Legislature(2025 - 2026)BUTROVICH 205
02/18/2025 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Stip Update and Construction Outlook, Continued from 2/13/2025 | |
| Presentation(s): Alaska International Airport System Overview | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
February 18, 2025
1:35 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Jesse Kiehl
Senator Bert Stedman
Senator Mike Shower
MEMBERS ABSENT
Senator Löki Tobin, Vice Chair
COMMITTEE CALENDAR
PRESENTATION(S): STIP UPDATE AND CONSTRUCTION OUTLOOK~ CONTINUED
FROM 2/13/2025
- HEARD
PRESENTATION(S): OVERVIEW: ALASKA INTERNATIONAL AIRPORT SYSTEM
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
RYAN ANDERSON, Commissioner
Department of Transportation and Public Facilities (DOTPF)
Juneau, Alaska
POSITION STATEMENT: Co-presented STIP Update and Construction
Outlook, continued from February 13th, 2025.
KATHERINE KEITH, Deputy Commissioner
Department of Transportation and Public Facilities (DOTPF)
Anchorage, Alaska
POSITION STATEMENT: Co-presented STIP Update and Construction
Outlook, continued from February 13th, 2025.
ANGIE SPEAR, Director
Alaska International Airport System (AIAS)
Department of Transportation and Public Facilities (DOTPF)
Fairbanks, Alaska
POSITION STATEMENT: Co-presented Overview: Alaska International
Airport System.
TERI LINDSETH, Deputy Director
Ted Stevens Anchorage Airport
Department of Transportation and Public Facilities (DOTPF)
Anchorage, Alaska
POSITION STATEMENT: Co-presented Overview: Alaska International
Airport System.
ACTION NARRATIVE
1:35:29 PM
CHAIR BJORKMAN called the Senate Transportation Standing
Committee meeting to order at 1:35 p.m. Present at the call to
order were Senators Kiehl, Shower, and Chair Bjorkman. Senator
Stedman arrived thereafter.
^PRESENTATION(S): STIP UPDATE AND CONSTRUCTION OUTLOOK,
CONTINUED FROM 2/13/2025
PRESENTATION(S):
STIP UPDATE AND CONSTRUCTION OUTLOOK
CONTINUED FROM 2/13/2025
1:36:34 PM
CHAIR BJORKMAN announced the presentation STIP Update and
Construction Outlook from the Department of Transportation and
Public Facilities (DOTPF), continued from February 13th, 2025.
1:37:29 PM
RYAN ANDERSON, Commissioner, Department of Transportation and
Public Facilities (DOTPF), Juneau, Alaska, introduced himself
and advanced to slide 14. He briefly discussed inflation impacts
on the Cooper Landing Bypass Project (CLBP). Slide 14 includes
two tables, Project Cost Net Change and Total Project Cost
Estimate and Cost to Complete by Phase ($ in millions). DOTPF
estimates $45 million in contractor payments for this project in
FFY2025. He acknowledged the contracting community's concerns
regarding the distribution of work and the impact projects of
this magnitude can have. DOTPF is focused on creating work for
contractors and improving transportation for Alaskans.
1:38:51 PM
COMMISSIONER ANDERSON advanced to slide 15:
[Original punctuation provided.]
End of Year August Redistribution
• Funding Eligibility Challenge for August
Redistribution
• Surface Transportation Block Grant Urbanized
Areas Population greater than 200k (~$66M)
• Transportation Alternatives Program Population
greater than 200k (~$8M)
• Carbon Reduction Program Populations greater than
200k and less than 5K (~$27M)
• 2025 August Redistribution Notification
• Alaska Eligible for up to $126.1M in Obligation
Limitation
• Success Contingent on Project Delivery within
Anchorage Metropolitan Area Transportation
Solutions (AMATS) Metropolitan Planning Area
1:41:02 PM
SENATOR KIEHL asked if the full $126.1 million is contingent on
project delivery in the Anchorage Metropolitan Area
Transportation Solutions (AMATS) planning area.
1:41:15 PM
COMMISSIONER ANDERSON replied no. He explained that it is a
combination of fund types of which AMATS is a large portion.
1:41:32 PM
SENATOR KIEHL asked about the likelihood of using as much of the
$121.1 million as possible.
1:41:41 PM
COMMISSIONER ANDERSON said that DOTPF has a plan that, if
deliverable, would be successful.
