02/11/2025 01:30 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| SB47 | |
| Presentation(s): Dot&pf Federal and State Funding | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 47 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
February 11, 2025
1:36 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Löki Tobin, Vice Chair
Senator Jesse Kiehl
Senator Mike Shower
MEMBERS ABSENT
Senator Bert Stedman
COMMITTEE CALENDAR
PRESENTATION(S): DOT & PF FEDERAL AND STATE FUNDING
- HEARD
SENATE BILL NO. 47
"An Act relating to Chugach State Park; and providing for an
effective date."
- MOVED SB 47 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 47
SHORT TITLE: CHUGACH STATE PARK EASEMENTS
SPONSOR(s): SENATOR(s) GIESSEL
01/17/25 (S) PREFILE RELEASED 1/17/25
01/22/25 (S) READ THE FIRST TIME - REFERRALS
01/22/25 (S) TRA, RES
02/04/25 (S) TRA AT 1:30 PM BUTROVICH 205
02/04/25 (S) Heard & Held
02/04/25 (S) MINUTE(TRA)
02/11/25 (S) TRA AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
SENATOR CATHY GIESSEL, District E
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided a brief review of SB 47.
KATHERINE KEITH, Deputy Commissioner
Department of Transportation and Public Facilities
Anchorage, Alaska
POSITION STATEMENT: Presented the presentation, DOT&PF Federal
and State Funding.
DOM PANNONE, Director
Administrative Services
Department of Transportation and Public Facilities
Juneau, Alaska
POSITION STATEMENT: Answered questions during the DOT&PF Federal
and State Funding presentation.
ACTION NARRATIVE
1:36:49 PM
CHAIR BJORKMAN called the Senate Transportation Standing
Committee meeting to order at 1:36 p.m. Present at the call to
order were Senators Kiehl, Shower, Tobin, and Chair Bjorkman.
SB 47-CHUGACH STATE PARK EASEMENTS
1:37:41 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO. 47
"An Act relating to Chugach State Park; and providing for an
effective date."
1:38:10 PM
SENATOR CATHY GIESSEL, District E, Alaska State Legislature,
Juneau, Alaska, provided a map illustrating the unique situation
in Chugach State Park. She explained that the road in question
begins as a municipal road, travels through a section of state
park land and then exits the park, once again becoming a
municipal road. SB 47 would give the city of Anchorage right-of-
way for this section of the road. She added that this would only
apply to the road which passes through Chugach State Park.
1:38:53 PM
SENATOR KIEHL asked whether SB 47 would give Department of
Transportation and Public Facilities (DOTPF) a tool to push
maintenance responsibilities onto local governments, either in
this municipality or elsewhere in the state.
1:39:35 PM
SENATOR GIESSEL replied that SB 47 reinforces DOTPF's
responsibility for maintaining public roads within Chugach State
Park. She referred to SB 47, page 2, lines 17 through 19 and
emphasized that SB 47 would not remove DOTPF's responsibility.
SENATOR KIEHL expressed appreciation that SB 47 specifically
addresses the section of road in Chugach State Park and for the
sponsor's explanation, as well as the opportunity to address the
question on the record.
1:40:24 PM
CHAIR BJORKMAN opened public testimony on SB 47; finding none,
he closed public testimony.
1:40:58 PM
CHAIR BJORKMAN solicited the will of the committee.
1:41:10 PM
At ease.
1:41:42 PM
CHAIR BJORKMAN reconvened the meeting.
1:41:45 PM
SENATOR KIEHL moved to report SB 47, work order 34-LS0179\A,
from committee with individual recommendations and attached
fiscal note(s).
1:42:09 PM
CHAIR BJORKMAN found no objection and SB 47 was reported from
the Senate Transportation Standing Committee.
1:42:26 PM
At ease.
^PRESENTATION(S): DOT&PF FEDERAL and STATE FUNDING
PRESENTATION(S): DOT&PF FEDERAL and STATE FUNDING
1:44:04 PM
CHAIR BJORKMAN reconvened the meeting and announced the
presentation, DOT&PF Federal and State Funding by Deputy
Commissioner Katherine Keith and Director Dom Pannone.
