Legislature(2025 - 2026)BUTROVICH 205

01/28/2025 01:30 PM Senate TRANSPORTATION

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Audio Topic
01:57:07 PM Start
01:57:53 PM Presentation(s): Dot & Pf Department Overview
02:50:16 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overview: Dept. of Transportation and Public TELECONFERENCED
Facilities (continued from previous meeting) by
Ryan Anderson, P.E., Commissioner
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                        January 28, 2025                                                                                        
                           1:57 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
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                                                                                                            
                                                                                                                                
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: Presented a Department of Transportation and                                                              
Public Facilities Overview.                                                                                                     
                                                                                                                                
ANDY MILLS, Special Assistant to the Commissioner                                                                               
Office of the Commissioner                                                                                                      
Department of Transportation and Public Facilities (DOTPF)                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions during Department of                                                                   
Transportation and Public Facilities overview.                                                                                  
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:57:07 PM                                                                                                                    
CHAIR   BJORKMAN  called   the  Senate   Transportation  Standing                                                               
Committee meeting  to order at 1:57  p.m. Present at the  call to                                                               
order  were  Senators Kiehl,  Stedman,  Shower,  Tobin and  Chair                                                               
Bjorkman.                                                                                                                       
                                                                                                                                
^PRESENTATION(S): DOT & PF DEPARTMENT OVERVIEW                                                                                  
         PRESENTATION(S): DOT & PF DEPARTMENT OVERVIEW                                                                      
                                                                                                                                
1:57:53 PM                                                                                                                    
CHAIR BJORKMAN announced the continuation of the Department of                                                                  
Transportation   and    Public   Facilities    (DOTPF)   Overview                                                               
presentation.                                                                                                                   
                                                                                                                                
1:58:25 PM                                                                                                                    
RYAN ANDERSON, Commissioner, Department of Transportation and                                                                   
Public Facilities (DOTPF), Juneau, Alaska, advanced to slide 10:                                                                
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     ALASKA INTERNATIONAL AIRPORT SYSTEM                                                                                      
                                                                                                                                
     Budget Info                                                                                                              
     ($ in Thousands)                                                                                                           
     FY2026 International Airports $127,019.7                                                                                   
        • Fed $1,008.4                                                                                                          
        • Other $126,011.3                                                                                                      
                                                                                                                                
     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                                                                                                       
                                                                                                                                
2:00:34 PM                                                                                                                    
                                                                                                                                
COMMISSIONER ANDERSON advanced to slide 11 and reviewed                                                                         
facilities across the state:                                                                                                    
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     DIVISION OF FACILITY SERVICES                                                                                            
                                                                                                                                
     Budget Info                                                                                                                
     ($ in Thousands)                                                                                                           
        • FY2026 Division of Facilities Services $104,429.5                                                                     
        • UGF $21,235.4                                                                                                         
        • DGF $545.0                                                                                                            
        • Fed $160.1                                                                                                            
        • Other $82,489.0                                                                                                       
                                                                                                                                
     Overview                                                                                                                 
        • 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 added that LED lighting conversions (in                                                                   
the Anchorage area) has resulted in notable savings.                                                                            
                                                                                                                                
2:02:38 PM                                                                                                                    
COMMISSIONER ANDERSON advanced to slide 12:                                                                                     
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     STATE EQUIPMENT FLEET                                                                                                    
                                                                                                                                
     Budget Info                                                                                                              
     ($ in Thousands)                                                                                                           
     FY2026 Statewide Equipment Fleet $39,948.6                                                                                 
        • UGF $30.5                                                                                                             
        • Other $39,918.1                                                                                                       
                                                                                                                                
     Overview                                                                                                                 
        • $39,000.0 in Fleet Replacement in Capital Budget                                                                      
          for FY2026                                                                                                            
        • 7,596 Assets Managed for State Agencies                                                                               
        • 889 Assets Managed for Universities, Housing, and                                                                     
          Energy Sectors                                                                                                        
        • 51 Equipment Maintenance Shops                                                                                        
        • 3,400 Active Fuel Cards                                                                                               
        • $5,500.0 in Fuel Costs in FY2024                                                                                      
                                                                                                                                
     Key Issues Ahead                                                                                                         
        • Legacy Systems                                                                                                        
        • Customer Service                                                                                                      
        • Deferred Maintenance                                                                                                  
        • Scalable Resourcing                                                                                                   
                                                                                                                                
