agencies have moved to the next steps on implementation, submitting a preliminary
report titled Conserving and Restoring America the Beautiful. This report includes a
recommendation for the Federal government to expand the National Marine Sanctuaries
System and the National Estuarine Research Reserve System. The report also
recommends that NOAA work closely with the Regional Fishery Management Councils
to use the authorities provided under the Magnuson -Stevens Act to improve conservation
outcomes for the protection of marine species and habitats.
• Sea Otters: The USFWS has issued a report based on roundtable meeting it held in
Juneau in late 2019 on the growth of sea otter populations in Southeast Alaska. The
report concludes that sea otter recovery in the region has been "wildly successful."
Suggested recommendations to address the growing population included more funding
for artisan training and marketing of Native handicrafts as well as use of co -management
agreements with Southeast AK tribal groups such as the Prince of Wales tribal sea otter
commission. The link to the AK report can be found here --
https://www.fws.jzov/alaska/sites/default/files/2020-
10/SSOSW REPORT FINAL 508 O.pdf
Separately, a Congressional -required USFWS study (due December 202 1) is currently
examining reintroduction of sea otters in Washington, Oregon, and California. On
August 5, 2021 an ad hoc coalition of 24 ocean -based regional stakeholder associations,
including commercial fishing, shellfish aquaculture, and maritime interests, submitted a
detailed comment letter to the Agency, expressing both concerns over the impacts of
reintroduction and the need for a fair, transparent and comprehensive report to Congress.
• Endangered Species Act (ESA) Revisions: The Biden Administration has initiated a
rulemaking to reinstate provisions of the Endangered Species Act that were modified
under the Trump Administration to make the critical habitat designation process more
flexible. This includes removing the options to exclude areas from critical habitat;
rescinding the recent new definition of critical habitat; removing the ability to consider
possible economic or other impacts to critical habitat designations; and restoring the
automatic default that extends protections provided to endangered species to those listed
as threatened. Several related rulemakings are expected this year.
• Saltonstall-Kennedy Grants: The Senate Commerce Committee has marked up S. 497,
the American Fisheries Advisory Committee Act, legislation introduced by Senator
Sullivan (R -AK) and Commerce Committee Chairwoman Cantwell (D -WA) to reform
the national S -K grant program. The bill would create an advisory committee to guide
the grant program's goals and objectives going forward. Senator Murkowski is a
cosponsor. Rep. Young is the author of the House counterpart bill.
• Mask Mandate On Fishing Vessels: In May the Coast Guard issued a directive
requiring the wearing of masks on commercial fishing vessels and other passenger
vessels. This directive received a host of criticism from the Congress. Senators Lisa
Murkowki (R -AK) and Maggie Hassan (D -NH) wrote to the CDC and the Coast Guard in
late May urging them to reconsider the mask mandate for commercial fishing vessel. On
June 13 the Coast Guard reversed its position and eliminated the mask mandate.
• China Seafood Trade: In April Senator Lisa Murkowski (R -AK) had an exchange
with the current United States Trade Representative, Ambassador Katherine Tai,
regarding the implementation of the agreement with China to purchase U.S. agricultural
commodities, including U.S. seafood products. The Senator pointed out that the trade
statistics demonstrate that China is not living up to its commitment to purchase U.S.
seafood. Ambassador Tai assured Senator Murkowski that seafood would remain on the
Administration's radar screen in its continuing discussions with the Chinese over the
implementation of the trade agreement.
• Prescott Grants: In the May markup, the Senate Commerce Committee approved
S. 1289, the Marine Mammal Research and Response Act. The legislation was
introduced by Chairwoman Cantwell (D -WA) and cosponsored by Senators Sullivan (R -
AK) and Murkowski (R -AK). The bill would amend the Marine Mammal Protection
Act of 1972 to reauthorize and modify the John H. Prescott Marine Mammal Rescue
Assistance Grant Program. The bill would require enhanced data collection on stranded
marine mammals; require closer coordination between funded marine mammal stranding
network participants and NOAA; authorize larger grants to network participants; and
increase public access to stranding data.
• BLUE GLOBE Act: In May, the Senate Commerce Committee approved S. 140,
sponsored by Senators Sheldon Whitehouse (D -RI) and Lisa Murkowski (R -AK) the
current co-chairs of the Senate Ocean Caucus. The legislation would direct federal
interagency committees to accelerate ocean data and monitoring innovation and enhance
data management by increasing the focus on technology advancement. This would
include an ocean innovation prize; an assessment by the National Academy of Sciences
on the creation of an "oceans advanced research project agency"; and development of
innovative technology designed to combat Illegal, Unreported, and Unregulated ("IUU")
fishing.
• Endless Frontiers Act -- Seafood Imports From Trafficked Labor Nations: Senator
Wyden (D -OR) has added a fisheries -related provision to legislation design to improve
U.S. trade and technological competitiveness that has now passed the Senate. It would
establish a process to prohibit U.S. seafood imports that are harvested or processed using
forced labor, including child and human -trafficked labor. U.S. Customs & Border
Protection, in consultation with the Department of Commerce, would have one year to
issue implementing regulations, relying on data from the Seafood Import Monitoring
Program, to enforce the prohibition. Senator Wyden's amendment also includes
language directing the U.S. Trade Representative to coordinate with other nations to end
international trade in seafood harvested and processed from forced labor.
Similar but much more controversial legislation (H.R. 3075; Illegal fishing and Forced
Labor Prevention Act) has been offered by Rep. Huffman (D -CA -2nd) and Rep. Graves
(R -LA -6th) and was part of a WOW Subcommittee legislative hearing on July 29, 2021.
This legislation would among other things, expand the national Seafood Import
Monitoring Program (SIMP) to all species; increase data requirements for SIMP,
including consideration of labor conditions; improve detection of imports at risk of ICTU
fishing and labor violations; and increase interagency coordination and data sharing.
Additionally, the bill would establish seafood traceability and labelling requirements;
increase outreach on seafood safety and fraud; and improve seafood inspections and
federal enforcement of seafood fraud. H.R. 3075 would also authorize funding for new
Automatic Identification Systems (AIS) and amend requirements for where AIS must be
used by U.S. vessels on vessels greater than 50 -ft in the entire EEZ and on the high seas.
The bill was included in a legislative hearing by the WOW Subcommittee on July 29,
2021.
• Magnuson -Stevens Act (MSA) Reauthorization: On July 26, 2021 House WOW
Subcommittee Chairman Jared Huffinan (CA -D -2nd) formally introduced H.R. 4690, the
Sustaining America's Fisheries for the Future Act of 2021 ("SAFFTFA") In advance of
introduction, the Chairman conducted seven MSA listening sessions around the country -
- three in the Pacific region, one in the Mid -Atlantic region, one in the Gulf of Mexico
region, one in the South Atlantic region, and one in the Western Pacific region. The
subcommittee staff also accepted stakeholder comments on a "discussion draft"
circulated back on December 18, 2020. ROMEA staff submitted an analysis of that draft
to Hill staff in early 2021. On July 28, 2021 ROMEA staff, working with Mr. Dave
Whaley, circulated a detailed section -by -section summary of the formally introduced
legislation, H.R. 4690. By comparison, the Senate has held no recent MSA hearings and
no "discussion drafts" or actual reform bills were offered in the 116th or thus far in the
117th Congress.
• NMFS Fisheries Surveys: NMFS is gradually expanding its fisheries surveys this year
as the pandemic decreases. The NOAA fisheries research vessel fleet is planning to
increase its surveys from 253 days in 2020 to 1202 days in 2021. Surveys conducted by
charter vessels are planned to be increased from 84 days in 2020 to 1038 days in 2021.
• Electronic Monitoring (EM) On Fishing Vessels: NMMFS is developing a new policy
relating to EM data treatment and retention, FOIA applicability, and EM data as it relates
to the Federal Records Act. It will also address secondary video review, third party
standards, monitoring of EM providers and the elements necessary to ensure system
functionality. A draft EM Policy Directive is slated to be presented to the Regional
Fishery Management Councils in late 2021 with a planned implementation date of
January 2022.
• NOAA & NMFS Appointments: The Senate has confirmed Dr. Rick Spinard to be the
new Under Secretary of Oceans and Atmosphere and Administrator of NOAA. Dr.
Spinard served as NOAA's Chief Scientist in the Obama Administration and is currently
Professor of Oceanography at Oregon State University. Under President Obama, Dr.
Spinard was the co -lead in developing the Nation's ocean research priorities. Janet Coit
has been appointed Administrator of the National Marine Fisheries Service. Coit
directed the Rhode Island Department of Environmental Management for more than ten
years. She will also serve as acting Assistant Secretary of Commerce for oceans and
atmosphere and deputy NOAA administrator.
• Fish Passage Culverts, In -Stream Barrier and Dam Removal Funding: The
Infrastructure Investment and Jobs Act includes a new program authored by Senator
Cantwell (D -WA) to install new and improved culverts at river and stream crossings,
with a focus on expanding salmon and other anadromous fish habitat. The program is
authorized at $800 million/yr over the next 5 years and would provide grants to States,
local governments and tribes to carry out the purposes of the program. Appropriations in
the amount of $200 million per year has been included in the bill. Separately, the bill
provides NOAA with $400 million for in -stream barrier removal projects that impede the
passage of anadromous fish species. The U.S. Fish & Wildlife Service is provided $200
million for the same purpose. $75 million is appropriated to FEMA for dam removal
projects.
• Pacific Coastal Salmon Recovery Fund (PCSRF): This program typically provides
$65 million annually via formula to the West Coast States for salmon recovery and
habitat restoration activities. The Infrastructure Investment and Jobs Act includes a
funding supplement to bring this program to an annual funding level of $100 million for
the next 5 years.
To: The Honorable Bill Roberts
The Honorable Pat Branson
The Kodiak Island Borough Assembly
The Kodiak City Council
Roxanne Murphy, Borough Manager
Meagan Christiansen, Borough Special Projects Director
Mike Tvenge, City Manager
Josie Bahnke, Asst. City Manager
From: Brad Gilman & Sebastian O'Kelly
Re: Washington Update
Date: December 21, 2021
1. FY 2022 Federal Budget/Appropriations: Congress has adjourned for the holidays,
passing another Continuing Resolution to keep the Federal government operating until Feb. 18.