1:44:47 PM
KATHERINE KEITH, Deputy Commissioner, Department of
Transportation and Public Facilities, Anchorage, Alaska,
advanced to slide 2, Operating Administrations and Governing
Law, which lists several US Department of Transportation (USDOT)
agencies and their respective oversight codes. She explained
that the presentation would cover federal funding and the myriad
sources of funding that the department receives. The laws and
regulations that dictate how funds are spent will also be
covered. She provided a brief overview of the USDOT funding
sources, including the Federal Highway Administration (FHA) and
Federal Transit Administration (FTA), and Federal Aviation
Administration (FAA) (among others) and their respective
oversight codes. She noted disaster funding and gave a brief
overview of this process.
1:49:23 PM
MS. KEITH advanced to slide 3, Current Federal Funding Landscape
FFY2024, containing a graphic to illustrate the varied funding
sources and relative amounts. She noted that highway projects
make up approximately two-thirds of the work done each year.
Aviation projects also receive a large amount of funding;
however, this could be increased as there is outstanding need.
She said that DOTPF is largely federally funded. The state match
varies.
1:50:44 PM
CHAIR BJORKMAN asked if slide 3 is referring to fiscal year (FY)
24, which ended in September of 2024.
1:51:06 PM
MS. KIETH replied yes.
1:51:15 PM
MS. KEITH advanced to slide 4, Contract Awards Total FFY2020-
2024, which displays the number of contract awards and
associated award amounts per FY. The dates range from FY20 to FY
24. She briefly explained the process of awarding contracts. She
noted that project readiness and available funds impacts
contract awards. She noted that 14 projects from 2024 were not
awarded due to a lack of bidders or bids that were too high.
Those projects were reevaluated and are reentering the bidding
process. She said that 2025 has an increased number of projects
as a result.
1:52:51 PM
SENATOR KIEHL noted that FY 25 began in October and asked about
the time frame for rebidding the 14 projects that were moved
from FY 24 to FY 25.
1:53:22 PM
MS. KEITH replied that DOTPF has issued $250 million in
contractor payments for work that is underway. DOTPF has awarded
approximately $65 million in contract awards. An additional $30
million in contract awards are currently in the bidding or
negotiations process.
1:54:18 PM
SENATOR KIEHL repeated his question about the 14 projects that
were moved from FY 2024 to FY 2025.
1:55:01 PM
MS. KEITH said that those projects are back on the tentative
advertising list. She offered to provide date information to the
committee.
1:55:19 PM
SENATOR KIEHL noted the complexity of the federal funding
process.
1:55:42 PM
SENATOR TOBIN asked for a ten-year lookback on quarter bids and
project awards. Specifically, how many projects went out for bid
and how many were awarded. She surmised that this would provide
greater context for the current situation.
1:56:12 PM
MS. KEITH said this data could be provided.
1:56:41 PM
SENATOR KIEHL directed attention to FY 2025 projects and asked
what proportion of those have been awarded and how many are out
for bid.
1:57:05 PM
MS. KEITH replied that this information can be provided.
1:57:49 PM
CHAIR BJORKMAN directed attention to slide 4. He commented that
he has heard that inflation is driving project costs up and
asked why the dollar amount is not likewise increasing.
1:58:13 PM
MS. KEITH said DOTPF expects a 3 percent annual increase in
revenue from federal partners, which is not keeping up with
inflation. Realized transportation projects have decreased due
to increased cost and fewer projects are in the pipeline. She
said that some projects in rural areas have come back at 30
percent over the estimated cost. She offered examples to
illustrate this.
1:59:20 PM
MS. KEITH advanced to slide 5, Federal Highways, Federal
Transit, and Federal Aviation Formula and Discretionary Funds
FFY2023-2025. Slide 5 contains a bar graph with color-coded
amounts indicating the amount per fund, per fiscal year (FY
2023- FY 2025. She explained that this shows all expected funds
- approximately $1.5 to $1.6 billion - coming into the
transportation system. She listed the various funding sources
(shown on slide). She noted that discretionary grants are
unpredictable and some of the 2025 values are approximate.
2:00:46 PM
CHAIR BJORKMAN asked for information regarding the downward
trend in discretionary grants.
2:01:11 PM
MS. KEITH answered that this is partially because DOTPF is
applying for less of these grants. She explained that the state
match requirement (20 percent), whereas the formula funds have a
10 percent match. She briefly discussed the grant process and
changes.
2:02:39 PM
MS. KEITH advanced to slide 6:
[Original punctuation provided.]
