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HCS CSSB 183(FIN): "An Act making special appropriations for restoration projects relating to the Exxon Valdez oil spill and for oil spill response projects; making appropriations for capital project matching grant funds; making appropriations for capital projects; making an appropriation to pay judgment, interest, and attorney fees for Frontier Flying Service v. Turpin; and providing for an effective date."

00HOUSE CS FOR CS FOR SENATE BILL NO. 183(FIN) 01 "An Act making special appropriations for restoration projects relating to the 02 Exxon Valdez oil spill and for oil spill response projects; making appropriations 03 for capital project matching grant funds; making appropriations for capital 04 projects; making an appropriation to pay judgment, interest, and attorney fees for 05 Frontier Flying Service v. Turpin; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. LEGISLATIVE FINDINGS AND PURPOSES. The legislature finds that 08 (1) As a result of the judgments entered by the United States District Court in 09 the criminal cases United States of America v. Exxon Shipping Company and Exxon 10 Corporation, No. A90-015 CR, the State of Alaska received $50,000,000 in restitution "to be 11 used by the State of Alaska ... exclusively for restoration projects, within the State of Alaska, 12 relating to the `Exxon Valdez' oil spill." The judgments define restoration as including 13 "restoration, replacement, and enhancement of affected resources; acquisition of equivalent 14 resources and services; and long-term environmental monitoring and research programs

01 directed to the prevention, containment, cleanup, and amelioration of oil spills." The money 02 received by the state in restitution is held in the Exxon Valdez oil spill restoration fund, 03 established by the Department of Revenue, to implement the terms of those judgments. 04 (2) As a result of the Agreement and Consent Decree entered by the United 05 States District Court in State of Alaska v. Exxon Corporation and Exxon Shipping Company, 06 No. A91-083 CIV and the Memorandum of Agreement and Consent Decree entered by the 07 United States District Court in United States of America v. State of Alaska, No. A91-081 CIV, 08 the State of Alaska is entitled to receive reimbursements, paid into the state's general fund, 09 for certain expenditures made by the state from the general fund in responding to the oil spill. 10 It is the intent of the legislature that such money received during fiscal year 1994 be used for 11 projects that enhance the ability of the state and the oil industry to respond to marine oil spills 12 in the area affected by the Exxon Valdez oil spill. 13 (3) The appropriations in secs. 2 - 13 of this Act are made in order to achieve 14 the purposes described in the court's restitution order and to carry out the legislature's intent 15 with regard to fiscal year 1994 reimbursements to the general fund under the Exxon 16 settlement. 17 * Sec. 2. The sum of $12,500,000 is appropriated from the Exxon Valdez oil spill 18 restoration fund, described in sec. 1(1) of this Act, to the Department of Administration for 19 payment as a grant under AS 37.05.315 to the City of Seward for development of the Alaska 20 Sea Life Center as a recreation and marine mammal rehabilitation center and as a center for 21 education and research related to the natural resources injured by the Exxon Valdez oil spill 22 and to the prevention and amelioration of marine oil spills. The appropriation made by this 23 section may be used for planning, design, engineering, and construction of the facility. Until, 24 however, the grantee has provided to the Alaska Industrial Development and Export Authority 25 a financial plan and a feasibility study demonstrating the financial viability of the proposed 26 center and the Alaska Industrial Development and Export Authority has approved the project 27 plan and has found the center to be financially viable, no money from this appropriation may 28 be expended. In addition, no money from this appropriation may be expended for any phase 29 of construction until all financing necessary to complete construction of the entire stand-alone 30 facility has been obtained. Not more than $4,000,000 may be expended from this 31 appropriation for design of the center.

