Legislature(2025 - 2026)BUTROVICH 205
01/23/2025 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| Overview: Opening Remarks | |
| Presentation(s): Dot & Pf Department Overview | |
| 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 23, 2025
1:31 pm
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Löki Tobin, Vice Chair
Senator Jesse Kiehl
Senator Bert Stedman
Senator Mike Shower
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
OVERVIEW: OPENING REMARKS
- HEARD
PRESENTATION(S): DOT & PF DEPARTMENT OVERVIEW
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
RYAN ANDERSON, Commissioner
Department of Transportation and Public Facilities (DOTPF)
Juneau, Alaska
POSITION STATEMENT: Co-presented a Department of Transportation
and Public Facilities Department Overview.
KATHERINE KEITH, Deputy Commissioner
Department of Transportation and Public Facilities (DOTPF)
Anchorage, Alaska
POSITION STATEMENT: Co-presented a Department of Transportation
and Public Facilities Department Overview.
ACTION NARRATIVE
1:31:09 PM
CHAIR BJORKMAN called the Senate Transportation Standing
Committee meeting to order at 1:31 pm. Present at the call to
order were Senators Kiehl, Stedman, Tobin, and Chair Bjorkman.
Senator Shower arrived immediately thereafter.
^OVERVIEW: OPENING REMARKS
OVERVIEW: OPENING REMARKS
1:32:09 PM
CHAIR BJORKMAN welcomed the committee and declared that safe and
reliable transportation are key to Alaska's economy and quality
of life. He said the Senate Transportation Standing Committee
would look for friction points in Alaska's transportation
networks and determine actions the legislature can make to help
alleviate challenges.
CHAIR BJORKMAN said the committee would hear from state
agencies, trade organizations, and other Alaska transportation
stakeholders. Stakeholders would speak to the challenges they
face and to the impacts of those challenges for their
organizations and for all Alaskans. He sought cooperation from
industry, stakeholder groups and agencies to propose solutions
to help solve workforce challenges. He noted the legislature
could pass legislation but opined that legislation that is not
tailored to problems in the real world would not be helpful and
would likely make things worse.
^PRESENTATION(S): DOT & PF DEPARTMENT OVERVIEW
PRESENTATION(S): DOT AND PF DEPARTMENT OVERVIEW
1:33:06 PM
CHAIR BJORKMAN announced the presentation titled Senate
Transportation Committee: DOT AND PERMANENT FUND Department
Overview.
1:33:43 PM
RYAN ANDERSON, Commissioner, Department of Transportation and
Public Facilities (DOTPF), Juneau, Alaska, briefly introduced
himself.
1:34:11 PM
COMMISSIONER ANDERSON moved to slide 1 and noted that
transportation was of high interest to Alaskans. The state is
geographically large and getting around is important to
everyone. He indicated that the presentation would address key
transportation issues for the state as well as potential
opportunities. He added that the presentation would highlight
critical areas where the legislature could provide insight and
support for the Department of Transportation and Public
Facilities (DOTPF).
1:36:07 PM
At ease.
1:36:19 PM
CHAIR BJORKMAN reconvened the meeting.
1:36:26 PM
COMMISSIONER ANDERSON moved to slide 2 and said Alaska faced
significant challenges over the past years, including severe
weather events such as the Glen Highway erosion, the Mendenhall
River flood, the Ketchikan landslide, and a West Coast storm
that brought unprecedented water levels, overtopping the runway
for the first time on record in Kotzebue. He said Department of
Transportation and Public Facilities (DOTPF) proactively used
resources from across Alaska, including contractors, to respond
to these unanticipated events.
COMMISSIONER ANDERSON said the DOTPF commercial compliance team
was involved in mineral extraction and resource development
projects in the Alaska Interior like the Willow project and the
Dalton Highway, focusing on moving trucks safely on the highway.
He stated that DOTPF was acting to address a tragic rise in
highway and pedestrian fatalities.
1:38:22 PM
COMMISSIONER ANDERSON said the Statewide Transportation
Improvement Program (STIP) team had shown resilience and
innovation under intense scrutiny and media attention. He
referred to slide 2 and said DOTPF remains committed to linking
cities and communities for commerce and industry development as
outlined in their enabling statutes.
[Original punctuation provided.]