Federal Aviation Administration Apportionments
ENTITLEMENTS
• Cargo Entitlements Earned by airports with more
than 100 million pounds landed weight
• Primary Passenger Entitlement Earned by airports
with more than 10,000 enplaned passengers and
scheduled commercial service
• Non-Primary Passenger Entitlement Earned by
airports with fewer than 10,000 enplaned
passengers annually
[Slide 6 also includes a chart titled, FAA
Apportionments for Alaska FFY2024 ($ in Millions),
totaling $309 million].
2:03:49 PM
SENATOR TOBIN asked whether DOTPF provides technical support for
rural areas looking to apply for some of these funding sources.
2:04:19 PM
MS. KEITH replied yes and offered examples.
2:05:05 PM
SENATOR KIEHL asked if the FAA apportionment includes non-state
airports and, if not, what the proportion is for non-state
airports in each of the categories.
2:05:23 PM
MS. KEITH said that slide 6 does not include airports outside of
the state transportation system. She explained that those
airports receive funds directly from FAA.
2:05:45 PM
SENATOR KIEHL noted several airports that fall into this
category.
2:06:00 PM
MS. KEITH advanced to slide 7, Rural Airport System Executed
Grants FY2018-2024. Slide 7 includes two bar graphs: Airport
Improvement Program (AIP) International and Rural Airports -
Number of Executed Grants per Year; and Number of Advertised
Rural Airport Projects (FFY 2021-2024). She noted that 83 grants
executed in 2024, including the Alaska International Airports
and Rural Airports. 70 of those grants were for the rural
airport system. 11 of the grants went out for advertising in
2024. She noted that this is average for larger airport
improvement projects.
2:07:17 PM
MS. KEITH advanced to slide 8:
[Original punctuation provided.]
Rural Airport System Grants Timeline FFY2024
Due to FFY2024 Continuing Resolutions
• Record Slow Obligation Year
• Obligated 56 percent of Funding in September 2024
• First Grant Executed July 11, 2024
• Last Grant Executed September 9, 2024
[Slide 8 also includes a chart displaying grants
executed for the rural airport system, February
through September 2024.]
MS. KIETH noted that timing is an issue with project delivery.
She pointed out that, in 2024, 56 percent of funding did not go
out until September, which means projects cannot be advertised
in time for construction during the same year. She added that,
while this is unusual, it was a nationwide phenomenon. DOTPF is
currently seeking solutions to this delay issue.
2:08:53 PM
CHAIR BJORKMAN asked whether current projects are being delayed
due to FAA funding timelines.
2:09:02 PM
MS. KEITH replied yes, some projects from 2024 were pushed to
2025. A list of these projects can be provided.
2:09:18 PM
CHAIR BJORKMAN indicated that he would like a list of these
projects. He surmised that many parties are interested in what
is causing the delays - and what can be done to change this
pattern. He asked whether DOTPF has discussed this issue with
Alaska's Congressional delegation.
2:09:55 PM
MS. KEITH replied yes. She briefly described the discussions and
indicated that more conversations are upcoming.
2:10:36 PM
DOM PANNONE, Director, Administrative Services, Department of
Transportation and Public Facilities, Juneau, Alaska, added that
fully funding the funding bills - and making funding available
sooner - is a priority. With respect to aviation, he indicated
that various potential solutions are under consideration and
DOTPF is discussing this with federal partners, Alaska's
congressional delegation, and the contracting community.
2:11:21 PM
CHAIR BJORKMAN asked if those tools are available to help get
projects out to bid and awarded for the 2025 summer season.
2:11:29 PM
MS. KEITH acknowledged that DOTPF is uncertain, as this is a new
process that would mean going out to advertisement prior to
having a grant agreement in place. DOTPF is currently in
discussions to determine whether the state will take on the
associated risk and believes that this would expedite the
current year's projects. She added that updates would be
provided in the coming weeks.
2:12:18 PM
MS. KEITH advanced to slide 9, Federal Highways Apportionments
FFY2025. Slide 9 includes a graph titled FFY25 Federal Highway
Formula Apportionments ($M) and a pie chart titled Surface
Transportation Block Grant Apportionment (17 Suballocations).
She pointed out the National Highway Performance Program funds
(for National Highway System projects) is a large portion of the
total program ($383-390 million). The next largest is the
Surface Transportation Block Grant funds (which has 17
suballocations). She briefly explained the utilization of these
funds.
2:14:19 PM
SENATOR KIEHL asked for information about the penalties listed
under the surface transportation block grant apportionment.
2:14:43 PM
MR. PANNONE said that the penalties are related to open
container laws and other safety laws that Alaska does not have
(that the federal government would like to see implemented). He
explained that some of the funds must be transferred as a
result. He emphasized that the state does not lose funds.