COMMISSIONER  ANDERSON   stated  that   DOTPF  has   a  long-term                                                               
equipment  replacement  plan.  One  key  issue  relates  to  high                                                               
vacancy rates  in heavy-duty mechanic positions.  The division is                                                               
seeking ways  to become more  competitive in order to  fill those                                                               
positions.                                                                                                                      
                                                                                                                                
2:03:46 PM                                                                                                                    
SENATOR KIEHL  asked what  steps DOTPF has  taken to  address the                                                               
high heavy-duty mechanic vacancy rates.                                                                                         
                                                                                                                                
2:04:00 PM                                                                                                                    
COMMISSIONER ANDERSON  answered that  a new  bargaining agreement                                                               
for  the Labor,  Trades  and  Crafts Unit,  which  included a  15                                                               
percent increase, went  into effect on July 1.  He indicated that                                                               
any benefits from this will be  seen with time. He explained that                                                               
light-duty and  heavy-duty class specifications may  need further                                                               
clarification (this  may include  an associated pay  increase for                                                               
heavy-duty class) to increase interest.                                                                                         
                                                                                                                                
2:05:11 PM                                                                                                                    
SENATOR  KIEHL  pointed out  that,  in  smaller communities,  one                                                               
mechanic must work  on all vehicle classes.  He acknowledged that                                                               
the hiring  difficulties also impact  those positions.  He turned                                                               
his  attention   to  fuel  cards  and   asked  for  clarification                                                               
regarding the number of active fuel cards.                                                                                      
                                                                                                                                
2:05:58 PM                                                                                                                    
COMMISSIONER  ANDERSON  answered  that  the  Statewide  Equipment                                                               
Fleet manages active fuel cards for all state employees.                                                                        
                                                                                                                                
2:06:14 PM                                                                                                                    
SENATOR KIEHL  shared his  understanding that  this is  a charge-                                                               
back structure.                                                                                                                 
                                                                                                                                
2:06:19 PM                                                                                                                    
COMMISSIONER ANDERSON confirmed that this is correct.                                                                           
                                                                                                                                
2:06:26 PM                                                                                                                    
SENATOR  TOBIN  directed  attention  to  fleet  replacement.  She                                                               
commented   that  the   Municipality   of   Anchorage  fleet   is                                                               
experiencing difficulties  related to  aging equipment  and asked                                                               
about statewide DOT fleet needs.                                                                                                
                                                                                                                                
2:06:58 PM                                                                                                                    
COMMISSIONER  ANDERSON  replied  that  there  is  a  schedule  to                                                               
replace aging  equipment. Operating  costs increase  as equipment                                                               
ages  and there  is a  threshold limit  that determines  when the                                                               
equipment will  be replaced.  He said  he would  provide detailed                                                               
information  to  the  committee.   He  acknowledged  that  budget                                                               
shortfalls do  impact the  decision to  invest in  new equipment;                                                               
however, he  indicated that  this is not  currently an  issue. He                                                               
noted that the mechanic shortage does result in repair delays.                                                                  
                                                                                                                                
2:08:21 PM                                                                                                                    
SENATOR  TOBIN  said  she  would  like  to  see  the  replacement                                                               
schedule  as  well  as  information   related  to  upgrades.  She                                                               
emphasized the  need for functioning equipment  to address winter                                                               
road conditions across the state.                                                                                               
                                                                                                                                
2:08:47 PM                                                                                                                    
COMMISSIONER  ANDERSON   agreed  and   noted  that   winter  road                                                               
management varies by climate and  region. He said that DOT relies                                                               
on  local  staff  to  share  what  is  working  in  a  particular                                                               
location.  He  said that  local  communities  also have  concerns                                                               
about how  winter conditions are  managed (e.g. the use  of salt,                                                               
etc.).                                                                                                                          
                                                                                                                                
2:09:36 PM                                                                                                                    
COMMISSIONER ANDERSON advanced to slide 13:                                                                                     
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     FY2026 Operating Budget Highlights                                                                                       
     ($ in Thousands)                                                                                                           
                                                                                                                                