The goal will be to pass an Omnibus Approps Bill (or bundle the bills into a few "mini -buses") at
that time. Differences on top-level spending for defense and non-defense programs must still be
negotiated as well as the particulars of the individual appropriations bills. While it is not ideal to
pass appropriations bills this far into the fiscal year, it is not unprecedented.
Still pending are FY 2022 project funding for the construction of the Kodiak fire house and
wastewater lift station.
We recommend the City and Borough start developing community project requests for the FY
2023 appropriations process shortly after the New Year unless you already have done so. We
will work with you to develop the project list, prepare the necessary materials, resolutions and
letters, and submit the required paperwork in the latter part of the first quarter of 2022.
2. Bipartisan Public Infrastructure Investment Legislation ("The Infrastructure
Investment and Jobs Act"): This legislation is now law. It includes almost $550 billion in new
spending above projected existing program spending over the next 5 years. All three Members
of Alaska's Congressional Delegation supported the bill. Our second quarter report also includes
summary information that is still relevant given that the House passed the Senate bill without
change. We also have a detailed 100 plus page summary that can be sent on request.
Rollout of the funding is expected to come from one of three methods.
• Existing Federal -State Formula Funding Programs — These funds will move the most
quickly as they follow existing funding streams and processes that are already in law.
They are typically per capita or population -based formulas and relatively easy for Federal
agencies to calculate funding allocations. The Dept of Transportation has announced the
State allocations of traditional Federal surface transportation formula funding in FY 2022
along with some of the new transportation formula programs, with the State of Alaska to
receive a total of $664 million for FY 2022 (details can be found here). The FAA has
made its FY 2022 grant allocations for airport infrastructure as well (see section later in
the memo). The EPA has done the same for State funding allocation increases for the
Clean Water and Drinking Water Revolving Funds administered by Alaska DEC.
• Existing Federal To Local Competitive Grants — This category includes current grant
programs where project decisions are made by Federal agencies through a competitive
grants process that local governments are eligible to apply for. Two such examples
include RAISE (formerly BUILD/TIGER) and MARAD's Port Infrastructure
Development Program (PIDP). Both programs will receive major funding increases
(2.5X to 3X over FY 2021 funding levels) starting in FY 2022. Notices Of Financial
Assistance application procedures should come out in the 1 st or 2nd quarter of 2022 for
these and other existing Federal grant programs that saw expanded funding under the
infrastructure bill. We will monitor and report accordingly.
• New Federal Grant Programs — This would include new programs for State broadband
connectivity grants, rural ferry operating grants, electrical grid resiliency and rural
surface transportation grants, among others. Some of the funding will be based on a
population -based or other similar formula. Other funding will be awarded through a
Federally -run competitive grant application process where local governments will be
eligible to apply. Many of these new programs will take some time to roll-out as the
Federal government will have to develop program criteria, hire/redeploy staff, and
possibly go through a public notice and comment period and other review processes that
new programs typically go through. Of the three categories, these initiatives will take the
longest to develop. We will monitor and report as they progress.
3. Kodiak Coast Guard Base Investments: The infrastructure bill includes $429 million
for the Coast Guard to invest in shoreside, housing, childcare facilities and other infrastructure.
The legislation instructs that the Coast Guard follow its latest Unfunded Priorities List (UPL) in
making spending decisions. The UPL designates $170 million for the Kodiak Base, with $40
million to go to Phase IV housing and $130 million for Phase I recapitalization of the fuel
services pier to accommodate the Coast Guard's new vessels.
4. Dept of Transportation ROUTES Initiative: If you have not already done so, we
would encourage signing up for the Department's Rural Opportunities to Use Transportation for
Economic Success (ROUTES) initiative through this link. It is free. Registering enables
participation in DOT webinars on rural transportation grant opportunities and application
procedures. Registering also includes email notifications of such opportunities, including
implementation of the transportation elements of the infrastructure bill such as the new $2 billion
(over 5 years) rural surface transportation grant program.
5. The Infrastructure Investment and Jobs Act — Airport Funding: The bill provided
the FAA $15 billion for airport infrastructure over 5 years. The money can be invested in
runways, taxiways, safety and sustainability projects, as well as terminal, airport -transit
connections and roadway projects. The FAA has announced FY 2022 funding allocations
totaling $2.9 billion nationally. Alaska community airports will receive $80 million this year.
This includes the following amounts for Kodiak community airports.
• Kodiak -- $1,206,000
• Kodiak (Municipal) — $110,000
• Kodiak (Trident Basin) -- $110,000
• Akhiok -- $110,000
• Karluk -- $110,000
• Larsen Bay -- $110,000
• Old Harbor -- $110,000
• Port Lions -- $110,000
• Ouzinkie -- $110,000
6. Economic Development Administration (EDA): The EDA has made Phase 1 planning
grant awards to 60 applicants across the nation as part of the American Rescue Plan Act
Regional Challenge Grant Awards. There were two awards in Alaska — one to the Southeast
Conference for a regional mariculture initiative (oysters, kelp, red king crab, geoducks and sea
cucumbers). Although the Conference is based in Southeast, the project funding encompasses
other coastal regions in the State, including Southwest, Prince William Sound and the Kenai
Peninsula. The second award was to Spruce Root, a coalition of Southeast groups that will focus
on development of sustainable forest products and micro -timber harvest in the Tongass. Both
organizations will qualify for submission of Phase 2 grant proposals, with 20-30 final awards
that will range between $25 million to $100 million per grant.
The EDA has also announced a $500 million grant opportunity — Good Jobs Challenge -- with a
focus on job training initiatives for underserved populations. Applications are due Jan. 26 with
details here.
Lastly, the EDA has announced the opening for grant applications to its Economic Adjustment
Assistance Program. Applications are received and reviewed on a rolling basis but must be
submitted no later than March 31, 2022. Details are here.
7. PILT/National Wildlife Refuge Revenue Sharing: Funding for the Borough's revenue
sharing payments from the Department of Interior's PILT and National Wildlife Refuge Fund
Programs is pending disposition of the FY 2022 appropriations bills.
8. WOTUS: As noted in our last report, the Biden Administration issued a notice in June
announcing plans to rescind the Trump Administration changes to the "Waters of the U.S."
definition and revisit associated regulations. The EPA and Army Corps issued a proposed rule
for public comment on December 7th which is open until Feb. 7th. The agencies are seeking to
put back in place the pre -2015 WOTUS regulatory regime, but NACO and other local
government associations remain concerned that local infrastructure and water projects will be
fully covered under the proposed rule's Federal permitting requirements and limits. Virtual
hearings will be held in mid-January, with registration details at this link.
9. Indian Boarding Schools Commission Legislation: Senator Warren (D -MA) has
introduced S. 2907 -- the Truth and Healing Commission on Indian Boarding Schools Act. The
bill establishes a Truth and Healing Commission on Indian Boarding School Policies made up of
10 members. The Commission's primary duties are to develop recommendations on actions that
the Federal Government can take to redress the historical and intergenerational trauma inflicted
by the Indian Boarding School Policies, including developing recommendations on ways to
protect unmarked graves and accompanying land protections; to support repatriation and identify
the Tribal nations from which children were taken; and to stop the continued removal of
American Indian, Alaska Native, and Native Hawaiian children from their families and
reservations under modern-day assimilation practices. The bill has been referred to the
Committee on Indian Affairs and awaits further consideration. Senator Murkowski is a
cosponsor.
10. Build Back Better Bill (BBB): After passing the House, the BBB bill has stalled in the
Senate. Senator Manchin (D -WV) opposes the legislation in its current form and has criticized
its total cost, lack of out -year budgetary offsets, and a few of its specific provisions concerning
paid parental leave and climate change. Senator Sinema (D -AZ) has receded into the
background in terms of her earlier criticism of the bill but whose support also remains uncertain.
Without all 50 Democrats supporting the bill, it cannot pass the evenly -divided Senate (the Vice
President casts the tie-breaker in a 50-50 vote). All Republicans oppose the bill. The bill's
consideration will be pushed into 2022 and will not pass the Senate without major changes.
11. Fisheries & Oceans
• COVID Fisheries Disaster Relief — CARES Act: After lengthy delays, checks to
impacted Alaska businesses and fishermen started going out this week.
• COVID Fisheries Disaster Relief — Consolidated Appropriations Act of 2021:
Alaska has been allocated $40 million by NOAA for the relief appropriated in this bill.
Separately, $30 million was allocated to Federally Recognized Tribes in coastal States.
The Alaska Dept of Fish & Game is developing its expenditure spend plan (expected in
early -mid 2022) which will be built largely on the first spend plan under the CARES
Act, with some slight modifications to clarify some of the AK/WA fishermen residency
issues. The plan will factor in assistance from the CARES Act, with a restriction that the
combined relief does not allow a recipient to be "made more than whole" relative to their
pre-COVID revenues.
• USDA COVID Assistance To Seafood Processors: The States submitted their
applications to USDA at the end of November for reimbursement to seafood processors
for the cost of COVID worker safety measures. The USDA is expected to grant funding
to the States in the 1St or 2nd quarter of 2022.
• Magnuson -Stevens Act (MSA) Reauthorization Hearing: On November 16th the
House WOW Subcommittee held a hearing on H.R. 4690, the Sustaining America's
Fisheries for the Future Act of 2021 ("SAFFTFA") -- introduced by Chairman Jared
Huffman (CA -D -2nd) and Rep. Young's MSA bill — HR 59, Strengthening Fishing
Communities and Increasing Flexibility in Fisheries Management Act. Both Chairman
Huffinan and Rep. Young have pledged to work together to produce a compromise bill.
Issues where the most significant differences exist include — additional bycatch limits,
new ecosystem -based management requirements for forage fish; and greater
consideration of climate change in fishery management decision-making. House
Committee mark up of the bill is likely in early 2022. The Senate has thus far shown
little interest in developing a MSA counterpart bill.