01 * Sec. 3. The sum of $7,000,000 is appropriated from the Exxon Valdez oil spill 02 restoration fund, described in sec. 1(1) of this Act, to the Department of Natural Resources 03 for the purchase, for $22,000,000, of the property rights of the Seldovia Native Association, 04 Cook Inlet Region, Inc., and Timber Trading Company, Inc. within the Kachemak Bay State 05 Park as identified in the Agreement For Sale and Purchase of Lands and Interests Within 06 Kachemak Bay State Park entered into in March 1993 between the state, the Seldovia Native 07 Association, Cook Inlet Region, Inc. and Timber Trading Company. 08 * Sec. 4. The sum of $500,000 is appropriated from the Exxon Valdez oil spill restoration 09 fund, described in sec. 1(1) of this Act, to the Department of Natural Resources for 10 construction of a Kachemak Bay State Park visitors center and related facilities. 11 * Sec. 5. The sum of $3,250,000 is appropriated from the Exxon Valdez oil spill 12 restoration fund, described in sec. 1(1) of this Act, to the Department of Fish and Game to aid 13 in the restoration of subsistence resources or services, lost or diminished as a result of the 14 Exxon Valdez oil spill, including the development of a shellfish hatchery and technical center 15 to be located on the lower Kenai Peninsula, at a location considered appropriate by the 16 Department of Fish and Game, and through shellfish nursery research at existing aquatic farms 17 or other facilities in Kachemak Bay. The appropriation made by this section may be used for 18 feasibility studies, design and engineering work, and construction of the facility, on the 19 condition that no money may be expended for design and engineering work or construction 20 until the Department of Fish and Game has completed a feasibility study, including a financial 21 and operating plan. 22 * Sec. 6. The sum of $4,000,000 is appropriated from the Exxon Valdez oil spill 23 restoration fund, described in sec. 1(1) of this Act, to the Department of Fish and Game to 24 enhance sport fishing services lost or diminished as a result of the Exxon Valdez oil spill, 25 including the construction of a water delivery system connecting the Anchorage Municipal 26 Water Utility with the Fort Richardson hatchery and the integration of that system with the 27 hatchery and the development of a salmon production capacity model for Upper Cook Inlet 28 drainages. 29 * Sec. 7. The sum of $4,750,000 and the interest accrued before July 1, 1994, on the 30 restitution payment described in sec. 1(1) of this Act, is appropriated from the Exxon Valdez 31 oil spill restoration fund, described in sec. 1(1) of this Act, to the Department of Natural

01 Resources for the construction or placement, within Prince William Sound, the southern Kenai 02 Peninsula, and the coastal areas of the Kodiak Archipelago, of recreational amenities, 03 including recreational cabins, trails, mooring buoys, floating docks and similar items, and the 04 acquisition of sites and access rights for such amenities, that restore or enhance recreational 05 services lost or diminished by the Exxon Valdez oil spill. 06 * Sec. 8. The sum of $3,000,000 is appropriated from the Exxon Valdez oil spill 07 restoration fund, described in sec. 1(1) of this Act, to the Department of Fish and Game for 08 habitat restoration and enhancement projects, including the acquisition of development rights 09 or conservation easements in aquatic, wetland, and riparian areas, within the Kenai River 10 watershed related to the maintenance of commercial and sport fish species, and the services 11 they provide, that were injured or lost as a result of the Exxon Valdez oil spill. 12 * Sec. 9. The sum of $2,000,000 is appropriated from the Exxon Valdez oil spill 13 restoration fund, described in sec. 1(1) of this Act, to the Department of Commerce and 14 Economic Development for payment as a grant under AS 37.05.316 to the Prince William 15 Sound Aquaculture Corporation for upgrade of the Main Bay Hatchery. 16 * Sec. 10. The sum of $3,000,000 is appropriated from the Exxon Valdez oil spill 17 restoration fund, described in sec. 1(1) of this Act, to the University of Alaska, Fairbanks, 18 Fishery Industrial Technology Center for design and engineering work and construction of an 19 addition to the existing fishery technology and research facility, to enable that facility to 20 engage in long-term environmental monitoring and restoration work in the area affected by 21 the Exxon Valdez oil spill, on the condition that no money may be expended for design and 22 engineering work or construction until the University has provided, and the governor has 23 approved, a financial plan and feasibility study. 24 * Sec. 11. (a) The sum of $5,000,000 is appropriated from the Exxon Valdez oil spill 25 restoration fund, described in sec. 1(1) of this Act, to the Department of Community and 26 Regional Affairs for payment as grants under AS 44.47.050 to unincorporated rural 27 communities for purposes of restoring, replacing, or enhancing subsistence resources or 28 services damaged or lost as a result of the Exxon Valdez oil spill. 29 (b) It is the intent of the legislature that selection of the grant recipients shall be made 30 after consultation with the state trustees, as defined in AS 37.14.450(2). 31 * Sec. 12. The sum of $5,000,000 is appropriated from the Exxon Valdez oil spill