2:15:15 PM
SENATOR KIEHL asked what the "154" indicates on the pie chart.
2:15:26 PM
MS. KEITH answered that this is a penalty type, i.e. Section
154.
2:15:36 PM
MR. PANNONE advanced to slide 10, Federal Highway
Administrations Apportionments FFY2024-2025. Slide 10 includes a
chart titled, "FFY2024 AND FFY2025 DOT&PF FORMULA FUNDS." This
chart is further broken down into funds that are subject to
limitation (top blue) and those that do not require additional
authorization (bottom green). Those that are limited require a
second authorization prior to spending. He explained that
greater access is granted to the limited funds during August
redistribution and any funding not spent is carried forward to
the next year. He briefly explained how the funds are tied to
specific projects. He noted the large carryover from FFY 2024
(to FFY 2025) is limited to use in the Anchorage metropolitan
area. He noted that the eligibility issue is complex.
2:17:08 PM
CHAIR BJORKMAN asked why there is so much carryover from FFY
2024 to FFY 2025.
2:17:22 PM
MR. PANNONE replied that some carryover can apply to multiple
years. DOTPF is given a set amount of the limited funds that can
be spent (which increases at August redistribution). He briefly
explained this process and explained that a smaller
redistribution results in a greater amount carried forward. The
redistribution amount is related to what projects are ready to
go and the balance remaining in each fund type. (Projects must
match the fund type.)
2:18:20 PM
MS. KEITH said that some funds have an intentional carryover for
larger projects.
2:19:04 PM
SENATOR SHOWER asked whether DOTPF anticipates being impacted by
programming changes at the federal level (e.g. electric vehicle
infrastructure, carbon programs, etc.).
2:19:42 PM
MR. PANNONE replied yes. He said that the American Association
of State Highway and Transportation Officials (AASHTO) is
advocating for more flexible funding types.
2:20:52 PM
SENATOR TOBIN commented that she gave public testimony in
support of funding for electric vehicles and shared her
understanding that DOTPF would be seeking to switch this funding
to another area. She expressed concern that these funds would be
moved from their original intent and asked whether this would
also be a public process.
2:21:36 PM
MS. KEITH said DOTPF does not have the answer at this time. She
indicated that one of the programs was suspended and therefore
fund allocation is delayed. She explained that staff are moving
forward with the projects in order to be ready when the time
comes; however, projects that have been suspended would be at
the state's risk (that is, the state would not be reimbursed for
those efforts). She said more information would be forthcoming.
2:22:50 PM
CHAIR BJORKMAN said he has heard contradicting information
related to August redistribution. He asked why there is
disagreement between DOTPF and federal partners regarding the
rollover of those redistribution dollars.
2:23:26 PM
MS. KEITH advanced to slide 11, Limitation (contract authority)
and Funding (revenue). Slide 11 includes a flow chart of funding
sources and illustrates the funding cycle. She offered a
pipeline example to illustrate the funding cycle and the role
obligation limitations and obligation authority play in the
redistribution (and rollover) of available funding.
2:25:29 PM
CHAIR BJORKMAN shared his understanding that there is one chance
to qualify for August redistribution dollars coming into the
state - and that capturing those dollars depends on the projects
in the Alaska Statewide Transportation Improvement Program
(STIP), as well as project type. He asked for confirmation that
the redistribution dollars must be used on projects within the
same category as the original funding.
2:26:28 PM
MS. KEITH said that this is mostly correct and deferred the
question.
2:26:34 PM
MR. PANNONE clarified that August redistribution is a
redistribution of spending authority - not a redistribution of
dollars. He briefly explained the process the federal government
uses to determine how excess funds are redistributed - which is
dependent on whether funds can be used before the end of the
federal fiscal year. If the money cannot be used within that
timeframe, it rolls to the next federal fiscal year and the
process begins again.
2:27:43 PM
CHAIR BJORKMAN expressed concern that the public could
misunderstand this process. He sought clarification of his
understanding that the funding redistribution is akin to a safe
and the state has access to a set amount of the money. This
money must be spent. He asked whether the money accessed during
redistribution rolls over to the next fiscal year (if not
spent).
2:28:59 PM
MR. PANNONE confirmed that the safe analogy is accurate and
explained that the August redistribution money gets obligated
via federal agreement (i.e. tied to projects). The project then
goes out to bid and this completes the sequence.
