002d SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 10                                                                             
01 "An Act making appropriations for restoration projects relating to the Exxon                                            
02 Valdez oil spill; and providing for an effective date."                                                                 
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  FINDINGS.  The Eighteenth Alaska State Legislature finds that                                          
05   (1)  Under the criminal plea agreement between the United States and Exxon                                            
06 Corporation and Exxon Shipping Company (United States of America v. Exxon Corporation                                   
07 and Exxon Shipping Company, United States District Court, District of Alaska, case No. A90-015 CR.), the State of       
08 Alaska received $50,000,000 as "remedial and compensatory payments."                                                    
09 The payments received by the state "are to be used by the State of Alaska . . . exclusively for                         
10 restoration projects, within the State of Alaska, relating to the `Exxon Valdez' oil spill.                             
11 Restoration includes restoration, replacement and enhancement of affected resources,                                    
12 acquisition of equivalent resources and services, and long-term environmental monitoring and                            
13 research programs directed to the prevention, containment, cleanup and amelioration of oil                              
14 spills."                                                                                                                

01   (2)  The expeditious appropriation of remedial and compensatory payments for                                          
02 the acquisition and protection of high value resources and services and action on                                       
03 appropriations for additional restoration, replacement, and enhancement activities will provide                         
04 interim protection needed to allow the Exxon Valdez Restoration Trustee Council time to                                 
05 develop a systematic restoration plan.  The appropriations made by this Act complement the                              
06 process being established by the Exxon Valdez Restoration Trustee Council.                                              
07   (3)  As stated by the United States Department of Justice in recommending that                                        
08 the United States District Court accept the criminal plea agreement, "[t]his oil spill was a                            
09 catastrophe, and it was also an environmental crime.  The criminal remedy should, likewise,                             
10 in substantial part, be environmental in nature; .  .  .  The environment, as a victim, must be                         
11 aided quickly through efforts funded by restitutionary payments."                                                       
12   (4)  The health of damaged coastal and near-shore habitats is substantially                                           
13 related to activities on adjacent uplands.  Economically important fish species, including                              
14 herring and halibut, utilize near-shore areas, and anadromous species, including five species                           
15 of salmon, rely on continued access to both clean streams and unpolluted estuaries for                                  
16 spawning and rearing.                                                                                                   
17   (5)  Sea otter pups are particularly dependent on pristine water quality, a                                           
18 productive near-shore and shallow subtidal ecosystem, and a disturbance-free environment.                               
19   (6)  Populations of aquatic birds, including the tree-nesting marbled murrelet                                        
20 and bald eagle and the fresh water nesting species such as harlequin ducks, were severely                               
21 damaged by the Exxon Valdez oil spill.                                                                                  
22   (7)  Recreational, aesthetic, and subsistence services provided by the prespill                                       
23 environment were severely damaged.  Residents who relied upon these services desire to have                             
24 these damaged services replaced through the acquisition and retention of comparable                                     
25 threatened resources.                                                                                                   
26   (8)  The quality of fresh water entering the estuarine environment is critical to                                     
27 satisfactory restoration and recovery of the physical and biotic environment in the region                              
28 affected by the Exxon Valdez oil spill.                                                                                 
29   (9)  Recovery of the coastal estuaries affected by the Exxon Valdez oil spill is                                      
30 placed at risk by further environmental stress resulting from timber harvesting and other                               
31 industrial activities that involve substantial environmental disturbance.  In order to minimize                         

