Legislature(2017 - 2018)BUTROVICH 205

02/08/2018 01:30 PM TRANSPORTATION

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Audio Topic
01:32:20 PM Start
01:32:45 PM Overview: State Transportation Improvement Program (stip)
02:43:13 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
+ STIP 101 (State Transportation Improvement TELECONFERENCED
Program) & Overview of New STIP (2019-2021)
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                        February 8, 2018                                                                                        
                           1:32 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bert Stedman, Chair                                                                                                     
Senator Click Bishop                                                                                                            
Senator David Wilson                                                                                                            
Senator Dennis Egan                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Anna MacKinnon                                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW: STATE TRANSPORTATION IMPROVEMENT PROGRAM (STIP)                                                                       
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MICHAEL VIGUE, Director                                                                                                         
Division of Program Development and Statewide Planning                                                                          
Alaska Department of Transportation & Public Facilities                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of the State                                                                         
Transportation Improvement Program (STIP).                                                                                      
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:32:20 PM                                                                                                                    
CHAIR BERT STEDMAN called the Senate Transportation Standing                                                                  
Committee meeting to order at 1:32 p.m. Present at the call to                                                                  
order were Senators Bishop, Egan, and Chair Stedman.                                                                            
                                                                                                                                
^OVERVIEW: State Transportation Improvement Program (STIP)                                                                      
   OVERVIEW: State Transportation Improvement Program (STIP)                                                                
                                                                                                                                
1:32:45 PM                                                                                                                    
CHAIR STEDMAN announced that the committee will hear from the                                                                   
Alaska Department of Transportation and Public Facilities                                                                       
(DOT&PF) regarding  the State Transportation  Improvement Program                                                               
(STIP).   He  specified   that   STIP  is   a  federally   funded                                                               
transportation program for projects in Alaska.                                                                                  
                                                                                                                                
1:33:45 PM                                                                                                                    
MICHAEL  VIGUE, Director,  Division  of  Program Development  and                                                               
Statewide Planning, Alaska Department  of Transportation & Public                                                               
Facilities, Juneau, Alaska, said he  will provide a STIP overview                                                               
to the committee.  He addressed slide 2:  Outline, and referenced                                                               
as follows:                                                                                                                     
                                                                                                                                
   • What is the STIP?                                                                                                          
   • How is the STIP regulated?                                                                                                 
   • What is unique about transportation funding in Alaska?                                                                     
   • How are projects selected for the STIP?                                                                                    
   • What programming considerations exist?                                                                                     
   • What STIP tools are available?                                                                                             
                                                                                                                                
He addressed slide  3: "What is the STIP? (1)"  and referenced as                                                               
follows:                                                                                                                        
                                                                                                                                
   • Statewide Transportation Improvement Program (STIP).                                                               
   • Federally required in order to spend federal highway funds                                                                 
     and transit funds.                                                                                                         
   • Approved by Federal Highway Administration (FHWA) and                                                                      
     Federal Transit Administration (FTA).                                                                                      
   • Must include all FHWA and FTA funded projects.                                                                             
   • May include non-federally funded projects if U.S.                                                                          
     Department of Transportation (USDOT) approved.                                                                             
                                                                                                                                
1:36:29 PM                                                                                                                    
He addressed slide  4: "What is the STIP? (2)"  and referenced as                                                               
follows:                                                                                                                        
                                                                                                                                
   • Must be fiscally constrained:                                                                                              
        o DOT&PF must program the STIP to the amount of federal                                                                 
          money the state believes it will receive.                                                                             
        o DOT&PF is not allowed to "over program" the STIP.                                                                     
        o Alaska receives $500 million annually in federal                                                                      
          highway funding.                                                                                                      
   • Public information document with defined involvement                                                                       
     process:                                                                                                                   
        o Public comment runs 45 days on a new STIP.                                                                            
   • Covers a period of at least four years.                                                                                    
   • Changes by amendment or administrative modification due to                                                                 
     give and take of project schedules and estimates:                                                                          
        o Amendments require additional public comments for 30                                                                  
          days.                                                                                                                 
        o Administrative modifications are small changes that do                                                                
          not require public comment.                                                                                           
   • Each funding type has unique eligibility requirements:                                                                     
        o Requirements have been greatly reduced.                                                                               
        o Moving Ahead for Progress in the 21st Century (MAP-21)                                                                
          bill was signed into law in 2012 and streamlined                                                                      
          eligibility requirements and funding management.                                                                      
                                                                                                                                
1:39:02 PM                                                                                                                    
CHAIR STEDMAN asked Mr. Vigue to explain MAP-21.                                                                                
                                                                                                                                
MR. VIGUE  explained that Congress  passes an  authorization bill                                                               
that  is  different from  their  annual  appropriation bills.  He                                                               
explained  that  multi-year  program authorizations  like  MAP-21                                                               
determines  how much  each state  receives and  what the  program                                                               
requirements are.                                                                                                               
                                                                                                                                
He addressed slide  5: "How is the STIP  Regulated? (1)," Federal                                                               
Statute and Regulation, and referenced as follows:                                                                              
                                                                                                                                