1:42:17 PM
CHAIR BJORKMAN commented that the plan details are of interest
to many. He asked what portion of the $126.1 million August
redistribution is contingent on spending down the current
spending approvals.
1:42:47 PM
KATHERINE KEITH, Deputy Commissioner, Department of
Transportation and Public Facilities (DOTPF), Anchorage, Alaska,
answered that to qualify for August redistribution, DOTPF must
fully obligate the $680 million in current revenue (i.e. 100
percent of the funds must be spent). In addition, DOTPF must
have a plan for how the requested redistribution funds would be
spent.
1:43:21 PM
CHAIR BJORKMAN asked for confirmation of his understanding that
all available DOTPF funds must be spent in order to qualify for
August redistribution.
1:43:36 PM
MS. KEITH clarified that 90 percent of the obligation limitation
funds must be spent.
CHAIR BJORKMAN asked for confirmation of his understanding that
DOTPF must spend 90 percent or more of the obligation limitation
funds to qualify for August redistribution.
MS. KEITH replied yes.
1:44:19 PM
MS. KEITH advanced to Slide 16, Statewide Transportation
Improvement Program. Slide 16 contains images of STIP Amendment
1 and proposed Amendment 2, as well as graphs comparing the two
amendments and a QR code for submitting public comments. STIP
Amendment 2 is out for public comment. The comment period is 30
days. She briefly discussed the public comment process and
recent improvements to this process. STIP Amendment 2 contains
about $6.9 billion in projects programmed over the next four
years. She noted that over $1 billion is awarded through
discretionary grants to be utilized over the next four years.
Over 300 projects are also included. She offered details on how
the funds are spent.
1:46:23 PM
CHAIR BJORKMAN asked about the timeline for STIP Amendment 2
funds to become available.
1:46:38 PM
MS. KEITH said that most of the projects are moving forward with
funding from STIP Amendment 1. Some cost increases are included
in STIP Amendment 2.
1:47:02 PM
COMMISSIONER ANDERSON said that the process will take an
estimated 2.5 months from public notice (now underway) to
Federal Highway Administration (FHWA) approval of the revised
STIP Amendment 2.
1:47:39 PM
CHAIR BJORKMAN asked how confident DOTPF is feeling about FHWA's
approval of the revised STIP Amendment 2.
1:47:52 PM
COMMISSIONER ANDERSON expressed a high level of confidence that
FHWA would approve the revised STIP Amendment 2.
1:48:22 PM
CHAIR BJORKMAN asked whether STIP Amendment 2 identifies all of
the projects required to capture the full August redistribution
funds.
1:48:38 PM
MS. KEITH replied yes and added that STIP Amendment 2 was
created with this in mind. The list of projects is available for
the committee.
1:49:06 PM
MS. KEITH advanced to slide 17, which is a STIP timeline from
December 2021 to October 2024. She briefly discussed the most
recent STIP-related events and how STIP Amendment 2 incorporates
changes to meet common goals. DOTPF has met with Federal
Highways and Federal Transit Administration to discuss the
current STIP Amendment 2 as well as the upcoming 4-year STIP.
1:50:58 PM
SENATOR KIEHL asked for clarification regarding the upcoming
STIP timeframe. He expressed his understanding that the upcoming
STIP would be a 2-year STIP.
1:51:09 PM
MS. KEITH replied that DOTPF is considering a rolling STIP. She
said that this would be helpful and explained that the upcoming
STIP would forecast from FFY 2025-2028, providing a 4-year
window of construction.
1:51:29 PM
SENATOR KIEHL asked for clarification about the status of STIP
Amendment 1.
1:51:51 PM
MS. KEITH clarified that STIP Amendment 1 is fully approved.
1:52:04 PM
SENATOR KIEHL asked for the date for full approval of STIP
Amendment 1.
1:52:10 PM
MS. KEITH replied September 26, 2024.
SENATOR KIEHL directed attention to slide 17, which states that
STIP Amendment 1 was partially approved. He requested further
clarification.
1:52:20 PM
MS. KEITH explained that several of the projects DOTPF
originally submitted were removed from STIP Amendment 1
(including several tribal transportation projects); therefore,
the original submission was partially approved. She clarified
that the list of projects listed on DOTPF's website under STIP
Amendment 1 were approved and will be moving forward.
