Legislature(2017 - 2018)BUTROVICH 205
01/26/2017 01:30 PM Senate TRANSPORTATION
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Presentation: Airport Improvement Program (aip) | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
January 26, 2017
1:28 p.m.
MEMBERS PRESENT
Senator Bert Stedman, Chair
Senator Anna MacKinnon
Senator Click Bishop
Senator David Wilson
Senator Dennis Egan
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION: AIRPORT IMPROVEMENT PROGRAM (AIP)
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
JOHN BINDER, Deputy Commissioner
Department of Transportation and Public Facilities (DOTPF)
Anchorage, Alaska
POSITION STATEMENT: Presented an overview of the Aviation
Improvement Program (AIP).
ACTION NARRATIVE
1:28:53 PM
CHAIR BERT STEDMAN called the Senate Transportation Standing
Committee meeting to order at 1:28 p.m. Present at the call to
order were Senators Egan, MacKinnon, Bishop, and Chair Stedman.
Senator Wilson arrived shortly thereafter.
^PRESENTATION: AIRPORT IMPROVEMENT PROGRAM (AIP)
PRESENTATION: AIRPORT IMPROVEMENT PROGRAM (AIP)
1:30:01 PM
CHAIR STEDMAN announced that the only order of business would be
a presentation by the Department of Transportation and Public
Facilities (DOTPF) on the Airport Improvement Program (AIP). He
noted this would be the first of several presentations by DOTPF.
CHAIR STEDMAN stated that throughout the session, the Senate
Transportation Committee will be looking at aviation, roads,
harbors, buildings, as well as examining the Statewide
Transportation Improvement Program (STIP). The committee will
examine DOTPF's role in the various regions of the state and
look at projections related to changes in the federal government
and the increased allocation of highway money in order to
provide information for the Senate Finance Committee to use when
formulating the capital budget. He predicted that the committee
will be more active than previous transportation committees
several years ago because funds coming into DOTPF may be the
bulk of funds coming into the capital budget over the next
several years. A goal is to have fair allocation of capital and
quality projects moving forward.
He noted the arrival of Senator Wilson.
1:32:30 PM
JOHN BINDER, Deputy Commissioner, Department of Transportation
and Public Facilities (DOTPF), presented an overview of the
Federal Aviation Administration (FAA) Aviation Improvement
Program (AIP). He pointed out that the state owns and operates
242 airports, two of which are Anchorage International and
Fairbanks International that do not contribute to, nor receive,
general funds. The remaining 240 airports make up the rural
system - the Division of Statewide Aviation - and there are
several private airports. He stated that the AIP provides a
significant portion of the federal funding that flows into the
state for capital programs.
1:33:27 PM
MR. BINDER highlighted an employee of DOTPF, Kristen Patterson,
who works as an accounting technician at the Fairbanks
International Airport.
1:34:08 PM
MR. BINDER provided an overview of his presentation. He said he
will address the FAA AIP, Alaska's benefit, aviation capital
needs determination, and the airport project prioritization
process.
He shared information about the Airport Improvement Program
(AIP), which is funded by the Airport and Airway Trust Fund, a
congressional program. It depends on continued congressional
authorization and annual appropriations. It provides federal
grants to eligible airport sponsors of eligible projects. There
are strict rules governing eligibility, procurement, and
implementation. Sponsors accepting grants must abide by 39 grant
assurances.
1:35:57 PM
MR. BINDER addressed the Airport and Airway Trust Fund (AATF).
It was created by the Airport and Airway Development and Revenue
Act of 1970 to finance aviation programs. Revenues are derived
from aviation-related excise taxes on passengers, cargo, and
fuel. The AATF provides most of the appropriated funding for the
FAA, such as operations, facilities, equipment, research, and
capital improvements.
He turned to the Alaska Region Airport System and listed the
various types of airports in Alaska. There is one medium hub
primary airport - Anchorage. Fairbanks and Juneau are small hub
primary airports. Primary airports must have at least 10,000
passengers board planes each year.
