05/04/1994 09:15 AM Senate FIN

  SENATE BILL NO. 381:                                                         
                                                                               
       An  Act  relating  to the  construction  of  the Alaska                 
       Orbital   Launch  Complex   by  the   Alaska  Aerospace                 
       Development Corporation.                                                
                                                                               
  Co-chair Pearce  invited Bill Paulick,  Business Development                 
  Information  Network,  Division  of   Economic  Development,                 
  Commerce & Economic Development, to speak to SB 381.                         
                                                                               
  BILL PAULICK explained he also was a member of the Aerospace                 
  Development  Corporation   Board  of  Directors.     SB  381                 
  authorized the  Aerospace Development Corporation  to engage                 
  in a project that  would cost more than $1M.   He noted that                 
  projects over $1M  had to be authorized  by the legislature.                 
  He felt the  aerospace industry  represented a new  industry                 
  for the state, new employment, and new income for  Alaskans.                 
  He was  instrumental in setting  up the new  Corporation, as                 
  well as selecting the new Director and very pleased  to be a                 
  part of the operation.                                                       
                                                                               
  Mr.  Paulick  went  on  to  say   that  SB  381  marked  the                 
  commercialization  of aerospace for Alaska.   The bill had a                 
  zero fiscal note and in no way obligated the legislature for                 
  future authorizations.   It would  allow the Corporation  to                 
  bond and construct  a commercial  launch facility on  Kodiak                 
  Island  to  be  serviced by  the  ground  facilities  at the                 
  University of Alaska Geophysical Institute in Fairbanks.  He                 
  offered to answer questions from committee members.                          
                                                                               
  In  answer to  Senator Kelly,  Mr.  Paulick said  that bonds                 
  would be a  combination of revenue and possibly AIDEA bonds.                 
  Since it would be a dual use facility through the Department                 
  of Defense,  there were about  five commercial  contractors,                 
  including  Lockheed  Aerospace,  that  would participate  in                 
  commercial  debt funding  in  the  facility.    He  did  not                 
  anticipate any state financing besides  AIDEA bonds for this                 
  project.                                                                     
                                                                               
  In answer to  Senator Rieger, Mr. Paulick said  the facility                 
  had been planned  and approved by the  Aerospace Development                 
  Corporation Board of Directors.  They had reviewed the draft                 
  plan  and  the  plans  could   be  adjusted  depending  upon                 
  commercial  requirements  decided  over  the  next  eighteen                 
  months prior to  launch.  Mr.  Paulick handed out an  aerial                 
  photo  artist mock-up  of the  proposed facility.   He  then                 
  showed the committee  a notebook  of specifications for  the                 
  facility.   He went on  to explain the  relationship between                 
  Fairbanks and  Kodiak.   He said that  Kodiak represented  a                 
                                                                               
                                                                               
  unique  location  and  opportunity  for launching  different                 
  directions   and  into  different   orbits.    In  comparing                 
  Vandenberg to Kodiak,  he said  the weather was  as good  in                 
  Kodiak as it was in Florida and the rainfall and cloud cover                 
  was about the  same.  He  admitted that the temperature  was                 
  different.   He  also noted  that it  was economically  more                 
  feasible to launch out of Kodiak that Vandenberg.                            
                                                                               
  In answer  to Senator  Jacko, Mr. Paulick  agreed there  was                 
  existing infrastructure  at Kodiak  (about 32  miles out  of                 
  town)  and other  places around  the state.   Fairbanks  and                 
  Kenai had been ruled out.                                                    
                                                                               
  In  answer to  Senator  Kelly, Mr.  Paulick  said the  first                 
  launch would hopefully be in late 1995.  The safety analysis                 
  would  be  complete early  1995.   The Japanese  and several                 
  others were interested  in using the  launch site.  He  said                 
  the people in Kodiak were very supportive of the project.                    
                                                                               
  Co-chair Frank  MOVED for passage  of SB 381  from committee                 
  with individual recommendations.  No  objection being heard,                 
  the  bill was  REPORTED out  with a  "do pass",  and a  zero                 
  fiscal  note  for  the  Department  of Commerce  &  Economic                 
  Development.   Co-chair Pearce, Senators Kelly,  Rieger, and                 
  Jacko  signed  "do pass,"  and  Senator Sharp  signed  a "no                 
  recommendation".