1:52:55 PM
SENATOR KIEHL asked whether STIP Amendment 2 includes those
tribal transportation projects - and whether the amendment is
likely to be fully approved.
1:53:06 PM
MS. KEITH said that DOTPF has removed tribal transportation
projects from STIP, along with other projects that would
potentially impact full STIP approval. DOTPF will work with
federal partners to address any outstanding concerns during
public comment. She expressed confidence that STIP Amendment 2
will be fully approved.
1:53:36 PM
COMMISSIONER ANDERSON said that upcoming slides would provide
further clarification. He advanced to Slide 18:
[Original punctuation provided.]
DOT&PERMANENT FUND Meets with Federal Partners in DC
for Clarification
November 20-21, 2024
99 percent of Projects Approved
DOT&PF and LAW met with FHWA and FTA leadership at
their Washington, DC headquarters, including FHWA
Executive Director Gloria Shepard.
• Richardson Highway Milepost 346: Must be
programmed in the STIP not TIP
• Safer Seward Highway: Allowed to change termini
• 'MUST' Statements (28): Require attention
• 'SHOULD' Statements (38): Lack measurable goal
and/or legal requirement
• MPO Engagement Finding: Ongoing; completion
measured in stakeholder happiness
• Discretionary Grants: USDOT lacks a comprehensive
list requiring inclusion in the STIP
COMMISSIONER ANDERSON explained how DOTPF worked with FHWA and
FTA to reach agreement on various projects. He noted that
"partially funded" and "fully funded" can become muddled, as
some parts of the agreement were not in writing. He stated that
STIP Amendment 2 is meant to clarify these grey areas. FHWA has
taken over responsibility for ensuring that tribal
transportation programs are funded. He commented that DOTPF and
the Legislature would need to watch to make sure this happens.
He expressed confidence that many of the issues were resolved.
1:57:17 PM
CHAIR BJORKMAN asked whether the Safer Seward Highway Project
was removed from Anchorage Metropolitan Area Transportation
Solutions (AMATS).
1:57:34 PM
COMMISSIONER ANDERSON acknowledged that this issue is a source
of frustration for the State of Alaska. He explained that
MPO/State relationships create a grey area. FHWA has encouraged
DOTPF to cut off the project at the termini (before Potter's
Marsh) and continue with DOTPF's project, while continuing to
seek a solution with AMATS. FHWA considers this is a negotiation
between DOTPF and AMATS; however, DOTPF believes it maintains
the planning control for federal highway routes. DOTPF changed
the project termini to ensure STIP Amendment 2 approval. DOTPF
and AMATS will continue to seek resolution.
1:58:51 PM
SENATOR KIEHL commented that, historically, metropolitan
organizations and states came to agreement by working through
the issues together. He commented that DOTPF has historically
worked through issues with FHWA before rather than after the
fact - and expressed concern that this has changed. He asked
about the scope of DOTPF's planning team.
1:59:52 PM
MS. KEITH answered that DOTPF had over 30 people working on the
STIP. She emphasized the depth and breadth of knowledge and
experience required for STIP drafting and planning. Information
was previously provided to the committee. She said DOTPF would
like to work out these issues ahead of time; however, sometimes
timing is a challenge.
2:01:14 PM
SENATOR KIEHL commented that previously, over 50 people worked
on planning and never missed a STIP. He wondered if cutting back
the planning team has had an overall negative impact.
2:01:51 PM
MS. KEITH replied that the STIP team is highly
interdisciplinary. She briefly discussed recent organizational
changes at DOTPF that helped with modernization. She discussed
the impact this had on the STIP team and detailed the current
structure.
2:03:54 PM
COMMISSIONER ANDERSON commented that he has noticed an
underlying tone in several hearings that seem to imply that
DOTPF does not care about planning. He explained DOTPF's
perspective and emphasized that everything begins with planning.
He said that previously, DOTPF's planning resources were spent
on programming and opined that this was not the best use of the
resources. He said that, while the number of planners has not
changed, the plans (not the programming) are the focus. He said
that STIP is more programming focused and briefly discussed
this. He emphasized that while fewer planning resources are
dedicated to STIP, planning remains a priority.
2:06:18 PM
SENATOR KIEHL said he would consider this shift and the impact
that it has had on federal funding qualifications. He wondered
whether these changes have negatively impacted programs and
pointed out that work is months behind schedule.