   • 23 U.S. Code (USC) Chapter 1, Sections: 101-190.                                                                           
   • Code of Federal Regulation (CFR); Title 23-Highways;                                                                       
     Chapter I-Federal Highway Administration, Department of                                                                    
     Transportation; Subchapter E-Planning and Research; Part                                                                   
     450-Planning Assistance and Standards:                                                                                     
        o Subpart ATransportation Planning and Programming                                                                      
          Definitions.                                                                                                          
        o Subpart   BStatewide    Transportation   Planning   and                                                               
          Programming.                                                                                                          
        o Subpart CMetropolitan Transportation Planning and                                                                     
          Programming.                                                                                                          
                                                                                                                                
He  disclosed that  committee members  should reference  the U.S.                                                               
Department  of  Transportation Federal  Highway  Administration's                                                               
website  and reference  Fixing  America's Surface  Transportation                                                               
(FAST)  Act to  address the  current authorizing  legislation for                                                               
the state's federal aid money.                                                                                                  
                                                                                                                                
1:41:21 PM                                                                                                                    
He  addressed slide  6:  "How  is the  STIP  Regulated? (2)"  and                                                               
referenced Alaska's statutes and regulations as follows:                                                                        
                                                                                                                                
   • Alaska Statutes (AS) Title 19: Highways and Ferries,                                                                       
     Chapter 15: Financial Provisions.                                                                                          
   • 17 Alaska Administrative Code (AAC) 05.155-200:                                                                            
        o General requirements,                                                                                                 
        o Public participation,                                                                                                 
        o Project needs list and evaluation,                                                                                    
        o Adoption,                                                                                                             
        o Amendment.                                                                                                            
                                                                                                                                
MR. VIGUE explained that DOT&PF must follow both state and                                                                      
federal   laws   and   regulations  to   comply   with   planning                                                               
requirements, programming requirements to use the federal money.                                                                
                                                                                                                                
1:41:59 PM                                                                                                                    
He addressed slide 7: "What is Unique About Transportation                                                                      
Funding in Alaska?" and referenced as follows:                                                                                  
                                                                                                                                
   • $1:$5 Highway Trust Fund return:                                                                                           
        o For  every dollar  Alaska  contributes  to the  Highway                                                               
          Trust  Fund,  the  majority  from  federal  motor  fuel                                                               
          taxes,   Alaska    receives   $5   back    in   federal                                                               
          appropriations.                                                                                                       
   • Can spend federal highway funds on any public road:                                                                        
        o Exemption in  federal law that  allows Alaska  to spend                                                               
          federal highway dollars on any public road.                                                                           
        o Public roads are  "functionally" classed that includes:                                                               
          interstate, arterial, and major collector.                                                                            
        o Functional  classifications  are eligible  for  federal                                                               
          aid funds in the Lower 48.                                                                                            
        o Alaska has  an exemption  to use  federal aid  funds on                                                               
          minor    collectors,   local    roads,   transportation                                                               
          facilities,   and   projects   in  villages   such   as                                                               
          boardwalks.                                                                                                           
   • Alaska is reliant on federal funds:                                                                                        
        o Not a lot of state funding available.                                                                                 
        o DOT&PF gets  enough state match  to use up  its federal                                                               
          funds.                                                                                                                
        o Alaska's federal  funds are 90  percent of  projects as                                                               
          opposed to the Lower 48 that is typically 80 percent.                                                                 
        o Federal  law has  a sliding  scale that  calculates the                                                               
          square miles  of federal land  and Alaska has a  lot of                                                               
          federal  land, so  the state's  sliding scale  provides                                                               
          for  an  additional 10  percent;  i.e.,  90 percent  of                                                               
          projects are from federal funds.                                                                                      
   • Alaska has the lowest gas tax in the country:                                                                              
        o Alaska's gas tax is $0.08 per gallon.                                                                                 
        o Alaska has an approximate $0.01 per gallon tax for                                                                    
          storage tanks.                                                                                                        
                                                                                                                                
1:43:50 PM                                                                                                                    
CHAIR STEDMAN asked if Alaska's  exemption would include Juneau's                                                               
municipal roads.                                                                                                                
                                                                                                                                
MR. VIGUE answered that is correct.                                                                                             
                                                                                                                                
SENATOR BISHOP  addressed fuel storage  tanks and noted  that the                                                               
legislature increased  the Spill  Prevention and  Response (SPAR)                                                               
Fund a few years ago.                                                                                                           
                                                                                                                                
MR. VIGUE answered that is correct.                                                                                             
                                                                                                                                
He  addressed  slide  8:   Alaska  Federal-aid  Eligibility,  and                                                               
referenced as follows:                                                                                                          
                                                                                                                                
   • Title 23, Section 118 (d) allows Alaska to use any funds                                                                   
     made  available under  Title 23  for construction  of access                                                               
     and development roads that  will serve resource development,                                                               
     recreational, residential, commercial,  industrial, or other                                                               
     like purposes.                                                                                                             
   • FHWA interprets this to be limited to "public roads;" this                                                                 
     is defined under Title 23 Section 101(a)(22) as any road                                                                   
     under the jurisdiction of and maintained by a public                                                                       
     authority and open to public travel.                                                                                       
                                                                                                                                
He disclosed that Title 23,  Section 118(d) was a broad exception                                                               
that was put  into federal law for Alaska by  Senator Stevens. He                                                               
added that  federal funds  must be for  public roads  and private                                                               
roads are not eligible.                                                                                                         
                                                                                                                                
