Legislature(2023 - 2024)BARNES 124

02/02/2023 01:00 PM House TRANSPORTATION

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Audio Topic
01:02:20 PM Start
01:03:34 PM Overview: Department of Transportation & Public Facilities
02:07:12 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Testimony <Invitation Only> --
+ Overview: Department of Transportation & Public TELECONFERENCED
Facilities/Aviation Division by Deputy
Commissioner John Binder; Troy LaRue, Statewide
Aviation Ops Manager; Ryan Marlow, Statewide UAS
Coordinator
**Streamed live on AKL.tv**
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                        February 2, 2023                                                                                        
                           1:02 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kevin McCabe, Chair                                                                                              
Representative Craig Johnson                                                                                                    
Representative Tom McKay                                                                                                        
Representative Sarah Vance                                                                                                      
Representative Louise Stutes                                                                                                    
Representative Genevieve Mina                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Andrew Gray                                                                                                      
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                              
Representative Craig Johnson                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW: DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES                                                                      
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JOHN BINDER, Deputy Commissioner                                                                                                
Department of Transportation & Public Facilities                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Co-presented a PowerPoint titled "Alaska                                                                 
Department of Transportation and Public Facilities Aviation                                                                     
Overview."                                                                                                                      
                                                                                                                                
RYAN MARLOW, Statewide UAS/Drone Program Coordinator                                                                            
Division of Statewide Aviation                                                                                                  
Department of Transportation & Public Facilities                                                                                
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Co-presented a  PowerPoint titled  "Alaska                                                             
Department  of  Transportation  and  Public  Facilities  Aviation                                                               
Overview."                                                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:02:20 PM                                                                                                                    
                                                                                                                                
CHAIR  KEVIN  MCCABE  called the  House  Transportation  Standing                                                             
Committee meeting to  order at 1:02 p.m.   Representatives McKay,                                                               
Vance,  Mina, and  McCabe  were  present at  the  call to  order.                                                               
Representatives Johnson and Stutes arrived  as the meeting was in                                                               
progress.                                                                                                                       
                                                                                                                                
^Overview: Department of Transportation & Public Facilities                                                                     
   Overview: Department of Transportation & Public Facilities                                                               
                                                                                                                              
1:03:34 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE announced  that the only order of  business would be                                                               
the Department of Transportation & Public Facilities overview.                                                                  
                                                                                                                                
1:04:33 PM                                                                                                                    
                                                                                                                                
JOHN BINDER, Deputy Commissioner,  Department of Transportation &                                                               
Public Facilities,  introduced himself and explained  he oversees                                                               
the aviation  side of  the department  whose mission  is "Keeping                                                               
Alaska   Moving,"  as   shown  on   slide   2,  titled   "Mission                                                               
Statements."        He    continued   on    slide    3,    titled                                                               
"Organization/Leadership,"   and  noted   the  237   airports  he                                                               
oversees,  which include  2 in  the Alaska  International Airport                                                               
System:   Anchorage, Alaska, and  Fairbanks, Alaska.   He briefly                                                               
focused  next on  slide 5,  titled  "AIAS" [Alaska  International                                                               
Airport System], which he explained  is an enterprise system - in                                                               
that Anchorage  and Fairbanks generate all  the revenue/all their                                                               
budget through rates and fees that  they charge the carriers.  He                                                               
moved on to slide 6,  titled "Operating Agreement With Carriers."                                                               
He pointed out the 35 airline  carriers that are signatory to the                                                               
agreement.    On the  renewal  of  another 10-year  contract,  he                                                               
stated  it  is  significant  in that  most  airports  across  the                                                               
country are not able to  achieve a relationship with the carriers                                                               
that result in a 10-year contract;  most are typically 5 years or                                                               
shorter.                                                                                                                        
                                                                                                                                
1:08:25 PM                                                                                                                    
                                                                                                                                
MR.  BINDER continued  on  slide 7,  titled  "Annual Revenue  And                                                               
Operations, Maintenance And Debt  Costs," that showed the various                                                               
revenue  sources  he  described  as "very  standard,"  and  their                                                               
breakdowns.  Operating, passenger  facility charges, and interest                                                               
revenues are included,  but he pointed out  that anything related                                                               
to capital is  not featured on the slide.   He proceeded to slide                                                               
8, titled "Cargo  Tonnage," and he stressed how big  an issue air                                                               
cargo is - especially on the international side, primarily Asia.                                                                
                                                                                                                                
