Connect with us

Alaska

Alaska got the lowest August federal transportation allocation among states at $19 million from error-filled submission

Published

on

Alaska got the lowest August federal transportation allocation among states at  million from error-filled submission


The state of Alaska was awarded $19 million by federal highway administrators in August, the lowest amount given to a state this year from an annual reallocation of unused federal transportation funding.

Alaska transportation officials had requested $71.4 million from the August redistribution. But $52 million in projects was rejected due partly to errors made in the state’s submission. Alaska contractors are disappointed and concerned what that will mean for next summer’s road construction season and beyond.

At the end of each August, the Federal Highway Administration redistributes transportation funds among states that cannot be obligated by the end of the federal fiscal year on Sept. 30.

Advertisement

The Federal Highway Administration announced on Aug. 30 that a record $8.7 billion would be redistributed to state transportation departments across the nation. Texas got the largest allocation at $1.17 billion. California got the second largest share with $622 million. Alaska received $19 million in spending authority — the lowest figure among 50 states and Washington D.C.

State transportation officials say this year’s reduced redistribution was due to several factors: Fewer big pots of money available to fund projects, changing federal requirements and added scrutiny on Alaska’s transportation spending.

“We are actually pleased to have captured this $19 million,” said Shannon McCarthy, a spokeswoman for the Alaska Department of Transportation, in an interview last week.

State transportation officials acknowledged that the state’s delayed and error-filled four-year, $5.6 billion transportation plan was a contributing factor to the Federal Highway Administration’s rejection of $16 million in projects from Alaska’s August redistribution request.

According to a transportation planning document obtained by the Daily News as part of a records request, much of the state’s ask for unused federal transportation funds was denied because of significant errors made in the submission.

Advertisement

Basic and significant errors

The State Transportation Improvement Plan, or STIP, is a separate and comprehensive plan for highways, roads, ferries, and even bicycle lanes to be implemented in Alaska through 2027. States typically had their four-year transportation plans approved by last October, the start of the federal fiscal year.

Alaska’s first transportation plan was rejected by federal highway administrators four months late in February due to significant errors with dozens of proposed projects. After scrambling to correct mistakes and to remove ineligible projects, Alaska’s transportation plan was only partially approved in March.

Additionally, state officials were required to submit an amended transportation plan in late August that made corrective actions to numerous projects.

“There are a pretty significant number of them, and they are detailed and take a lot of work to address,” said Aaron Jongenelen, executive director of AMATS, Anchorage’s local transportation planning organization.

Some of the same problems associated with the state’s first four-year transportation plan have persisted through the process to correct those errors.

Advertisement

Last year, AMATS and Fairbanks’ transportation planning organization, FAST Planning, said they were excluded from drafting the state’s plan as required by federal regulations. Projects were added to the state’s that were not also supported by the local planning organizations, such as bridge improvements to serve a contentious ore-haul project near Fairbanks operated by Kinross.

In late July, FAST Planning said they “were again excluded during development” of the state’s draft amended plan. Many of the concerns from local planning organizations were subsequently addressed by state transportation officials, but others remained.

The Alaska Department of Transportation has wanted to improve a stretch of the Seward Highway between Potter Marsh and Bird Flats, but the costly project has not been fully included in AMATS’ own transportation plan, which is required by federal regulations. The project was added to the state’s amended transportation plan despite a warning by AMATS that it would again be declared ineligible for federal funding.

A group of 12 Democratic and independent state legislators wrote to Transportation Commissioner Ryan Anderson in early August with concerns that the state’s amended transportation plan made allocation decisions that risked it posed to projects in next summer’s construction season.

Anchorage Democratic Rep. Zack Fields, a member of the House Transportation Committee, was scathing at the blatant errors that continued to be made by the department on critical state transportation funding requests. He said in an interview that Alaskans would broadly feel the impact of delayed or denied road construction projects.

Advertisement

“Anyone who works in the construction industry, anyone who doesn’t want to drive through a two-foot deep pothole, anyone in the resource development industry who relies on a functioning surface transportation system. Literally, everyone is screwed by their incompetence,” he said.

Alaska’s amended four-year transportation plan was submitted on Aug. 28. That triggered a 30-day window for the Federal Highway Administration to review and potentially approve the new plan.

That uncertainty helped reduce Alaska’s August redistribution. Federal highway administrators rejected over $16 million of proposed projects because they were contingent on the state’s amended transportation plan already being approved.

According to the transportation planning document obtained by the Daily News, another $35.7 million in projects were rejected because they “were not ready to move forward.”

Some proposed projects were denied because of errors made in the state’s request, including by again adding projects that were not also in local transportation plans. Other projects could not be obligated by the end of September — a federal deadline.