MISSION: Keep Alaska Moving
Core Values
Integrity - Excellence - Respect - Safety
DOT&PF oversees a network of highways that link
together cities and communities throughout the state,
thereby contributing to the development of commerce
and industry in the state, and that aids in the
extraction and development of its resources, and
improves the economic and general welfare of the
people of the state (AS 19.05.125)
1:39:24 PM
MS. KEITH KATHERINE KEITH, Deputy Commissioner, Department of
Transportation and Public Facilities (DOTPF), Anchorage, Alaska,
moved to slide 3, World Class Transportation Infrastructure:
Alaska's Competitive Edge. Slide 3 shows a map highlighting
resources and multimodal aspects of Department of Transportation
and Public Facilities (DOTPF) infrastructure. The map indicated
the following Alaska features:
• Petroleum Refineries
• International Airports
• Rural Airports
• Tunnels
• Ports
• Fisheries
• Forest
• Spruce Bark Beetle Damaged Forest
• National Highway System
• Railroad
• Trans Alaska Highway
• Proposed Alaska LNG Line
• Marine Routes
• Electric Transmission Lines
MS. KEITH highlighted Alaska's abundant natural resources,
including renewable energy sources: tides and geothermal energy,
biomass for biofuels, significant fisheries, and natural gas
reserves on the North Slope and in Cook Inlet as well as carbon
sequestration potential. These resources support the state's
economy and residents. She emphasized that transportation is
vital to connect these resources to communities. She emphasized
DOTPFs vast multi-modal approach, which includes ports, bridges,
and railroads. She said the presentation would indicate
challenges and points of friction.
1:41:06 PM
COMMISSIONER ANDERSON moved to slide 4, a summary organization
chart for Department of Transportation and Public Facilities
(DOTPF), graphically illustrating the following elements of the
department:
[Original punctuation provided.]
Through Land Air, Sea: It Takes a Team
Commissioner
• Deputy Commissioner
Strategic Assets
• Alaska International Airport System
• Alaska Marine Highway System
• Statewide Equipment Fleet
• Division of Facility Services
Planning, Design, Construction, Maintenance and
Operations
• Central Region
• Northern Region
• Southcoast Region
• Project Delivery
• Projects Management Office
• Measurement Standards and Commercial Vehicle
Compliance
Cross-Functional Support
• Program Management and Administration
• Data Modernization and Administration
• Procurement
• Communications
• Legislative Office
• Civil Rights Office
• Statewide Aviation
• Safety, Emergency and Security
Boards
• Roads and Highways Advisory Board
• Executive Facilities Management Advisory
Committee
• Alaska Marine Highways Operations Board
• Aviation Advisory Board
• STATEWIDE PERSONNEL AND DISTRIBUTION 3,445
permanent full-time, part-time and non-permanent
positions in 8 labor unions in 80+ locations
COMMISSIONER ANDERSON said DOTPF was a large, multi-faceted
organization, the largest [Alaska state department] with over
3,400 employees, eight labor unions, and 80 plus locations. The
organization's strategic assets are in three regions and carry
out the work of the department: planning, design, construction,
maintenance, and operations. He explained that the Project
Delivery Division was the backbone to DOTPF's standards and
engineering work, and the Project Management Office was focused
on project scope, scheduling and budget work. He said the
Measurement Standards and Commercial Vehicle Compliance office
operate the weigh stations, ensuring that the trucks on the road
are legal. Cross-functional support for the entire department
included program management, data, modernization and innovation,
procurement, communications, legislative support, civil rights
office, statewide aviation safety, emergency, and security He
gave an example of the effectiveness of the civil rights office
to address and resolve problems across divisions quickly.
1:43:40 PM
COMMISSIONER ANDERSON said DOTPF was adopting a matrix structure
to better navigate federal regulations from the federal
agencies: the Federal Aviation Administration (FAA), Federal
Highway Administration (FHA), and Federal Transit Administration
(FTA). He noted DOTPF also had advisory boards to provide
oversight.
1:44:00 PM
CHAIR BJORKMAN reflected that the chart on slide 4 represented a
wide variety of responsibilities and employees necessary to the
economy and function of life in Alaska. He asked whether DOTPF
was too large to effectively manage and meet its mission and
whether it should be divided into smaller units that could be
more easily managed.
1:44:40 PM
COMMISSIONER ANDERSON said that had been considered in the past.
He discussed the Division of Facility Services as an example
where organizational overlap works well. He compared office
buildings accommodating 300 or 400 people with a maintenance
shop where five or six maintenance and operations personnel are
based. He said DOTPF was trying to organize better under its
current structure, rather than splitting things off. He said
DOTPF was working to eliminate silos and referred to the
Mendenhall River flood event response. He said there was a big
benefit to a structure where people know each other and can
interact to send people and equipment where needed. He said
there could be benefits to splitting some things out.
1:46:42 PM
COMMISSIONER ANDERSON moved to slide 5.
[Original punctuation provided.]