2:07:01 PM
CHAIR BJORKMAN asked for clarification of what is meant by
"program" and "plan."
2:07:11 PM
COMMISSIONER ANDERSON explained that "planning" is a cohesive
evaluation of criteria to plan for future transportation needs.
Planning gives rise to projects. He said that projects are later
"programmed" into STIP.
2:08:20 PM
CHAIR BJORKMAN shared his understanding that "plan" refers to
longer term, bigger picture items as well as individual
projects.
2:08:39 PM
COMMISSIONER ANDERSON advised against using the term "plan" for
both bigger picture and individual projects, because this can
cause confusion.
CHAIR BJORKMAN shared his understanding that "programming"
applies to how DOTPF assigns projects into STIP to secure
federal funding.
COMMISSIONER ANDERSON confirmed that this interpretation is
correct.
2:09:06 PM
MS. KEITH offered additional insight. She said "programming" is
a budgetary term. She briefly discussed this process as it
relates to STIP.
2:09:44 PM
COMMISSIONER ANDERSON advanced to Slide 19:
[Original punctuation provided.]
Key Issues Ahead
Timing of Federal Fund Distribution
• Continuing Resolution Impacts Delivery
• August Redistribution has Limited Window
Build America Buy America (BABA)
• Supply Chain Challenges
• Utilities Unwilling to Take on Risk
Right-of-Way Acquisition / Material Sites
• Federal Acquisitions Hindered by Unreasonable
Unnecessary Easement Stipulations
• Right-of-Way Acquisition Expertise is
Increasingly Limited
Program Adjustments
• National Electric Vehicle Infrastructure Program
• Recent Approval of Third Annual Plan
• Alaska Energy Authority/DOT&PF Joint Effort
• $41M Allocated; Implementation Challenges
• PROTECT Program
• Carbon Reduction Program
Work Continues on STIP Practices
• DOT&PF, FHWA, and MPO teams continue to work
together to address remaining issues and changes
in practices.
2:11:47 PM
SENATOR SHOWER asked about material requirements and BABA. He
surmised that many materials must be shipped from outside
Alaska. He asked how the lack of local material access impacts
projects.
2:12:35 PM
COMMISSIONER ANDERSON answered that work with utilities,
supplies including power cables, transformers, fiber optic
cables, etc., are impacted. He briefly discussed potential
solutions, including stockpile accounts and the state taking on
some of the risk.
2:13:32 PM
CHAIR BJORKMAN asked about the opportunity cost of continuing to
wait for these issues to be resolved. He wondered if the state
could simply take on the risk (rather than wait for the issues
to be resolved).
2:14:14 PM
COMMISSIONER ANDERSON confirmed that the state has the authority
to relocate utilities. DOTPF is currently weighing this option,
particularly on the Kenai Peninsula.
2:15:27 PM
CHAIR BJORKMAN asked if this is being considered in time for
2025 summer projects.
2:15:32 PM
COMMISSIONER ANDERSON replied that this is the goal.
2:15:58 PM
CHAIR BJORKMAN opined that it would not be reasonable to expect
utility customers to take on costs related to DOTPF projects.
2:16:31 PM
COMMISSIONER ANDERSON clarified that the costs are fully
reimbursable. He stated that the issue is not the costs, but
with procuring the materials that are BABA compliant.
2:16:57 PM
CHAIR BJORKMAN surmised that the utilities are less willing to
take on the financial risk required to acquire BABA compliant
materials - and not having compliant materials means the
utilities would not be reimbursed. The delta for the non-
reimbursable amount would be passed on to utility customers.
2:17:22 PM
COMMISSIONER ANDERSON indicated that this is one correct
interpretation. He clarified that if the utility is non-
compliant, the state would also be non-compliant. In that case,
the project would require state funding. He emphasized that this
is a joint effort between DOTPF and utilities.
2:17:48 PM
SENATOR SHOWER shared his understanding that some of the
utilities are not able to access the compliant materials and
asked if important projects could be halted as a result.
2:18:17 PM
COMMISSIONER ANDERSON confirmed that this is a possibility. He
explained that some materials can be reused, though this is not
ideal. He shared several alternative solutions.
2:18:58 PM
CHAIR BJORKMAN asked if this issue was discussed during the
December 2024 meetings in Washington DC.