Advertisement

Emails obtained by the Daily News showed state transportation officials were warned ahead of time by the Federal Highway Administration that certain projects would be rejected because of errors. They were submitted anyway.

As part of Alaska’s August redistribution request, the state asked for $462,780 for rockfall mitigation at mile 113.2 of the Seward Highway. State transportation officials were told the project would be ineligible for funding. The project was submitted and was duly denied.

A federal highway official wrote in comments attached to that request: “Resubmission – why are design funds being added 4 years after construction ATP??”

Fields was not convinced by state transportation officials’ explanations about the reduced August redistribution being caused by changing federal regulations or added scrutiny.

“Every other state is administering these programs and getting way more money,” he said. “So how are we the only ones who are getting less money?”

Advertisement

‘Surprised and disappointed’

The $19 million in federal transportation funds obligated to Alaska in August stands in stark contrast to the recent past. Last year, Alaska got a record $108 million. The year before, the state received a then-record $87 million in authority to be used for seven projects.

“Alaska is geared up to build projects that address safety and fix our existing infrastructure,” Transportation Commissioner Ryan Anderson said in a news release two years ago.

The Associated General Contractors of Alaska, which represents over 600 local contractors, was concerned by this year’s reduced funding and what it could mean for future construction seasons.

“AGC members were surprised and disappointed to see Alaska receive the lowest August redistribution funds of any state in the nation,” said Alicia Amberg, executive director of AGC, in a prepared statement.

Amberg noted that Alaska’s 2024 redistribution was down 82% compared to last August. That was despite a nearly 10% increase in transportation funds available nationwide for redistribution, she said.

Advertisement

“We don’t know how and if this will impact the construction program in the coming months, but less money going toward safe and reliable infrastructure in Alaska is always a concern,” Amberg said.

She added that AGC was working with state transportation officials “to understand the bigger picture funding strategy in place that will ensure ample opportunity and predictability for the construction industry moving forward.”

McCarthy, a spokesperson for the Alaska Department of Transportation, emphasized that Alaska is set to receive $590 million in federal transportation funding this fiscal year before accounting for the August redistribution. But not all of that funding has been made available.

FAST Planning in Fairbanks said by Aug. 21 that it had been obligated $13.3 million, which represented 43% of the nearly $31 million in funding it has anticipated receiving this federal fiscal year.

By the end of June, AMATS in Anchorage had obligated just $14 million of $50 million, which was just 28% of the funding it had anticipated receiving this year. More funding could be made available before the end of the federal fiscal year, which is typical. But Jongenelen said the gap this year was substantial.

Advertisement

“The big difference this go around is the estimates are much higher of how much we don’t anticipate obligating,” he said.

Jongenelen, executive director of AMATS, said the delayed federal transportation funding available for Anchorage was directly connected to the delays in getting federal approval for the state’s amended four-year transportation plan.

He said that can have real consequences. A project to rehabilitate a stretch of Spenard Road to improve safety for drivers and pedestrians would likely be delayed, but he didn’t know by how long. He said that can have “a butterfly effect.”

“So one project is delayed a year. That could delay two other projects. Those could delay three other projects,” he said. “It’s kind of this effect that you don’t really know — it looks small at the beginning, but it can grow into being a larger thing as time goes on.”





Source link

Advertisement

Alaska

Trump signs bills to ease way for drilling and mining in Arctic Alaska

Published

on

Trump signs bills to ease way for drilling and mining in Arctic Alaska


An access road runs between the community of Kobuk and the Bornite camp in the Ambler Mining District, on July 24, 2021. The area has been explored for its mineral potential since the 1950s, and contains a number of significant copper, zinc, lead, gold, silver and cobalt deposits. (Loren Holmes / ADN)

President Donald Trump has signed bills nullifying Biden-era environmental protections in the Arctic National Wildlife Refuge and in Northwest Alaska in an effort to promote oil and mining activity.

The actions were a win for Alaska’s congressional delegation, which sponsored the measures to open opportunities for drilling in the refuge and development of the 200-mile road through wilderness to reach the Ambler mineral district.

The actions are part of Trump’s effort to aggressively develop U.S. oil, gas and minerals with Alaska often in the limelight.

Potential drilling in the refuge and the road to minerals are two of the standout issues in the long-running saga over resource development in Alaska, with Republican administrations seeking to open the areas to industry and Democratic administrations fighting against it.

Advertisement

The signings were a loss for some Alaska Native tribal members and environmental groups that had protested the bills, calling them an unprecedented attack against land and wildlife protections that were developed following extensive public input.

An Alaska Native group from the North Slope region where the refuge is located, however, said it supported the passage of the bill that could lead to oil and gas development there.