1:46:43 PM                                                                                                                    
CHAIR STEDMAN asked him to verify  that a road remains public for                                                               
its life if public funds are used.                                                                                              
                                                                                                                                
MR.  VIGUE  opined that  the  public  access  is for  the  road's                                                               
"design life." He explained that  the typical "design life" is 20                                                               
years. He  said the length  of time  a road remains  available to                                                               
the  public  that  has  been federally  funded  would  require  a                                                               
discussion with FHWA.                                                                                                           
                                                                                                                                
He addressed  slide 9: Project  Selection Factors  and referenced                                                               
as follows:                                                                                                                     
                                                                                                                                
   • Significant eligibility rules in federal and state law:                                                                    
        o DOT&PF is constantly looking at the scope of work of                                                                  
          projects and the functional class of the road that the                                                                
          department wants to do the work on.                                                                                   
        o DOT&PF makes sure when programming the STIP that the                                                                  
          project is eligible for the fund source.                                                                              
   • National Highway System (NHS) routes are primarily state                                                                   
     owned and selected:                                                                                                        
        o System plans, performance data.                                                                                       
        o Emphasis on safety, capacity, economy and continuity.                                                                 
   • Safety projects are required to be data driven focus:                                                                      
        o Reducing major injuries and fatalities using                                                                          
          proven solutions.                                                                                                     
        o Highway   Safety    Improvement   Program   (HSIP)                                                                    
          projects require a data-driven approach with a                                                                        
          cost-benefit analysis in improving the highway.                                                                       
   • Surface Transportation Program (STP) has high demand:                                                                      
        o Urban allocations scored by metropolitan planning                                                                     
          organizations (MPOs), Fairbanks Metropolitan Area                                                                     
          Transportation System (FMATS), and Anchorage                                                                          
          Metropolitan Area Transportation (AMATS).                                                                             
        o Due to lower funding, statewide program has                                                                           
          backlog of projects waiting on funds.                                                                                 
                                                                                                                                
MR. VIGUE noted  that when MAP-21 was passed the  funding for STP                                                               
was  reduced;  however,  funding  increased  for  the  interstate                                                               
system and principal arterials, an  act that asserted the federal                                                               
interest  in   the  interstate  system,  national   defense,  and                                                               
interstate commerce.  He disclosed that  DOT&PF has a  backlog of                                                               
projects  for  STP with  no  new  design starts  because  ongoing                                                               
projects must be completed before starting new projects.                                                                        
                                                                                                                                
1:51:46 PM                                                                                                                    
He  addressed  slide  10:   Surface  Transportation  Block  Grant                                                               
Eligibility  (STP)-Title  23  Section   133,  and  referenced  as                                                               
follows:                                                                                                                        
                                                                                                                                
   • Construction of:                                                                                                           
        o Highways, bridges, tunnels.                                                                                           
        o Ferry boats and terminals.                                                                                            
        o Transit capital projects under Title 49.                                                                              
        o Infrastructure-based     intelligent     transportation                                                               
          systems (ITS) improvements.                                                                                           
        o Truck parking facilities.                                                                                             
   • Operational improvements/capital and operating costs for                                                                   
    traffic monitoring, management, and control facilities.                                                                     
   • Environmental measures.                                                                                                    
   • Highway and transit safety infrastructure improvements.                                                                    
   • Protection for bridges: seismic, scour, security, etc.                                                                     
   • Surface transportation planning programs.                                                                                  
                                                                                                                                
CHAIR STEDMAN asked Mr. Vigue  to address in his presentation the                                                               
return  of  funds  for  projects   that  do  not  materialize  as                                                               
expected; for example, ferry terminals in Southeast Alaska.                                                                     
                                                                                                                                
1:53:55 PM                                                                                                                    
SENATOR WILSON joined the committee meeting.                                                                                    
                                                                                                                                
MR. VIGUE explained  that DOT&PF is working with the  FWHA on the                                                               
ferry terminal  issue where  federal funds were  used to  build a                                                               
faciality where  the "business need"  went away and  the facility                                                               
is not being used for its intended purpose.                                                                                     
                                                                                                                                
CHAIR STEDMAN stated  that the committee will bring  the issue up                                                               
when more details are available.                                                                                                
                                                                                                                                
SENATOR EGAN  remarked that no  ferry terminal is  profitable. He                                                               
noted that a toll is paid to ride  on the ferry system and no one                                                               
else pays a toll except for a few toll roads in northern Alaska.                                                                
                                                                                                                                
MR. VIGUE replied  that he did not say the  ferry terminal had to                                                               
be profitable,  he specified that  the ferry terminal  would have                                                               
to be an ongoing business  enterprise. He said he understood that                                                               
the Alaska Marine Highway System as  well as ferries in the Lower                                                               
48 must be subsidized.                                                                                                          
                                                                                                                                
1:55:48 PM                                                                                                                    
CHAIR STEDMAN clarified that he  was referencing the Coffman Cove                                                               
ferry terminal that  was constructed along with  the South Mitkof                                                               
Highway. He  specified that shuttle service  was intended between                                                               
Coffman  Cove on  North Prince  of  Wales Island  to Wrangle  and                                                               
Petersburg, a "business model" that  did not work out as expected                                                               
where  the ferry  terminals  currently have  very  light use.  He                                                               
explained that the  state is trying to work through  the issue of                                                               
the ferry terminals' construction cost and limited use.                                                                         
                                                                                                                                