01 the potential for further environmental stress and to encourage and enhance the natural                                 
02 recovery and restoration of the affected region, acquisition of coastal related uplands in the                          
03 affected region, including Prince William Sound, the Kenai Peninsula, the Kodiak                                        
04 Archipelago, and adjacent biologically related areas, is an important use of "remedial and                              
05 compensatory payments" received by the state under the criminal plea agreement.                                         
06   (10)  Continued citizen involvement and education of residents and nonresidents                                       
07 are essential to the expeditious and effective restoration of the areas affected by the Exxon                           
08 Valdez oil spill, and to the prevention of future oil spills and the restoration of public                              
09 confidence in the ability of the state to protect the environment.                                                      
10    * Sec. 2.  In order to achieve the purposes of the remedial and compensatory payments, the                           
11 sum of $5,000,000 is appropriated from the remedial and compensatory payments to the                                    
12 Department of Fish and Game for restoration, replacement, and enhancement of fisheries                                  
13 resources within the Prince William Sound region.                                                                       
14    * Sec. 3.  In order to achieve the purposes of the remedial and compensatory payments, the                           
15 sum of $11,000,000 is appropriated from the remedial and compensatory payments to the                                   
16 Department of Natural Resources for the acquisition from willing sellers of land and                                    
17 development rights in land and resources in the Prince William Sound region.                                            
18    * Sec. 4.  In order to achieve the purposes of the remedial and compensatory payments, the                           
19 sum of $1,000,000 is appropriated from the remedial and compensatory payments to the                                    
20 Department of Fish and Game for restoration of subsistence resources and services within the                            
21 Prince William Sound region.                                                                                            
22    * Sec. 5.  In order to achieve the purposes of the remedial and compensatory payments, the                           
23 sum of $700,000 is appropriated from the remedial and compensatory payments to the                                      
24 Department of Environmental Conservation for payment as a grant under AS 37.05.316 to the                               
25 Prince William Sound Science Center for facility renovation, long-term damage assessment                                
26 and aquatic ecosystem monitoring, and development of an ecosystem database using a                                      
27 geographic information system for the greater Prince William Sound ecosystem.                                           
28    * Sec. 6.  In order to achieve the purposes of the remedial and compensatory payments, the                           
29 sum of $200,000 is appropriated from the remedial and compensatory payments to the                                      
30 Department of Administration for payment as a grant under AS 37.05.315 to the City of                                   
31 Whittier toward replacement of the municipal incinerator damaged as a result of the 1989                                

01 Exxon Valdez oil spill.                                                                                                 
02    * Sec. 7.  In order to achieve the purposes of the remedial and compensatory payments, the                           
03 sum of $90,000 is appropriated from the remedial and compensatory payments to the                                       
04 Department of Administration for payment as a grant under AS 37.05.316 in equal amounts                                 
05 over three years to radio station KCHU for public service reporting on oil pollution and                                
06 activities related to the 1989 Exxon Valdez oil spill.                                                                  
07    * Sec. 8.  In order to achieve the purposes of the remedial and compensatory payments, the                           
08 sum of $7,000,000 is appropriated from the remedial and compensatory payments to the                                    
09 Department of Natural Resources for the purchase of the inholdings of the Seldovia Native                               
10 Association and of the Timber Trading Company, within the Kachemak Bay State Park as                                    
11 identified in the Preliminary Exchange Agreement dated June 30, 1989, as amended as of the                              
12 effective date of this Act, between the state, the Seldovia Native Association, and the Timber                          
13 Trading Company; and for the purchase of the inholdings of the Cook Inlet Region, Inc.,                                 
14 within Kachemak Bay State Park.                                                                                         
15    * Sec. 9.  In order to achieve the purposes of the remedial and compensatory payments, the                           
16 sum of $3,500,000 is appropriated from the remedial and compensatory payments to the                                    
17 Department of Fish and Game for the restoration, replacement, and enhancement of the                                    
18 fisheries resources along the coast of the Kenai Peninsula.                                                             
19    * Sec. 10.  In order to achieve the purposes of the remedial and compensatory payments,                              
20 the sum of $3,000,000 is appropriated from the remedial and compensatory payments to the                                
21 Department of Natural Resources for the acquisition of development rights or conservation                               
22 easements in aquatic, wetland, and riparian areas important to the maintenance of important                             
23 commercial and sport fish populations within the Kenai River watershed, in consultation with                            
24 the Cook Inlet Aquaculture Association.                                                                                 
25    * Sec. 11.  In order to achieve the purposes of the remedial and compensatory payments,                              
26 the sum of $800,000 is appropriated from the remedial and compensatory payments to the                                  
27 Department of Fish and Game for an oyster spat hatchery within the Kenai Peninsula Borough                              
28 that is capable of providing oyster spat for aquatic farms throughout the state.                                        
29    * Sec. 12.  In order to achieve the purposes of the remedial and compensatory payments,                              
30 the sum of $500,000 is appropriated from the remedial and compensatory payments to the                                  
31 Department of Administration for payment as a grant under AS 37.05.315 to the City of                                   