2:19:09 PM
COMMISSIONER ANDERSON replied no and said those meetings focused
on STIP. However, subsequent conversations with federal
officials and Alaska's congressional delegation have touched on
this issue. He noted that this is a nationwide concern.
2:19:39 PM
COMMISSIONER ANDERSON advanced to slide 20:
[Original punctuation provided.]
Key Actions Ahead
Addressing Inflationary Impacts
Sequence larger projects into stages, creating more
opportunities for Alaska-based contractors to
participate competitively, and potentially increasing
competition.
Timing of Federal Fund Distribution
Leverage financial tools such as advanced
construction, or pre-awarding grant-based projects,
allowing projects to move forward without waiting on
federal funding release schedules.
Buy America/Build America (BABA) Compliance
Evaluating options to address supply chain issues:
Advance purchases, stockpile reimbursable accounts,
DOT&PF taking risk to relocate utilities through
construction contracts, etc.
Right-of-Way Acquisition Delays
For Federal Highways Highway Easement Deeds with
Bureau of Land Management (BLM), requesting renewed
reviews by Department of Interior of BLM easement
stipulations.
Gravel/Rock Excavation Sites
Asking for renewed review of Free Use Permits on BLM
lands and developed new policy guidance for staff to
seek out material site authorizations in
preconstruction phases.
2:22:01 PM
COMMISSIONER ANDERSON advanced to slide 21:
[Original punctuation provided.]
Key Actions Ahead, Continued
Addressing Resource Constraints: General Engineering
Consultants
Multidisciplinary engineering firm or team contracted
to provide comprehensive support services for
transportation infrastructure projects. These services
are designed to supplement the capabilities of a
transportation agency, such as the Washington
Department of Transportation (WSDOT), by offering
expertise in a wide range of disciplines, including
planning, design, environmental compliance, project
management, and construction
oversight.
Addressing Internal Controls: Agile Project Management
Office (PMO)
Establishing project management expectations,
standards, and best practices to enhance the
efficiency and effectiveness of project delivery. The
PMO serves as a strategic oversight body, ensuring
that transportation projects are executed
consistently, meet agency goals, and align with state
and federal regulations.
Modernizing Project Delivery and Forecasting Tools
DOTPF Capital Project Dashboard
Enhanced Tentative Advertising Schedule (TAS)
Project Delivery Plan (PDP)
Modernized Statewide Transportation Improvement
Program (STIP)
2:24:06 PM
MS. KEITH briefly discussed DOTPF's new Project Management
Office (PMO). This office will provide support to project
managers in order to streamline processes. She noted that
digital upgrades (including cloud-based data solutions) have
been helpful.
2:26:14 PM
CHAIR BJORKMAN noted additional interest in PMO. He stated that
he would like DOTPF to provide information on the projects in
STIP Amendment 2 that would capture the 2025 August
redistribution funds. He expressed interest in ensuring all of
the current program funds are obligated in order to maintain
eligibility for August redistribution. He asked for further
details on DOTPF's plan to obligate the maximum amount, getting
funds to contractors, and elevating projects throughout this
process.
2:27:32 PM
At ease.
2:29:51 PM
CHAIR BJORKMAN reconvened the meeting.
^PRESENTATION(S): ALASKA INTERNATIONAL AIRPORT SYSTEM OVERVIEW
PRESENTATION(S): ALASKA INTERNATIONAL AIRPORT SYSTEM OVERVIEW
2:30:02 PM
CHAIR BJORKMAN announced the presentation, Alaska International
Airport System.
2:30:13 PM
ANGIE SPEAR, Director, Alaska International Airport System
(AIAS), Department of Transportation and Public Facilities
(DOTPF), Fairbanks, Alaska, introduced herself.
2:30:42 PM
MS. SPEAR advanced to Slide 2:
[Original punctuation provided.]
What is the AIAS?
Ted Stevens Anchorage International Airport
• Major international cargo hub
• 4th busiest cargo airport in the world
Fairbanks International Airport
• Passenger hub and reliever cargo airport
• Critical facility for the Northern Region
Lake Hood Seaplane Base
• Seaplanes and Regional Air Carriers
• Busiest seaplane base in the world
MS. SPEAR said the Alaska International Airport System (AIAS)
employs over 520 Alaskans and serves two-thirds of the
passengers who arrive and depart from the state.
2:31:18 PM
MS. SPEAR advanced to Slide 3:
[Original punctuation provided.]
