Legislature(1993 - 1994)
05/03/1994 09:00 AM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR AND COMMERCE
STANDING COMMITTEE
May 3, 1994
9:00 a.m.
MEMBERS PRESENT
Rep. Bill Hudson, Chairman
Rep. Joe Green, Vice Chair
Rep. Brian Porter
Rep. Bill Williams
Rep. Eldon Mulder
Rep. Jerry Mackie
MEMBERS ABSENT
Rep. Joe Sitton
COMMITTEE CALENDAR
*HB 548: "An Act relating to the construction of the Alaska
Orbital Launch Complex by the Alaska Aerospace
Development Corporation."
PASSED FROM COMMITTEE
(* First public hearing.)
WITNESS REGISTER
DON KUBLEY, Lobbyist
15945 Glacier Highway
Juneau, Alaska 99801
789-9273
Position Statement: Presented HB 548
BILL PAULICK, Director
Alaska Aerospace Development Corporation
Department of Commerce and Economic Development
P.O. Box 110804
Juneau, Alaska 99811-0804
465-3961
Position Statement: Supported HB 548
PREVIOUS ACTION
BILL: HB 548
SHORT TITLE: ALASKA ORBITAL LAUNCH COMPLEX
SPONSOR(S): LABOR & COMMERCE
JRN-DATE JRN-PG ACTION
05/02/94 3912 (H) READ THE FIRST TIME/REFERRAL(S)
05/02/94 3912 (H) LABOR & COMMERCE
05/03/94 (H) L&C AT 09:00 AM CAPITOL 17
ACTION NARRATIVE
TAPE 94-39, SIDE A
Number 041
CHAIRMAN HUDSON convened the meeting at 9:10 a.m.. He
brought up HB 548 and invited Mr. Kubley to present the
bill.
Number 048
DON KUBLEY, Lobbyist for the Kodiak Island Borough, the City
of Kodiak and Alaska International Marketing, presented HB
548 and stated that there is a need to diversify the Alaskan
economy and encourage new investments and industry to do
business in our state. He said there has also been a long
standing desire to encourage high tech nonresource based
business to compliment the natural resource industries that
have done so much to build this state.
MR. KUBLEY told the committee that there is currently a
window of opportunity to do just that. The Aerospace
Development Corporation, led by Mr. Pat Ladner, is moving
quickly and aggressively to establish the first private and
commercial rocket launching and tracking facility in the
United States. It appears that Near Cape on Kodiak Island
has the perfect conditions and geographic location to
accommodate a first class rocket launch facility.
MR. KUBLEY said that three of the largest corporations in
the U.S. rocket industry, Martin Marietta, Lockheed and
Gruman are all interested in this project and have expressed
strong support for the need for such a facility. He added
that a delegation from Lockheed will arrive in late May to
open up communications and establish a dialogue.
MR. KUBLEY stated that this project was great for the people
of Kodiak, but the new industry has a positive impact on the
Interior as well. The vast majority of the new jobs created
by this project will be based in the Interior near the
existing experimental facilities. There is also great
potential for the Anchorage area to be the supply and
transportation hub for materials going to the launch site
during construction and future launches.
MR. KUBLEY told the committee that the Aerospace Development
Corporation has made a strong commitment to the state that
the leaders of the science and technology community will be
aggressively establishing educational programs for our
schools.
Number 168
REP. GREEN asked why the facilities at Vandenberg Air Force
base are not being utilized as a polar orbit launching
facility.
Number 180
MR. KUBLEY answered that because it is a military base there
are disadvantages to the private sector for doing business
there. Furthermore, because of the START treaty there are
currently 500-600 minute man missiles that are now
deactivated, which are located in silos and available at a
low price. These missiles could launch satellites, but
there are no launching facilities at Vandenberg. The plan
is to construct the facility at Kodiak specifically to be
able to launch these rockets above ground.
Number 205
CHAIRMAN HUDSON asked why this bill is necessary since the
legislature had already passed the resolution.
Number 209
MR. KUBLEY replied that when the Alaska Aerospace
Development Corporation was put into existence they were
made a quasi state entity and accordingly they are required
to get state approval for any project over $1 million
dollars regardless of where the funds come from.
Number 223
CHAIRMAN HUDSON asked if the funds used for this project
were expressly not from the state general fund or any other
state source.
Number 228
MR. KUBLEY replied that the funds were not coming from the
general fund, but the corporation has received some
administrative funding from the Alaska Science and
Technology foundation. He added that they have strong
support from the Alaska Industrial Development Authority and
may well receive a loan from them when and if a revenue
stream can be shown to be viable.
MR. KUBLEY stated that both Lockheed and Martin Marietta
have both indicated interest in becoming financially
involved in the project.
Number 237
BILL PAULICK, Director, Alaska Aerospace Development
Corporation, Department of Commerce and Economic
Development, testified in support of HB 548. He stated that
Kodiak is basically a perfect site as it compares to
Vandenberg, it is cheaper, more efficient, faster, and the
weather is just as good. He pointed out that this is a
commercial venture with funding and the potential revenue
stream coming from the private sector and therefore it would
not be conducive to try and utilize a military base with all
of its complexities.
MR. PAULICK asserted that the Kodiak location is safer than
any other spot in the world as it has the widest launch
azimuth with the exception of Hawaii.
Number 286
REP. MULDER asked Mr. Paulick how this project relates to
Poker Flats.
Number 300
MR. PAULICK responded that Poker Flats has problems as a
launch facility because the trajectory north is Prudhoe Bay
and some of the drop zones further out are too heavily
populated for multi-stage rockets to safely fly over.
MR. PAULICK added that this project does not hurt Poker
Flat, and it does not make economic sense to place this
project there as the safety factor is too risky and
insurance rates would be sky high.
REP. MULDER asked if they had already arranged with the
private land owner for the utilization of the land.
Number 308
MR. KUBLEY answered that they had arranged for the land. He
added that this project was one of the few that would have
no impact on the fisheries in the area. He also stated that
the environmental community is supportive.
Number 317
REP. MULDER noted that at one point Kenai was a viable site
and wondered why they were no longer.
MR. PAULICK replied that it was the safety factor that
eliminated Kenai. He said that Kenai was ruled out because
of the location of the proposed facility in relation to the
population.
Number 333
MR. KUBLEY noted that this project has sparked a lot of
interest globally. Both the Japanese and the Taiwanese are
interested in either using this facility or putting up their
own near this one.
REP. MULDER moved HB 548 with a zero fiscal note and
individual recommendations. No objections were heard; it
was so ordered.
CHAIRMAN HUDSON adjourned the meeting at 9:34 a.m.
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