Workforce Development
FFY2024-FFY2027 STIP Funding: $19,332.4 (100%
federally funded under 23 USC 504(e))
Training Funding for FFY2025
• Employee Technical Training: $1,040.0
• Construction/Industry Training: $670.0
• Mechanics Training: $379.0
• Commercial Driver's License (CDL) Training:
$356.0
• Safety and Maritime Workforce Training: $284.0
each
University of Alaska Fairbanks, and DOT&PF Career
Pathway Program for Planning, Design, Construction,
Maintenance, and Operations $718.0
• Education Enrichment
• Skill Development
• Networking Opportunities
• Credentialing System
• Rotational Structure
• Performance Evaluation
DOT&PF is developing Career Pathway Guides for all
career options at the department.
[A screenshot of the DOT&PF Engineering Pathway is
included on slide 5.]
COMMISSIONER ANDERSON said DOTPF considered maintenance and
workforce issues by region. The northern region had a 15 percent
vacancy rate, with some camps exceeding 20 percent vacancy. The
central region, including Anchorage, had a six percent vacancy
rate, while the South Coast region had an eight percent rate.
Specific challenges included 40 percent vacancy, in areas like
Cordova, Thompson Pass, and Valdez, and difficulties in hiring
electricians statewide. The department is considering innovative
solutions, such as alternative paths to obtain Commercial
Driver's Licenses (CDLs) for potential employees in remote
locations (e.g. Hoonah). He noted regional differences in
workforce needs and challenges and highlighted efforts to adapt
training programs to address challenges.
1:48:46 PM
SENATOR TOBIN asked whether it would make a difference if the
offroad CDL licensure was reinstated.
1:49:06 PM
COMMISSIONER ANDERSON said DOTPF is considering the offroad CDL.
He said there are pilot programs in rural communities to take
Division of Motor Vehicles (DMV) examiners to a community to
test applicants for an offroad CDL. He said DOTPF would support
the offroad CDL in areas where it is a good fit.
1:49:41 PM
SENATOR STEDMAN asked how DOTPF's vacancy rates compares with
that of other states. He asked whether there was a specific area
the legislature could address to decrease the vacancy rate.
1:50:10 PM
COMMISSIONER ANDERSON said interactions with American
Association of State Highway and Transportation Officials
(AASHTO) suggest that vacancy rates depend on location and
availability of candidates and competition for qualified
drivers. He noted there are high-paying trucking jobs in some
Alaska locations (e.g. ore haul jobs near Tok). He said DOTPF
does not compete well to fill equipment operator positions.
COMMISSIONER ANDERSON said Valdez and the Dalton Highway area
also have stiff competition to hire equipment operators. There
was an established trucking group for companies operating trucks
on the Dalton Highway that was advocating for higher wages for
DOTPF operators.
1:51:39 PM
COMMISSIONER ANDERSON reported workforce shortages, with vacancy
rates at 11 percent for Anchorage International Airport, 13
percent for Fairbanks and 19 percent for the Division of
Facility Services. He noted concern about the 24 percent vacancy
rate for the statewide equipment fleet, particularly in heavy-
duty mechanic positions. Filling similar positions was difficult
for the private sector as well. To address workforce challenges,
he said that the 2024 to 2027 Statewide Transportation
Improvement Plan (STIP) has allocated $19 million of federal
funding for various training initiatives. Additionally, a
collaboration with the University of Alaska, Fairbanks is
underway to prepare students for specific jobs like engineering,
through internships and education tailored to industry needs.
1:53:18 PM
SENATOR TOBIN asked for the overall vacancy rate for DOTPF.
1:53:35 PM
COMMISSIONER ANDERSON estimated it to be 15 percent and said he
would provide the committee with that information.
1:53:46 PM
SENATOR SHOWER asked whether the commissioner was aware of the
Veteran Internships Providing Employment Readiness (VIPER)
program.
1:53:55 PM
COMMISSIONER ANDERSON asked for more information.
SENATOR SHOWER noted the need for workforce development and that
Alaska has several military bases, along with the highest per
capita military veterans. He said there are over 50,000 veterans
exiting the military per year. VIPER is a program centered in
Anchorage and Fairbanks (and expanding nationwide) that provides
training to veterans, enabling them to join the workforce. He
opined that this would be helpful for the state.
1:54:36 PM
COMMISSIONER ANDERSON noted that DOTPF participates in the Army
Partnership for Your Success (PaYS) program and said the VIPER
program would be of interest.
1:54:50 PM
MS. KEITH moved to slide 6 and discussed the modernization of
DOTPFs highway and bridge program, focusing on digital data
access and real-time information. Key updates include an online
permitting system launched in September 2024, live plow tracking
on the 511 system, and a winter operations dashboard for public
visibility.
[Original punctuation provided.]