1:37:19 PM
SENATOR MACKINNON restated that Anchorage is a medium hub
airport.
MR. BINDER said there are 26 non-hub primary airports, such as
Bethel, Dillingham, and Barrow. There are 58 commercial service
airports which have more than 2,500 passengers a year, but less
than 10,000. The remaining 58 general aviation airports have
less than 2,500 passengers.
1:38:16 PM
MR. BINDER showed a graph of the ten-year history of AIP funding
in the Alaska Region. Generally, about $200 million comes into
the state each year. He said about half comes through
entitlements and half is discretionary.
1:39:06 PM
CHAIR STEDMAN asked for an estimate of what 2017 and 2018 might
look like.
MR. BINDER estimated the funding would be about the same, as
long as the AIP is funded above $3.2 billion nationally. This
year the funding will be $3.35 billion.
1:39:41 PM
MR. BINDER explained AIP Apportionment/Entitlements for DOTPF
Airports in FY2016. He said the FAA airport capital improvement
project funding program was $169.8 million. He broke that down
into various entitlements: cargo, primary passenger, non-primary
passenger, state apportionment - a formula based on land mass
and population, Alaska supplemental, and discretionary funds.
1:41:56 PM
MR. BINDER turned to AIP legislative authority.
1:42:14 PM
SENATOR BISHOP commented on Alaska's never turning money away
because it always has projects that are ready to go. He gave
credit for that to DOTPF's quality design team.
MR. BINDER agreed.
He related that the FAA is operating under the authorization of
the FAA Extension, Safety, and Security Act of 2016. Its
timeframe is through September 30 of 2017 and it consists of
$3.35 billion. Congressional reauthorization is required in
FY2018. He noted that DOTPF is in contact with the Governor's
Office and the Alaska delegation about Alaska's desires and
needs.
1:43:15 PM
MR. BINDER shared FAA's national goals and objectives: provide a
safe and secure airport and airway system, minimize airport
noise impacts, develop reliever airports, cargo hub airports,
and intermodal transportation, protect natural resources, reduce
aircraft delays, convert former military air bases to civil use
or improve joint-use airports, and carry out various other
projects to ensure a safe and efficient airport system.
1:43:43 PM
He listed Alaska regional goals. Because of the unique nature of
the aviation system in Alaska, the FAA (Alaska Region) has a
subset of targeted goals and objectives for the AIP within
Alaska. The first is to provide and enhance safe aeronautical
access for rural Alaskan communities. This goal has been
completed. The second goal is to preserve and enhance the
condition of paved airport surfaces, and the third goal is to
enhance the safety and security of airports.
1:44:33 PM
SENATOR MACKINNON asked whether aviation mapping is a goal,
especially for the smaller airports, and where she could find
that information.
MR. BINDER replied that there are mapping efforts underway, but
they are primarily managed by the Department of Natural
Resources (DNR) and the Alaska Geospatial Council (AGC). They
include safety elements and elevation mapping.
1:45:45 PM
He highlighted several key projects in the current year. Angoon
will get a new airport, Aniak will begin construction on a new
runway this summer, Kiana will extend and reconstruct their
runway, and Atqasuk will have a rehabilitated runway.
1:46:31 PM
SENATOR MACKINNON spoke of new construction in rural areas. She
wondered if there are rural airports that are close together.
She mentioned Toksook Bay as an example. When looking at new
airport projects, she wondered if consideration is given to
whether there are other nearby airports.
1:47:34 PM
MR. BINDER said the state and FAA are not looking to spend more
money if there are viable nearby airports. He spoke of the
challenges of building and maintaining roads between communities
and the benefits of clustering airports.
1:48:28 PM
He listed runway improvement projects and safety and security
items and repairs.
1:49:18 PM
He showed the breakdown of AIAS capital funding in FY2016 and
the anticipated funding in FY2017 for Anchorage and Fairbanks.
He pointed out dollars that went to the rural system.