     Results Delivery Unit/FY2026 Governor                                                                                      
        • Administration and Support: $65,632.7                                                                                 
       • Design, Engineering and Construction: $132,942.5                                                                       
        • Facilities Services: $104,429.5                                                                                       
        • Highways, Aviation, and Facilities: $174,708.5                                                                        
        • International Airports: $127,019.7                                                                                    
        • Marine Highway System: $159,418.4                                                                                     
        • State Equipment Fleet: $39,948.6                                                                                      
        • Total: $804,099.9                                                                                                     
                                                                                                                                
     FY2026 Operating: Unrestricted and Designated General                                                                    
     Funds                                                                                                                    
                                                                                                                                
     Results Delivery Unit/FY2026 Governor                                                                                      
        • Administration and Support: $14,855.8                                                                                 
        • Design, Engineering and Construction: $2,041.1                                                                        
        • Facilities Services: $21,780.4                                                                                        
        • Highways, Aviation, and Facilities: $136,129.8                                                                        
        • International Airports: $0.0                                                                                          
        • Marine Highway System: $82,195.2                                                                                      
        • State Equipment Fleet: $30.5                                                                                          
        • Total: $257,032.8                                                                                                     
                                                                                                                                
COMMISSIONER ANDERSON noted that some areas (e.g. international                                                                 
airports) are self-funding.                                                                                                     
                                                                                                                                
2:10:33 PM                                                                                                                    
COMMISSIONER ANDERSON advanced to slide 14:                                                                                     
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     DELIVERING THE FY2026 FEDERAL CAPITAL PROGRAM                                                                            
     ($ in Thousands)                                                                                                           
                                                                                                                                
     Operating: $804,099.0 (31 percent)                                                                                         
     Capital: $1,819,552.8 (69 percent)                                                                                         
                                                                                                                                
        • Surface Transportation Program: $850,765.0 (47                                                                        
          percent)                                                                                                              
        • Airport   Improvement   Program:  $513,550.3   (28                                                                    
          percent)                                                                                                              
        • Marine  Highway  Annual  Overhauls:  $26,400.0  (1                                                                    
          percent)                                                                                                              
        • Other Capital Projects: $112,488.7 (6 percent)                                                                        
        • Rural Ferry Grants: $139,272.6 (8 percent)                                                                            
        • State   Funded   Match   for   Federal   Programs:                                                                    
          $138,076.1 (8 percent)                                                                                                
        • Statewide Equipment  Fleet Replacements: $39,000.0                                                                    
          (2 percent)                                                                                                           
                                                                                                                                
     Capital Budget Highlights:                                                                                                 
        • Alaska  West Coast  Resiliency Projects  - DOT&PF:                                                                    
          $18,180.0                                                                                                             
        • Dalton Highway Aggregate Stockpiles: $4,500.0                                                                         
        • Dalton  Highway Heavy  Maintenance Milepost  76 to                                                                    
          89: $2,500.0                                                                                                          
        • Klondike - Industrial Use Highway Funding: $309.9                                                                     
        • MH    Trust:   Coordinated    Transportation   and                                                                    
          Vehicles: $700.0                                                                                                      
        • Public   Building   Fund   Deferred   Maintenance,                                                                    
          Renovation, Repair and Equipment: $6,000.0                                                                            
        • Silvertip Camp Bunkhouse: $325.0                                                                                      
        • Statewide  Federal   Programs  (Emergency  Relief,                                                                    
          Safety Grants, Comm. Veh. Enforcement, Transit):                                                                      
          $62,837.2                                                                                                             
        • Supervisory  Control and  Data Acquisition  System                                                                    
          Upgrade: $100.0                                                                                                       
        • Ted  Stevens  Anchorage International  10MW  Solar                                                                    
          Array: $10,000.0                                                                                                      
        • Williamsport   Intermodal   Connector   Phase   2:                                                                    
          $2,666.6                                                                                                              
        • Winter Trail Grooming Grants: $120.0                                                                                  
        • Wood River Canyon Bridges and Trails: $4,250.0                                                                        
                                                                                                                                