SENATOR EGAN  agreed with  Chair Stedman  but reiterated  that no                                                               
ferry terminal  is profitable  in Alaska,  even though  the state                                                               
subsidizes the system.                                                                                                          
                                                                                                                                
MR. VIGUE addressed slide 11:  "How are Projects Selected for the                                                               
STIP?" and referenced as follows:                                                                                               
                                                                                                                                
   • NHS projects scored for the first time:                                                                                    
        o Data driven project selection is the goal to quantify                                                                 
          projects.                                                                                                             
        o Data analysis still in infancy            data rich,                                                                  
          information poor.                                                                                                     
        o Scores guided discussion.                                                                                             
        o Team effort.                                                                                                          
   • Considerations include:                                                                                                    
        o Safety,                                                                                                               
        o Pavement condition needs immediate treatment,                                                                         
        o Bridge condition,                                                                                                     
        o Traffic count,                                                                                                        
        o Unique benefits:                                                                                                      
             square4 On the interstate system.                                                                                  
             square4 Environmental process for "shovel ready" project.                                                          
                                                                                                                                
MR.  VIGUE  explained  that the  department's  regional  planning                                                               
officials  and pre-construction  engineers were  brought together                                                               
to review  each NHS  performance program  funded project  and the                                                               
projects  that rose  to  the  top are  believed  to  be the  most                                                               
qualified.                                                                                                                      
                                                                                                                                
1:59:46 PM                                                                                                                    
SENATOR EGAN asked if FHWA was included in the project scoping                                                                  
process.                                                                                                                        
                                                                                                                                
MR. VIGUE replied that FHWA was not present.                                                                                    
                                                                                                                                
SENATOR EGAN asked if DOT&PF presented their findings to FHWA.                                                                  
                                                                                                                                
MR. VIGUE answered that is correct.                                                                                             
                                                                                                                                
He addressed slide 12: "How are Projects Selected for the STIP                                                                  
(2)?" and referenced as follows:                                                                                                
                                                                                                                                
   • Highway Safety Improvement Program (HSIP) ranks projects                                                                   
     through benefit/cost analysis.                                                                                             
   • Program must select projects where documented safety issues                                                                
     exist.                                                                                                                     
   • Safety issues must be remedied using solutions that have                                                                   
     been proven to alleviate such issues.                                                                                      
   • FAST Act restricts funds to infrastructure improvements and                                                                
     engineering solutions.                                                                                                     
   • HSIP no longer may be used for: education, enforcement, or                                                                 
     emergency response.                                                                                                        
                                                                                                                                
CHAIR  STEDMAN   referenced  presentations   in  the   past  that                                                               
addressed  safety  corridors in  the  Anchorage  and Mat-Su  area                                                               
where  a STIP  buildout  plan  occurred. He  asked  Mr. Vigue  to                                                               
review  the safety  buildout plan  that  he noted  to update  the                                                               
committee at  an upcoming meeting.  He emphasized that  safety is                                                               
high on the list when allocating limited resources.                                                                             
                                                                                                                                
2:02:35 PM                                                                                                                    
MR. VIGUE  agreed with Chair Stedman.  He noted that some  of the                                                               
projects that  Chair Stedman referenced  may be addressed  in the                                                               
STIP  due  to the  length  of  time  to  develop and  complete  a                                                               
project. He noted that the  STIP contains several funded projects                                                               
on  the  Seward  and  Parks  highway which  are  in  the  "safety                                                               
corridors."                                                                                                                     
                                                                                                                                
He addressed  slide 13: "How  are Projects Selected for  the STIP                                                               
(3)?" and referenced as follows:                                                                                                
                                                                                                                                
   • Community Transportation Program (CTP) projects are scored.                                                                
   • Five sets of scoring criteria:                                                                                             
        o Remote and Trail,                                                                                                     
        o Urban and Rural,                                                                                                      
        o Trails and Recreational Access for Alaska (TRAAK),                                                                    
        o Transit,                                                                                                              
        o Intelligent Transportation Systems (ITS).                                                                             
   • STIP continues to fund backlog of past scored projects.                                                                    
   • Another round in 1-2 years for new projects.                                                                               
                                                                                                                                
He detailed that  CTP is under state regulations  but funded with                                                               
federal money. He  noted that CTP was previously  funded with STP                                                               
money.  He disclosed  that CTP  projects  are backlogged  because                                                               
federally funded  projects that  are started  are expected  to be                                                               
brought to construction  before a new project  can be considered.                                                               
He reiterated that MAP-21 has made  it difficult for the state to                                                               
bring  additional projects  on.  He emphasized  that Alaska  will                                                               
always  have more  needs than  resources, an  issue where  DOT&PF                                                               
must  always work  through by  prioritizing and  funding projects                                                               
with limited federal funds.                                                                                                     
                                                                                                                                
2:05:31 PM                                                                                                                    
He addressed  slide 14: "How  are Projects Selected for  the STIP                                                               
(4)?" and referenced as follows:                                                                                                
                                                                                                                                