1:50:05 PM
MR. BINDER addressed AIP rural system funding for FY2013 through
FY2016 from federal capital funding and from state match. For
everything but Anchorage, the match is 93.75/6.25. Remote sites
are eligible for a 95/5 split. Anchorage is an 87.75/12.25
split. He pointed out that AIAS match is paid by International
Airport Revenue Funds (IARF), not state general funds.
1:51:37 PM
MR. BINDER listed the major rural system AIP construction
projects expected to be funded in FY2017 and FY2018. He offered
to provide more information as requested.
He discussed the Airport Project Evaluation Board (APEB) members
and duties and the Project Evaluation Board process, noting the
Board is constantly reviewing the project list. He mentioned the
Airport Spending Plan Development, which results in a five-year
rolling plan.
1:53:40 PM
SENATOR BISHOP asked if there has been any discussion by the
federal administration about airport fund expansion.
MR. BINDER replied that he saw an article that said about $30
billion may be allocated toward aviation to be rolled into the
Airport Improvement Plan for several years.
1:54:37 PM
SENATOR EGAN stated that Juneau is the largest municipal airport
in the state. He wondered how it fits into the funding picture.
He pointed out that Juneau did well last year.
1:55:18 PM
MR. BINDER replied that the Division of Statewide Aviation and
DOTPF take on the funding coordination role. All airports are
talking to each other regardless of the owner/operator. Juneau
generates its own revenue and makes its own match to federal
dollars. When Juneau has a capital project pending, DOTPF helps
with grant applications which funnel through DOTPF to FAA.
SENATOR EGAN asked if all funding for Juneau's airport equipment
must have DOTPF's approval.
MR. BINDER explained that DOTPF does not approve or object to
funding requests; it facilitates paperwork.
SENATOR EGAN noted that Alaska has 242 state-maintained
airports. He asked which state has the second largest number.
MR. BINDER thought it was Oregon with 40 airports. He said most
states do not own or operate airports.
1:57:17 PM
SENATOR MACKINNON asked what Juneau's federal/state match is.
MR. BINDER thought it was a 93.75/6.25 split.
SENATOR MACKINNON asked if the federal allocation to Juneau is
subtracted from the state's distribution.
MR. BINDER said yes. Juneau earns some of their own funding
through the entitlement piece, but they also use some of the
discretionary funding that comes out of DOTPF's cut. Alaska is
treated as a whole.
1:58:22 PM
SENATOR MACKINNON spoke of a reciprocal agreement with other
corporations that land at state-owned facilities for aviation
fuel. She thought it was about half of the current fuel tax. She
wondered if there was also a reciprocal agreement for foreign
vessels. She questioned whether the state benefits from that
agreement.
MR. BINDER did not know. He said that international air traffic
is exempt.
CHAIR STEDMAN requested Mr. Binder find out and get back to the
committee.
SENATOR MACKINNON said she has not been able to locate that
information and would like to see if it is an additional piece
of revenue for Alaska. She shared that Minnesota has recently
removed that tax credit.
2:00:48 PM
CHAIR STEDMAN noted there would be a fuel tax bill coming up and
they could discuss the issue then.
2:01:13 PM
SENATOR MACKINNON asked whether there is another airport
facility close to Toksook Bay or Angoon. She noted that the
state is investing funds for airport renovation and buildings
there.
2:02:23 PM
MR. BINDER said there is not another airport available for
Angoon; he did not know for Toksook Bay.
CHAIR STEDMAN said that information could be found for future
meetings.
SENATOR BISHOP said he wanted to talk about Northway Airport
with Mr. Binder some time.
2:03:30 PM
SENATOR MACKINNON said she is concerned about the erosion that
is taking place in Kivalina, which is listed as rural access.
She requested to know more information about whether that issue
has been resolved.
CHAIR STEDMAN suggested Mr. Binder provide the committee with
that information.
He announced that the next meeting will be January 31 and will
focus on adjusting the permitting processes of DOTPF and DNR.
2:04:49 PM
There being no further business to come before the committee,
Chair Stedman adjourned the Senate Transportation Standing
Committee at 2:04 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AIP Presentation - Jan 17.pptx |
STRA 1/26/2017 1:30:00 PM |