2:11:01 PM                                                                                                                    
COMMISSIONER ANDERSON  noted that  the Rural Ferry  Grant program                                                               
is under  the Federal Transit Administration  (FTA). With respect                                                               
to  individual  capital  budget  projects,  he  said  the  Dalton                                                               
highway has experienced heavy rainfall  and rough conditions. The                                                               
Klondike project  is receipt authority. He  briefly discussed how                                                               
the  Silvertip  Camp  Bunkhouse  would  enable  DOTPF  to  manage                                                               
challenging weather  conditions. He  briefly discussed  how DOTPF                                                               
is researching  the benefits of  using solar energy  at airports.                                                               
He said  that the Williamsport Intermodal  Connector is important                                                               
to the communities  near Iliamna Lake as well as  the Bristol Bay                                                               
fishing  industry.  Winter  trail   grooming  grants  is  receipt                                                               
authority  (snow  machine   registration  receipts).  He  briefly                                                               
discussed the Wood River Canyon bridges and trails program.                                                                     
                                                                                                                                
2:14:41 PM                                                                                                                    
SENATOR  SHOWER   commented  that   the  Ted   Stevens  Anchorage                                                               
International  Airport has  considered  installing an  additional                                                               
runway and asked whether the solar project would impact this.                                                                   
                                                                                                                                
2:15:08 PM                                                                                                                    
COMMISSIONER ANDERSON  replied that  DOTPF (working  closely with                                                               
the Federal  Aviation Administration  (FAA)) has  located several                                                               
potential locations for the solar  array that would not interfere                                                               
with the runway expansion. He briefly discussed these.                                                                          
                                                                                                                                
2:16:00 PM                                                                                                                    
CHAIR BJORKMAN asked  whether there have been  changes related to                                                               
how DOTPF  handles volunteer work (i.e.  in-kind contributions of                                                               
labor) for snowmachine trails.                                                                                                  
                                                                                                                                
2:16:32 PM                                                                                                                    
COMMISSIONER  ANDERSON  replied  that snowmachine  trails  are  a                                                               
recent addition  to DOTPF.  He explained  that the  department is                                                               
reworking  agreements to  ensure  Federal Highway  Administration                                                               
approval.  He said  that the  department is  working on  both the                                                               
snowmachine  trails  and ice  roads  to  ensure all  parties  are                                                               
comfortable with the agreements.                                                                                                
                                                                                                                                
2:17:23 PM                                                                                                                    
ANDY   MILLS,  Special   Assistant   to   the  Commissioner   and                                                               
Legislative Liaison,  Office of  the Commissioner,  Department of                                                               
Transportation  and Public  Facilities  (DOTPF), Juneau,  Alaska,                                                               
added  that the  snow  grooming clubs  have  expressed desire  to                                                               
expand  their operations.  He noted  that winter  trails are  not                                                               
limited to recreational  use. He explained that the  intent is to                                                               
leverage  federal funding  under the  state transportation  block                                                               
grant  (STBG).  This would  enable  the  snow grooming  clubs  to                                                               
continue their  operations. He emphasized that  different federal                                                               
programs have  different requirements, which can  be challenging;                                                               
however, the aim is to use  the receipt program to expand on what                                                               
the clubs can offer to Alaskans.                                                                                                
                                                                                                                                
2:19:06 PM                                                                                                                    
SENATOR SHOWER asked whether that  would change the collection of                                                               
user fees.                                                                                                                      
                                                                                                                                
2:19:34 PM                                                                                                                    
MR. MILLS answered that it would not change the fee structure.                                                                  
                                                                                                                                
2:20:03 PM                                                                                                                    
CHAIR BJORKMAN  noted that his  constituents are  not comfortable                                                               
with the changes  that the department has made  and have concerns                                                               
regarding  how   those  changes   will  impact   continued  trail                                                               
maintenance  efforts.  He  encouraged clear  communication  going                                                               
forward.                                                                                                                        
                                                                                                                                
2:21:04 PM                                                                                                                    
COMMISSIONER ANDERSON advanced to slide 15:                                                                                     
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     PROJECT AND PROGRAM FUNDING                                                                                              
                                                                                                                                
     STATEWIDE TRANSPORTATION IMPROVEMENTPROGRAM (STIP) AND                                                                     
     AIRPORT CAPITAL IMPROVEMENT PROGRAM (ACIP)                                                                                 
                                                                                                                                