 • Allocations to Metropolitan Planning Organizations (MPO):                                                                    
        o Anchorage,                                                                                                            
        o Fairbanks.                                                                                                            
   • Communities affected by air pollution:                                                                                     
        o State Implementation Plan (SIP), Alaska Department of                                                                 
          Environmental Conservation (DEC);                                                                                     
        o Fairbanks;                                                                                                            
        o Anchorage/Eagle River;                                                                                                
        o Juneau.                                                                                                               
                                                                                                                                
MR. VIGUE  reiterated that  Anchorage and  Fairbanks both  get an                                                               
allocation  of  STP  money  based on  population.  He  said  both                                                               
Anchorage and Fairbanks have their  own project selection process                                                               
called  the Transportation  Improvement  Program  (TIP), a  local                                                               
version of the  STIP. He said TIPs come to  DOT&PF for review and                                                               
approval.                                                                                                                       
                                                                                                                                
He  added  that DOT&PF  also  funds  projects through  Congestion                                                               
Mitigation and Air Quality (CMAQ)  program. He disclosed that the                                                               
bulk  of CMAQ  money  goes to  the Fairbanks  area  due to  their                                                               
Nonattainment Area  Designation were  projects are  controlled by                                                               
Alaska Department  of Environmental Conservation (DEC).  He added                                                               
that Anchorage and  Eagle River are in a  "maintenance area" were                                                               
an  allocation  of  CMAQ  funds  are  allocated.  He  noted  that                                                               
Juneau's Mendenhall  Valley area in "nonattainment  for PM10" due                                                               
mostly for wood smoke, like what is going on in Fairbanks.                                                                      
                                                                                                                                
2:07:23 PM                                                                                                                    
SENATOR WILSON  addressed MPO allocations  and asked  how changes                                                               
are made when a third or fourth is added later.                                                                                 
                                                                                                                                
MR.  VIGUE  answered  that  the money  gets  split  into  greater                                                               
portions.  He  disclosed that  Alaska  is  a "minimum  allocation                                                               
state" where  the MPO money  is split into  two pots, one  pot is                                                               
for metropolitan  planning that Anchorage and  Fairbanks receive.                                                               
He  noted that  Senator  Wilson may  be  addressing the  expected                                                               
census  in  2020  that  will   create  the  opportunity  for  the                                                               
Wasilla/Palmer  area to  create an  MPO  that would  result in  a                                                               
split  of   the  metropolitan  planning  money.   He  added  that                                                               
Wasilla/Palmer would  also receive  an allocation from  STP funds                                                               
as well.                                                                                                                        
                                                                                                                                
He addressed  slide 15: "How  are Projects Selected for  the STIP                                                               
(5)?" and referenced as follows:                                                                                                
                                                                                                                                
   1. Federal & State Laws:                                                                                                     
       o Alaska must comply with federal and state laws.                                                                        
   2. Long Range Transportation Plan (LRTP):                                                                                    
        o Everything done in the STIP must be consistent with                                                                   
          the LRTP.                                                                                                             
   3. STIP.                                                                                                                     
   4. Capital Budget Legislative Authority                                                                                      
        o DOT&PF presents  the legislature with a  capital budget                                                               
          request.                                                                                                              
        o Authorized  capital budget  gives DOT&PF  the authority                                                               
          to spend federal money and provides the state match                                                                   
          necessary to obligate the federal funds.                                                                              
   5. Project Development.                                                                                                      
        o Regional   design   and  construction   teams   develop                                                               
          projects.                                                                                                             
                                                                                                                                
2:09:26 PM                                                                                                                    
MR. VIGUE  addressed slide  16: STIP  Programming Considerations,                                                               
and referenced as follows:                                                                                                      
                                                                                                                                
   • STIP can only be programmed up to Alaska's expected funding                                                                
     level.                                                                                                                     
   • Most STIP funding is use-or-lose and cannot be carried over                                                                
     from year to year:                                                                                                         
        o Funding  for  a project  must  be  obligated to  secure                                                               
          funding.                                                                                                              
        o Obligation  occurs  when  a  project  is  certified  as                                                               
          meeting all federal requirements and a funding                                                                        
          agreement is signed by FHWA.                                                                                          
   • In Alaska and nationwide, 30 percent of projects end up                                                                    
     delayed to a later year:                                                                                                   
        o Large, controversial  projects are at a  higher risk of                                                               
          slipping.                                                                                                             
        o Funding tools such as  Advanced Construction (AC) allow                                                               
          some flexibility to pursue additional projects for                                                                    
          when projects slip.                                                                                                   
                                                                                                                                
He called  attention to "August  redistribution" that  happens at                                                               
the end of  federal fiscal year which is  September. He explained                                                               
that  "August  redistribution"  means that  obligation  authority                                                               
that was  not used in  other areas gets put  into a pot  and gets                                                               
redistributed. He disclosed that  DOT&PF has been successful with                                                               
"August  redistribution" the  last couple  of years.  He revealed                                                               
that DOT&PF  put in a  request to  FHWA and received  $23 million                                                               
and $27  million in  additional authority  to spend  the previous                                                               
two  years  from  "August  redistribution."  He  emphasized  that                                                               
"August redistributions" allows for additional projects.                                                                        
                                                                                                                                