1:10:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MINA  questioned the dips shown  in Januarys [2016                                                               
to 2022].                                                                                                                       
                                                                                                                                
MR.  BINDER  responded  it  is  due  to  the  Chinese  New  Year,                                                               
explaining  there  is about  a  two-week  period when  Asian  air                                                               
carriers shut down.  There is  also a drawdown after the holidays                                                               
that contributes to the dip.                                                                                                    
                                                                                                                                
1:11:00 PM                                                                                                                    
                                                                                                                                
MR. BINDER continued  to slide 9, titled  "Primary Revenue Driver                                                               
Airfield Activity (CMGTW)," and he  first pointed out the acronym                                                               
CMGTW  stands for  Certified Maximum  Gross Takeoff  Weight.   He                                                               
noted that during  the time the COVID-19 Pandemic  began, the Ted                                                               
Stevens Anchorage  International Airport was the  busiest airport                                                               
in the world for multiple days due to heavy cargo activity.                                                                     
                                                                                                                                
1:12:41 PM                                                                                                                    
                                                                                                                                
MR. BINDER  moved on  to slide  10, titled  "Passenger Activity,"                                                               
that  followed closely  to  slide 9  but  featured the  passenger                                                               
side.  A  line graph with passenger activity is  shown for fiscal                                                               
year  2019  (FY 19)  through  part  of  FY  23, and  the  biggest                                                               
decrease in passenger activity occurred February-April FY 20.                                                                   
                                                                                                                                
1:13:48 PM                                                                                                                    
                                                                                                                                
MR. BINDER continued to slide  11, titled "Capital Funding," that                                                               
highlighted  the   Anchorage,  Alaska,  and   Fairbanks,  Alaska,                                                               
Airport Improvement  Program (AIP).   He explained this  is where                                                               
the  vast majority  of  aviation funding  from  the FAA  [Federal                                                               
Aviation  Administration] comes  through.   The calculations,  he                                                               
explained, would be broken down further along in the slideshow.                                                                 
                                                                                                                                
1:15:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   MINA   asked   if   the   BIL/IIJA   [Bipartisan                                                               
Infrastructure Law/Infrastructure Investment  and Jobs Act] funds                                                               
are going towards rural airports.                                                                                               
                                                                                                                                
MR. BINDER answered that the funding  for IIJA did not create any                                                               
new  programs  for  the  aviation  side;  the  funding  was  just                                                               
increased  through  the  normal  program, which  is  the  Airport                                                               
Improvement Program (AIP) program.                                                                                              
                                                                                                                                
1:16:09 PM                                                                                                                    
                                                                                                                                
MR.   BINDER   continued   to    slide   12,   titled   "Economic                                                               
Opportunities,"  primarily  related  to cargo  activity  at  both                                                               
Alaska's major airports  in Anchorage and Fairbanks,  and he drew                                                               
extra attention to increased cargo  activity causing the need for                                                               
additional parking spots.   He expressed enthusiasm  over some of                                                               
the  development  opportunities  occurring.   He  explained  that                                                               
DOT&PF  also  tries  to   leverage  the  Fairbanks  International                                                               
Airport  because it  has additional  capacity  and aircraft  will                                                               
often divert there.                                                                                                             
                                                                                                                                
1:18:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MINA asked  about the  sustainability aspect  and                                                               
what the process for the research is.                                                                                           
                                                                                                                                
MR. BINDER answered  aviation fuel gathers a lot  of attention as                                                               
for environmental  impacts, but it is  in the early stages  - and                                                               
fuel is  strictly an airline  decision.   The other piece  is how                                                               
DOT&PF helps get the airlines that  supply.  Right now, it is not                                                               
realistic for  intercontinental flying,  but DOT&PF  continues to                                                               
try  and have  good conversations  going  at all  times with  the                                                               
airlines.                                                                                                                       
                                                                                                                                
1:19:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VANCE asked  what  DOT&PF has  in mind  regarding                                                               
cold storage and whether there is  a timeline as to when the cold                                                               
storage would be available.                                                                                                     
                                                                                                                                