      Statewide Transportation Improvement Program (STIP)                                                                       
     Development:                                                                                                               
        • Project Delivery: Planners with Project Delivery                                                                      
          supported MPO coordination and programs such as                                                                       
          CTP and TAP.                                                                                                          
        • PMA:   The   federal-aid    team   under   Program                                                                    
          Management and Administration (PMA) verified                                                                          
          eligibilities and funding availability.                                                                               
        • DMIO Data Management & Innovation Office (DMIO)                                                                       
          Supported data input and management as well as                                                                        
          developing GIS mapping to support transparency                                                                        
          with the public.                                                                                                      
        • Regions:    Regions   provided    information   on                                                                    
          realistic project costs and delivery schedules.                                                                       
                                                                                                                                
      STIP FFY2024-2027 Amendment #2 Public Comment Period                                                                      
     Feb. 1-Mar. 3                                                                                                              
                                                                                                                                
COMMISSIONER ANDERSON briefly explained  the STIP program and the                                                               
various processes  and challenges.  He indicated that  a two-year                                                               
renewal  is   ideal.  DOTPF   works  with   FHA  to   ensure  all                                                               
requirements are met.                                                                                                           
                                                                                                                                
2:24:32 PM                                                                                                                    
SENATOR TOBIN asked for more information about DMIO.                                                                            
                                                                                                                                
2:24:53 PM                                                                                                                    
COMMISSIONER ANDERSON answered that prior  to the creation of the                                                               
Data Modernization and Innovation  (DMIO) office, programmers and                                                               
Geographic Information System  (GIS) professionals were scattered                                                               
throughout the  department with varying  levels of  resources and                                                               
training  availability.  DMIO   brings  all  these  professionals                                                               
together to create continuity.                                                                                                  
                                                                                                                                
2:26:06 PM                                                                                                                    
COMMISSIONER ANDERSON advanced 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)                                                                                          
                                                                                                                                
     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                                                                                                
        • Section 106 Compliance                                                                                                
                                                                                                                                
     August Redistribution                                                                                                    
        • $19,200.0 FFY2024                                                                                                     
        • $126,131.8 in Authority                                                                                               
        • Projected to be Available to Alaska FFY2025                                                                           
                                                                                                                                
       [Slide 16 also contains an infographic displaying                                                                        
     award totals for FFY 2020 to FFY 2024.]                                                                                    
                                                                                                                                
                                                                                                                                
COMMISSIONER ANDERSON noted that  this slide was discussed during                                                               
the  last  presentation.  He  acknowledged  contractors'  concern                                                               
related  to  project contracts.  He  emphasized  that this  is  a                                                               
project delivery  challenge and  is not  necessarily tied  to the                                                               
STIP. He directed attention to  the estimated contract awards and                                                               
said DOTPF  is focused on  acceleration in order to  get projects                                                               
to contractors. He  added that he has prepared a  list of shovel-                                                               
ready projects.                                                                                                                 
                                                                                                                                
2:27:05 PM                                                                                                                    
COMMISSIONER ANDERSON advanced to slide 17:                                                                                     
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     FEDERAL PROGRAM CHALLENGES                                                                                               
                                                                                                                              
        • Federal     Aviation      Administration     (FAA)                                                                    
          Reauthorization                                                                                                       
             • Airport Improvement Program Handbook Changes                                                                     
             • Runway Length Allowances                                                                                         
             • Equipment Sharing                                                                                                
        • Civil Rights                                                                                                          
            • FAA Disadvantaged Business Enterprise                                                                             
             • (DBE)/Airport Concession (ACDBE) Reviews &                                                                       
               Progress                                                                                                         
             • Federal Highway Administration (FHWA): Not                                                                       
               Meeting DBE Goals                                                                                                
        • Blended Federal Funding                                                                                               
             • Alaska Marine Highway System Rural Ferry                                                                         
               Program                                                                                                          
        • Buy America Build America                                                                                             
             • Utilities Challenges                                                                                             
             • Uncertainties if Materials are Available                                                                         
        • Eligibilities with Challenges to Implement                                                                            
             • Ice and Snow Roads                                                                                               
             • PROTECT Program                                                                                                  
                                                                                                                                
     Work Continues on STIP Practices                                                                                         
     DOT&PF  and FHWA  Teams continue  to  work together  to                                                                    
     address  remaining  issues  and changes  in  practices.                                                                    
     Most  recently  DOT&PF  met  with  FHWA  leadership  in                                                                    
     Washington D.C. November 2024 to discuss the program.                                                                      
                                                                                                                                