He  added  that  advance-construction  is  another  term  for  an                                                               
ability to move projects forward  with approval from FHWA without                                                               
an actual  obligation of federal  funds. He detailed  that DOT&PF                                                               
has  managed advance-construction  and  doing  obligations as  it                                                               
sees expenditures  to not impact  the state treasury. He  said as                                                               
soon as  DOT&PF starts seeing  expenditures of  any significance,                                                               
DOT&PF  can do  a  project  modification with  FHWA  and ask  for                                                               
reimbursement.   He  explained   that  advance-construction   has                                                               
allowed DOT&PF to get more "work  out on the street" at any given                                                               
time without impacting reimbursements from FHWA.                                                                                
                                                                                                                                
2:14:37 PM                                                                                                                    
MR. VIGUE addressed  slide 17: 2018 FAST Act  Funding for Alaska,                                                               
and detailed as follows:                                                                                                        
                                                                                                                                
   • National Highway Performance Program (NHPP): $299.1                                                                        
     million:                                                                                                                   
        o Alaska's main highways: Parks Highway, Glenn Highway,                                                                 
          Alaska  Highway,  Dalton   Highway,  Sterling  Highway,                                                               
          Seward   Highway,  University   Avenue  in   Fairbanks,                                                               
          Airport  Way in  Fairbanks, Egan  Drive in  Juneau, and                                                               
          parts of South Tongass Highway in Ketchikan.                                                                          
   • Surface Transportation Block Grant Program (STP): $149.9                                                                   
     million:                                                                                                                   
        o Flexible funding.                                                                                                     
 • Highway Safety Improvement Program (HSIP): $31.6 million,                                                                    
   • Congestion Mitigation and Air Quality (CMAQ): $28.4                                                                        
     million,                                                                                                                   
   • Metropolitan Planning Program: $2.3 million,                                                                               
   • National Highway Freight Program: $15.2 million:                                                                           
        o New program for any project on the National Highway                                                                   
          Freight Network that includes Alaska's interstate                                                                     
          system.                                                                                                               
        o DOT&PF can designate urban and rural critical freight                                                                 
          corridors:                                                                                                            
             square4 Dalton Highway is expected to be tagged as the                                                             
               rural freight corridor.                                                                                          
             square4 MPOs will be allowed to identify urban freight                                                             
               corridors.                                                                                                       
                                                                                                                                
2:16:48 PM                                                                                                                    
SENATOR BISHOP asked if Alaska is done with Shakwak funds.                                                                      
                                                                                                                                
MR. VIGUE  answered yes.  He explained  that Shakwak  funding was                                                               
put  into  federal  authorizing  legislation  in  the  1990s  for                                                               
Canadian projects that  connect the Haines Highway  to the Alaska                                                               
Highway. He said MAP-21 eliminated the Shakwak program.                                                                         
                                                                                                                                
He addressed slide  18: FAST Act (1): Funding  Certainty for Five                                                               
Years, and referenced as follows:                                                                                               
                                                                                                                                
   • Congress passed FAST Act in December 2015.                                                                                 
   • Modest increase in total funding levels:                                                                                   
        o Initial  5-percent  FHWA  increase and  16-percent  FTA                                                               
          increase from 2015 to 2016, then 2-percent annual                                                                     
          increases.                                                                                                            
   • $2.65 billion in FHWA apportionments to Alaska over five                                                                   
     years:                                                                                                                     
        o Averages $531 million annually.                                                                                       
   • $268 million in FTA apportionments to Alaska over five                                                                     
     years:                                                                                                                     
        o Averages $53.6 million annually.                                                                                      
        o Majority  goes  to   Anchorage  and  Fairbanks  transit                                                               
          operators.                                                                                                            
        o DOT&PF gets  $8 million  that provides grants  to small                                                               
          transit operators in the state.                                                                                       
                                                                                                                                
2:19:43 PM                                                                                                                    
MR. VIGUE addressed slide 19: FAST Act (2): Funding Certainty                                                                   
for Five Years, and referenced as follows:                                                                                      
                                                                                                                                
   • Maintains Alaska's Ferry Boat Program at $18 million plus-                                                                 
     or-minus annually.                                                                                                         
        o Formula-driven process  that is  based on  route miles,                                                               
          vehicles carried, and passengers carried.                                                                             
        o Ketchikan received money for their airport ferry.                                                                     
        o Inter-Island   Ferry   Authority  that   runs   between                                                               
          Ketchikan and Hollis receives an annual appropriation.                                                                
   • Increases Tribal Transportation Program (TTP) funds                                                                        
     nationally from $450 million in 2015 to $465 million in                                                                    
     2016 with $10 million annual increments.                                                                                   
        o Alaska tribes get $60 million  annually from The Office                                                               
          of Federal Lands Highway (FLH) or the Bureau of Indian                                                                
          Affairs (BIA).                                                                                                        
   • Formula based National Freight Program to support highway                                                                  
     freight movement with some multimodal eligibility, Alaska                                                                  
     averages $16 million annually.                                                                                             
 • Continuation of Transportation Alternatives Program (TAP).                                                                   
        o Alaska receives $6 million per year.                                                                                  
        o Alaska  Department of  Natural  Resources is  allocated                                                               
          $1.5 million to manage recreational trails.                                                                           
                                                                                                                                