HIGHWAYS
FY2026 Budget
($ in Thousands)
• Design, Engineering, & Construction
$132,942.5
• Highways, Aviation, & Facilities
$174,708.5
• Administration & Support $65,632.7
• UGF $101,339.4, DGF $51,687.3, Fed $4,431.4,
Other $215,825.6
• 11,900 Lane Miles of DOT&PF Roads/Highways
• 80 Staffed Maintenance Stations
• 851 DOT&PF-Owned Bridges
• 9 Weigh Stations
• 3 Tunnels, incl. Anton Anderson Memorial Tunnel
(2.5 mi)
• 750 Miles of Sidewalks
Key Issues Ahead
• Dalton Highway and Industrial Activities on
Highways
• Bridge Conditions
• Bicyclist and Pedestrian Safety / Complete
Streets
• Project Cost Escalation
• Planning Authority on National Highway System
Routes
• Deferred Maintenance
• Right-of-Way Management
• Emergency Relief Funding
• Deicing Chemicals on Highways
MS. KEITH explained that the new systems aim to improve
efficiency and transparency, integrating data and information
from various sources like APEX and STIP. She emphasized the
multi-layered nature of construction projects represented in
APEX, STIP, and the Highway Safety Improvement Program. She
emphasized the importance of digital tools in asset management,
enabling better planning and investment decisions based on real-
time data and public feedback.
2:00:43 PM
MS. KEITH emphasized that safety is a high priority and provided
examples. She drew attention to recent pedestrian fatalities in
Anchorage and said digitization is not the answer. She said
DOTPF is partnering with Anchorage Vision Zero and Anchorage
Metropolitan Area Transportation Solutions (AMATS) to find
solutions. She highlighted a public alert system to facilitate
immediate reporting of traffic issues and said it also helps
DOTPF make informed decisions for corrective actions. She said
quick Emergency Medical Services (EMS) response improves crash
outcomes and DOTPF funded and provided Jaws of Life kits to EMS
providers across the state. DOTPF is also working to expand
medical evacuation (medevac) sites along rural high-speed
routes. She discussed the challenge of addressing all identified
safety needs with limited and unpredictable available funds,
noting that project cost escalation is a recurring theme.
2:04:08 PM
COMMISSIONER ANDERSON addressed points on slide 6 related to
highways and bridges. He noted the Rabbit Creek overcross bridge
collapse in Anchorage and said the bridge team is diligently
working to determine the root cause of the collapse and is
checking on similar 1970s era bridges around the state. He
stated that DOTPF is working to determine planning authority on
National Highway System routes alongside Municipal Planning
Organizations (MPOs). He noted concerns about deferred
maintenance and right of way management. He said DOTPF had seen
success with the abandoned vehicle program and was now
addressing abandoned buildings and homeless encampments.
2:05:40 PM
MS. KEITH moved to slide 7:
[Original punctuation provided.]
RURAL AIRPORT SYSTEM
($ in Thousands)
• 237 State-Owned and Operated Rural Airports
• Over 300 Air Carriers
• Over 140 Communities (82%) without Road Access
• $163,623.8 in FFY2024 from Airport Improvement
Program
• Essential Air Service FFY2024 provides $39,268.7
over 65 communities
• $81,150.9 in FFY2024 from Bi-Partisan
Infrastructure Law
Key Issues Ahead
• Project Cost Escalation
• Airport Lighting Systems
• Airport Weather Observation Systems (AWOS)
• Federal Aviation Administration (FAA)
Reauthorization
• Employee Housing
• Increasing Cost of Rural Airport Maintenance
Contracts
• Civil Rights and FAA Findings
• Gustavus Airport Security
• PFAS Transition
• Parking at Airports
MS. KEITH said capital funding for airports comes primarily
through the Federal Aviation Administration's (FAA) Airport
Improvement Program (AIP) and the bipartisan infrastructure law
in the form of airport infrastructure grants and some terminal
grants. In FY24, 70 grants were executed; this is expected to
increase to 73 in FY25. FY23 anticipates $190 million in AIP
funds and $40 million from the infrastructure law. Last year, 16
projects went out for construction, with eight expected this
year.
2:07:27 PM
MS. KEITH said challenges included outdated airport lighting
systems and weather reporting systems. She said DOTPF
distributed emergency lighting kits to rural hub airports to
quickly address lighting outages and was implementing eight
lighting improvement projects at various airports to replace
aging lighting systems. She said 50-60 of 153 automated weather
observation systems (AWOS) and automated surface observation
systems (ASOS) stations were often out. She said work was
underway with the Federal Aviation Administration (FAA) and
National Weather Service (NWS) to find solutions for the AWOS
and ASOS weather reporting station issues.
2:09:54 PM
MS. KEITH said employee housing is also a concern, particularly
at Kotzebue. She said DOTPFs capital budget request for FY 26
included provision for employee housing in some areas. She noted
the impact of data collection required by the expansion of the
Airport Concession Disadvantaged Business Enterprises (ACDBE)
program. DOTPF is dedicating a position to ensure compliance
with the ACDBE as part of its Civil Rights awareness and
response.