• Build Back Better (BBB) Legislation — Fisheries Provisions. The House -passed
version of the BBB bill includes funding for a number of fisheries and fisheries -related
programs. The funding included is as follows (total numbers in some of bullets reflects
funding spread over multiple years).
o $400 million for NOAA grants to States & tribes for hatchery investments
o $19.6 million for BIA hatchery investments
o $1 billion for NOAA for Pacific salmon recovery & restoration (this is not
PCSRF)
o $500 million to NOAA for fishery and marine mammal stock assessments,
research, surveys.
o $300 million for NOAA facilities construction
o $100 million for National Marine Sanctuary facilities construction
o $2 million for the Seafood Import Monitoring Program
o $20 million for NOAA permitting improvements
o $6 billion for NOAA coastal resiliency, habitat and coastal community protection
(including fisheries). No cost -share required.
o $180 million to USFWS for Endangered Species Act recovery plans..
• NMFS COVID Economic Impact Study On Fishing Industry: NMFS has completed
a study which has showed that COVID has had a harmful economic impact on the fishing
industry. The study compared 2020 economic data versus an annual average of the
previous 5 years (2015 to 2019). Commercial fishing landings revenue declined 22
percent in 2020, with all regions experiencing a significant decline. The recreational
fishing charterboat sector industry saw a decline of more than 17 percent in trips
nationwide from the previous 5 -year annual average. In Alaska, charterboat bookings
were down almost 50 percent while landings revenues fell 26 percent. Alaska's
commercial salmon fishery was particularly hard-hit, with revenues off by 41 percent.
• 30 By 30 Initiative: The public comment period has closed on the Biden
Administration's initiative to conserve at least 30 percent of U.S. land and water by 2030.
For its part, NOAA was seeking public input on how it should, using its existing
authorities, conserve and restore America's ocean, coasts, and Great Lakes. We are likely
to see proposed implementing regulations emerge next year.
• Fisheries Disaster Reform Legislation: Legislation to reform the Federal fisheries
disaster process -- S. 2923, the Fishery Resource Disasters Improvement Act -- passed
the Senate at the end of Sept. It includes provisions that qualify local government loss of
raw fish tax revenues as eligible for reimbursement from Federal fisheries disaster relief
funds. The bill awaits House consideration.
• Blue Carbon: Senator Murkowski has introduced S. 3245, Blue Carbon for Our Planet
Act, that would create an Interagency Working Group On Coastal Blue Carbon. Among
other responsibilities, the Group would oversee the development of a national map and
inventory of coastal blue carbon ecosystems as well as establish national conservation
and restoration priorities for coastal blue carbon ecosystems, culminating in a report to
Congress and development of a strategic plan for blue carbon ecosystem research and
development.
• Saltonstall-Kennedy Grants: There have been no advances with this bill since our last
report. S. 497, the American Fisheries Advisory Committee Act, legislation introduced
by Senator Sullivan (R -AK) and Commerce Committee Chairwoman Cantwell (D -WA)
that would reform the national S -K grant program. The bill would create an advisory
committee to guide the grant program's goals and objectives going forward. Senator
Murkowski is a cosponsor. Rep. Young is the author of the House counterpart bill.
• Sea Otters: As reported previously, the USFWS has issued a paper based on roundtable
meeting it held in Juneau in late 2019 on the growth of sea otter populations in Southeast
Alaska. The report concludes that sea otter recovery in the region has been "wildly
successful." Suggested recommendations to address the growing population included
more funding for artisan training and marketing of Native handicrafts as well as use of
co -management agreements with Southeast AK tribal groups such as the Prince of Wales
tribal sea otter commission. The link to the AK report can be found here --
htlps://www.fws.gov/alaska/sites/default/files/2020-
10/SSOSW REPORT FINAL 508 O.pdf
Separately, a Congressional -required USFWS study (due December 202 1) is currently
examining reintroduction of sea otters in Washington, Oregon, and California. On
August 5, 2021 an ad hoc coalition of 24 ocean -based regional stakeholder associations,
including commercial fishing, shellfish aquaculture, and maritime interests, submitted a
detailed comment letter to the Agency, expressing both concerns over the impacts of
reintroduction and the need for a fair, transparent and comprehensive report to Congress.
• Prescott Grants: There have been no advances with this bill since our last report. S.
1289, the Marine Mammal Research and Response Act would amend the Marine
Mammal Protection Act of 1972 to reauthorize and modify the John H. Prescott Marine
Mammal Rescue Assistance Grant Program. The bill would require enhanced data
collection on stranded marine mammals; require closer coordination between funded
marine mammal stranding network participants and NOAA; authorize larger grants to
network participants; and increase public access to stranding data.
• Pacific Coastal Salmon Recovery Fund (PCSRF): This program typically provides
$65 million annually via formula to the West Coast States for salmon recovery and
habitat restoration activities. The Infrastructure Investment and Jobs Act included a
funding supplement to bring this program to an annual funding level of $100 million for
the next 5 years.
To: The Honorable Bill Roberts
The Honorable Pat Branson
The Kodiak Island Borough Assembly
The Kodiak City Council
Michael Powers, Borough Manager
Mike Tvenge, City Manager
From: Brad Gilman & Sebastian O'Kelly
Re: Washington Update
Date: December 24, 2020
1. FY 2021 Appropriations: The Congress has bundled all 12 appropriations bills into a
roughly 5,500 page Omnibus Appropriations Bill to fund the Federal government through the
rest of FY 2021. The bill includes a CV -19 relief package (see item #3) as well climate energy-
related provisions, reauthorization of the Water Resources Development Act, and reforms to
limit "surprise billing" practices in medicine. The Omnibus' regular annual appropriations for
both non-defense and defense spending totals an estimated $1.4 trillion, up slightly from FY
2020 levels. The Bill has passed the Congress but has been heavily criticized by the President
and it is unclear if he will sign or veto it. His top aides were involved in the negotiations and
earlier had indicated he would sign the bill.
2. CV -19 Emergency Relief. After months of delays and stalled negotiations, Congress
has agreed to the next CV -19 relief package which has been attached to the Omnibus
Appropriations Bill. Total funding is an estimated $900 billion. It is the second highest amount
of CV -19 legislative relief this year after the CARES Act ($2.3 trillion).
The bill does not include $160 billion in State, local and tribal government (SALT) relief, as
had been proposed by the bi-partisan working group of House and Senate members earlier in the
month It does, however, include language extending SALT use of CARES funding. The
additional SALT funding had been tied to provisions that would have limited employer liability
from COVID-related lawsuits. When the parties were not able to reach agreement on both items,
they were dropped from consideration and the proposed SALT funds were instead used for an
additional round of individual stimulus checks. Leading Democrats and President-elect Biden
have stated their desire to bring up additional SALT relief in the next Congress.
Major funding and provisions are as follows. We are still going through the text to examine
some of the fine print that is included in bill report language (several additional thousands of
pages).
• SALT Use of CARES Act Stabilization Funds — The deadline for expenditure of funds
is extended to December 31, 2021. Greater flexibility for the use of funds was not
included.
• Small Business/Non-Profits -- Paycheck Protection Program (PPP) -- $284 billion.
Eligibility is extended to Section 501c6 non -profits (many local Chambers of
Commerce, tourism boards, and destination marketing organizations). Small news
organizations are also now eligible. Prior PPP recipients may apply for a second loan if
they experienced a 25 percent or greater revenue loss in one quarter of 2020 compared to
the same quarter in 2019. PPP loans will now be tax deductible. Separately, additional
funding is provided for SBA's Economic Injury Disaster Loan Program, including
$10,000 per low income business who did not previously qualify for PPP funds. A
CARES Act requirement that deducted EIDL loans from a PPP loan has been repealed.
• Unemployment -- $120 billion. $300/week Federal supplement until March 14, 2021. It
includes "gig economy" and 1099 contract workers.
• Individual Stimulus Checks -- $166 billion. $600 per adult and child with eligibility
caps of $75,000 per individual/$150,000 per household. The Treasury Department has
indicated it can start sending benefits soon.
• Education — $82 billion. $54.3 billion is to be distributed to local public schools via
formula under the Elementary & Secondary Education Act to cover costs such as
distance learning, PPE, laptop computer purchases, school building/classroom
modifications, etc. $22.7 billion is provided in relief to higher education institutions. $4
billion is provided to the Governors Emergency Education Relief Fund established in the
CARES Act.
• Vaccine Purchase & Distribution, CV -19 Testing & Mitigation — $69 billion. $22
billion of the amount is provided to the States for further use and distribution of CV -19
testing, tracing and mitigation. CDC is provided $4.5 billion for State, local, territorial
and tribal health departments to distribute, administer, monitor and track vaccinations.
• Healthcare Provider Assistance -- $3 billion is added to the CARES Act Public Health
and Social Services Emergency Fund for grants to hospitals and providers to be
compensated for CV -19 expenses and lost revenues. Mandatory spending of $4
billion/year for Community Health Centers is extended through FY 2023.
• Fisheries Disaster Assistance -- $300 million (see item # 10) plus new USDA relief for
seafood processors.
• Transportation -- $45 billion as follows. This funding is all in addition to regular annual
appropriations.
o $2 billion for FAA grants in aid to airports at 100 percent Federal cost share. $200
million is set aside for concessionaire, parking and car rental agency assistance.
o $23 million for Essential Air Service and $20 million for the Small Community
Air Service Development Program.
o $2 billion to cover payroll costs for the private motorcoach, school bus and
passenger ferry industry.
o $14 billion for mass transit (funds would include AMHS). These funds can be
used to supplement lost revenue and maintain service).
o $10 billion is provided for State Highway Programs. These funds can be used for
lost preventative maintenance/operations/personnel costs for highways as well as
for ferries.
o $15 billion to continue the airline payroll support program funded under the
CARES Act.
• Broadband -- $7 billion. Includes funding for a new rural broadband program. $1
billion is reserved for tribal broadband.
• Food Assistance -- $13 billion for additional funding for food stamps, food banks, and
senior nutrition programs.
• Childcare Providers — $10 billion for anew stabilization fund that gives grants to
childcare providers operating under State or local licensing or other requirements. Funds
are distributed to the States via formula under the Child Care Development Block Grant
Program.
• Rental Assistance -- $25 billion is provided for a new rental assistance program for past
due rent, future rent payments, and to pay utility and energy bills, with $800 million set
aside for Native Americans. The home eviction moratorium is extended until January
31, 2021.
