05/06/1995 01:00 PM Senate FIN

                                                                               
       HOUSE BILL NO. 315                                                      
       "An Act relating to the financing  of technological                     
            developments by public corporations  of the state;                 
  and relating         to the financing  of the Kodiak  launch                 
  complex, the Fairbanks       satellite ground  station space                 
  park,  and  a low-rank  coal  water          fuel technology                 
  project."                                                                    
                                                                               
  Pat Ladner, Executive  Director, Alaska Aerospace  testified                 
  to  HB  315.    He  testified  that  the  legislation  is  a                 
  combination  of  efforts  between Alaska  Aerospace,  Alaska                 
  Science and Technology Foundation, AIDEA, the  governor, and                 
  a by-partisan group of legislators.  This bill allows Alaska                 
  to enter into  a new  non-resource high technology  industry                 
  without financial risk.   The  bill itself is  to provide  a                 
  financing  mechanism to construct an orbital launch facility                 
  on Kodiak Island, and a satellite ground  station space park                 
  in Fairbanks.   Section 8 directs  Alaska Aerospace to do  a                 
  feasibility study  on the  merits of  a Challenger  Learning                 
  Center.                                                                      
                                                                               
  Co-chair Halford referred to Section 6, which says, "subject                 
  to appropriation, the board may  award the following grants:                 
  $5 million  to AIDEA and  $4 million  to AIDEA.   Mr. Ladner                 
  stated that  the $5  million appropriation  is a  grant from                 
  ASTF.  The funds would be extracted from the annual interest                 
  from that endowment.  The $4 million would be the same.  Co-                 
  chair Frank stated that they are working on a package now to                 
  make it work.   It would be handled either  in the operating                 
  budget or the capital  budget.  He believes it  is contained                 
  within their authority in the operating budget.                              
                                                                               
  Kent Dawson, Representing the Usibelli Coal Mine was invited                 
  to  join  the  committee.    Senator Rieger  questioned  the                 
  further development of Beluga or  Usibelli Coal Mines.   Mr.                 
  Dawson  responded  the   cold  water  fuel  facility   is  a                 
  demonstration project.  In  order to work, it would  have to                 
  be at tide water. Beluga is envisioned to be the most likely                 
  place a plant would be located.                                              
                                                                               
  Senator Rieger  inquired  as to  the  funding source.    Mr.                 
  Dawson responded  that the  ASTF funds  are contingent  upon                 
  federal funds.  If federal money does not materialize, there                 
  will be no ASTF funds spent.                                                 
                                                                               
  Co-chair  Frank  MOVED  to  adopt  HB  315  with  individual                 
  recommendations and a zero fiscal note.  No objections being                 
  heard,  CSHB  315 (FIN) was  REPORTED OUT of committee  with                 
  individual recommendations and  a zero fiscal note  from the                 
  Dept of Commerce  and Economic Development.   Co-chair Frank                 
                                                                               
                                                                               
  and Senators Rieger  and Zharoff recommended "do pass".  Co-                 
  chair Halford and Senator Sharp signed "no recommendation".