2:22:28 PM                                                                                                                    
SENATOR WILSON asked how TTP funds are allocated and does DOT&PF                                                                
coordinate with the tribes on projects.                                                                                         
                                                                                                                                
MR. VIGUE answered  that DOT&PF partners with the  tribes and the                                                               
department  tries  hard to  make  their  relationship better.  He                                                               
pointed out  that none  of the funding  comes through  DOT&PF and                                                               
the tribes receive the funds  from the federal agencies. He noted                                                               
that TTP offers unique features  that allows more flexibility for                                                               
use  in   maintenance,  transit,   highways,  and   airports.  He                                                               
disclosed  that  the  tribes  are  required  to  put  together  a                                                               
Transportation Improvement  Program (TIP) that DOT&PF  receives a                                                               
copy  and reciprocates  communication. He  added that  tribes can                                                               
come  to DOT&PF  to use  TTP funds  as a  match on  a project  to                                                               
leverage some STP  money. He noted that the  governor has created                                                               
his  Tribal  Advisory  Council and  DOT&PF  is  participating  by                                                               
communicating with the tribes, FHWA, and BIA on a regular basis.                                                                
                                                                                                                                
2:24:28 PM                                                                                                                    
He addressed slide 20: FAST  Act (3): FAST Act Policy Priorities,                                                               
and referenced as follows:                                                                                                      
                                                                                                                                
   • Generally, maintains MAP-21 programs and policy.                                                                           
   • As in MAP-21, streamlining project delivery to reduce time                                                                 
     and cost identified as priority.                                                                                           
   • Freight policy and freight network under dedicated National                                                                
     Freight Program.                                                                                                           
   • Continues Performance Based Program Management:                                                                            
        o Federal Highway Administration's National Proposed                                                                    
          Rule Making (NPRM) set goals for:                                                                                     
             square4 Safety,                                                                                                    
             square4 Pavement,                                                                                                  
             square4 Bridges.                                                                                                   
                                                                                                                                
He addressed slide  21: Federal Lands Access  Program (FLAP), and                                                               
referenced as follows:                                                                                                          
                                                                                                                                
   • FLAP provides funds for projects on public roads or trails                                                                 
    that are located on or provide access to federal lands:                                                                     
        o Title or maintenance responsibility must be with the                                                                  
          state, municipal or tribal governments.                                                                               
        o Federal lands include those managed by National Park                                                                  
          Service, U.S. Forest Service, U.S. Fish & Wildlife                                                                    
          Service, Bureau of Land Management, and U.S. Army                                                                     
          Corps of Engineers.                                                                                                   
        o Projects are limited to $2 million.                                                                                   
   • Funding for Alaska averages $8 million annually, formula-                                                                  
     based distribution, and is administered by Western Federal                                                                 
     Lands Highway Division in Vancouver, Washington.                                                                           
   • Program Decision Committee (PDC) selects projects:                                                                         
        o The PDC must include a DOT&PF representative, a FHWA                                                                  
          representative and representative of a political                                                                      
          subdivision of the state; the Alaska Municipal League                                                                 
         (AML) Executive Director fills this last slot.                                                                         
                                                                                                                                
2:28:47 PM                                                                                                                    
MR. VIGUE addressed slide 22: Tribal Transportation Program, and                                                                
addressed as follows:                                                                                                           
                                                                                                                                
   • TTP jointly administered by FHWA Federal Lands Highway and                                                                 
     BIA as a nationally based Federal program.                                                                                 
   • FHWA/BIA develop a stand-alone TIP.                                                                                        
   • Funding for Alaska tribes in 2018 is expected to be $49                                                                    
     million; none of this funding comes through DOT&PF.                                                                        
   • Coordination and communication between tribes, federal                                                                     
     agencies, state, and local agencies is critical to success:                                                                
        o Governor's     Tribal    Advisory     Council    (GTAC)                                                               
          Transportation Subcommittee.                                                                                          
        o DOT&PF has created a tribal liaison position.                                                                         
        o Looking for ways to leverage TTP funding towards                                                                      
          larger budget projects.                                                                                               
                                                                                                                                
2:30:21 PM                                                                                                                    
He addressed slides 23-27 regarding online STIP project search                                                                  
tools found on the DOT&PF website.                                                                                              
                                                                                                                                
2:34:43 PM                                                                                                                    
He addressed slide 28: Notable STIP Projects, and referenced as                                                                 
follows:                                                                                                                        
                                                                                                                                