MR. BINDER  replied the  answer expands to  the broader  issue of                                                               
warehousing needs  at the airports that  include cargo transfers,                                                               
where the  cargo can  be stored  when planes  run late,  and when                                                               
cargo  cannot  be left  on  the  ramp.    A larger  cold  storage                                                               
facility  would help  accommodate some  of the  major cargo  that                                                               
includes seafood that can be  flown internationally.  In response                                                               
to a  follow-up question requesting  a timeline, he  replied that                                                               
2024 may  be the earliest  - but he can  follow up and  provide a                                                               
more accurate timeline.                                                                                                         
                                                                                                                                
1:22:07 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE asked  what happened to the plans  for cargo parking                                                               
by the fuel tanks.                                                                                                              
                                                                                                                                
MR.  BINDER  replied the  "6-A  consortium"  [6A Aviation  Alaska                                                               
Consortium, Inc.] proposed that  project, and currently the lease                                                               
is in a cancel  status due to failure to pay  both DOT&PF and the                                                               
consortium's  contractors.   It  is  currently  sitting with  the                                                               
Superior Court.                                                                                                                 
                                                                                                                                
MR.  BINDER   had  briefly  shown  a   slide,  titled  "Statewide                                                               
Aviation,"  before  moving  to slide  14,  titled  "Rural  System                                                               
Operating Budget," which  is a snapshot of the  budget.  Contrary                                                               
to the international  system, he stressed that  nearly the entire                                                               
rural system  is "general funded."   The figures he read  off the                                                               
slide are as follows [original punctuation provided]:                                                                           
                                                                                                                                
     SFY 2022                                                                                                                   
                                                                                                                                
        Operating Cost = $39.4M (plus $18.9M in FFY 2022                                                                      
      Airport Improvement Program (AIP) federal funds for                                                                     
     Surface Maintenance and Snow Removal Equipment)                                                                          
       • CARES Act grant for $49.4M was applied to Rural                                                                        
     Airport operational costs for FFY 2020 and beyond.                                                                         
        Revenue = $11.52M ($6.97M Leasing + $4.55M fuel                                                                       
     taxes)                                                                                                                   
      • Fuel Tax to Gen Fund = $4.55M less $.16M shared w/                                                                      
     Local Sponsors                                                                                                             
     System Sustainability                                                                                                    
     • Cost reductions/efficiencies                                                                                             
     • Sand/Chemical optimization                                                                                               
     • Maintenance conversion to federal program                                                                                
       Workforce challenges                                                                                                   
                                                                                                                                
MR. BINDER  indicated under system sustainability,  that it would                                                               
be a preference to move that  off the state dollar.  He explained                                                               
that the FAA strongly strives to  work with airports to make them                                                               
self-sustaining.   In  the meantime,  DOT&PF is  doing everything                                                               
possible  to reduce  those costs.   In  the village  airports, he                                                               
noted the difficulties finding the  skillsets that would add to a                                                               
strong workforce.                                                                                                               
                                                                                                                                
1:26:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  asked if there  are any kinds  of training                                                               
programs for operators tasked with keeping runways clear.                                                                       
                                                                                                                                
MR. BINDER replied yes, but DOT&PF  is having a hard time finding                                                               
people with the initial skillset to be hired.                                                                                   
                                                                                                                                
1:29:20 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE asked  Mr. Binder to expound on repair  costs in the                                                               
rural airport system caused by vandalism,  and if there is a plan                                                               
to make "baseball bat-proof" runway lights.                                                                                     
                                                                                                                                
MR.   BINDER  replied   that  vandalism   is  a   challenge,  but                                                               
advertising in  schools is  part of DOT&PF  outreach so  that the                                                               
importance of a  safe airport is relayed to people,  and for them                                                               
to be  aware that vandalism is  a felony.  He  continued to slide                                                               
15,  titled "AIP  Rural System  Capital Funding,"  which featured                                                               
federal fiscal year 2016 (FFY  16) through FFY 22 federal capital                                                               
funding.  He  explained the amount allocated is  dependent on the                                                               
number of  airports there are and  how busy they are.   The funds                                                               
are allowed to be pooled, he explained, in a prioritized manner.                                                                
                                                                                                                                
1:33:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  asked   about  the  relationship  between                                                               
DOT&PF and  the National  Oceanic and  Atmospheric Administration                                                               
(NOAA) in reference  to the Yakutat airport  problem where planes                                                               
can't land because of equipment.                                                                                                
                                                                                                                                
