Legislature(2025 - 2026)BARNES 124
02/05/2026 01:30 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Function of the Alaska Marine Highway Operations Board | |
| Presentation(s): Function of the Alaska Marine Highway Operations Board, Cascade Point Overview and Update | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
February 5, 2026
1:42 p.m.
DRAFT
MEMBERS PRESENT
Representative Ashley Carrick, Co-Chair
Representative Ted Eischeid, Co-Chair
Representative Genevieve Mina
Representative Louise Stutes
Representative Kevin McCabe
Representative Steve St. Clair
Representative Garret Nelson
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Representative Rebecca Himschoot
COMMITTEE CALENDAR
PRESENTATION(S): FUNCTION OF THE ALASKA MARINE HIGHWAY
OPERATIONS BOARD
- HEARD
PRESENTATION(S): FUNCTION OF THE ALASKA MARINE HIGHWAY
OPERATIONS BOARD~ CASCADE POINT OVERVIEW AND UPDATE
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
WANETTA AYERS, Chair
Alaska Marine Highway Operations Board
Anchorage, Alaska
POSITION STATEMENT: Co-offered a presentation, titled "Function
of the Alaska Marine Highway Operations Board."
ANTHONY LINDOFF, Vice Chair
Alaska Marine Highway Operations Board
Juneau, Alaska
POSITION STATEMENT: Co-offered a presentation, titled "Function
of the Alaska Marine Highway Operations Board."
CRAIG TORNGA, Marine Director
Alaska Marine Highway System
Department of Transportation & Public Facilities
Ketchikan, Alaska
POSITION STATEMENT: Co-offered a presentation, titled "Function
of the Alaska Marine Highway Operations Board, Cascade Point
Overview and Update."
ANDY MILLS, Legislative Liaison
Office of the Commissioner
Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Answered questions during the Function of
the Alaska Marine Highway Operations Board, Cascade Point
Overview and Update presentation
KATHERINE KEITH, Deputy Commissioner
Office of the Commissioner
Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Co-offered a presentation, titled "Function
of the Alaska Marine Highway Operations Board, Cascade Point
Overview and Update."
ACTION NARRATIVE
1:42:04 PM
CO-CHAIR CARRICK called the House Transportation Standing
Committee meeting to order at 1:42 p.m. Representatives McCabe,
Mina, St. Clair, Nelson, Stutes, Eischeid, and Carrick were
present at the call to order. Also present was Representative
Himschoot.
^PRESENTATION(S): Function of the Alaska Marine Highway
Operations Board
PRESENTATION(S): Function of the Alaska Marine Highway
Operations Board
1:43:17 PM
CO-CHAIR CARRICK announced that the first order of business
would be the Function of the Alaska Marine Highway Operations
Board presentation.
1:44:36 PM
The committee took an at-ease from 1:44 p.m. to 1:45 p.m.
1:45:05 PM
WANETTA AYERS, Chair, Alaska Marine Highway Operations Board,
gave a presentation, titled "Function of the Alaska Marine
Highway Operations Board," via PowerPoint [hard copy included in
the committee file]/ She began by offering gratitude to the
committee. She provided a brief history of the Alaska Marine
Highway Operations Board (AMHOB), explaining that it was created
under House Bill 63 during the Thirty-Second Alaska State
Legislature. The board is populated by both legislative and
executive appointees and meets several times per month. She
emphasized Senator James Kaufman's role in helping AMHOB members
understand legislative intent, AMHOB's responsibilities, and
other important formation aspects. She noted that last year,
the legislature reaffirmed its intent to maintain AMHOB's
structure. After receiving feedback from Commissioner Ryan
Anderson of the Department of Transportation & Public Facilities
(DOT&PF), AMHOB now provides written notes from meetings to the
commissioner and welcomes two-way communication.
MS. AYERS stated that operational status is improving, despite
many ongoing challenges. These challenges include inherited
misalignment, workforce challenges, and an escalating price
environment since AMHOB's existence. She applauded Commissioner
Anderson for naming Mr. Tornga to lead the Alaska Marine Highway
System (AMHS) and described Mr. Tornga's contributions to the
board. She elaborated on the funding challenges AMHOB faces,
stating that certain funding sources are not guaranteed. She
noted that a meeting with U.S. Senator Lisa Murkowski to discuss
funding was cancelled. She added that grant processes have been
disrupted but AMHOB is committed to searching for other funding
sources and partnerships, including tribal relationships. Ms.
Ayers stated that AMHOB's next big challenge will be fleet
modernization. She emphasized that fleet modernization is the
most critical issue facing AMHS and that the state delayed its
replacement of the motor vessel (M/V) Tustumena too long.
1:57:47 PM
ANTHONY LINDOFF, Vice Chair, Alaska Marine Highway Operations
Board, added that he is a staunch cheerleader for Ms. Ayers and
echoed her comments regarding Mr. Tornga and fleet
modernization.