One of the bills nullifies the 2024 oil and gas leasing program that put more than half of the Arctic refuge coastal plain off-limits to development. The former plan was in contrast to the Trump administration’s interest in opening the 1.5-million-acre area to potential leasing.

The federal government has long estimated that the area holds 7.7 billion barrels of “technically recoverable oil” on federal lands alone, slightly more than the oil consumed in the U.S. in 2024. The refuge is not far from oil infrastructure on state land, where interest from a key Alaska oil explorer has grown.

Two oil and gas lease sales in the refuge so far have generated miniscule interest. But the budget reconciliation bill that passed this summer requires four additional oil and gas lease sales under more development friendly, Trump-era rules.

Advertisement

Voice of Arctic Iñupiat, a group of leaders from tribes and other North Slope entities, said in a statement that it supports the withdrawal of the 2024 rules for the refuge.

The group said cultural traditions and onshore oil and gas development can coexist, with taxes from development supporting wildlife research that support subsistence traditions.

“This deeply flawed policy was drafted without proper legal consultation with our North Slope Iñupiat tribes and Alaska Native Corporations,’ said Nagruk Harcharek, president of the group. “Yet, today’s development shows that Washington is finally listening to our voices when it comes to policies affecting our homelands.”

The second bill that Trump signed halts the resource management plan for the Central Yukon region. The plan covered 13.3 million acres, including acreage surrounding much of the Dalton Highway where the long road to the Ambler mineral district would start before heading west. The plan designated more than 3 million acres as critical environmental areas in an effort to protect caribou, salmon and tundra.

The bills relied on the Congressional Review Act, which gives Congress a chance to halt certain agency regulations while blocking similar plans from being developed in the future.

Advertisement

U.S. Rep. Nick Begich and Sens. Lisa Murkowski and Dan Sullivan attended the signing in the White House.

“We’ve known the road to American prosperity begins in Alaska; the rest of America now knows that as well,” Begich said in a post on social media platform X.

Begich introduced the measures. Murkowski and Sullivan sponsored companion legislation in the Senate.

Advertisement

They were part of five bills Trump signed Thursday to undo resource protections plans for areas in Montana, North Dakota and Wyoming, using the Congressional Review Act.

Trump last week also signed a bill revoking Biden-era restrictions on oil and gas activity in the National Petroleum Reserve-Alaska, another Arctic stretch of federal lands west of the refuge. That measure was also sponsored by the Alaska delegation.

The Wilderness Society said in a statement Thursday that the bills destabilize public lands management.

“Americans deserve public lands that protect clean air and water, support wildlife and preserve the freedom of future generations to explore,” said the group’s senior legal director, Alison Flint. “Instead, the president and Congress have muzzled voices in local communities and tossed aside science-based management plans that would deliver a balanced approach to managing our public lands.”

Alaska tribal members criticize end of Central Yukon plan

The Bering Sea-Interior Tribal Commission, consisting of 40 Alaska tribes, said in a statement Thursday that it condemns the termination of the Central Yukon management plan using the Congressional Review Act.

Advertisement

The action dissolves more than a dozen years of federal and tribal collaboration, the group said.

The termination of the Central Yukon plan will hurt tribes that hunt caribou and other subsistence foods, the group said.

“On the heels of the seventh summer without our Yukon River salmon harvest, we are stunned at the idea our leaders would impose more uncertainty around the management of the lands that surround us,” said Mickey Stickman, former first chief of the Nulato tribal government. “The threat of losing our federal subsistence rights, and confusion over how habitat for caribou, moose, and salmon will be managed, is overwhelming.”

After the signing, federal management of the Central Yukon region will revert back to three separate old plans, removing clarity for tribes and developers and requiring the Bureau of Land Management to start again on a costly new plan, the group said.

“This decision erases years of consultation with Alaska Native governments and silences the communities that depend on these lands for food security, cultural survival, and economic stability,” said Ricko DeWilde, a tribal member from the village of Huslia, in a statement from the Defend the Brooks Range coalition. “We’re being forced to sell out our lands and way of life without the benefit of receiving anything in return.”

Advertisement





Source link

Continue Reading

Alaska

Opinion: A new energy project, new risks and new responsibilities for Alaska

Published

on

Opinion: A new energy project, new risks and new responsibilities for Alaska


Speaker Bryce Edgmon speaks with members of the Alaska House at the Alaska State Capitol on August 2, 2025. (Marc Lester / ADN)

Alaska may soon face major decisions about the future of the Alaska LNG project and, if so, the Legislature will need to ensure that every step serves the best interests of Alaskans.