01 Seward for development of the Alaska Sea Life Center for work associated with endangered                                
02 species in the region affected by the 1989 Exxon Valdez oil spill.                                                      
03    * Sec. 13.  In order to achieve the purposes of the remedial and compensatory payments,                              
04 the sum of $1,000,000 is appropriated from the remedial and compensatory payments to the                                
05 Department of Natural Resources for the acquisition from willing sellers of land and                                    
06 development rights in land that is important as fisheries habitat on the outer coast of the Kenai                       
07 Peninsula between Seldovia and Seward.                                                                                  
08    * Sec. 14.  In order to achieve the purposes of the remedial and compensatory payments,                              
09 the sum of $200,000 is appropriated from the remedial and compensatory payments to the                                  
10 Department of Administration for payment as a grant under AS 37.05.315 to the City of                                   
11 Soldotna for erosion control and rehabilitation of Centennial Park from the effects of excessive                        
12 public use as a result of the 1989 Exxon Valdez oil spill.                                                              
13    * Sec. 15.  In order to achieve the purposes of the remedial and compensatory payments,                              
14 the sum of $9,000,000 is appropriated from the remedial and compensatory payments to the                                
15 Department of Natural Resources for the acquisition from willing sellers of land and                                    
16 development rights in land on Afognak Island.                                                                           
17    * Sec. 16.  In order to achieve the purposes of the remedial and compensatory payments,                              
18 the sum of $3,000,000 is appropriated from the remedial and compensatory payments to the                                
19 University of Alaska, Fairbanks, Fishery Industrial Technology Center, for design and                                   
20 construction of a fishery technology and research facility.                                                             
21    * Sec. 17.  In order to achieve the purposes of the remedial and compensatory payments,                              
22 the sum of $1,000,000 is appropriated from the remedial and compensatory payments to the                                
23 Department of Fish and Game for the acquisition from willing sellers of land, leases, or                                
24 development rights in land at weir sites important to anadromous fisheries in the Kodiak                                
25 Archipelago.                                                                                                            
26    * Sec. 18.  In order to achieve the purposes of the remedial and compensatory payments,                              
27 the sum of $2,000,000 is appropriated from the remedial and compensatory payments to the                                
28 Department of Environmental Conservation for a volunteer citizen oil spill cleanup program                              
29 for areas that are still visibly affected by the 1989 Exxon Valdez oil spill.                                           
30    * Sec. 19.  (a)  In order to achieve the purposes of the remedial and compensatory                                   
31 payments, the sum of $1,000,000 is appropriated from the remedial and compensatory                                      

01 payments to the Department of Natural Resources for contracts to assess, inventory, and map                             
02 the archeological resources of the area affected by the Exxon Valdez oil spill.                                         
03  (b)  It is the intent of the legislature that contractors employed under (a) of this section                           
04 agree to comply with federal and state laws, including the Archeological Resources Protection                           
05 Act of 1979 (16 U.S.C. 470aa - 470ll) and AS 41.35.010 - 41.35.240, and the terms and                                   
06 conditions of the consent decree entered by the United States District Court in Native Village                          
07 of Chenega Bay v. United States and State of Alaska, United States District Court, District                             
08 of Alaska, case No. A91-454 Civ.                                                                                        
09    * Sec. 20.  In this Act, "remedial and compensatory payments" means the remedial and                                 
10 compensatory payments received by the state under the criminal plea agreement between the                               
11 United States and Exxon Corporation and Exxon Shipping Company in United States of                                      
12 America v. Exxon Corporation and Exxon Shipping Company, United States District Court,                                  
13 District of Alaska, case No. A90-015 CR.                                                                                
14    * Sec. 21.  The appropriations made by secs. 2, 4, 5, 7, 9, 12, 18, and 19 of this Act lapse                         
15 into the fund from which they were appropriated June 30, 1997.                                                          
16    * Sec. 22.  The appropriations made by secs. 3, 6, 8, 10, 11, and 13 - 17 of this Act are for                        
17 capital projects and lapse under AS 37.25.020.                                                                          
18    * Sec. 23.  This Act takes effect immediately under AS 01.10.070(c).