2:11:30 PM
MS. KEITH said the budget included funds to transition and clean
out airport equipment previously contaminated by per- and
polyfluoroalkyl substances (PFAS). She said the plan is to start
with the international airports and move to Part 139 airports
after demonstrating successful [remediation] methods.
2:12:13 PM
COMMISSIONER ANDERSON noted the FAA re-authorization of funds
included many benefits for Alaska, including the ability to
share FAA funded equipment with rural communities. He credited
Alaska's congressional delegation and said he expects progress
with issues like the ability to lengthen runways.
2:12:58 PM
MS. KEITH moved to slide 8, which includes a map of Alaska
illustrating M-5 Alaska, a maritime route which extends from
Puget Sound, Washington to Unalaska in the Aleutian Islands and
M-11 Alaska, the Arctic Gateway Marine Route.
[Original punctuation provided.]
WATERWAYS
• 33,900 Miles of Shoreline
• 765 Ports and Harbors
• 58 Used for Commercial Purposes
• 5 Ports Among Nation's Busiest by Volume
• 0 Port Facilities Owned by DOT&PF
• 16 DOT&PF-Owned harbors
• 1 Set of Breakwaters
Key Issues Ahead
• Ice Roads and Federal Funding
• Governance of Ports in Alaska
• Resiliency of Multi Modal Connections
MS. KEITH discussed the importance of navigable waterways in
Alaska, including ports, harbors, and ice roads. She noted only
16 of the ports statewide are owned by the state of Alaska. She
highlighted the Arctic Gateway Marine Route (M11) and explained
it was part of the federal marine highway system, making
communities and maritime facilities along the route eligible for
federal funding through the Maritime Administration (MARAD). She
said DOTPF was working to communicate the availability of M11
Arctic Gateway Marine Route funding to communities along the
coast.
2:15:47 PM
MS. KEITH emphasized the need to federalize the ice roads
program, which is currently supported by state funds. The ice
roads are critical for rural communities. She stated that ice
roads are part of the multi-modal transportation system, which
is critical for ports resiliency. She said DOTPF is
investigating the use of formula funds for barge landings and
ports infrastructure, which, she said, is allowable.
2:16:36 PM
SENATOR SHOWER said a deep-water port in northwest [Alaska] was
previously funded and pointed to national security and economic
development benefits. He noted that this project is not
currently funded and asked whether a deep-water port was
included in future infrastructure plans.
2:16:58 PM
COMMISSIONER ANDERSON emphasized the need for a comprehensive
view of Alaska's port system, and the role of the Department of
Transportation (DOT) in governance. He noted the significance of
the Northwest Passage and ongoing major projects (e.g. the
hardening of the shore in Utqiagvik) and the development of
deeper water ports in Kotzebue and Nome. He said the integration
of these projects with the Port of Alaska is key. He said the
M11 route is creating opportunities through successful
application of the MARAD funding program.
2:18:14 PM
COMMISSIONER ANDERSON moved to slide 9.
[Original punctuation provided.]
Alaska Marine Highway System
Budget Info
($ in Thousands)
FY2026 Marine Highway System: $159,418.4
• UGF: $61,440.9
• DGF: $20,754.3:
• Fed: $76,242.1
• Other: $981.1
2024 Operations
• 9 Ferries
• 35 Ports of Call
• 3,500-Mile Coastal Route
• 33 Terminals
• 53,111 Vehicles Moved
• 118,212 Passengers Transported
• 4 Ships Over 50 Years Old
Key Issues Ahead
• Maritime Workforce
• Federal Transit Administration/Federal Highway
Administration Coordination
• M/V Matanuska Decision
• Long Range Planning
• Capital Investment in Vessels and Terminals
• Modernization and Customer Service
• Trooper Ride-Alongs (Columbia)
COMMISSIONER ANDERSON said the Alaska Marine Highway System
(AMHS) faces challenges with workforce and vessel reliability,
including the Kennecott's major emissions project. He commended
Director Tornga for ensuring that the remaining ships are
running reliably. He said the rural ferry program, funded by the
Federal Transit Administration (FTA), are progressing with
projects like the Tustumena replacement vessel and the Tazlina
crew quarters, though compliance with the Buy America program is
complex. He said there is over $400 million in grants allocated
to supporting new vessel projects. He noted the challenge to
determine the future of the 60-year-old Matanuska. He said the
long-range ferry plan is forthcoming, with $170 million in
grants for docks and ferries. A modern reservation system and
Wi-Fi on vessels, including the Columbia, are being developed.