COMMISSIONER  ANDERSON  emphasized  that  there  have  been  many                                                               
positive  results  from federal  programs,  as  well. He  briefly                                                               
discussed the issues  of runway length and  equipment sharing. He                                                               
stated that DOTPF has had  several civil rights reviews in recent                                                               
years and  briefly discussed these.  He stated that DOTPF  is not                                                               
meeting  its  Disadvantaged  Business  Enterprise  goals  and  is                                                               
working  to  improve  this. He  briefly  explained  that  blended                                                               
federal funding  can create challenges when  funding sources have                                                               
different  rules  and  requirements.  He  briefly  discussed  the                                                               
challenges  related  to  utility agreements,  e.g.  moving  power                                                               
lines and facilities to allow for road widening or realignment.                                                                 
                                                                                                                                
2:31:09 PM                                                                                                                    
SENATOR  TOBIN asked  for an  update on  tribal consultation  and                                                               
tribal transportation  improvement programs,  which were  part of                                                               
the STIP corrective actions.                                                                                                    
                                                                                                                                
2:31:28 PM                                                                                                                    
COMMISSIONER ANDERSON  replied that it  is a large task  to reach                                                               
out to  Alaska's more than  200 tribes. He indicated  that, while                                                               
it is  challenging, DOTPF is  working to  improve communications.                                                               
The Statewide Transportation  Improvement Program (STIP) involves                                                               
written  correspondence  with  tribes to  address  concerns.  The                                                               
department  previously had  a liaison  for tribal  communications                                                               
and is now  building a team of individuals who  have the training                                                               
and  experience  needed  to  forge  stronger  relationships  with                                                               
Alaska's Indigenous  communities. He added that  DOTPF is working                                                               
to create  a policy that  would institutionalize  the methodology                                                               
moving  forward. He  stated  that  this is  a  priority, and  the                                                               
department is meeting federal STIP requirements.                                                                                
                                                                                                                                
2:32:56 PM                                                                                                                    
SENATOR  SHOWER asked  if there  is regulatory  relief to  ensure                                                               
project   continuation,  given   that   DOTPF   is  not   meeting                                                               
Disadvantaged  Business Enterprise  (DBE)  goals.  He asked  what                                                               
happens when those goals are not met.                                                                                           
                                                                                                                                
2:33:16 PM                                                                                                                    
COMMISSIONER  ANDERSON shared  his  understanding  that if  DOTPF                                                               
continues to fall  short on the DBE goals,  the requirements will                                                               
become more  stringent. Currently,  it is  a "good  faith" effort                                                               
with no  enforcement action; however, there  could be enforcement                                                               
action in the  future. He offered to research this  and provide a                                                               
detailed answer at a later time.                                                                                                
                                                                                                                                
2:34:12 PM                                                                                                                    
COMMISSIONER ANDERSON moved to slide 18:                                                                                        
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                                                                                                                                
     LOOKING AHEAD  MODERN, RESILIENT, AGILE                                                                                  
                                                                                                                                
     GATEWAY FOR GLOBAL OPPORTUNITY                                                                                             
       • Transportation, Energy, and Economic Development                                                                       
                                                                                                                                
     CONNECTING COMMUNITIES                                                                                                     
        • Infrastructure, Supply Chains, and Strategic                                                                          
          Assets                                                                                                                
                                                                                                                                
     DEVELOPING RESOURCES, DELIVERING OPPORTUNITY                                                                               
        • Securing Alaska's Future through Responsible                                                                          
          Resource Development                                                                                                  
                                                                                                                                
     FROM THE LAST FRONTIER TO THE FUTURE OF TRANSPORTATION                                                                     
        • Positioning    Alaska    to   Lead    in    Future                                                                    
          Transportation Solutions                                                                                              
                                                                                                                                
     ADVANCING MOBLITY, PRESERVING OUR INFRASTRUCTURE                                                                           
        • Lasting Infrastructure that Safely Serves All                                                                         
          Users                                                                                                                 
                                                                                                                                