MR. BINDER  replied most airlines are  operating under instrument                                                               
flight rules, so  although the day may look  clear, the equipment                                                               
goes down and  therefore pilots are not  getting accurate weather                                                               
readings.  He stated that NOAA  has some systems, but DOT&PF does                                                               
not have any control in this.                                                                                                   
                                                                                                                                
MR.  BINDER  continued on  slide  16,  titled "Aviation  Projects                                                               
(FY22/23)," which  featured projected construction projects.   He                                                               
noted the  rural system is  well built out  as for state  of good                                                               
repair/safety.                                                                                                                  
                                                                                                                                
1:37:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES   asked  Mr.  Binder  to   reiterate  what                                                               
constitutes a "rural airport."                                                                                                  
                                                                                                                                
MR. BINDER  replied a  rural airport is  classified as  any other                                                               
than those in Anchorage and Fairbanks.                                                                                          
                                                                                                                                
MR. BINDER  explained that slide 17,  titled "Airport Improvement                                                               
Program  (AIP) For  DOT&PF Airports  in FFY  2022," answered  the                                                               
question  of how  AIP is  determined for  the state.   The  slide                                                               
featured  breakdowns  by  cargo entitlements,  primary  passenger                                                               
entitlement,    non-primary    passenger    entitlement,    state                                                               
apportionment,    Alaska    supplemental,   discretionary,    and                                                               
supplemental discretionary grants totaling ~$256 million.                                                                       
                                                                                                                                
1:40:36 PM                                                                                                                    
                                                                                                                                
MR.  BINDER  invited Mr.  Marlow  to  join the  presentation  via                                                               
Teams.                                                                                                                          
                                                                                                                                
1:41:14 PM                                                                                                                    
                                                                                                                                
RYAN  MARLOW, Statewide  UAS/Drone Program  Coordinator, Division                                                               
of  Statewide Aviation,  Department  of  Transportation &  Public                                                               
Facilities,  transitioned  into  the presentation  on  slide  18,                                                               
titled  "Unmanned   Aircraft  Systems  (UAS)  and   Advanced  Air                                                               
Mobility (AAM)."   He  advanced to slide  19, titled  "Alaska UAS                                                               
Development," which featured  the amount of funding  coming in as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     $35.4 Million Programmed for CY 2023 for UAS Research                                                                    
     and Development                                                                                                          
                                                                                                                                
     Funding Sources                                                                                                          
     • U.S. DOT & FAA                                                                                                           
     • State of Alaska                                                                                                          
     • Private investments                                                                                                      
                                                                                                                                
     Partnerships                                                                                                             
     • ACUASI                                                                                                                   
     • State of Alaska agencies                                                                                                 
     • Federal                                                                                                                  
     • Private industry                                                                                                         
                                                                                                                                
1:43:21 PM                                                                                                                    
                                                                                                                                
MR. MARLOW  proceeded to slide  20, titled "2022-2023  Alaska UAS                                                               
Growth Stats."  He explained just  this year, Alaska is the first                                                               
state in  the nation  to have  more registered  unmanned aircraft                                                               
compared to  other states, and  he noted  there is a  much higher                                                               
population  of  non-registered  systems.   He  pointed  out  that                                                               
airspace  is  a  major  resource for  the  state  for  evaluating                                                               
technologies.   He continued  on slide  21, titled  "Advanced Air                                                               
Mobility  (AAM),"  which  featured  5 regions  within  the  state                                                               
broken  down by  areas of  communities, economy,  how people  get                                                               
around, and how goods are transported.                                                                                          
                                                                                                                                
1:47:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VANCE opined  that the  chart [on  slide 21]  was                                                               
"one of the best snapshots"  to portray the full perspective that                                                               
law makers  must take  into consideration.   She stated  she will                                                               
share the slide on her web pages.                                                                                               
                                                                                                                                
1:48:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  asked  about any  special  licensing  the                                                               
operators of unmanned vehicles must possess.                                                                                    
                                                                                                                                
MR.  MARLOW confirmed  all pilots  must have  the remote  pilot's                                                               
certificate.                                                                                                                    
                                                                                                                                