Safety measures include hiring retired troopers for vessel ride-
alongs.
2:21:45 PM
SENATOR KIEHL noted the poor condition of the Tustumena and
asked how many people were working to get the Tustumena
replacement out to bid.
2:22:34 PM
COMMISSIONER ANDERSON answered that the Tustumena is well-cared
for and is a safe ship. He said that Director Tornga is working
alongside a dedicated DOTPF engineer and experienced consultants
to see the Tustumena replacement project through construction.
He said there are also Federal Transit Administration (FTA)
consultants working on this project. He pointed out complexities
related to access to rural ferry program funds and navigating
Federal Transit Authority (FTA) requirements that are more
suited to bus and transit projects. He said delays are not due
to a lack of resources and suggested that a presentation for the
committee on DOTPF's capital program for AMHS is warranted.
2:24:25 PM
SENATOR KIEHL affirmed that he would like a presentation on
DOTPF's capital program.
2:24:47 PM
SENATOR STEDMAN requested that DOTPF provide a detailed
Tustumena construction schedule, preferably a Gantt chart, to
track progress and identify delays. He said the cost of holding
the Matanuska at dock and equipping it with a sprinkler system
for housing purposes must be determined and he questioned
whether the Matanuska is likely to return to service. He
acknowledged that it will be a difficult decision to
decommission the Matanuska; however, decommissioning may be
necessary to better allocate resources. He suggested the Senate
Transportation Standing Committee consider whether to
decommission the vessel.
SENATOR STEDMAN said the committee and DOTPF could cooperate to
review the capital investment of the Marine Highway Program
(including the allocation of federal funds between operations
and capital expenditures), thereby reducing the workload for the
Senate Finance Committee and providing documentation and
recommendations for capital and operating budget expenditures.
He encouraged increased legislative participation in budget
preparation beyond the Senate Finance Committee.
SENATOR STEDMAN emphasized the importance of increasing
ridership on AMHS and addressed employee-related issues. He
noted the importance of reviewing current workforce issues, such
as the number of interviews and hires, and salary levels. He
noted concern that some labor groups involved in the marine
highway are not competitive with other labor force groups in the
state, which could affect recruitment and retention. He
highlighted the need for licensed personnel on ships and the
competitive nature of AMHS labor contracts compared to other
ferry systems. He concluded that working with Department of
Transportation and Public Facilities (DOTPF) to preload this
information would position the legislature to have productive
discussions.
2:28:24 PM
COMMISSIONER ANDERSON noted that Department of Transportation
and Public Facilities (DOTPF) is currently in negotiations with
all three marine labor unions.
2:28:40 PM
SENATOR KIEHL asked whether ferry system management
representatives are present at the union negotiating tables.
2:29:21 PM
COMMISSIONER ANDERSON replied yes.
2:29:28 PM
SENATOR STEDMAN advocated for the committee to come up to speed
with master ship agreements and the way they affect the state's
flexibility to negotiate as the owner and manager versus the
labor organizations. He shared his understanding that some
master agreements expire when ships are changed out, creating an
opportunity to draft new agreements.
2:30:16 PM
COMMISSIONER ANDERSON moved to slide 10.
[Original punctuation provided.]
ALASKA INTERNATIONAL AIRPORT SYSTEM
Budget Info FY2026 International Airports
($ in Thousands)
• $127,019.7 Fed $1,008.4, Other $126,011.3
• 9.5 Hours from 90 percent of the Industrialized
World
• Ted Stevens Anchorage International Airport (ANC)
• Ranked Second Busiest Cargo Airport in North
America
• Ranked Fourth in Landed Cargo Weight
Globally
• ~20,000 Passengers in a Single Day; Record
in FY2024
• Five New Cargo Carriers in FY2024
• Fairbanks International Airport (FAI)
• Diversionary Airport with an 11,800-foot
runway
• Sixty cargo and passenger aircraft
diversions in FY2024
• Key Issues Ahead
• Air Cargo Growth & Infrastructure Investment
• Passenger Service Expansion
• Alaska International Airport System
Restructure
• Sustainable Aviation Fuel Initiative
• Solar Initiative
• PFAS Transition
COMMISSIONER ANDERSON highlighted the record growth of air cargo
and passenger activity at Alaska's international airports over
the past two years, particularly in Anchorage. There is
opportunity for Fairbanks to continue to grow as well. He said
infrastructure improvements are now possible as longstanding
legal conflicts on development areas have been resolved. He
noted that taxiway development and expanding apron and cargo
hard stand areas would contribute to expansion and make the
airports better able to serve carriers that have expressed
interest in Alaska operations. Fuel demand from new carriers
with interest in Alaska is encouraging work and research toward
sustainable fuels, including the potential for fuel from fish
waste or woody biomass.