2:29:30 PM
SENATOR TOBIN noted the 14 projects without a successful bid in
2024 and asked about the process for projects that do not end in
a successful bid after August redistribution.
2:29:44 PM
MS. KEITH answered that if a project goes to bid and no award
comes back, the funds are not obligated. She explained that, if
there is no agreement in place, DOTPF cannot access the funds in
the safe. This can result in a scramble to get the necessary
agreements in place.
2:30:22 PM
MR. PANNONE explained that DOTPF and Federal Highways must have
an extreme amount of certainty that the funds can be obligated
prior to requesting August redistribution. He explained that the
obligation happens when there is a federal agreement to go to
bid. He clarified that the federal agreement comes prior to
projects going to bid. Once the money is obligated, it is
secure. If the bid comes back later, a STIP amendment for
additional funds may be necessary. However, the obligated funds
are not lost.
2:31:32 PM
SENATOR KIEHL directed attention to Slide 11 and asked about the
apportionment memo funding amounts.
2:32:04 PM
MR. PANNONE said those funds would rollover to the next year and
would be tied to projects in that year.
2:32:26 PM
SENATOR KIEHL asked for clarification about the reason for an
inability to obligate funds.
2:32:34 PM
MR. PANNONE replied that it could be due to limitation or not
having a project to tie the funds to.
2:32:54 PM
MS. KEITH noted that the contract authority and obligation
limitation are set by Congress and filtered through federal
agencies and distributed state by state. DOTPF receives notice
of this information throughout the year.
2:33:26 PM
CHAIR BJORKMAN asked about the constraining factors that limit
DOTPF's access to projects that are eligible for obligation of
funds.
2:33:43 PM
MS. KEITH answered that it is partly an issue of eligibility for
specific fund codes. If a project does not match the codes - or
if there is a disagreement over the interpretation of
regulations, DOTPF works with Federal Highways to come to an
agreement (which takes time). Other delays can occur. She noted
that there is currently a confirmed August redistribution of
$126 million. She emphasized that discussions to ensure the
obligation of funds are in process; however, this can be a
tricky process due to the many prescriptive fund types.
2:35:24 PM
CHAIR BJORKMAN asked for additional information about the
process - and how the 2025 August redistribution would differ
from 2024.
2:35:43 PM
MS. KEITH replied that several divisions are working on this
year's redistribution - including Program Management and
Administration and a newly formed Project Management office. In
addition, new reporting tools will allow for a more proactive
process. DOTPF will be working with Federal Highways to find
solutions for connecting projects with specific fund types. She
emphasized that early conversations about the project lists and
transparent dashboarding and updates.
2:36:43 PM
CHAIR BJORKMAN commented that there are many contractors and
employees across the state with concerns about DOTPF's ability
to secure and obligate federal dollars, and to access the August
redistribution funds. He asked when a list of those projects
would be available. He also asked if those projects are
currently in STIP - and, if not, when they would go into STIP.
2:37:30 PM
MS. KEITH said that list of projects is available now. Awards
are forecasted at $935 million - one of the highest in the past
four years. She corrected an earlier statement regarding
projects currently bidding and what has been awarded for FY
2025. $189 million has been awarded. $170 million is intended
for Construction Manager General Contractor (CMGC) projects. She
noted that, while CMGC projects are moving forward, they will
not be advertised. Advertised projects will amount to an
estimated $575 million. She indicated that DOTPF is aware of
concerns and expressed confidence in the FY 2025 program. She
said that additional information could be provided, and this
issue would be discussed further in an upcoming meeting. She
acknowledged challenges related to project delivery and
emphasized that DOTPF must be vigilant to ensure projects go out
as intended. She noted that these projects are in STIP and in
the Aviation Capital Improvement Program (ACIP).
2:39:24 PM
CHAIR BJORKMAN reiterated his understanding that for the first
quarter of FY 2025, contractors have seen roughly $93 million in
awards. He noted DOTPF's intentions but opined that the industry
is more concerned with actions. He indicated that he would like
to see a project list and information about whether the projects
are currently in STIP or in an upcoming STIP amendment. He asked
when DOTPF intends to file and submit STIP Amendment 2.
2:40:20 PM
MS. KEITH replied that STIP Amendment 2 would likely go out for
public comment within the week and briefly explained the
process. She said that the majority of 2025 construction
projects are currently in STIP, though some of the values will
be increased due to increased estimates and other changes. She
reiterated that the projects for FY 2025 are included in DOTPF's
planning documents.