1:49:47 PM                                                                                                                    
                                                                                                                                
MR.  BINDER   rejoined  the  presentation   following  additional                                                               
commentary he provided on the  many pilots that are now licensed,                                                               
what the  UAS are  used for, and  the remote  sensing laboratory.                                                               
He  noted there  will be  more  details on  this next  week.   He                                                               
continued  on   slide  22,  titled  "Airport   Workforce,"  which                                                               
featured challenges and solutions  from the aviation perspective.                                                               
He  stressed  one  of  the   biggest  challenges  being  to  find                                                               
qualified  and  interested  people,   and  to  address  continued                                                               
training needs.  He also  explained project delivery is dependent                                                               
on funding,  leaving some  projects to  be incomplete  for years.                                                               
As for  solutions, he noted  expanding to  nationwide recruitment                                                               
efforts, success being had in  flexible work schedule options for                                                               
employees, and incentive pay contributing to retention.                                                                         
                                                                                                                                
1:54:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES observed  the much larger size  of UAS, not                                                               
small like a "little drone."                                                                                                    
                                                                                                                                
MR. BINDER replied that most  DOT&PF systems are small, sub-scale                                                               
at 20  to 50 pounds.   There are various sizes  depending on what                                                               
they will  be used for; it  comes down to what  type of "payload"                                                               
that would  drive a  larger system.   He  continued on  slide 23,                                                               
titled  "Airport Environment."    Keeping airports  clear due  to                                                               
weather is  highlighted as  a major obstacle,  and there  is "the                                                               
equipment element."   He eluded  again to the  higher performance                                                               
requirements  needed.    One  solution he  focused  on  was  road                                                               
weather station (RWS) utilization,  which feeds into the National                                                               
Weather Service resulting in much more foresight.                                                                               
                                                                                                                                
1:57:47 PM                                                                                                                    
                                                                                                                                
MR.  BINDER  proceeded  to  slide   24,  titled  "Remote  Airport                                                               
Lighting," where  the question  of the  working order  of airport                                                               
lights  is a  concern.    He explained  it  is  a very  expensive                                                               
project  to  fix being  that  it  is  one  element that  must  be                                                               
contracted out,  and DOT&PF  will make efforts  to delay  the fix                                                               
until  it can  be  paired  with another  project  such as  runway                                                               
servicing.    He  noted  emergency   lighting  systems  that  are                                                               
available  as an  option  for  a scenario  such  as a  helicopter                                                               
medivac.   The  lights are  located primarily  at places  with no                                                               
runway  lights.   He concluded  the presentation  and offered  to                                                               
answer questions from the committee.                                                                                            
                                                                                                                                
2:00:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE commented on  the airport leases for parking                                                               
spaces, and the  backlog in requests in the leasing  office.  She                                                               
requested more information on why  there is this backlog and what                                                               
the process is.                                                                                                                 
                                                                                                                                
MR.  BINDER replied  as far  as  a backlog,  he is  not aware  of                                                               
leasing being  able to  manage those applications,  and a  lot of                                                               
time  there  is  back  and  forth  with  incomplete  applications                                                               
submitted.   He said he will  do research on this.   Specifically                                                               
related  to Homer,  there  is  a terminal  upgrade  project.   He                                                               
stated  that the  parking needs  of additional  airports will  be                                                               
addressed, as well as the best way to move forward.                                                                             
                                                                                                                                
REPRESENTATIVE  VANCE asked  about  the  assessment of  abandoned                                                               
vehicles impacting the airports and how  bad the problem is.  She                                                               
noted recognizing  the budgetary  need for the  abandoned vehicle                                                               
fund would be helpful for future planning.                                                                                      
                                                                                                                                
MR. BINDER agreed and stated  he will provide more information on                                                               
a future date.                                                                                                                  
                                                                                                                                
2:05:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES commented on  two different business owners                                                               
in Kodiak, Alaska, who have been  in touch with DOT&PF because of                                                               
parking lot and structure problems.  She noted the lack of                                                                      
response from the state, and she offered to provide Mr. Binder                                                                  
with the names of the individuals.                                                                                              
                                                                                                                                
MR. BINDER said he appreciated the insight and would follow up                                                                  
with Representative Stutes' staff.                                                                                              
                                                                                                                                
2:07:12 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Transportation Standing Committee meeting was adjourned at 2:07                                                                 
p.m.                                                                                                                            

Document Name Date/Time Subjects
(H)TRA - DOTPF Aviation Overview 2.2.23.pdf HTRA 2/2/2023 1:00:00 PM
(H)TRA DOT&PF Aviation Division
H TRA 02-02-2023 DOTPF Aviation - Responses to Committee (FINAL).pdf HTRA 2/2/2023 1:00:00 PM