AIAS Airline Business Partnership
• Existing 10-year Operating Agreement and
Passenger Terminal Lease (OAPTL)
• July 1, 2023 June 30, 2033
• 33 Signatory Carriers share financial
responsibility with AIAS
• Capital and operating input, discounted fees
• Organized Airlines Airport Affairs Committee
(AAAC)
• Bonds issued through State Bond Committee
• $1 billion issued, $279.7 million
outstanding
• Moody's Credit Rating: Aa3 stable
2:32:25 PM
MS. SPEAR advanced to slide 4:
[Original punctuation provided.]
Finances
• Refunded Series 2016 A and B Bonds with
Department of Revenue
• $8.9 million (6.5 percent) in Net Present
Value Savings
• $23 million maintained annual debt service
thru 2036
• Processed remaining Pandemic Relief Funds
• $104 million since 2020
2:33:03 PM
MS. SPEAR advanced to slide 5
[Original punctuation provided.]
Operating Revenues and Passenger Facility Charges
(PFCS)
Self-sustaining State enterprise fund, fully supported
by airport user charges.
[Slide 5 also contains a bar chart titled, Alaska
International Airport System FY2024 Operating Revenues
and Passenger Facility Charges $180 Million
(Unaudited).]
MS. SPEAR explained that "airport operations" refers to landing
and other fees that airlines pay to use the airport. She briefly
discussed the breakdown of the remaining fees.
2:33:52 PM
SENATOR KIEHL asked if fuel flowage falls under airport
operations and what the associated total is.
2:34:00 PM
MS. SPEAR replied yes and offered to follow up with the exact
percentage. She estimated that fuel flowage makes up half of the
airport operations total.
2:34:20 PM
MS. SPEAR advanced to Slide 6, Operating Expenses and Dept
Service. Slide 6 contains a bar chart titled, "Alaska
International Airport System FY2024 Operating Expenses and Debt
Service $138 Million (Unaudited). (Expenses do not include rates
& fees-funded capital costs or depreciation.) She pointed out
that field and equipment maintenance is the largest expense,
followed by facilities (making up close to 50 percent of the
expenses from both Anchorage International Airport (AIA) and
Fairbanks International Airport (FIA). She briefly noted the
remaining expense categories.
2:34:48 PM
MS. SPEAR advanced to Slide 7, Domestic and International Cargo
Activity. Slide 7 contains a graph titled, "AIAS Domestic and
International Cargo by Quarter by Fiscal Year." She noted that
cargo activity ensured continued growth during the Covid-19
pandemic. There is a steady growth trend in domestic and
international cargo through FY2025.
2:35:20 PM
MS. SPEAR advanced to Slide 8, Monthly Passenger Activity. Slide
8 contains a graph titled, "AIAS FY2021-FY2025 Monthly Enplaned
Passengers as of December 31, 2024." She stated that, while
passenger activity decreased during the Covid-19 pandemic,
growth is steady. Two-thirds of passenger activity occurs
between May and September each year.
2:35:46 PM
MS. SPEAR advanced to Slide 9, Monthly Cargo Activity. Slide 9
contains a graph titled, "AIAS FY2021-FY2025 Monthly Cargo
Tonnage (in Metric Tons) as of December 31, 2024." She indicated
continued yearly growth.
2:36:02 PM
TERI LINDSETH, Deputy Director, Ted Stevens Anchorage Airport,
Department of Transportation and Public Facilities (DOTPF),
Anchorage, Alaska, advanced to Slide 10, Capital Funding. Slide
10 contains two tables related to federal aviation grant program
funds for FY2024 and FY2025. She explained that both airports
receive grant funding from the Federal Aviation Administration's
Airport Improvement Program and the Bipartisan Infrastructure
Law (BIL). She briefly discussed the match required by these
grants. She explained that these funds are generally used to pay
for infrastructure improvement projects.
2:36:55 PM
MS. LINDSETH advanced to Slide 11 and discussed a variety of
projects in progress at AIA and FIA:
[Original punctuation provided.]
Development and Growth
ANC
• FedEX Domestic Sorting Facility
• NorthLink Aviation
• Anchorage Airport Partners, LLC
• Alaska Cargo and Cold Storage
• Atlas Air (pending)
FAI
• Bureau of Land Management & Department of Natural
Resources Firefighting Complex
• Vehicle Parking Expansion and Improvement Project
2:39:09 PM
MS. LINDSETH advanced to slide 12 and discussed a variety of
sustainability initiatives:
[Original punctuation provided.]