COMMISSIONER ANDERSON said that  DOTPF is considering the future,                                                               
and  Alaska's   potential  for  energy  leadership.   He  briefly                                                               
discussed  connecting communities  and  noted  the importance  of                                                               
addressing   resiliency-related   challenges.   He   turned   his                                                               
attention to resource development and  said there is a demand for                                                               
Artificial  Intelligence (AI)  data centers  - and  surmised that                                                               
there will be  an associated demand for the  minerals required to                                                               
sustain these.  He pointed to  DOTPFs role in ensuring  access to                                                               
the necessary  resources. He concluded by  discussing technology.                                                               
He emphasized  that DOTPF  is taking  steps to  ensure it  is not                                                               
lagging in this area.                                                                                                           
                                                                                                                                
2:36:11 PM                                                                                                                    
SENATOR STEDMAN  asked about  a project  connecting Yukon  to the                                                               
Kuskokwim  River  and  the   potential  project  connecting  Fort                                                               
MacMurray,  Canada  by  rail  to Alaska  (to  transport  oil  and                                                               
military products).  He asked if  DOTPF is  currently considering                                                               
either of these.                                                                                                                
                                                                                                                                
2:37:07 PM                                                                                                                    
COMMISSIONER  ANDERSON  answered  that the  Yukon-Kuskokwim  Road                                                               
Connection  project was  part  of  the STIP  Amendment  1. It  is                                                               
currently  in  the  design  stage.  He  said  that  a  delegation                                                               
recently came to  Alaska from Canada in an effort  to restart the                                                               
Alberta to Alaska Rail project. DOTPF supports these projects.                                                                  
                                                                                                                                
2:38:14 PM                                                                                                                    
SENATOR  TOBIN  acknowledged  the   continued  changes  from  the                                                               
federal administration and asked  DOTPF's perspective on projects                                                               
like  Reconnecting Communities  in  light of  these. She  pointed                                                               
toward the  highway that bifurcates the  Fairview neighborhood in                                                               
Anchorage and asked about the  department's commitment to working                                                               
with  the  community to  address  this.  She indicated  that  the                                                               
department  needs  to  acknowledge its  culpability  in  previous                                                               
actions  and   its  responsibility  to  move   forward  with  the                                                               
community to find a solution.                                                                                                   
                                                                                                                                
2:38:57 PM                                                                                                                    
COMMISSIONER ANDERSON  answered that  there have been  efforts to                                                               
hear  community   concerns.  He   said  that  the   Planning  and                                                               
Environmental Linkages (PEL) study  has brought concerned parties                                                               
together for discussions. He shared  his belief that the incoming                                                               
Secretary of Transportation would make  safety a top priority and                                                               
stated that the Fairview area  is an important safety project. He                                                               
noted  the pattern  of pedestrian  fatalities and  indicated that                                                               
the intention is to create a  DOTPF program that has zero roadway                                                               
fatalities. He expressed excitement  about projects that increase                                                               
mobility  without sacrificing  pedestrian access  (e.g. tunnels).                                                               
He shared his  belief that the incoming  administration and DOTPF                                                               
would continue to focus on solving these safety problems.                                                                       
                                                                                                                                
2:40:53 PM                                                                                                                    
SENATOR TOBIN noted the interest  in continuing to direct traffic                                                               
from  Matsu into  Anchorage  but  opined that  a  tunnel exit  in                                                               
Government Hill would potentially be met with skepticism.                                                                       
                                                                                                                                
2:41:14 PM                                                                                                                    
COMMISSIONER  ANDERSON  briefly  discussed  tunnels,  emphasizing                                                               
that the location  of the tunnel entrance  (portal) is important.                                                               
He suggested that this could  resolve some of the Government Hill                                                               
issues. He  said that a  bridge over  the Knik Arm  could resolve                                                               
some  of the  beluga  whale concerns.  He  noted that  additional                                                               
research  is needed  to determine  whether this  is feasible.  He                                                               
indicated that  tunnels are  safe in  earthquakes and  added that                                                               
other states and countries are utilizing tunnels more.                                                                          
                                                                                                                                
2:42:25 PM                                                                                                                    
SENATOR SHOWER stated that tunnels  are safer during earthquakes.                                                               
He  stated that  the Matsu  Borough would  be willing  to discuss                                                               
these issues with the committee.                                                                                                
                                                                                                                                