1:58:49 PM
REPRESENTATIVE STUTES stated that she is intimately familiar
with the AMHOB legislation. She asked if the required annual
report from AMHOB was altered between its submission to DOT&PF
and its delivery to the legislature.
MS. AYERS responded that AMHOB is required by statute to provide
an annual report and that its submission was delayed due to a
cancelled meeting. She explained that the 2045 AMHS Long-range
plan was a major focus during AMHOB's first three years of
existence, which was summarized in a letter to Commissioner
Anderson. The Long-range plan in the letter was slightly
altered for release to the public. She added that the AMHOB
legislation allows for the issuing of corrective notice and the
board exercised its statutory responsibilities.
REPRESENTATIVE STUTES asked if the letter containing AMHOB's
Long-range plan was altered by DOT&PF.
MS. AYERS responded that AMHOB discovered the letter was
altered.
2:04:43 PM
MS. AYERS, in response to a series of questions from
Representative McCabe, stated that the major alterations to the
report are listed in a letter on the AMHOB webpage, labeled
"corrective actions." She offered some of the changes that were
made, including language referring to the proposed Cascade Point
project. Ms. Ayers added that AMHOB has not taken a position
for or against the Cascade Point project. She said that in
2024, AMHOB requested a business case study for Cascade Point.
Throughout the development of the Long-range plan, there was
occasionally information presented to AMHOB, but no cost-benefit
analysis was provided. She noted that the minutes from the
AMHOB April 2024 meeting are indicative of the board's position.
She emphasized that there are huge capital needs across AMHS.
REPRESENTATIVE MCCABE said that AMHOB's capital outlay is the
legislature's job, not AMHOB's.
MS. AYERS emphasized that AMHOB's responsibility is to ensure
that there is a Long-range plan in place and capital allocation
does inform long-range planning.
2:12:23 PM
CO-CHAIR CARRICK commented that consideration of capital outlay
is a part of informed decision-making.
^PRESENTATION(S): Function of the Alaska Marine Highway
Operations Board, Cascade Point Overview and Update
PRESENTATION(S): Function of the Alaska Marine Highway
Operations Board, Cascade Point Overview and Update
2:14:19 PM
CO-CHAIR CARRICK announced that the first order of business
would be a presentation, titled "Function of the Alaska Marine
Highways Operations Board, Cascade Point Overview and Update."
CRAIG TORNGA, Marine Director, Marine Highway System (AMHS),
Department of Transportation & Public Facilities, gave a
presentation, titled "Function of the Alaska Marine Highway
Operations Board, Cascade Point Overview and Update," via
PowerPoint [hard copy included in the committee file]. He began
on slide 2, which highlighted what AMHOB accomplished in 2025.
He said his time with AMHS has been spent working on the AMHOB
Long-range plan. He noted that in 2025, AMHOB retired the M/V
Matanuska, approved a waterfall funding model, and engaged in
workforce initiatives.
2:17:05 PM
MR. TORNGA, in response to a question from Representative St.
Clair, described the waterfall model of funding.
2:17:50 PM
MR. TORNGA moved to slide 3 and explained that AMHOB's focus
areas in the Long-range plan are fleet renewal, terminal
upgrades, workforce development, and financial efficiency. He
moved to slide 4, which summarized feedback received from 68
communities regarding AMHOB's Long-range plan. He described the
public engagement regarding the Long-range plan and the process
of hosting open houses and call lines to receive public
feedback. Reliability was the top piece of feedback that AMHOB
received, in terms of what the public wants.
2:21:42 PM
CO-CHAIR CARRICK noted that this is a very high number of
community responses. She asked Mr. Tornga to define reliability
regarding AMHS.
MR. TORNGA responded that reliability includes services without
interruptions, which requires ongoing maintenance. He said
AMHOB tracks the time that vessels are out of service, with
98.55 percent of "up-time" in 2025.
2:25:44 PM
CO-CHAIR EISCHEID thanked Mr. Tornga for his service. He asked
what this level of public engagement means.
MR. TORNGA noted the passion for AMHS and said he hears from
communities why they need AMHS. He said AMHOB often hears both
what the public is used to and what it experiences today with
AMHS.
CO-CHAIR EISCHEID described his experience as a professional
planner and emphasized that mass public engagement is the basis
for longevity of a Long-range plan.
MR. TORNGA emphasized that his dream is that this plan is
followed.
2:29:30 PM
ANDY MILLS, Legislative Liaison, Office of the Commissioner,
Department of Transportation & Public Facilities, stated that
there is a long history of work prior to AMHOB and described
some previous improvement efforts for AMHS.
2:30:56 PM
MR. TORNGA, in response to a series of questions from
Representative McCabe, stated that the Long-range plan is
modelled out to 2045, with the gap between forecasted expenses
and forecasted revenue projected to grow by $90 million. He
said that there are only two current vessels projected to still
be in use in 2045, with hopes of moving towards more efficient,
diesel vessels. He added that AMHS' farebox recovery ratio is
around 30 percent, but he hopes it will increase to 40 percent
by 2045.