• Theaters, Concert Venues & Museums: $15 billion is provided for a new SBA grants
program for concert venues, independent movie theaters and museums provided they can
show large revenue losses.
• Mental Health & Substance Abuse: HHS's Substance Abuse and Mental Health
Services Administration has $240 million for emergency grants to states; and at least
$125 million to Native Americans across a variety of block grant programs
• Postal Service —Conversion of a $10 billion loan provided by the Treasury under the
CARES Act into a grant. There are no reforms or changes to the Bypass Mail Program.
3. 2020 Federal Election Results
• Presidential: The Electoral College met on December 14th and has declared President-
elect Biden the winner. He will be sworn in on January 20th. He has been selecting his
choices for Cabinet Secretaries and senior White House positions at a steady pace.
• Senate: The Republicans had a 53-47 advantage coming into the election. The
Democrats gained 2 seats (Colorado & Arizona) and the Republicans gained one
(Alabama). There are two Republican held seats in Georgia that face run-off elections on
January 5. Should the Democrats flip both seats then there would be a 50-50 ratio but the
Democrats would control the chamber with Vice President-elect Harris breaking the tie.
If the Republicans succeed in one or both races, they will have a 51-49 or 52-48 majority
and chamber control.
o In Alaska, Senator Sullivan won his race by a 54 percent to 41 percent margin.
He is expected to return to his positions on the Armed Services; Commerce,
Science & Transportation; and Environment & Public Works Committees, as well
as retain his two Subcommittee Chairmanships on the first two Committees.
Senator Murkowski will have to give up her Chairmanship (or Ranking Member
position should the Democrats take the Senate) of the Energy & Natural
Resources Committee due to Republican Caucus rules on term limits on
Committee leadership positions. She will remain as a member of that Committee.
She will also assume the Chairmanship of the Indian Affairs Committee and
retain her Chairmanship of the Interior Appropriations Subcommittee. She is up
for re-election in 2022.
• House: The Democrats will have a narrow majority of 222 seats to 212, with 1 race yet
to be called. Republicans picked up a total of 11 seats and gained back a number of seats
they had lost in the 2018 mid-term election. Three Democrats have been tapped for
Cabinet positions in the Biden Administration, but their seats are very likely to remain
under Democratic control. The top House leaders in both parties are expected to retain
their positions in the 117th Congress.
o In Alaska, Rep. Young won his race by a 54 percent to 45 percent margin. He
will retain his positions on the Transportation & Infrastructure and Natural
Resources Committees. He is the Ranking Member on the Subcommittee on
National Parks, Forests & Public Lands and will likely keep that position.
4. Return To Earmarks: Momentum continues to build in the House to return to
earmarking in the 117th Congress, although a final decision will not be made until early 2021. If
the House moves forward, we anticipate that earmarks will be limited to State and local
governments and non -profits and require approval from the elected body of State or local
government who is requesting them. The latter requirement has always been part of our standard
operating procedure when submitting Federal project and priority requests to the Delegation.
There will likely be transparency requirements put in place similar to when the earmarking was
reformed a decade ago before the moratorium went into effect. Other standards such as
programs/agencies eligible for earmarking, dollar amount and type of earmarks have yet to be
determined. The Senate has so far been silent on whether to reinstate the practice next year. All
three Alaska Delegation Members favor its return. We will continue to keep you apprised of
developments and recommend, as has been the case in previous years both in the earmark era
and since, that you develop and approve a Federal projects and priorities list to submit to us in
early 2021. We will handle the necessary form filing and submission with the Delegation as we
have done in previous years.
5. Infrastructure Investment: The Biden Administration has promised to make this issue
a top priority with a focus on not only expanding traditional surface transportation programs, but
expanding the use and development of green transportation technologies with a climate change
focus. The Administration will also push other forms of infrastructure such as smart electric
grids, broadband and clean water projects. In the interim, Congress has extended the
authorization for current surface transportation spending through FY 2021. As has been the case
for the last four years, a major challenge is finding a "pay for" to fund transportation initiatives
which have been facing a budgetary shortfall just meeting current obligations under existing
formulas. Congress has shown a reluctance to raise the Federal gas tax, the traditional source of
revenue for transportation projects, which sits unchanged since 1993 at 18.4 cents per gallon.
One possible option is that the Biden Administration could forego seeking a "pay for" and just
add the spending on top of the Federal deficit, or seek to fund it through an increase in the tax
rates for corporations or higher income earners as he proposed in his campaign
6. PILT/Refuge Revenue Sharing: PILT is fully funded for FY 2021. The National
Wildlife Refuge Fund ("Refuge Revenue Sharing") is level funded in the Interior Appropriations
Title of the Omnibus.
7. Arctic Issues/Coast Guard/Ice Breakers: Senator Sullivan has chaired two
subcommittee hearings this month that have exposed security vulnerabilities in the North Pacific,
including testimony that highlighted Russian military exercises that entered into the U.S. EEZ in
the Bering Sea, with Russian warplanes and vessels harassing several U.S. fishing vessels with
threatening maneuvers in August and September incidents. In response, the Coast Guard has
diverted its one remaining heavy ice breaker, the Polar Star, from its normal mission in the
Antarctic to patrol the North Pacific. Separately, it is seeking to lease two medium ice breakers
to also patrol the North Pacific. One vessel under consideration is the Aiviq, currently based in
Florida, and previously used when Royal Dutch Shell was actively pursuing oil exploration in
the Chukchi Sea. The other ice breaker may be leased from Finland. Senator Sullivan is urging
the Coast Guard to homeport the two vessels in Alaska.
Separately, construction of the new Polar Security Cutter (PSC) is expected to get
underway in 2021 with delivery of the first vessel in 2023. This year's defense authorization bill
includes an authorization for construction of a total of six PSCs over the coming decade, three of
which the Coast Guard would prefer to be heavy ice breakers, the other three medium class. The
FY 2021 Omnibus includes $555 million for the PSC program. Enough funding is now
"banked" from this amount and prior appropriations for the construction of two PSCs. The
leased vessels would serve as interim measures until the PSCs are operational. The Coast Guard
is currently conducting a home -porting analysis for the PSCs which is due to be completed by
the end of 2021. During the second hearing, the Coast Guard promised to improve its
communication and guidance with the U.S. fishing fleet to be better prepared should the
Russians again enter our EEZ and engage in similar tactics in a future military exercise.
The FY 2021 Omnibus funds the Offshore Patrol Cutter Program at $546 million,
provides an additional $240 million for the purchase of four Fast Response Cutters, and
encourages the Coast Guard to issue a determination on the need for the 12th National Security
Cutter. The bill fully funds Coast Guard's housing, environmental remediation (including
multiple clean up projects at the Kodiak Base) and shoreside infrastructure accounts, with a
significant increase above President's Budget Request for shoreside infrastructure and housing.
Lastly, the WRDA bill which has been included in the Omnibus/CV-19 relief package
includes authorization for over $500 million for construction of a deep draft port in Nome.
8. Fisheries & Oceans
• CARES Act -- Fisheries Disaster Relief. The State of Alaska finalized its expenditure
plan on December 7th for its $50 million share of the total funding nationally ($300
million) and has submitted it to NOAA for review. The plan allocates funding to —
commercial fishermen (35 percent); processors (32 percent); recreational charterboat
operators (27 percent); subsistence users (5 percent) and aquaculture (1 percent). Once
approved by NOAA, the Pacific States Marine Fisheries Commission will handle the
processing of applications and awarding of funds to eligible individuals/businesses.
Applicants must sign a sworn attestation that their revenue losses exceed 35 percent when
compared to the average annual year from 2015 to 2019. Applications forms and
directions can be found at the links along with Alaska's final plan.
Alaska final expenditure plan --
file:///C:/Users/SEBAST-1/AEpData/Local/Temp/cares_act spendingplan_120920.pdf
Application forms -- http://www.psmfc.org/cares-act-the-coronavirus-aid-relief-and-
economic-securi. -act
• USDA Seafood Trade Relief Deadline Extended: The application deadline for $530
million is seafood trade relief has been extended from December 14th to January 15th for
certain fisheries that have been negatively impacted by unfair trade and tariff practices by
China and the European Union. Eligible commercial fishermen include those that
participated in the following fisheries — salmon, cod, pollock, crab (Dungeness, king,
snow and southern tanner), sablefish, and Atka mackerel, among other species. Through
December 9th, USDA had paid more than $140 million on nearly 6,000 applications, with
approximately 2,700 applications under review. Alaska represents the largest pool of
applicants. Details on applying and other requirements can be found here --
htt2s://www.fanners.gov/seafood
• COVID-19 Legislation — Additional Fisheries Disaster Relief. The COVID Relief Bill
includes an additional $300 million in NOAA CV -related fisheries disaster relief that
largely follows the same framework and criteria as the CARES Act funding but includes
the Great Lakes fisheries ($15 million) and sets aside $30 million for tribal fisheries.
Separately, the bill qualifies seafood processing facilities and processing vessels for
USDA grants and loans to cover the costs related to CV -19 workforce protection
measures. The amount is not specified but seafood processing businesses would be
wrapped in with other businesses including small to mid-size agricultural producers and
processors as part of total amount of funding of $1.5 billion. The funding would also
include USDA commodity purchases. The USDA will need to spell out application
criteria and procedures post -enactment of the legislation.
• Save Our Seas Act: This bill, sponsored by Reps. Young and Bonamici (D -OR) in the
House and Senators Sullivan and Whitehouse (D -RI) in the Senate is now law. Among
other measures, the legislation establishes or requires -- a Marine Debris Response Trust
Fund to combat marine debris events; a prize for innovation in capturing or preventing
plastic waste; a strategy by EPA to reduce plastic from entering the waste stream and
improve recycling; and engagement by the U.S. in negotiating further international
agreements to reduce marine debris.
• Young Fishermen's Development Act: The legislation would establish a training and
development program to bring new and younger fishermen into the industry. The bill
seeks to accomplish this objective by creating -- a competitive grants program for
collaborative partnerships; a mentorship/apprenticeship program to connect retiring
fishermen with beginning fishermen; financial support for local and regional training and
education in sustainable and accountable fishing practices, marine stewardship, and
business practices. The bill has passed the House and Senate and awaits the President's
signature.