It is essential to remember that Senate Bill 138, the blueprint for state involvement in Alaska LNG, was passed in 2014 for a very different project: one led by ExxonMobil, BP and ConocoPhillips, with a key role fulfilled by TransCanada. Today’s project is led by a private-equity developer, Glenfarne, pursuing a structure that diverges dramatically from what lawmakers contemplated more than a decade ago. When a project changes this much, the underlying statutes need to be revisited.

In June, the Alaska Gasline Development Corp.’s president told his board that AGDC would be coordinating with the developer, the administration and the Legislature regarding legislation needed to support project development. He also noted that AGDC would work with the administration and Legislature on policies required to exercise the corporation’s option to invest 5% to 25% equity at Final Investment Decision, or FID. When AGDC itself signals that legislation is necessary, we should look forward to their outreach.

SB 138 also assigned important responsibilities to the departments of revenue and natural resources that may require legislative action. One key responsibility is the Legislature’s authority to approve major gas project contracts negotiated by the DNR commissioner. The law clearly states that balancing, marketing and gas sale agreements for North Slope gas cannot take effect without explicit legislative authorization. That statutory requirement was intentional and recognizes a project of this scale demands legislative oversight.

Advertisement

We also know that the pressure for speed on complex megaprojects often backfires, sometimes creating more problems than it solves. The Legislature must balance the legitimate need for progress with the responsibility to ensure Alaskans are not asked to assume unreasonable financial risk. As Speaker Bryce Edgmon recently observed, legislation of this magnitude “could dominate the session” and “take significant time.” Senate Finance Co-Chair Bert Stedman was even more direct: if we get this wrong, it could be “detrimental for generations.”

Last week, 4,000 miles away in Washington, D.C., Glenfarne and POSCO International announced a major strategic partnership. It is a meaningful milestone. But Alaska has seen similar announcements before, and it does not diminish the need for hard questions. If anything, it raises them.

Final Investment Decision is when investors and lenders commit billions based on the project’s economics and the state’s fiscal terms. Any legislation affecting property taxes, payments-in-lieu-of-taxes, aka PILTs, state equity, fiscal stability, or upstream royalties and production taxes must be decided before this takes place.

The Legislative Budget and Audit Committee has focused on providing lawmakers and the public with the information needed to understand the choices ahead. I revisited the Legislature’s 2014 “Alaska LNG: Key Issues” report, which helped lawmakers evaluate the original SB 138 framework. Building on that model, I directed our consultants, GaffneyCline, to prepare an updated “key issues” report; not to endorse or oppose the current project, but to provide a high-level overview of potential policy choices, which should be available to the public within the next few days.

The refreshed “key issues” report will be an important starting point. I ask Alaskans to approach it with an open mind and to read it as objectively as possible, free from assumptions shaped by past disappointments or early optimism. Keep asking tough questions of the Legislature, AGDC, Glenfarne and the administration. Don’t assume the project is a done deal or a doomed one. This is not about cheerleading or obstruction, but insisting on rigorous analysis, strong oversight and a fair deal for our children and grandchildren.

Advertisement

Some Alaskans have raised questions about a potential conflict of interest: GaffneyCline is a subsidiary of Baker Hughes, which recently announced agreements with Glenfarne to help advance the Alaska LNG project. I share those concerns, which is why I have met with the Legislature’s director of Legal Services and with GaffneyCline’s North America director. I have been assured by GaffneyCline’s leadership that no one outside the GaffneyCline project team has influenced their analysis, and that their global reputation for independence and trust remains intact. Still, we also must fully vet this issue when we convene in Juneau next month. Transparency and independence are non-negotiable.

The recent ceremony in Washington, D.C., with Glenfarne and POSCO International underscores the project’s potential; however, the authority to determine how and when Alaska monetizes its resources rests here, not with dignitaries celebrating overseas commitments. Our future will be determined in Alaska, by Alaskans, based on the fullest and most honest understanding of the choices before us.

Sen. Elvi Gray-Jackson, D-Anchorage, represents Senate District G, which includes Midtown, Spenard and Taku Campbell in Anchorage. Sen. Gray-Jackson serves as the chair of the Legislative Budget and Audit Committee.

• • •

The Anchorage Daily News welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary(at)adn.com. Send submissions shorter than 200 words to letters@adn.com or click here to submit via any web browser. Read our full guidelines for letters and commentaries here.

Advertisement





Source link

Continue Reading

Alaska

Trump Repeals Biden Land Protections in Alaska, Other States

Published

on

Trump Repeals Biden Land Protections in Alaska, Other States


President Donald Trump on Thursday signed several congressional measures designed to undo Biden administration land conservation policies restricting energy development in the Arctic National Wildlife Refuge and federal lands in three Western states.



Source link

Continue Reading
Advertisement

Trending