Innovation and Sustainability
ANC
• Part 150 Noise Compatibility Study
• Heat and Power CoGen Production
• ALCS Resilience and Reliability
• Sustainable Aviation Fuel
• Solar Energy Initiative
FAI
• PFAS FAA Pilot Study Report
• Boston Dynamics "Aurora" Autonomous Technology
for Wildlife Mitigation
2:43:32 PM
MS. LINDSETH advanced to slide 13 and discussed programs to
build strong partnerships and communities:
[Original punctuation provided.]
Building Stronger Partnerships and Communities
• Drug Enforcement Programs
• Children's Play Area
• Art Contests, Holiday Programs
• Hidden Disability Program
• Blue Lightning Initiative
• Traveler Surveys
2:45:26 PM
SENATOR KIEHL asked when Yara, the K9 trained to detect
fentanyl, joined the Drug Enforcement Program.
2:45:51 PM
MS. LINDSETH replied 8 or 9 months.
SENATOR KIEHL shared his understanding that Dax, a K9 in Juneau,
was the first fentanyl-detecting K9 to work with law enforcement
in Alaska.
MS. LINDSETH continued her presentation of Slide 13. She briefly
discussed traveler survey projects.
2:46:38 PM
MS. SPEAR advanced to slide 14 and discussed the impacts of
winter weather, winter storms, and the Winter Storm Efficiency
Study:
[Original punctuation provided.]
Winter Storm Efficiency Study
Background
• Severe weather events can create challenges for
ANC and FAI
o Delays on the ground
o Diversions to other airports
Purpose
• Analyze current processes, inventory, staffing
levels
• Confirm what is working
• Recommendations for improvements
[Slide 14 also contains an infographic showing winter
storm (ice and rain) event data to emphasize the
impact of non-snow related weather events on AIAS.]
2:48:47 PM
MS. SPEAR advanced to Slide 15 and continued to discuss the
Winter Storm Efficiency Study:
[Original punctuation provided.]
Next steps: Winter Storm Efficiency Study
• Conduct Analysis
• Staff interviews, site visits, document
reviews
• Benchmarking against other airports
• Detailed analysis
• Present Recommendations
• Storm event plans
• Areas for improvement
2:49:27 PM
MS. SPEAR advanced to Slide 16, which contains a tree chart to
show the current organization of AIAS leadership. She briefly
explained the current structure of AIAS leadership. AIAS is
proposing an adjustment to this structure.
2:49:58 PM
MS. SPEAR advanced to slide 17, which contains a tree chart
displaying proposed changes to AIAS leadership organization. She
briefly explained the proposed changes. The intention is to
centralize the development office, restructure the information
technology (IT) office, and add an HR liaison, an engineering
position, and two budget positions.
2:51:03 PM
CHAIR BJORKMAN asked where the reorganization proposal is
directed.
MS. SPEAR replied that this is a budget request for FY2026.
2:51:20 PM
CHAIR BJORKMAN noted that there is a mix of interest in the
reorganization. He said there is concern that decisions about
Anchorage would be made by people in Fairbanks, rather than
those on the ground in Anchorage. He asked for comments on these
concerns and decision-making process. He asked who is on the
ground making decisions at Anchorage.
2:52:33 PM
MS. SPEAR clarified that Fairbanks is not making all decision.
She gave a brief history of her work with AIAS, which has
included work in both locations. She explained that the
restructuring format is common among airports nationwide. She
opined that there is concern on both sides and offered examples.
She explained that the restructuring is an attempt to leverage
resources at both airports in a way that creates continuity,
which has been lacking. Teams will not be consolidated. She
stated that this would result in service improvements. She
emphasized the work experience she and Ms. Lindseth have at both
AIA and FIA.
2:55:38 PM
CHAIR BJORKMAN asked who is on the ground in Anchorage,
overseeing day-to-day operations.
2:55:49 PM
MS. SPEAR said the reorganization would allow airport managers
to focus on operations.
2:56:22 PM
CHAIR BJORKMAN asked about changes in direct reporting and
budgeting.
MS. SPEAR replied yes. She explained how the airport manager
position has changed in recent years. She emphasized the
importance of focusing on operations.