• Digital Coast Act: Legislation sponsored by Senators Baldwin (D -WI) and Murkowski
— S. 1069, the Digital Coast Act — to improve the digitization of U.S. coastal mapping has
now cleared the Congress and is ready for the President's signature. The bill seeks
greater use and deployment of advanced remote sensing and geospatial imaging by
NOAA, in partnership with other Federal agencies, State and local governments and the
private sector, with the goals of better mapping of coastal infrastructure, elevation, land
use/cover, living resources and habitat, and human uses.
• Illegal Unreported Unregulated (IUU) Fishing: Interpol has released a study
identifying links between IUU and organized crime, with a prevalence in Asia and
utilizing difficult to track shell companies in offshore financial havens. Some estimates
place IUU fishing being responsible for 20 percent of the world's catch as well as being a
major source of brutal forced labor and human trafficking. More information can be
found at the link -- hgps://www.intelpol.int/en/News-and-Events/News/2020/Fighting_
illegal -unreported -and -unregulated -fishing. Separately, NOAA has produced its
interagency work plan to combat IUU fishing. A subgroup has been assigned to tackle
illegal seafood imports. The plan can be found here --
hqps://s3.amazonaws.com/media.fisheries.noaa.gov/2020-
I 1/hiteragencyWorkPlan asoflO.29.2020.pdPnull. The annual defense bill includes a
reporting requirement for the Department of Defense, in coordination with the Coast
Guard, on inclusion of counter-IUU fishing actions as part of its annual at -sea exercises.
Lastly, the FY 2021 Omnibus includes a reporting requirement from NMFS on efforts to
curtail illegal seafood imports harvested through IUU fishing.
• Recreational Charterboat Halibut Regional Quota Entity (RQE): Legislation has
passed the House and Senate that authorizes the creation of an RQE to purchase
commercial halibut quota and transfer it to the charterboat halibut sector. The legislation
was pushed for by Alaska's charterboat fleet as a means to extend halibut recreational
fishing seasons and bag limits. The RQE is supported by the North Pacific Fishery
Management Council.
• Ocean Climate Legislation: Rep. Raul Grijalva (D -NM), Chairman of the House
Natural Resources Committee has introduced H.R.8632 — The Ocean -Based Climate
Solutions Act of 2020 — a 300 page+ bill that aims to address many aspects of ocean -
related climate change, including development of a blue carbon economy and trading
credits; greater ocean climate research, promotion of green ocean energy technologies
and prohibition of OCS oil and gas leasing; and reduction in carbon emissions from large
shipping vessels among other measures. The bill does include fisheries management
provisions, including making fuel efficiency or renewable energy retrofits of fishing
vessels eligible for Federal Maritime Administration loan guarantees; eliminating fishing
subsidies that contribute to overfishing in international trade agreements; and establishing
a Shifting Stocks Taskforce to examine fisheries that are moving from one Regional
Fishery Management Council's jurisdiction to another. The most controversial fishery
provision is a requirement that 30 percent of the U.S. EEZ be closed to any "commercial
extractive" human activity (ostensibly this would include commercial fishing). The bill
is likely to be reintroduced in the 117th Congress. Just this past week, OR Senator Jeff
Merkley (D) introduced companion legislation (similar text but not an exact match)
giving us further indication this will definitely be an issue in the 117th Congress.
• Magnuson -Stevens Act (MSA): Reauthorization of the MSA will be pushed into the
117th Congress. Just before the end of session, Rep. Jared Huffman (D -CA), Chairman of
the Water, Oceans and Wildlife, released a draft five year MSA reauthorization bill. It
heightens the focus on climate change impacting marine fisheries; makes a number of
membership and procedural changes to operation of the Regional Fishery Management
Councils; modifies the definition of "overfishing" to use the term "depleted" when a
fisheries decline is caused by factors other than fishing; seeks continued improvements in
data collection, stock assessments, and cooperative research, among other measures. A
summary of the draft can be found here --
hl�2s://huffman.house.gov/imo/media/doc/MSA%20Draft%2OSxS Final 12.18.2020.pdf
• Alaska Fishing Observers & Trawl Surveys: The FY 2021 Omnibus includes a
directive to NMFS to contract for no less than six AK bottom trawl groundfish surveys,
with one survey to capture fish movements out of historical survey areas. Additional
funding is provided for the North Pacific Observers Fund with a directive to offset
harvester observer costs in those fisheries that are transitioning to electronic monitoring.
• Ocean Observation: The Coordinated Ocean Observations and Research Act —
legislation designed to strengthen the nation's ocean observing systems — has passed both
the House and Senate and is ready to be signed by the President. The bill includes an
advanced observing technology development program, models to improve regional
weather forecasting capabilities and products, and reviews of data collection procedures
to meet national needs. The bill would also study the economic effects of increasing
ocean acidification.
• Fishery Disaster Reform Legislation: This week the Senate passed 5.2346, a bill to
reform the MSA's national fishery disaster process. ROMEA staff worked to make
improvements to that bill as it worked its way through the legislative developmental
process. As of today, December 22, 2020, it appears the House may not accept the
Senate -passed version (i.e. the House has a different version - H.R. 5548). If this
assumption holds, the issue may have to be revisited in the 117th Congress.
• Saltonstall-Kennedy Reform Legislation: The House and Senate were both working on
legislation to reform the national S -K grant process. The Senate passed their version
5.494 early in the year; then in September 2020 the House Natural Resources Committee
substituted the text of 5.494 to replace their more constructive version, H.R. 1215 (from
Alaska Rep. Don Young). We understand that as of today, December 22, 2020 the House
did not act quickly enough to move the S -K legislation. The issue may be revisited in the
117th Congress.
•
11-213 Seafood Processing Visas: The Omnibus includes a provision governing use of
H-213 seafood processing workers concerning prevailing wages, local labor market job
posting requirements, and timing of bringing the workers into the U.S. without having to
file an additional petition.
To: The Honorable Pat Branson
The Honorable Bill Roberts
The Kodiak City Council
The Kodiak Island Borough Assembly
Mike Tvenge, City Manager
Michael Powers, Borough Manager
From: Brad Gilman & Sebastian O'Kelly
Re: Washington Update
Date: October 13, 2020
1. FY 2021 Appropriations: The House passed 10 of the 12 appropriations bills over the
summer, while the Senate failed to pass any. As a result, Congress has passed a short-term
Continuing Resolution to keep Federal agencies and programs operating at existing funding
levels through Dec. 11. Congress is planning a post-election lame duck session to begin in mid-
November to consider the appropriations bills and other remaining legislation to close out the
116th Congress. We are likely to see an Omnibus Appropriations Bill or series of "Minibuses"
voted on by the end of 2020 or in the early part of 2021.
The Senate is in pro -forma session this week while Judiciary Committee hearings are
underway to consider the nomination of Amy Barrett to the Supreme Court. The full Senate will
reconvene the week of October 19th to vote on her nomination. The House has adjourned until
after the election but the Speaker has told Members to be ready to return to Washington should
vital legislation require a vote. All these plans are tentative and subject to change.
2. Further CV -19 Legislative Relief — State, Local, Territorial & Tribal Government
(SALT) Assistance: Negotiations continue on the next round of CV legislative relief.
Negotiations on behalf the Trump Administration have been led by Dept of Treasury Secretary
Mnuchin, with Speaker Pelosi leading them on behalf of Congressional Democrats. Senate
Majority Leader McConnell has been more in the background during these discussions as there
are splits among Senate Republicans on the need for and amount of relief. The prospects for
agreement on a final package are difficult to forecast as of the date of this report. If a final deal
is reached, we will send an additional report with the details.
The Administration had issued a counteroffer amount of $1.8 trillion to the House
Democratic proposal of $2.2 billion (see below analysis of the "revised" HEORES Act).
Secretary Mnuchin has indicated a willingness to accept additional SALT relief in the amount of
$300 billion, a lesser amount than in the "revised" HEROES Act ($436 billion). There is general
bi-partisan agreement on issues such as further relief to schools; extension of the Payroll
Protection Program; further individual stimulus checks; and additional airline industry relief.
The main issues of outstanding disagreement, in addition to overall bill cost and the amount of
SALT assistance, include the levels of unemployment funding; liability protections for
employers; CV -19 testing, PPE, contract tracing funding and planning; and childcare funding
and tax credits.
At the beginning of the month, the House passed on a largely party -line vote, a "revised"
or "updated" HEROES Act that drops the cost of the earlier -passed HEROES Act from $3.4
trillion to $2.2 trillion. The "revised" HEROES Act includes $436 billion in SALT relief. By
way of comparison, the earlier version provided $915 billion while the CARES Act included
$150 billion. The new bill provides separate funding streams to States, counties/boroughs,
municipalities, territories, tribes, and multistate transportation entities. The House formula for
distribution in the funding streams is population -based and will generally favor more populous
States, counties and municipalities.
• States — $238 billion. Each State will receive an amount based on the ratio of the State's
unemployed to the national number of unemployed, with each State receiving a minimum
floor payment of $500 million. By way of comparison, the CARES Act provided
minimum State payments of $1.25 billion, the amount that the State of Alaska received.
• Counties (includes Boroughs) — $89.5 billion, with each county's award based on its
population relative to all counties nationally. The distribution will come directly from the
Treasury Department.
• Municipalities — $89.5 billion, of which $26.85 billion goes to municipalities of
populations less than 50,000. For the <50,000 municipalities funds, the allocation each
State receives is based on the ratio of the population of all its <50,000 municipalities
versus the population of all same -sized municipalities nationally. Once a State allocation
is made it is further divided for award to each <50,000 municipality in the State as a
proportion of its population relative to all <50,000 municipalities in that State. A State
must make the distributions within 30 days. Failure to distribute funds by a State in that
period results in the responsibility reverting to the Treasury.
• Tribes — $9.5 billion. Alaska Native/Village Corporations are prohibited from receiving
any relief.
• Territories — $9.5 billion.
• Multistate transportation entities -- $100 million.