   • Seward Highway 74-90 Ingram Creek to Girdwood Road:                                                                        
        o $89.5 million,                                                                                                        
        o Construction and utilities,                                                                                           
        o Advertised: 1/19/2018.                                                                                                
   • Glenn Highway South Inner Springer Loop to Old Glenn:                                                                      
        o $49 million,                                                                                                          
        o Construction and utilities,                                                                                           
        o Tentative advertise: April 2018.                                                                                      
   • Parks Highway 13-18 Pittman Road to Big Lake Road:                                                                         
        o $45 million,                                                                                                          
        o Construction and utilities,                                                                                           
        o Tentative advertise: late 2018.                                                                                       
   • Dalton Highway 223-238 Reconstruction:                                                                                     
        o $26 million,                                                                                                          
        o Construction,                                                                                                         
        o Tentative advertise: early 2019.                                                                                      
   • Richardson Highway 354-359 (Fairbanks area):                                                                               
        o $25.6 million,                                                                                                        
        o Construction,                                                                                                         
        o Tentative advertise: late 2018.                                                                                       
   • Skagway State Street Rehabilitation:                                                                                       
        o $10.6 million,                                                                                                        
        o Construction and utilities,                                                                                           
        o Tentative advertise: August 2018.                                                                                     
   • Egan Drive Main Street to 10th Street:                                                                                     
        o $10.5 million,                                                                                                        
        o Construction and utilities,                                                                                           
        o Tentative advertise: May 2018.                                                                                        
   • Ketchikan North Tongass Bridges, Waterfall Creeks:                                                                         
        o $10 million,                                                                                                          
        o Construction,                                                                                                         
        o Tentative advertise: March 2018.                                                                                      
                                                                                                                                
2:37:17 PM                                                                                                                    
SENATOR EGAN noted his concern  for pedestrian safety, especially                                                               
on  state  highways.  He  pointed  out that  a  lot  of  Juneau's                                                               
sidewalks  are  on  municipal  land  and  referenced  a  sidewalk                                                               
project  on Douglas  Highway that  will connect  Gastineau School                                                               
with nearby housing  developments. He asked if  there was federal                                                               
money available for sidewalk construction or pedestrian safety.                                                                 
                                                                                                                                
MR. VIGUE  replied yes. He  noted that the Gastineau  project was                                                               
funded through the Safe Routes to School Program.                                                                               
                                                                                                                                
SENATOR EGAN asked  him to verify that the Safe  Routes to School                                                               
Program no longer exists.                                                                                                       
                                                                                                                                
MR. VIGUE answered correct, from  the previous funding source. He                                                               
disclosed that eligibility for the  Safe Routes to School Program                                                               
is  currently funded  under STP.  He  addressed multiple  funding                                                               
sources for sidewalks and crossings to consider.                                                                                
                                                                                                                                
SENATOR WILSON  asked if  there are  federal or  state permitting                                                               
issues  that  could hold  up  STIP  programs. He  referenced  the                                                               
possible impact  from a proposed  initiative being  considered in                                                               
the legislature.                                                                                                                
                                                                                                                                
MR. VIGUE answered  that there are always  permitting and process                                                               
issues with  construction projects. He  said he was not  aware of                                                               
the initiative that Senator Wilson referenced.                                                                                  
                                                                                                                                
2:40:15 PM                                                                                                                    
SENATOR  WILSON specified  that  the legislation  relates to  the                                                               
"clean  water  initiative"  or   "save  the  salmon  initiative,"                                                               
something that would impact the STIP's  "use it or lose it" rule.                                                               
He  opined that  not being  able to  carry over  STIP funds  from                                                               
year-to-year may  impact projects that are  delayed by litigation                                                               
or additional processes that could stop permitting.                                                                             
                                                                                                                                
MR. VIGUE replied as follows:                                                                                                   
                                                                                                                                
     That's always an  issue. I don't know  what the impacts                                                                    
     of  that  particular  bill  will be;  but,  as  far  as                                                                    
     dealing with the "use it  or lose it" issue, that's the                                                                    
     flexibility that I  was talking about where  if we have                                                                    
     a project  that is scheduled  to go to  construction in                                                                    
     2018 and that project gets  hung up because of a permit                                                                    
     need  or   something  like   that,  we   have  built-in                                                                    
     flexibility in the STIP that we  will be able to pull a                                                                    
     project forward.  We do  not lose  federal money  and I                                                                    
     can say that unequivocally that  we are not going to go                                                                    
     there, we will always figure that out.                                                                                     
                                                                                                                                
CHAIR STEDMAN  opined that Senator  Wilson's question  related to                                                               
issues that can "gum up"  the entire system where projects cannot                                                               
be moved  forward. He  said the committee  will bring  up Senator                                                               
Wilson's question  as a  separate subject  at a  future committee                                                               
meeting.                                                                                                                        
                                                                                                                                
SENATOR  EGAN  asked  if  DOT&PF  will be  back  to  address  the                                                               
committee.                                                                                                                      
                                                                                                                                
2:43:02 PM                                                                                                                    
CHAIR STEDMAN explained that the  committee will have DOT&PF back                                                               
to  address  statewide  transportation  projects  on  a  regional                                                               
basis: South Coast,  Central, and Northern. He  added that DOT&PF                                                               
can also  touch base on  safety projects and safety  corridors so                                                               
that the committee can get a  broader feel across the state where                                                               
the  needs  are  as  well  as  where  the  funds  are  going.  He                                                               
reiterated  his desire  to address  the potential  transportation                                                               
impact  from the  proposed gas-line  project. He  added that  his                                                               
intent is to address transportation  issues to lay the groundwork                                                               
for the  Senate Finance Committee  when dealing with  the capital                                                               
budget.                                                                                                                         
                                                                                                                                
2:43:13 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair  Stedman  adjourned   the  Senate  Transportation  Standing                                                               
Committee at 2:43 p.m.                                                                                                          

Document Name Date/Time Subjects
STIP Presentation Senate Transportation 2-8-2018.pdf STRA 2/8/2018 1:30:00 PM