2:42:52 PM                                                                                                                    
CHAIR  BJORKMAN brought  up winter  highway  safety concerns.  He                                                               
asked how  DOTPF is  adapting its seasonal  response in  order to                                                               
improve road  conditions as  winter weather  becomes increasingly                                                               
erratic due to a changing climate.                                                                                              
                                                                                                                                
2:43:33 PM                                                                                                                    
COMMISSIONER ANDERSON  acknowledged that  there have  been severe                                                               
ice  events recently.  He said  that  maintenance and  operations                                                               
crews have the  appropriate equipment to manage  winter roads. He                                                               
briefly  described  the  available  tools. He  pointed  out  that                                                               
weather  changes  quickly in  Alaska  and  encouraged drivers  to                                                               
exercise caution  when driving in  winter weather. He  said DOTPF                                                               
will continue to evolve its management methods.                                                                                 
                                                                                                                                
2:45:34 PM                                                                                                                    
CHAIR  BJORKMAN asked  whether Department  of Transportation  and                                                               
Public Facilities  (DOTPF) needs additional  resources (equipment                                                               
and workers) to effectively manage severe weather events.                                                                       
                                                                                                                                
2:45:54 PM                                                                                                                    
COMMISSIONER ANDERSON noted that the  question of how to scale up                                                               
for extreme weather  events was discussed the  previous year. One                                                               
issue is  having additional  workers who only  have work  part of                                                               
the  year. This  was addressed  previously by  appropriations for                                                               
contracting.  He  stated  that   DOTPF  has  been  successful  in                                                               
utilizing contractors for these  extreme weather events. He added                                                               
that DOTPF is the right size, with this exception.                                                                              
                                                                                                                                
2:47:31 PM                                                                                                                    
CHAIR BJORKMAN  surmised that  more contract  work in  the summer                                                               
would lead to greater availability of contractors in the winter.                                                                
                                                                                                                                
2:47:52 PM                                                                                                                    
COMMISSIONER  ANDERSON replied  that the  winter work  requires a                                                               
different set of equipment than  summer highway maintenance work.                                                               
He said  that DOTPF  expects more contractors  to respond  to the                                                               
winter work as it becomes a regular source of winter work.                                                                      
                                                                                                                                
CHAIR  BJORKMAN asked  if supplemental  contractors  are sent  to                                                               
DOTPF before seeking other winter  work (e.g. with municipalities                                                               
or private businesses).                                                                                                         
                                                                                                                                
COMMISSIONER ANDERSON  replied that  the contracts  have response                                                               
times and are done in lots. He briefly described this process.                                                                  
                                                                                                                                
2:48:11 PM                                                                                                                    
MR.  MILLS noted  that there  have been  three solicitations  for                                                               
supplemental contracts.  He explained  that the second  and third                                                               
solicitations  were to  ensure  coverage for  the  Matsu and  the                                                               
Kenai areas. He said that the contracts contain minimums.                                                                       
                                                                                                                                
2:48:54 PM                                                                                                                    
CHAIR   BJORKMAN   shared   his   understanding   that   industry                                                               
representatives want guaranteed funds  regardless of whether they                                                               
are needed, because they have  the equipment and workers ready to                                                               
go. He asked for confirmation of this understanding.                                                                            
                                                                                                                                
2:49:16 PM                                                                                                                    
MR. MILLS replied yes.                                                                                                          
                                                                                                                                
2:49:22 PM                                                                                                                    
COMMISSIONER ANDERSON  clarified that  there are minimums  in the                                                               
contract and  if those minimums have  not been met by  the end of                                                               
the month, DOTPF finds work for those contractors to complete.                                                                  
                                                                                                                                
CHAIR BJORKMAN  thanked Commissioner  Anderson and Mr.  Mills for                                                               
their presentation.                                                                                                             
                                                                                                                                
2:50:16 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair  Bjorkman  adjourned  the  Senate  Transportation  Standing                                                               
Committee meeting at 2:50 p.m.                                                                                                  

Document Name Date/Time Subjects
20250123 Sen Trans Overview FINAL.pdf STRA 1/28/2025 1:30:00 PM
DOT&PF Overview
(S)_TRAN_Committee_1-28-2025_Response_Letter_-_Follow_Up.docx.pdf STRA 1/28/2025 1:30:00 PM
DOT&PF Overview
dot-jnu_123040.pdf STRA 1/28/2025 1:30:00 PM
DOT&PF Overview