2:57:47 PM
SENATOR SHOWER asked about fuel use per year.
MS. LINDSETH replied that she could provide this information.
2:58:12 PM
SENATOR SHOWER asked about the fuel source. He also asked about
ATLAS and the plan to create an additional runway
2:58:59 PM
MS. SPEAR said that none of the current development prohibits
the addition of a fourth runway in the future.
2:59:12 PM
SENATOR SHOWER noted the potential for a future pandemic and
asked about a plan for utilizing part of AIA for quarantine, to
allow operations to continue while protecting the general
population.
2:59:53 PM
MS. SPEAR said that this is one of several options quarantine
location options that AIAS is considering. She said she could
provide reports to answer some of the questions posed by Senator
Shower.
3:00:32 PM
MS. SPEAR advanced to Slide 18 and continued to discuss the
proposed reorganization:
[Original punctuation provided.]
AIAS Proposed Reorganization
Create a Planning and Development Team
• Unified Vision
• Enhance collaboration for innovation
• Shared best practices
• Focused alignment of strategic goals and
development objectives
• Land Development, Concessions
• Regional, domestic, and international air
service development
• Federal Grant Opportunities
• Facilitating alignment and continuity in the
communication of internal and external
capabilities
3:01:13 PM
MS. SPEAR advanced to Slide 19 and continued to discuss the
proposed reorganization:
[Original punctuation provided.]
AIAS Proposed Reorganization
Establish a Technology and Innovation Team
• Ensure technology continuity and system
modernization
• Enhance cyber-security and operational resilience
• Drive digital transformation for efficiency and
innovation
• Elevate passenger experience through advanced IT
solutions
• Support airlines and stakeholder with tailored IT
services
3:01:58 PM
MS. LINDSETH advanced to Slide 20 and discussed air service
development growth:
[Original punctuation provided.]
Air Service Development Growth
Passenger Service New Routes and Expansion of
Existing
• United Airlines: Washington D.C., Denver, Chicago
• Alaska Airlines: New York City, San Diego,
Portland, Detroit, Sacramento
• Delta Airlines: Detroit, Los Angeles, Atlanta,
Salt Lake City
• Condor Airlines extended operations
• Air Canada increased weekly service
Cargo New Carriers
• MAS Airlines
• Central Airlines of China
• ASL Air Cargo
• Awesome Air Cargo
• Aerologic Air Cargo
• CMA CGM Air Cargo
MS. LINDSETH said this growth is expected to generate an
additional $8.9 million in revenue.
3:03:17 PM
SENATOR KIEHL asked about growth at FIA.
3:03:29 PM
MS. SPEAR said there would be new Alaska Airlines service from
Portland to FIA. In addition, service to Denver will expand.
3:03:51 PM
SENATOR KIEHL asked whether the new information technology (IT)
team is part of the reorganization.
3:04:02 PM
MS. SPEAR replied yes. She explained that it would reorganize IT
into one group under the System office.
3:04:10 PM
SENATOR KIEHL noted that the budget documents provided show IT
under the System office and none in either airport.
MS. SPEAR replied that this is correct. She noted that
currently, there are two groups - one working in AIA and one in
FIA.
SENATOR KIEHL said he would consider this further.
3:04:29 PM
SENATOR SHOWER commented that cargo is important to AIAS and
would continue to grow.
3:05:18 PM
MS. SPEAR agreed. She added that ecommerce (e.g. Amazon) is
expanding at both AIA and FIA.
MS. SPEAR thanked the committee.
3:06:23 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Transportation Standing
Committee meeting at 3:06 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| STIP Updates Construction Outlook 20250213 CORRECTED.pdf |
STRA 2/13/2025 1:30:00 PM STRA 2/18/2025 1:30:00 PM |
STIP Update Construction Outlook |
| STRA Aviation AIAS Overview 20250218.pdf |
STRA 2/18/2025 1:30:00 PM |
Aviation AIAS Overview |
| (S)_TRAN_Committee_2-18-2025.docx.pdf |
STRA 2/18/2025 1:30:00 PM |
Responses to Committee Questions |
| Airport Comm Disease Resp Plan.pdf |
STRA 2/18/2025 1:30:00 PM |
Responses to Committee Questions |
| Annex 15 Sterile Area Exemption.pdf |
STRA 2/18/2025 1:30:00 PM |
Responses to Committee Questions |