2:33:08 PM
MS. KEITH said Alaska Airlines and Atlas [Air, Inc] approached
Department of Transportation and Public Facilities (DOTPF) in
the past year to indicate their interest in sustainable aviation
fuel (SAF) at Ted Stevens International Airport. She emphasized
that Europe requires that two percent of carriers' fuel be SAF
and said there is a limited supply globally. The US produced
just over 100 million gallons of SAF last year. Alaska's unique
geography and resources make it well-suited to provide SAF.
DOTPF applied for, and was awarded, a low tier grant for
planning related to developing SAFs. This could be followed by a
more substantial grant, possibly combined with a Department of
Energy low interest loan toward construction, provided there
continues to be interest from carriers. She noted that SAF and
renewable diesel are required for international shipping by the
International Maritime Organization.
2:34:40 PM
SENATOR TOBIN noted her recent visit to the National Renewable
Energy Laboratory (NREL) in Denver where she learned about
NREL's Alaska work with the [federal] Department of Defense
(DOD) on sustainable aviation fuels, particularly for small
aircraft. She encouraged DOTPF collaboration with NREL, pointing
out they were already doing the work and were already funded by
Alaska's federal partners.
2:35:08 PM
COMMISSIONER ANDERSON concurred that sustainable fuels work is
exciting. He also noted initiatives to install ten megawatt
solar arrays at the airports to diversify energy supply
sustainably.
COMMISSIONER ANDERSON gave a brief update on efforts to remove
PFAS from the airports, and to appropriately dispose of them.
Efforts will begin with the international airports and proceed
to part 139 airports in rural areas.
2:36:10 PM
SENATOR STEDMAN requested a presentation on sustainable aviation
fuels, including developments and innovation from other North
American efforts.
2:37:15 PM
SENATOR SHOWER advocated for increased in-state oil refinement.
He acknowledged the potential for biomass fuels, but highlighted
engine compatibility challenges and the reality that biofuels
are still blended [with petroleum fuels]. He said increased
extraction of minerals and oil would be required to support
future technological and sustainable fuel advances.
2:38:37 PM
COMMISSIONER ANDERSON moved to slide 11.
[Original punctuation provided.]
Division of Facility Services
Budget Info
FY2026 Division of Facilities Services
($ in Thousands)
• $104,429.5
• UGF $21,235.4, DGF $545.0, Fed $160.1, Other
$82,489
• 827 Public Facilities Spanning 50 Communities
• Serving Multiple State Agencies
• 44 Contracts Awarded in 2024 for over $43,000.0
in Facility Improvements
• 180 Projects Underway
• 360-Degree Cameras for Virtual Building
Walkthroughs
• Developing Digital Twins
Key Issues Ahead
• Legacy Systems
• Customer Service
• Deferred Maintenance
COMMISSIONER ANDERSON highlighted the Key Issues Ahead from
slide 11. DOTPF is moving away from Legacy Systems to modernize
and streamline inventories, work orders and good systems for
tracking work. Customer Service is a priority as well as
addressing deferred maintenance for facilities.
2:39:16 PM
CHAIR BJORKMAN requested to advance to the Statewide
Transportation Improvement Plan (STIP) portion of the
presentation.
2:39:59 PM
COMMISSIONER ANDERSON moved to slide 16.
[Original punctuation provided.]
FFY2025 Construction Program Outlook
($ in Thousands)
FFY2025 Construction Contracts Awarded
Contracts Awarded to Date: $123,729.5
Estimated Contract Awards: $694,000.0 - $1,083,000.0
How We Improve
• Tentative Advertise List Accountability
• Agile Methods: High-level engagement to remove
obstacles
• Improved Management Systems: Tracking project
schedules and estimates (Project Delivery Plan)
[Slide 16 includes a chart, graphically illustrating
the following data for CONTRACT AWARDS TOTAL:]
FFY20: 115 Projects
Key Issues
• Utility Agreements and Buy America Build America
• Bureau of Land Management Highway Easement Deeds
• Late Federal Aviation Administration Grant Awards
• Late Congressional Release of Funds
• Project Cost Increases
August Redistribution
• $19,200.0 FFY2024
• $126,131.8 in Authority
• Projected to be Available to Alaska FFY2025
• Confidence about STIP progress.
2:43:00 PM
COMMISSIONER ANDERSON said that DOTPF has had discussions with
the Association of General Contractors (AGC) regarding concerns.
He noted that 2022 was a high year for construction contract
awards. He briefly discussed project delivery.
2:46:29 PM
SENATOR KIEHL noted the pause on infrastructure spending at the
federal level. He inquired about the level of concern DOTPF has
regarding the pause and its impact on scheduled projects.
