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".