The "revised" HEROES Act includes language extending the deadline on use of SALT
funds from the CARES Act to Dec. 31, 2021 and provides greater flexibility in the use of those
funds to make up for foregone revenue as a result of the pandemic. Further, the bill provides
broad flexibility in the use of the new funding to replace foregone revenue with no deadline on
when those funds must be spent.
3. CARES Act — SALT Stabilization Payment Guidance/FAQs: The Treasury
Department continues to update its guidance on permissible uses of SALT stabilization
payments. The most recent update was September 2nd with link below as well as to the
accompanying FAQs. The recent additions are more favorable to SALT use of CARES Act
stabilization funds. The most important determination is that a SALT can use the funds for full
payroll and benefits costs (including hazard and overtime pay but not bonuses) of public health
and safety personnel from March 1 to December 30 if those personnel have been "substantially
dedicated" to responding to and mitigating the CV pandemic, with the presumption that all
SALT health and safety personnel meet that standard unless the SALT's chief executive
determines otherwise. Furthermore, the guidance and FAQs allow for the designation of
time/expense by other SALT personnel on CV -19 -related work provided it is properly
documented. There remains, however, a statutory requirement that stabilization payments must
be spent by the end of the calendar year.
Guidance -- https://home.treasM.jzov/system/files/136/Coronavirus-Relief-Fund-Guidance-for-
State-Territorial-Local-and-Tribal-Governments.pdf
FAQS -- https://home.treasM.gov/s/system/files/136/Coronavirus-Relief-Fund-Frequently-
Asked-Questions.pdf
4. 2020 Federal Election: The following reflects a summation of what many non-partisan
analysts are assessing as possible outcomes for the Presidential, Senate and House elections in
November. They reflect trends present at this time and are subject to change (and most likely
will) as we get closer to November P
• Presidential: Aggregate averaging of the major national polls over the latter half of the
summer had former Vice President Biden up by 6 to 7 points over President Trump, but
that gap has widened in the last 2-3 weeks and is at 10-11 points at the start of this week.
His average polling lead nationally is about 4 points above the advantage Hillary Clinton
had during the same time period in 2016. Biden holds a lead in a number swing states
(Arizona, North Carolina, Wisconsin, Pennsylvania. Michigan and Iowa) that the
President won in 2016. The average polling differential in several of those states is
within the statistical margin of error of 5 points while others (Michigan, Pennsylvania
and Wisconsin) are in the 5 to 10 point range. The key bellwether states of Florida and
Ohio are polling so tightly that they are too close to make a forecast. The bases of both
parties will be highly motivated but turnout may also be affected by pandemic fears and
closing or consolidation of many polling places. Those constraints, however, will be
mitigated in many states by the greater availability of early or mail in voting than in
2016.
• Senate: The Republicans currently control the Senate 53-47, with 23 Republican and 12
Democratic -held seats up for election. For the Democrats to gain control of the Senate,
they must have a net gain of 4 or more seats, or 3 seats and the Presidency (the Vice
President acting as tiebreaker). There are 10 closely contested seats held by Republicans
and 2 held by Democrats. It is expected that Republicans will lose seats in Arizona and
Colorado. Democrats currently have the polling edge in Maine, North Carolina and Iowa
as well. Republicans are expected to gain a seat in Alabama and challenge in the
Michigan race. They hold slight edges for incumbent seats in Georgia (2) and South
Carolina but those races are now tightening. The other Democratic and Republican seats
facing election are not expected to change hands.
• House: The Democrats currently control the House by 232 to 198. There is 1
Libertarian (former and retiring Republican Rep. Justin Amash from Michigan) and 4
vacancies (3 Republican seats and 1 Democratic seat) due to recent resignations or death.
There are 11 seats currently held by Democrats that are considered "toss ups" by the non-
partisan Cook Political Report. These include multiple freshmen that captured seats in
the 2018 mid-term elections that put the Democrats in control of the chamber, with a
number of these districts voting in favor of President Trump in 2016. Eight of these
districts supported him with a 10 percentage point or greater advantage. There are 4
Republican -held seats that are favored to flip to the Democrats (this includes two recently
redrawn seats in North Carolina due to court-ordered redistricting that are now very blue
districts and persuaded the Republican incumbents to retire), while there are 14
Republican -held seats that are considered "toss ups." Almost all non-partisan election
analysts forecast that the House will remain under Democratic control, with the vast
majority of Democratic- and Republican -held seats considered safe for the incumbent
party. As a result, the net shift in seats from one party to the other in either direction is
likely to be less than a dozen seats, with the probabilities showing the Democrats more
likely to secure a slight net gain.
5. Earmarks: The House Select Committee On Modernization Of Congress has issued its
final recommendations on a bipartisan basis on ways to improve the functions and operations of
Congress. Included in its recommendations is the return to the practice of Congressionally -
directed spending, otherwise known as earmarking. Earmarking has been prohibited since 2011,
although in the last few years there has been increased discussion within both parties about
resuming the practice. The recommendation will be considered as part of a package of House
procedural and other rule changes considered by the House Rules Committee to go into effect for
the 117th Congress. Under the recommendation, Congressionally -directed spending will be
restricted to SALT governments and non -profits. If the recommendation is adopted, it might
apply to the FY 2022 appropriations bills, surface transportation/public infrastructure legislation,
and other project -related bills. Both the House Majority Leader and Whip, the number 2 and 3
positions in the House Democratic Leadership, have endorsed resumption of the practice.
6. Infrastructure Investment: There have been no significant developments on this issue
since our last report. There is bi-partisan support on this issue, with some legislative progress
(bills passing the House and through Senate committee) in the 116th Congress that will hopefully
carry over in the next Congress.
7. Payroll Protection Program (PPP): The deadline for applying for a PPP loan closed
August 8 but Congress is considering providing additional funding and extending that time
period as part of the next CV -19 relief package as well as allowing for a second loan under
certain conditions. Separately, the Treasury Department and SBA have given the go-ahead for
lender approval of PPP loan forgiveness applications. This includes a simplified forgiveness
application for those who received less than $50,000. Instructions and applications are at the
link -- https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-
protection-pro gram#s ection-header-5
8. Port Investment Toolkit: The Federal Maritime Administration has released a port
investment toolkit to give guidance to those communities seeking Federal funding for
maritime/port infrastructure projects through a number of Dept. of Transportation grant
programs. The toolkit is at the link -- https://aapa.cros-
plus.com/files/PDFs/Toolkit/PPIT%2OMarine%2OHighway%2OModule%2OFingl.pdf
9. CARES Act – Economic Development Administration Assistance: The EDA has
issued a notice of funding availability for economic development projects funded by the CARES
Act. The range of individual funding for a project is $100,000 to $30 million with EDA
anticipating making 3,000 awards with a Federal cost share from 80 to100 percent. Applications
can be submitted on a rolling basis with details at the link --
haps://www.rg ants.gov/web/grants/view-opportuni ..ht�ppld=321695
10. Fisheries & Oceans
• CV -19 & Fisheries Management: Every aspect of fisheries management has been
impacted by the mitigation measures and shelter -in-place restrictions imposed by Federal,
State, and Local authorities in response to the pandemic. Actions taken include
—
o The Regional Fishery Management Councils have shifted from in-person
meetings to meetings held electronically through telecommunication media.
o NOAA Fisheries has cancelled 55 fishery surveys around the Nation. NOAA has
indicated that these surveys account for approximately 1,380 lost planned days -at -
sea between March 20 and July 20, 2020. NOAA is shifting its focus to its
unmanned wind and solar powered surface vessels and underwater ocean gliders
to collect fishery and ocean condition data. The unmanned surface vessels will be
deployed in the Bering Sea to conduct an emergency survey of the walleye
pollock resource. Four unmanned surface vessels will also be deployed in the
Arctic to continue the planned mapping of the Arctic North Slope.
o NOAA issued an emergency order providing its Regional Administrators with the
authority to wave fishery observer requirements on a case-by-case basis. These
waivers will be granted if there are travel restrictions in place which impede the
placement of observers, or when there are insufficient qualified observers
available due to health, safety, or training issues related to CV -19.
o Senator Murkowski has sent a bipartisan letter with 18 other Senators (including
Senator Sullivan) to NOAA raising concern about the prospects for future
fisheries surveys. The letter urges NOAA to emulate steps taken by the Navy and
Coast Guard to conduct successful research cruises during the pandemic. It
requests that NOAA develop a written plan for next year's surveys to be
submitted by December 15.
• CARES Act -- Fisheries Disaster Relief: Twelve States have submitted their CV -
fisheries disaster relief spend plans and gotten NMFS approval. The State of Alaska has
just released its expenditure plan for the $50 million share it received from the total $300
million that was provided in the Act. Public comments are due by Oct 19. Once it is
finalized and approved by NOAA, the Pacific States Marine Fisheries Commission will
handle the processing of applications and awarding of funds to eligible
individuals/businesses. Applicants must sign a sworn attestation that their revenue losses
exceed 35 percent when compared to the average annual year from 2015 to 2019. The
sum of the amount they apply for plus any funds they receive from other CV -19 Federal
relief (such as the Payroll Protection Act) and revenues derived from 2020 fishing cannot
exceed their annual average revenues from the prior five years. Applications forms and
directions can be found at the links along with Alaska's plan.
Alaska draft expenditure plan --
https://aws. state.ak.us/OnlinePublicNotices/NoticesNiew.aspx?id=199692&utm_content
=&utm medium=email&utm name=&utm source=govdelivery&utm term=
Application forms -- http://www.psmfc.org/cares-act-the-coronavirus-aid-relief-and-
economic-securitv-act
• USDA Seafood Trade Relief. The USDA has announced the award of $530 million to
go to certain fisheries that have been negatively impacted by unfair trade and tariff
practices by China and the European Union. Eligible commercial fishermen (processors
are not eligible under this program) include those that participated in the following
fisheries — salmon, cod, pollock, crab (Dungeness, king, snow and southern tanner),
sablefish, and Atka mackerel. Total payments per recipient are capped at $250,000 with
application deadline of December 14th. Details on the program are below.