2:47:03 PM
COMMISSIONER ANDERSON said that he recently spoke with the local
Federal Highway Administration (FHA) office regarding this
issue. He stated that the funding disbursement pause was lifted.
He indicated that DOTPF would continue moving forward with
programs as planned; however, he noted that the overall impacts
are unclear at this time.
2:47:51 PM
SENATOR TOBIN asked about a social media post that differed from
the presentation slide. She also asked about the marked increase
in the estimated contract award from that of previous years. She
wondered what is included in this number.
2:48:52 PM
COMMISSIONER ANDERSON answered that West Susitna access was
included. He acknowledged the need for clarity and transparency.
He explained that construction contract award amounts are
determined during the bidding process. There are various
obligation costs associated with the estimates, as well.
2:49:58 PM
CHAIR BJORKMAN commented that construction contractors around
the state have concerns regarding perceived discrepancies
between DOTPF's projected contract amounts and the contract
amounts they are seeing. He encouraged conversation between
DOTPF and Associated General Contractors of Alaska (AGC) to
discuss this. He emphasized that AGC contractors are very
concerned about this issue. He indicated that AGC would be
contacting the department regarding this issue. He asked for
information regarding the number of projects that are ready to
go and whether there are enough projects to qualify for the
upcoming redistribution of funds and federal highway dollars.
2:52:40 PM
COMMISSIONER ANDERSON said he would provide this information. He
noted that there are challenges moving ahead with relevant
projects due to a lack of utility agreements, etc. He opined
that it is important for people to know the cause for any
delays. DOTPF takes these issues seriously and is working with
AGC on contractor payments. He explained how contractor payments
work and how this has helped to identify any discrepancies. He
stated that the department is actively working to reconcile
these issues.
2:54:46 PM
SENATOR STEDMAN noted that there have been concerns from lending
institutions, as well. He opined that it may be beneficial for
the committee to consider different projects by region, in order
to better understand the projects and needs across the state.
2:55:48 PM
CHAIR BJORKMAN referred to earlier discussion related to
advanced construct (AC) funds and stakeholder concerns about a
recent payment that was significantly larger than what is
typically paid out. He asked for information regarding this
payment and how it compares to typical AC payment amounts.
2:56:32 PM
COMMISSIONER ANDERSON said that he would provide the exact
numbers. He recalled that the amount was about $140 million. He
pointed out that this number must be considered alongside the AC
work that was done. He explained that AC payments are contracted
and the payment is borrowed against future funds. He stated that
there is always a balance. He briefly explained DOTPF spending
for both federal aviation and federal highways. This includes up
front state spending that is later reimbursed by grant funding.
He said that for AC, the target budget is under $200 million. He
indicated that guidance from the legislature and the governor is
welcome and added that the department seeks to make responsible
decisions when dealing with federal treasury dollars. He noted
that STIP includes AC projects and briefly explained that AC is
a tool to address slippage and to ensure that shovel-ready
projects are available. The department is shifting its practices
in response to new FHA requirements.
2:58:36 PM
CHAIR BJORKMAN noted that stakeholders have expressed concern
that fewer shovel-ready projects were available, causing funds
to go towards AC payments.
2:59:01 PM
COMMISSIONER ANDERSON indicated his understanding. He added that
Cooper Landing bypass is a shovel-ready project; however, the
required fund type causes constraints. He indicated that
additional information related to fund types could be provided
if needed.
2:59:31 PM
CHAIR BJORKMAN opined that many people are interested in the
fund types that are in the same group as - and thus competing
with - the Cooper Landing bypass project.
3:00:13 PM
SENATOR STEDMAN opined that a hearing on the Anchorage port
project is needed and suggested that the shippers be invited to
communicate their needs (to maximize volume across the port and
minimize consumer costs) to the committee at that time.
3:00:54 PM
CHAIR BJORKMAN agreed.
3:00:58 PM
SENATOR SHOWER commented that the Matsu Borough would be willing
to give a report on Port Mackenzie.
3:01:19 PM
CHAIR BJORKMAN noted his goal for the work of the committee and
communicating with the public. He added that the policies and
budget priorities selected by the legislature allow DOTPF to
meet its constitutionally mandated mission.
3:02:32 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Transportation Standing
Committee meeting at 3:02 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 20250123 Sen Trans Overview FINAL.pdf |
STRA 1/23/2025 1:30:00 PM |
|
| (S) Tran Committee 1-23-2025.pdf |
STRA 1/23/2025 1:30:00 PM |
|
| TRV CMGC-DBB Procurement Schedule 02-02-25.pdf |
STRA 1/23/2025 1:30:00 PM |
|
| ABS Report 1815 - Vacancy as of 1-15-25 by Component.pdf |
STRA 1/23/2025 1:30:00 PM |