2:41:14 PM
SENATOR KIEHL asked for clarification regarding the awards and
bid estimates.
2:41:46 PM
MS. KEITH clarified that the total for advertised projects is
$575 million and all other amounts are in addition to this.
Total awards for FY 2025 are expected to be $935 million - and
this amount includes projects to be advertised, projects awarded
and currently being advertised, and projects that will not be
advertised (i.e. CMGC projects).
2:42:16 PM
SENATOR KIEHL noted that the process is challenging, as many
things need to be coordinated. He said that a timeline of the
process would provide greater understanding.
2:43:09 PM
MS. KEITH affirmed the challenges. She stated that the payments
received for FY 2025 contracts have not decreased. Some of the
contract awards are for multi-year projects and will therefore
impact upcoming years. FY 2025 includes project payments for the
continuation of multi-year projects. She noted that payments for
upcoming projects are reported separately from those that impact
the current year.
2:44:27 PM
SENATOR KIEHL asked for clarification about the payments that
are expected for FY 2025. He asked whether these are for work
yet to be done or work that has been completed.
2:44:41 PM
MS. KEITH clarified that these payments are for work completed
in 2025. She added that DOTPF has paid $250 million to
contractors for 2025 - which is more than one quarter of the
program (which is currently in the off-season). She said 430
payments (roughly half of the total construction contractor
payments and amounting to $91 million) are from previously
awarded contracts (i.e. the current work is from multi-year
contracts).
2:45:38 PM
SENATOR KIEHL noted that the contracting community is concerned
that newly trained individuals will seek work outside of the
state and opined that the information provided by DOTPF
reinforces these serious concerns.
2:46:11 PM
MS. KEITH advanced to slide 12, Federal Transit Administration
Apportionments FFY 2025. Slide 12 contains data to show the
percent of FTA funds allocated to projects across the state (pie
chart) and contains a bar graph showing the FTA FFY 2025 formula
fund apportionment ($ in millions). She noted that, outside of
the Alaska Marine Highway System (AMHS), FTA funds (which are
primarily operational funds) are not directly related to the
construction program. She briefly explained the different
sections, the section's purpose and where (i.e. which project)
each fund is directed. She noted that the "State of Good Repair"
funds go to the railroad, as they are for fixed guideway
transportation systems.
2:48:02 PM
MS. KEITH advanced to slide 13, Federal Transit Administration
Apportionments FFY2025. Slide 13 contains a chart titled, "
Section 5337 State of Good Repair for the Alaska Railroad (ARRC)
FFY25 Apportionment" and another titled, "Section 5307 Urbanized
Area for Transit and Alaska Railroad (ARRC) FFY25
Apportionment." In addition, the Anchorage area split (32
percent Municipality of Anchorage (MOA) transit and 68 percent
ARRC) is shown. She noted the nuance of this funding source and
briefly explained how the funds are divided. She added that the
funds are included in STIP; however, they are given directly to
the recipients and are not programmed by DOTPF.
2:49:07 PM
MS. KEITH advanced to slide 14, Accelerating Transportation
Infrastructure Through Proactive Funding. She said that this
shows discretionary grants over the last 3 years. DOTPF applied
for 106 grants and was awarded 38, for $910.2 million in federal
funding. She noted that these are competitive grant programs
that can be challenging for Alaska. 15 applications are awaiting
response, totally approximately $350 million.
2:50:21 PM
MS. KEITH advanced to slide 15, Grant Awards and Match
requirements, FFY 2022 to date. Slide 15 contains a chart
displaying federal funds available, funds awarded, and match
required. The total amount for grants awarded is $910 million.
The total match required is $295.7 million. She said that DOTPF
will continue to strategically pursue these grant opportunities.
She briefly discussed the grant application process and said
that each round of applications provides more experience. While
Alaska has not been successful in obtaining large grant awards,
DOTPF continues to apply yearly. She noted a $57.6 million
grant, which includes a $25 million grant for Alaska highway in
Yukon, Canada. This is made possible by a Shakwak agreement that
allows federal funds to be spent in Canada. She noted that MARAD
grants are difficult to obtain and briefly discussed this
process, providing examples. She said that receiving federal
grants for specific projects frees up funding for other
projects.
2:53:22 PM
SENATOR KIEHL noted that the Shakwak agreement may sound
confusing to those who are unfamiliar with it and offered
context. He explained that when the Alaska-Canada (ALCAN)
highway was built, the United States agreed to maintain it. He
added that no maintenance has been done for a long time and
thanked DOTPF for creating a conduit for the United States to
uphold this agreement. He added that this ensures safe passage
for both goods and individuals and opined that this is the right
thing to do.