Guidance, Application Forms & Payment Formulas --
https://www.farmers. gov/sites/default/files/2020-
09/strp/STRP%20Application%20Packet%20v3.pdf
Webinar -- https://globalmeetwebinar.webcasts.com/viewer/event.jssp?ei=1372014
FAQS -- htlps://www.farmers.gov/seafood/stM=faA
• Magnuson -Stevens Act (MSA): The last time Congress updated the law was in 2006.
We are due for reauthorization but this is an issue that will be pushed into the 117th
Congress. Only one bill (H.R. 3697, from Rep. Young) was introduced in the 116th
Congress that would amend the MSA in a comprehensive manner. There are
approximately 32 other House bills that would amend the MSA to a far lesser degree.
House Water Oceans & Wildlife Subcommittee Chairman Jared Huffinan (D -CA) has
conducted multiple MSA listening sessions around the country. He did not hold one in
Alaska but has stated he will do so. The Senate held no MSA hearings and no Senate
"discussion drafts" or actual reform bills were offered in the 116th Congress. We think
MSA legislative activity will pick up in both bodies in the next Congress.
• Pink Salmon Migration Study: The Alaska Fisheries Science Center has issued a
report indicating climatic shifts in pink salmon migratory patterns northward,
highlighting the future opportunities for this fishery in the Norton Sound --
https://www. fisheries.noaa. gov/feature-stori/pink-salmon-may-benefit-pacific-arctic-
warms
• National Commercial Fishing Safety Advisory Committee Openings: The Coast
Guard is seeking applicants to fill 18 openings (some will likely be reappointments) on its
outside advisory committee on commercial fishing safety. Ten members must come from
the commercial fishing industry. Applications are due Dec. 14, with details at the link --
https://www.federalre ig ster.gov/documents/2020/10/13/2020-22571/national-
commercial-fishing safety -advisory -committee -vacancy
• Marine Mammal Interactions in Fisheries: NMFS has published its annual list for
public comment that categorize U.S. fisheries into three tiers based on the observed level
of past marine mammal interactions. It also includes additions of certain marine
mammals that those fisheries must account for and report on. Changes include -- the
BSAI Pacific Cod pot fishery has been elevated from Category III to Category II due to a
2017 entanglement of a humpback whale. The Aleutian Island stock of harbor seals has
been added to the list for the Category II BSAI Rockfish trawl fishery based on a 2014
observed mortality and to the Category III Alaska BSAI Atka Mackerel trawl fishery due
to an observed mortality in 2016. Cook Inlet harbor seals were added to the Category III
Gulf of Alaska halibut longline fishery. A number of species were removed from
different North Pacific fisheries as well. Separately, NMFS has issued the list of foreign
fisheries and nations with significant marine mammal interactions, with links to both lists
below.
U.S -- https://www.federalre ig ster.gov/documents/2020/09/21/2020-20709/list-of-
fisheries-for-2021
Foreign -- https://www. ovg info.gov/content/pkg/FR-2020-10-08/pdf/2020-22290.pdf
• Aquaculture: In August, the U.S. 5th District Court of Appeals upheld a 2018 lower
court ruling that NOAA lacks the legal authority to permit aquaculture activities in the
EEZ. This ruling is expected to directly impact the first major net pen operation currently
in the permit approval stage to raise Almaco jacks off the coast of Central Florida in the
Gulf of Mexico. The ruling is also expected to put added pressure on Congress to pass
national aquaculture legislation to authorize the permitting of offshore aquaculture
operations in the EEZ. In September, Senator Wicker, Chairman of the Senate
Commerce, Science, and Transportation Committee reintroduced the AQUAA Act (S.
4723) to establish a management and permitting framework for offshore aquaculture
facilities. Earlier in the year, Rep. Collin Peterson (D -MN) introduced the counterpart
House bill (HR 6191). The bills provide the authorization to allow aquaculture in the
EEZ off the coastlines of States that otherwise restrict or prohibit aquaculture in their
own waters, such as is the case with Alaska's finfish aquaculture. This federalism issue
has been a major sticking point in the movement of the AQUAA Act previously, along
with concerns over the socio-economic, biological, and management impacts on wild -
caught species. We anticipate a more serious effort to move legislation in the 117th
Congress.
• Mariculture Permitting: The Army Corps has issued a proposed rule for public
comment to establish a new nationwide permit (NWT) that authorizes structures anchored
to the seabed in Federal waters over the outer continental shelf for seaweed mariculture
activities. The Corps is also proposing to include multi -trophic mariculture activities, if
the mariculture operator wants to cultivate other species such as bivalve shellfish with the
seaweed. The rule vests much of the permitting authority with the Corps district
engineers. Full rule is at the link with comments due by Nov. 16 --
https://www. govinfo. gov/content/pkg/FR-2020-09-15/pdf/2020-17116.pdf
• Revised HEROES Act — Fisheries Disaster Relief. The bill includes an additional
$250 million in additional CV -19 related fisheries disaster relief. $25 million of the
amount is set aside for tribal fisheries. The bill language otherwise does not alter the
criteria set in the CARES Act. The earlier HEROES Act provided $100 million while the
two Senate CV -19 relief bills from earlier in the summer each included $500 million.
• Save Our Seas Act: This bill, sponsored by Reps. Young and Bonamici (D -OR) in the
House and Senators Sullivan and Whitehouse (D -RI) in the Senate, has now passed the
House. If it clears the Senate it will go directly to the President and he is expected to sign
it. Among other measures, the legislation establishes or requires -- a Marine Debris
Response Trust Fund to combat marine debris events; a prize for innovation in capturing
or preventing plastic waste; a strategy by EPA to reduce plastic from entering the waste
stream and improve recycling; and engagement by the U.S. in negotiating further
international agreements to reduce marine debris.
• World Trade Organization (WTO) Negotiation On Fishing Subsidies: WTO
negotiations for a text eliminating harmful subsidies continued in September. The
WTO's goal is to secure an agreement by the end 2020 to curb illegal, unreported and
unregulated fishing and prohibit certain forms of fisheries subsidies that lead to
overcapacity and overfishing, with differential treatment for developing countries. The
WTO did not release the draft text. At the last meeting there was discussion on delaying
a final agreement until next year due to the impacts on the pandemic.
• Implementation of Seafood Promotion Executive Order: At the annual national
meeting of the Regional Fishery Management Councils, senior NMFS officials discussed
implementation of the President's E.O. -- Promoting American Seafood Competitiveness
and Economic Growth. Among the items being considered include re-establishing the
National Seafood Council with possibly a 17 member board and upwards of a $25 million
annual budget to promote U.S. seafood exports and competitiveness.
• Digital Coast Act: Legislation sponsored by Senators Baldwin (D -WI) and Murkowski
— S. 1069, the Digital Coast Act — to improve the digitization of U.S. coastal mapping has
now passed the Senate. The bill seeks greater use and deployment of advanced remote
sensing and geospatial imaging by NOAA, in partnership with other Federal agencies,
State and local governments and the private sector, with the goals of better mapping of
coastal infrastructure, elevation, land use/cover, living resources and habitat, and human
uses.
• DESCENDS Act: The House has passed legislation that requires recreational and
commercial fishermen in the Gulf of Mexico to use a venting or descending devise to
reduce barotrauma to released deep water reef species and improve survival rates. The
legislation does not extend to other regions, leaving it to the discretion of the regional
fishery management councils on whether use of this equipment is appropriate for their
fisheries.
To: The Honorable Bill Roberts
The Honorable Pat Branson
The Kodiak Island Borough Assembly
The Kodiak City Council
Michael Powers, Borough Manager
Mike Tvenge, City Manager
From: Brad Gilman & Sebastian O'Kelly
Re: Washington Update
Date: July 3, 2020
This report encompasses information that would have normally been in our first and
second quarter community reports as well any updates from our previous memoranda on the
Federal response to the CV -19 crisis.
1. CARES Act 2.0/HEROES Act: The Senate Majority Leader has indicated that the
Senate's legislative response to the House -passed HEROES Act (see our memo dated May 19th
for a discussion of provisions contained in the legislation) will be considered in the latter part of
July. Additionally, the Federal Reserve Chairman has been encouraging Congress to pass
additional legislation to provide further fiscal stimulus to the economy. Trump Administration
officials have been quoted as supporting $2 trillion in further legislative relief (the President has
stated he would like to see a large amount of relief) while the Majority Leader has stated a
preference for $1 trillion. The HEROES Act provided over $3 trillion in CV -19 relief, including
nearly $1 trillion to State, local and tribal (SALT) governments and flexibility in use of those
funds to backfill foregone revenue. A bipartisan group of Senators has introduced a bill
providing $500 billion in SALT funds. Associations representing SALT governments continue
to write letters urging relief.
We believe that a final bill will include significant SALT relief along with flexible
funding use. Other issues the Senate will consider in its legislative package include —
continuation and revision of the Payroll Protection Program (the Program's loan authority
expired June 30 with approximately $135 billion remaining unspent. Congress has just passed a
short-term extension to August 8th this week); lawsuit liability protections for employers
provided Federal and State CV -19 protection guidance was followed; unemployment insurance
extension (the current Federal supplemental payment of $600/week expires at the end of the
month); Postal Service relief; additional health care provider relief; more funding for CV -19
testing, research and equipment; and other matters.
2. CARES Act — SALT Stabilization Payment Guidance FAQs: As we have reported
earlier, legislation is pending that would provide greater SALT government flexibility in use of
these funds. Otherwise and until there is a change in law, the Treasury Department continues to
update its FAQs on permissible uses of SALT stabilization payments. The most recent update
was June 24 with link below. Recent updates include a requirement that recipients comply with
the Federal Single Audit Act. Also, for purposes of the CARES Act's "claw -back"
requirements, the Treasury Department has determined that for any misspent or unspent funds,
the State or local government that received the funds directly, as opposed to indirectly or through
a pass-through process, is responsible for paying back the funds. In Alaska, given that all of its
boroughs and municipalities received their stabilization payments from the State, any misspent
or unspent funds at the local level would be the responsibility of the State to pay back to the
Treasury. https://home.treasM.gov/s/system/files/136/Coronavirus-Relief-Fund-Frequently-
Asked-Questions.pdf
3. CARES Act — Tribal Payments: Litigation concerning eligibility of Alaska Native
Corporations has been settled, with the Court determining they can receive CARES Act tribal
payments but did not determine amount. Two sets of payments have already been awarded to
Federally -recognized tribes using formulas based on population and employment/expenditures.
