Legislature(2007 - 2008)
03/25/2008 02:40 PM House FIN
| Audio | Topic |
|---|---|
| Start | |
| HB418 | |
| HB336 | |
| HB49 | |
| SB249 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 249
An Act establishing the Alaska capstone avionics
revolving loan fund and relating to the fund; and
providing for an effective date.
[RECORDING EQUIPMENT FAILURE MUCH OF RECORDING IS
INAUDIBLE]
FRANK RICHARDS, DEPUTY COMMISSIONER OF HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, discussed SB 249, the revolving loan fund. The
bill creates a loan fund within the Department of Commerce,
Community and Economic Development.
Mr. Richards commented that the purpose of the bill is to
increase safety of aviation transportation within the State
of Alaska by providing low interest loans for purchase and
installation of the Capstone Avionic equipment. Capstone
is the next generation of technology to improve flight
safety and community access in Alaska. The technology is
called "Automatic Dependent Surveillance-Broadcast (ADS-
B)", which allows aircraft equipped with the avionics to
interact with ground infrastructure and satellite stations
to provide pilots their exact location, airspeed, rate of
accent and descent, surrounding terrain, other aircraft and
real time weather. An entire package of data for a safe
flight.
Mr. Richards continued, the Federal Aviation Administration
(FAA) sponsored the technology and used rural Alaska as a
test bed. The results for those aircraft equipped with the
new avionics had 47% reduction in accidents and a 33%
reduction in fatalities. The FAA would like to expand the
technology statewide and has funding to build out the
infrastructure. The concern is that they have determined
the need for 4,000+ aircraft to be equipped. SB 249
creates a low interest loan program within Department of
Commerce, Community and Economic Development to provide
aircraft owners unable to shoulder the initial purchase
cost out of pocket with a reasonable loan to use.
Mr. Richards concluded the Department of Transportation and
Public Facilities support passage of the bill.
3:49:54 PM
GREG WINEGAR, DIRECTOR, DIVISION OF INVESTMENTS, DEPARTMENT
OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, described
the loan program. The purpose of the bill is to make loans
to aircraft owners that have a substantial number of flight
hours in Alaska. The program would be established as a
revolving loan fund. Additionally, all of the operating
budget costs for the program would be paid for out of the
fund itself.
Mr. Winegar noted that the bill stipulates that the
Department can loan up to 80% of the cost of purchasing and
installing the avionics. The anticipated interest rate is
4% for a maximum of ten years. The goal is to provide loan
terms and payment plan that is manageable while providing
sufficient cash flow for the expenses and then returns the
money back to the General Fund.
Mr. Winegar pointed out that Department's fiscal note,
which proposes to capitalize the fund with $4.8 million
dollars, allowing for about 400 loans during the first year
and about 60 per year after that. At the end of the
estimated date, all funds both principle and earnings,
would return to the General Fund. The note requests two
positions to handle the increased work load.
3:52:26 PM
Representative Joule referred to Global Positioning System
(GPS) problems in cars and wondered if similar glitches
could occur in the aircraft Capstone. Mr. Richards
understood that the associated ground based computers
provide for a better triangulation. He directed testimony
to someone from the FAA.
3:54:09 PM
WILFRED RYAN, FEDERAL AVIATION ADMINISTRATION (FAA)
(Testified via teleconference), replied that the GPS
systems installed in cars do not have the same standards as
proposed in the aircraft and that the tolerances for that
aviation equipment is much tighter and more efficient.
Co-Chair Chenault asked if there would be a remaining
balanced when the program ends in 2020. He questioned how
long the Capstone technology could last. [Inaudible]
Mr. Richards replied that the Capstone satellite based
technology coupled with ground-based FAA monitoring for the
aircraft will likely last many years. Today, the radar
technology used was designed in the 1940's. The goal is to
install the technology into commercial aircraft. Alaska
has been used as the test bed for the technology.
3:58:31 PM
Co-Chair Chenault assumed that the program would be open to
commercial as well as private air carriers. He asked if
there would be a difference in how it would be
administered. Mr. Winegar answered there would be no
difference.
Mr. Richards added that the loan would be on a first come,
first serve bases. The technology is currently used in
the Southwest and Southeast Alaska for commercial carriers.
Co-Chair Chenault inquired if the State Troopers and the
Department of Fish and Game qualify. Mr. Richards
understood that the Department of Fish and Game had put
forth a budget amendment seeking the funding for their
aircraft.
Representative Kelly commented on the strengths associated
with the Capstone avionics. The technology has taken
dramatic steps forward and that the safety improvements are
significant. He said it is critical that the State support
the legislation and those recommendations put forward by
the FAA.
WILFRED RYAN, FEDERAL AVIATION ADMINISTRATION (FAA)
(Testified via teleconference), spoke in support of the
legislation. [Inaudible]
KAREN CASANOVAS, DIRECTOR, ALASKA AIR CARRIERS ASSOCIATION
(Testified via teleconference), spoke in support of the
bill, which will move the State forward in improving
aviation concerns.
JOE PEARSON, ALASKA AIRMEN'S ASSOCIATION (Testified via
teleconference), reiterated previous comments in support of
the legislation. He added that most of Alaska is under-
serviced & unsupported in their coverage. He urged that
the State participate in the proposal. The current cost of
the equipment is very high, so a loan program would
encourage utilization of greater safety devices in air
travel. He hoped to work with the manufacturers to bring
the cost of the equipment down. He urged support of the
bill.
4:05:19 PM
JERE HAYSLETT, FEDERAL AVIATION ADMINISTRATION (Testified
via teleconference), spoke in support of the bill.
PUBLIC TESTIMONY CLOSED.
SB 249 was HELD in Committee for further consideration.
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