2:34:59 PM
KATHERINE KEITH, Deputy Commissioner, Office of the
Commissioner, Department of Transportation & Public Facilities,
moved to slide 5, which highlighted the currently approved
Southeast Alaska Transportation Plan (SEATP). She said that it
launched a vision for improving travel throughout southeast
Alaska, including both ferries and road access to shorten ferry
routes.
2:36:41 PM
MS. KEITH, in response to a question from Co-Chair Carrick, said
that there will be slides addressing the road extensions to
shorten ferry routes.
2:37:07 PM
MS. KEITH, in response to a question from Representative Mina,
said she assumes that public engagement was extensive for the
2004 SEATP and that these recommendations regarding road access
would open more opportunities for travel.
2:38:14 PM
MS. KEITH moved to slide 6, which highlighted Sitka and the
complications ferries experience currently traveling to the
city. She said that more direct ferry routes between Sitka and
Juneau would offer more frequent service, decreasing fuel usage,
staffing time, and operational costs.
MR. TORNGA added that mainline vessels consume the most fuel and
that a road across Baranof Island would make routes more
efficient. He said that a Native regional hospital will be
built in Sitka.
2:40:33 PM
CO-CHAIR CARRICK asked about the winter maintenance and
operational costs for a road across Baranof Island.
MS. KEITH said she can offer dollar amounts for similar road
projects and that the Alaska Statewide Transportation
Improvement Program (STIP) would accomplish preliminary
reconnaissance studies to answer questions regarding maintenance
and costs of that road.
CO-CHAIR CARRICK clarified that DOT&PF would like to build a 16-
mile road to a ferry terminal and would have to cover the costs
of maintenance and operation.
MR. TORNGA confirmed that that is correct and that this project
would cost less than a ferry run on that same route.
2:42:51 PM
MS. KEITH, in response to a question from Representative McCabe,
explained that there would be a bus provided by AMHS to carry
passengers to the ferry terminal.
2:44:30 PM
MS. KEITH moved to slide 7, which demonstrated another example
of a road extension near Petersburg and Mitkof Island to pull
ferry terminals closer together.
MR. TORNGA highlighted that there is already a partial road in
this direction, which would help direct the project.
2:46:06 PM
CO-CHAIR CARRICK asked about the average cost to build roads on
these Southeast Alaska islands, across challenging terrain.
MS. KEITH responded that there are existing logging roads that
the state has easements to. She said that she could provide
proposed costs to the committee.
CO-CHAIR CARRICK emphasized the state has a limited capacity for
new capital projects right now.
2:47:55 PM
REPRESENTATIVE MCCABE asked about the environmental impact of
running a ferry versus a car.
MS. KEITH said that she can provide those calculations and there
would be a significant carbon emissions reduction by shortening
ferry routes.
2:48:52 PM
MS. KEITH identified multiple road segments on Chichagof Island
that would allow ferry service to shift from long regional runs
to short shuttle connections.
MR. TORNGA emphasized the need for a road between Hoonah and
Tenakee Springs.
2:50:40 PM
CO-CHAIR EISCHEID asked about Kaufman Cove, where a ferry
terminal was built far from the town it was intended to service,
and ultimately closed. He asked about the risk of the same
occurring again.
MR. TORNGA responded that that terminal was put in place by the
Inter-Island Ferry Authority and was not an AMHS terminal at
that time.
2:52:09 PM
MS. KEITH, in response to a series of questions from
Representative Stutes, stated that the 2045 Long-range plan
includes a recommendation to evaluate road connections to reduce
time for longer ferry runs, but road construction costs were not
included in the plan. She stated that DOT&PF has provided
operating costs of the ferry terminal in the presentation's
slides. She said that the operating analysis by Ed King did not
include capital costs, but the department has provided the full
cost analysis to AMHOB.
REPRESENTATIVE STUTES stated, "I give up."
2:55:02 PM
CO-CHAIR EISCHEID observed that he heard both "no" and "yes" in
Ms. Keith's previous statements.
MS. KEITH replied that the answer depends on which report is
being read.
CO-CHAIR EISCHEID said that was a confusing answer
MS. KEITH said the department has the full capital costs and
operational savings and it has shared them publicly.
2:56:45 PM
CO-CHAIR CARRICK asked DOT&PF to follow up with the committee.
2:57:00 PM
REPRESENTATIVE MINA asked DOT&PF to include the funds needed to
maintain the capital infrastructure in its follow-up to the
committee.
2:57:18 PM
REPRESENTATIVE STUTES asked DOT&PF to include the funds needed
to lease the land that the ferry dock would be built on.
2:58:32 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 2:58
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 20260205 HTRA AMHOB and Cascade Point FINAL.pdf |
HTRA 2/5/2026 1:30:00 PM |