2:54:05 PM
CHAIR BJORKMAN asked how much of the $910 million in grant
awards has been spent.
2:54:19 PM
MS. KEITH said she would get back to the committee with this
information.
2:54:42 PM
CHAIR BJORKMAN noted the potential risks of grant funding at a
time when federal funding may be lost. He wondered how this
impacts projects.
2:55:03 PM
MS. KEITH agreed that this is possible for existing grant
agreements to lose funding prior to construction. She said that
DOTPF will continue to monitor this and will inform communities
of any changes. She noted that communities have reached out
about this issue. She said that grant agreements can take two or
more years to get into place; therefore, DOTPF has not obligated
a high percentage of this funding.
2:55:53 PM
CHAIR BJORKMAN asked if DOTPF has developed a plan to
communicate with federal partners and the administration about
the impact of steel and aluminum tariffs on Alaska's ability to
build and maintain roads and bridges.
Ste
2:56:12 PM
MS. KEITH said DOTPF works with Alaska's congressional
delegation on similar issues (e.g. "buy America" provisions) and
surmised that the tariffs would also be discussed as more
information is available.
2:56:37 PM
MR. PANNONE noted that DOTPF is required to buy American steel.
He added that DOTPF would continue to monitor for information
regarding the impact tariffs might have.
2:56:57 PM
SENATOR TOBIN echoed concerns that previously signed grant
agreements could lose funding. She directed attention to the
ALCAN highway and emphasized the importance of recognizing the
Black regiments (US Army) that worked to build the highway. She
connected this to the Fairview neighborhood in Anchorage and the
harm caused by a highway that bifurcated this neighborhood. She
stated that the Reconnecting Communities grant was one way the
federal government acknowledged this harm and began the work of
community reunification. She noted that this was a two-year
process. She expressed hope that DOTPF would continue to
advocate for the importance of public trust and honoring the
commitments made to Alaskans - while elevating the Fairview
community - in conversations with Alaska's congressional
delegation.
2:58:01 PM
MS. KEITH expressed appreciation for Senator Tobin's comments
and acknowledged that a change in administration can cause
funding disruptions. She stated that DOTPF would continue to
work with the community of Fairview to develop a path forward.
2:58:23 PM
MS. KEITH advanced to slide 16:
[Original punctuation provided.]
DISCRETIONARY GRANT PROGRAMS
USDOT-OFFICE OF THE SECRETARY
• Multimodal Project Discretionary Grants: Mega,
INFRA, and Rural
• RAISE: Rebuilding America's Infrastructure with
Sustainability and Equity
• Safe Streets and Roads for All (SS4A)
• SMART: Strengthening Mobility and Revolutionizing
Transportation Grant
• National Culvert Removal Replacement and
Restoration
FHWA
• Accelerated Innovation Deployment Demonstration
Funding
• ATTAIN: Advanced Transportation Technology and
Innovation
• Bridge Improvement Program: Large, Small, and
Planning
• Charging and Fueling Infrastructure
• Promoting Resilient Operations for
Transformative, Efficient, and Cost saving
Transportation Program (PROTECT)
• Reconnecting Communities; Neighborhood Access and
Equity
• Thriving Communities Regional Pilot Program
• Wildlife Crossings
2:58:50 PM
MS. KIETH advanced to slide 17 and noted that FTA grants have
been responsible in large part for the influx of capital to the
AMHS:
[Original punctuation provided.]
DISCRETIONARY GRANT PROGRAMS
FEDERAL TRANSIT ADMINISTRATION (FTA)
• Advanced Digital Construction Management Systems
• Innovative Coordinated Access & Mobility
• Electric or Low Emitting Ferry Pilot Program
• Areas of Persistent Poverty Program
• Pilot Program for Transit-Oriented Development
Planning
• Ferry Service for Rural Communities
MARITIME ADMINISTRATION (MARAD)
• Port Infrastructure Development Program (PIDP)
Grants
• Small Shipyard Grants
• United States Marine Highway Program
2:59:06 PM
MS. KEITH advanced to slide 18 and discussed sustainable
aviation fuel. Slide 18 contains images and a brief discussion
of resource byproducts (e.g. beetle-killed forests and fishing
industry byproducts) that can be used to make sustainable
aviation fuel and the associated benefits. She said that DOTPF
has received a grant through the FAA's Fueling Aviation's
Sustainable Transition (FAST) program (Tier 1 Grant FFY 2024:
$305,889). She noted that this is currently in the executive
order to support Alaska's energy economy and Governor Dunleavy
is an advocate of energy independence through biofuels.