It is now up to the Treasury Dept. to determine ANC awards from the remaining funds it has on
hand from the original $8 billion in the Act.
4. FY 2021 Appropriations: The House Appropriations Committee will begin marking up
its FY 2021 appropriations bills after the July 4th holiday, with floor action scheduled for all 12
individual bills in the latter half of the month. The Senate Appropriations Committee is
proceeding more slowly with no markups scheduled at the moment. Already enacted in law is an
agreement on "top -line" appropriations for FY 2021 that increases spending by a modest amount
(less than one percent) for all Federal agencies. While having agreement on a "top -line" number
is a positive development toward enactment of the annual appropriations bills, this year we are
likely to see a short-term Continuing Resolution enacted in the fall, with the appropriations bills
lumped together in an Omnibus Appropriations Bill or series of "Minibuses" to be considered in
a post-election lame duck session or early 2021.
5. Infrastructure: The House has passed on a largely party -line vote a $494 billion, five
year transportation reauthorization bill (The Invest in America Act). It also includes multiple
new environmentally -focused initiatives. The bill has been folded into a larger $1.5 trillion five
year public infrastructure bill (HR 2 --The Moving America Forward Act) that also includes --
$130 billion for school infrastructure; $100 billion for broadband; $65 billion for drinking and
wastewater infrastructure; $75 billion for renewable energy; $10 billion for child care facilities;
$100 billion for affordable housing infrastructure; $30 billion to upgrade hospitals, community
health centers, clinical laboratories and Native American health facilities; and $25 billion for
equipment upgrades for the U.S. Postal Service. The Invest in America Act includes --
Harbor Construction & Dredging —Appropriates $10 billion and $5 billion,
respectively, for Army Corps of Engineers harbor construction and dredging projects.
These amounts represent significant increases above the Corps' annual budget.
• Highways & Bridges: $319 billion, with priority given to repairing existing highways
and bridges over new projects. Funding is provided to build alternative fuel charging
stations.
• Transit Investments: $105 billion. Increases funding for transit agencies to add new
routes and provide more reliable service. Increases investment in zero -emission buses.
• Rail Investments: $60 billion. Triples funding for Amtrak to $29 billion over five years.
Creates a new $19 billion program, the Passenger Rail Improvement, Modernization and
Expansion (PRIME) grant program for passenger rail improvements and expansion, with
40 percent of the funding reserved for projects in the Northeast Corridor. Increases
funding for the Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant
program to $7 billion to fund passenger and freight rail projects.
The total amount of the transportation sections of the bill is about 50 percent above projected
levels under the current surface transportation authorization formulas. The bill does not include
any "pay -fors", such as an increase in the Federal gas tax. $81 billion is set aside to fund
shortfalls in State and local transportation budgets due to the CV -19 crisis. The White House has
threatened a veto of the measure and is reportedly working on releasing a revision of previously
proposed infrastructure plans.
The Senate surface transportation reauthorization bill spends significantly less ($287
billion over five years, roughly 5 percent annual increases), focuses on traditional surface
transportation programs, and has bipartisan support. It also lacks a "pay for" and has been
pending for some time. There is some discussion of bringing it to the Senate floor sometime this
summer. Given the differences with the House, the press of other legislative business, and the
short legislative window before the election, enactment of a bill this year will be a major
challenge.
6. PILT: The Department of Interior has announced PILT funding awards for FY 2020.
The Borough is slated to receive $1,574,354. To put the program on a more stable and long-term
footing, there is some discussion in the Senate on a multi-year reauthorizations of PILT for
inclusion in the next CV -19 relief bill, but no consensus proposal has emerged yet. Senator
Wyden (D -OR) continues to strongly advocate for his proposal to set up a large endowment fund
that would provide public lands payments as well as fund other activities.
7. Great America Outdoors Act: The Senate has passed bi-partisan legislation that would
fully fund the Land & Water Conservation Fund as well as address the multi -billion dollar
backlog of maintenance projects at the Federal land management agencies. Versions of this
measure have been debated for over a decade, with Senate passage the most significant progress
to date (both Alaska Senators voted favorably). The House is expected to pass the bill and the
Administration has expressed its support. Dropped from the measure were provisions to expand
OCS oil exploration and revenue-sharing due to strong objections from the Democrats and the
environmental community.
8. Arctic Issues: The FY 2021 Senate National Defense Authorization Act includes a
number of provisions authored by Senator Sullivan to address national security -related concerns
in the Arctic. They include — an authorization to establish the Ted Stevens Center for Arctic
Security Studies to conduct academic and other research on Arctic security issues; an
authorization of $46 million for developing an Arctic satellite capability; a report on
modernizing the North Warning System; a report on the effect of warming permafrost on defense
infrastructure; and establishment of a DOD -led taskforce to improve interagency coordination in
the region. Rep. Young has introduced a bill in the House to authorize the Stevens Center. The
Trump Administration has issued a Presidential Memorandum that Presidential Memorandum --
Safeguarding U.S. National Interests in the Arctic and Antarctic Regions — that emphasizes
deployment of a full polar security icebreaking fleet by 2029. Separately, the Army Corps of
Engineers has issued a favorable Chief's Report recommending construction of an Arctic port in
Nome at a cost of $491 million. A provision authorizing the project is pending in the Senate
WRDA Bill.
9. Fisheries & Oceans --
Payroll Protection Program (PPP) —1099 Fishermen Crew Fix: At the urging of the
AK Delegation, the Treasury Department modified the requirements of the Payroll
Protection Program to allow fishing vessel owners to count captain and crew paid as
individual contractors via 1099 payments as payroll for purposes for qualifying for loan
forgiveness in the PPP, provided that those captain/crew did not receive individual PPP
loans themselves. However, the change was made just a few days before the program's
loan authority expired on June 30 and many fishing vessel owners were unable to submit
applications with their banks in time. The Senate and House have passed legislation
extending the deadline to August 8th and the President is expected to sign it. The pace of
borrowing in the program has slowed in recent weeks, with $135 billion left for future
loans.
• CARES Act Fisheries Disaster Relief — NOAA has announced the State allocations for
the $300 million the bill contained in CV -19 fisheries disaster relief for affected
commercial fishermen, processors, charterboat operators, certain aquaculture operations,
tribes and subsistence users. Alaska received $50 million, the maximum allowable under
the formula. Applicants must show at least a 35 percent revenue loss versus their annual
average for the last five years. This requirement is in the statute. It is unclear yet if
applicants will need to show their tax returns. We have heard that NOAA is considering
the use of a sworn affidavit with specific references to the civil and criminal penalties for
providing false information. Linked below is NOAA's guidance on distribution of the
CV fisheries disaster relief. The FAQs are periodically updated and should be refreshed
(last updated on 6/26).
haps://www. fisheries.noaa. gov/feature-story/commerce-secretary-announces-allocation-
300-million-cares-act-funding
The sectoral allocation within Alaska's share will be determined by the expenditure plan
submitted by the Alaska Dept of Fish & Game (a process similar to traditional fisheries
relief). The West Coast States funds will be awarded as a grant to Pacific States Marine
Fisheries Commission (next link) for distribution to affected individuals. The
Commission will develop an application and award process that will track the State's
expenditure plan. This page should also be bookmarked and checked periodically. No
application form is available yet.
htip://www.psmfc.orglcares-act-the-coronavirus-aid-relief-and-economic-securi . -act
• Coast Guard Reporting — Port & Facility Operations: The Coast Guard has issued
revised guidance on various inspections, security and reporting responsibilities to allow
greater use of electronic reporting and signatures in order to promote safe social
distancing. The details are at the link.
https://www.dco.uscg.mil/Portals/9/DCO%2ODocuments/5p/MSIB/2020/MSIB-07-20-
Change 2.pdf?ver--2020-05-08-151601-887
• Coastal Resiliency Grants Bill: Representatives Young and Debbie Mucarsel-Powell
(D -FL) have introduced the Shovel -Ready Restoration Grants for Coastlines and
Fisheries Act of 2020. The bill establishes a $3 billion NOAA grant program within
NOAA for shovel -ready projects that restore or improve coastal habitats, resiliency, and
the economy. Priority projects would provide compensation to fishermen for either their
labor or use of their fishing vessel.
10. Miscellaneous
Fishery Finance Program: NOAA Fisheries has withdrawn its proposed rule which
would have made the NMFS Title XI loan guarantee program available for new
vessel construction and major reconstruction. The program remains available for
shore -based facility modernization and financing IFQ acquisitions.
Immigration Executive Order: On June 22, the White House issued an executive
order restricting nonimmigrant work visas. The order provides an exemption for
seasonal workers who provide temporary labor or services essential to the U.S. food
supply chain. This includes foreign workers being brought to the U.S. under the H2 -
B visa program for the seafood processing industry.
Executive Order on Seafood Competitiveness: In May, the President issued an
executive order to promote U.S. seafood competitiveness and economic growth.
The EO seeks to expand U.S. seafood production by making permitting for
aquaculture more efficient; promoting research and product development; seeking
changes to regulations to maximize commercial fishing; and restricting seafood
imports that do not meet U.S. standards. This effort will also include the
establishment of a Seafood Trade Task Force by the Secretary of Commerce. The
objective is to develop a trade strategy to improve access to foreign markets through
trade policy; resolve technical barriers to U.S. seafood exports; and promote free and
fair access for U.S. seafood products.
Marine Monuments: On June 5, President Trump issued an executive order
reversing a decision of the Obama Administration that restricted commercial fishing
in the Northeast Canyons and Seamounts Marine National Monument (off the coast
of New England). The Center of Biological Diversity has sued to nullify the
executive order.
High Risk Wildlife Markets: S. 3759 has been introduced by Senators Chris Coons
(D -DE) and Lindsey Graham (R -SC). The bill would require the Federal
Government to enter into negotiations with other nations to close high risk wildlife
markets that contribute to emerging infectious diseases. The bill would authorize
the use of sanctions for refusal to close these markets, including prohibiting imports
of products from the offending nation; freezing assets of governmental officials; and
imposing travel bans and visa restrictions.