Sustainable aviation fuel is a global mandate for airlines
traveling through the European Union. DOTPF is working to
provide sustainable aviation fuel at the Ted Stevens
International Airport.
3:00:34 PM
MS. KEITH advanced to slide 19:
[Original punctuation provided.]
STRENGTHENING MOBILITY AND REVOLUTIONIZING
TRANSPORTATION SMART GRANT: STAGE ONE AND TWO
Alaska Rural Remote Operations Workplan (ARROW)
Scalable Operations with Advanced Remote Technologies
(SOAR)
Alaska Rural Remote Operations Workplan Stage 1
Project Delivery: 18 Months
State Match: $0
Award: $1.9 Million
Scalable Operations with Advanced Remote Technologies
Stage 2
Project Delivery: 36 Months
State Match: $0
Award: $12.4 Million
Project Summary: Leveraging advanced Unmanned Aircraft
Systems and drone dock technologies to enhance
infrastructure inspections, disaster response, and
Beyond Visual Line of Sight (BVLOS) operations,
addressing safety, resiliency, and accessibility in
remote communities. The initiative supports Rural
Alaska by partnering with Alaska Native and Rural
Villages to gather situational awareness data on snow,
ice, and trails while creating scalable, sustainable
models.
MS. KEITH said that this was awarded as a construction
opportunity and would be implemented in the Bethel area.
Residents will be trained in drone operations and will learn how
drones can be used to support remote communities.
3:01:16 PM
MS. KEITH advanced to slide 20, Congressionally Directed
Spending (CDS). Slide 20 lists 8 statewide projects and awards
for FFY2022-2024, totaling $48,100,279. She said CDS for
airports and highways pass through DOTPF before being dispersed
to communities.
3:02:00 PM
MS. KEITH advanced to slide 21, Accelerating Project Delivery
Agile Project Management Office (PMO). Slide 21 includes
infographics illustrating agile project management. She stated
that PMO is one way that DOTPF is working to ensure that project
delivery remains on schedule. Agile project delivery in multi-
modal transportation utilizes various technologies to streamline
processes and increase community engagement. This is part of the
National Cooperative Highway Research Program and DOTPF received
a grant of $350,000.
3:03:04 PM
CHAIR BJORKMAN expressed appreciation for these efforts. He
opined that there is a great deal of interest in PMO and how
agile project management will be utilized - and what the impacts
may be. He noted concerns related to having a point of contact
to address issues. He said he is interested in learning more
about this.
3:03:58 PM
MS. KEITH expressed a willingness to discuss this further. She
stated that cost escalations require a faster pace within a
shorter timeframe for planning and preconstruction. Agile
project management allows for greater depth and focus while also
decreasing costs.
3:04:59 PM
CHAIR BJORKMAN asked for more specific information about PMO and
how it functions.
3:05:07 PM
MS. KEITH offered to respond both verbally and in writing. she
explained that PMO has a director-level position that reports to
the Deputy Director. In addition, there are three dedicated
full-time staff. There is a possibility for future departmental
shifts to develop and expand the program.
3:06:00 PM
CHAIR BJORKMAN requested additional information (e.g. names and
office function) in writing. He returned the discussion to
discretionary grants and asked whether projects not included in
STIP are eligible for discretionary grants.
3:06:17 PM
MS. KEITH said that projects that are not in STIP may apply;
however, once Title 23 or Title 49 grants are awarded, they must
be included in STIP. She briefly explained the grant award
process.
3:07:18 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Transportation Standing
Committee meeting at 3:07 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 20250211 STRA Federal Funds and Grants.pdf |
STRA 2/11/2025 1:30:00 PM |
20250211 DOT&PF Federal Funds and Grants |
| SB 47 Public Testimony.pdf |
STRA 2/11/2025 1:30:00 PM |
SB 47 |
| (S)_TRAN_Committee_2-11-2025.docx.pdf |
STRA 2/11/2025 1:30:00 PM |
20250211 DOT&PF Federal Funds and Grants ATA Legislative Priorities 2025 |
| August Redistribution Plan FFY25 (1).pdf |
STRA 2/11/2025 1:30:00 PM |
20250211 DOT&PF Federal Funds and Grants |