01 restoration fund, described in sec. 1(1) of this Act, to the Department of Environmental 02 Conservation to enter into competitively awarded contracts with public or private entities for 03 research programs directed to the prevention, containment, cleanup, and amelioration of oil 04 spills within the state. 05 * Sec. 13. (a) Subject to the conditions set out in (b) of this section, the sum of 06 $15,000,000 is appropriated from the fiscal year 1994 general fund Exxon Valdez 07 reimbursement payments to the Department of Transportation and Public Facilities for the 08 design and engineering work and construction of a road connecting the Seward Highway and 09 the Port of Whittier. 10 (b) The first $15,000,000 received by the state as fiscal year 1994 general fund Exxon 11 Valdez reimbursement payments is allocated to the project described in (a) of this section. 12 * Sec. 14. The sum of $18,325,000 is appropriated from the general fund to the municipal 13 capital project matching grant fund (AS 37.06.010(b)) in the Department of Administration 14 to provide grants to municipalities under the municipal capital project matching grant program. 15 * Sec. 15. The sum of $1,675,000 is appropriated from the general fund to the 16 unincorporated community capital project matching grant fund (AS 37.06.020(b)) in the 17 Department of Community and Regional Affairs to provide grants to unincorporated 18 communities under the unincorporated community capital project matching grant program. 19 * Sec. 16. The sum of $400,000 is appropriated from the general fund to the Department 20 of Administration for payment as a grant under AS 37.05.315 to the City of Kenai for 21 construction cost overruns on the state courthouse located in the City of Kenai. 22 * Sec. 17. (a) The following amounts are appropriated from the general fund to the 23 following departments for the purposes and in the amounts stated: 24 DEPARTMENT AND PURPOSE APPROPRIATION 25 Department of Administration for Alaska Public 26 Broadcasting Commission satellite interconnection 27 planning $100,000 28 Department of Education for a statewide data 29 management system 100,000 30 Department of Health and Social Services for 31 administrative services E-mail 40,000

01 Department of Labor for workers' compensation 02 records imaging 383,800 03 Department of Commerce and Economic Development 04 for data processing system enhancement 400,000 05 Department of Public Safety for a statewide law 06 enforcement data processing system 900,000 07 Alaska Court System for an imaging system 207,500 08 (b) The sum of $50,000 is appropriated from the receipts of the Alaska Commission 09 on Postsecondary Education to the Department of Education, Alaska Commission on 10 Postsecondary Education for borrower records data imaging analysis. 11 (c) The sum of $430,000 is appropriated from the oil and hazardous substance release 12 response fund (AS 46.08.010) to the Department of Military and Veterans' Affairs for 13 emergency operation center enhancements. 14 (d) An appropriation made by (a) - (c) of this section may not be expended until the 15 office of management and budget certifies that the project is consistent with the 16 recommendations from the Telecommunications Information Council after completion of the 17 council's studies begun in the fiscal year ending June 30, 1992. A department that receives 18 an appropriation made by (a) - (c) of this section shall report to the Legislative Budget and 19 Audit Committee on the status of the project for which the appropriation was received no later 20 than December 1, 1993. 21 * Sec. 18. Federal or other program receipts as defined under AS 37.05.146 that exceed 22 the amount appropriated in secs. 19 and 20 of this Act are appropriated conditioned upon 23 compliance with the program review provisions of AS 37.07.080(h). 24 (SECTION 19 OF THIS ACT BEGINS ON PAGE 7) * Sec. 23. The sum of $906,403 is appropriated from the general fund for p 25 judgment, interest, and attorney fees in Frontier Flying Service v. Turpin, Case No. 3AN-91-8086 Civil to be paid 26 as follows: 27 (1) the sum of $406,000 is appropriated for deposit in the International Airports 28 Revenue Fund (AS 37.15.430(a)) on behalf of Markair, Inc., and Markair, Express, Inc., to 29 reimburse the International Airports Revenue Fund for a debt owed to the state by Markair, 30 Inc., and Markair Express, Inc; and 31 (2) the sum of $500,403 is appropriated to the Department of Law as payment,

01 after credit for the payments made in (1) of this section, of the judgment, interest, and attorney 02 fees in Frontier Flying Service v. Turpin. 03 * Sec. 24. Contingent upon the establishment of an educational facilities maintenance and 04 construction fund by the Eighteenth Alaska State Legislature, the sum of $20,239,600 is 05 appropriated from the educational facilities maintenance and construction fund (AS 37.16.010) 06 to the University of Alaska and is allocated for the following projects in the amounts listed: 07 PROJECT ALLOCATION 08 Deferred maintenance projects $14,239,600 09 Fairbanks fire code compliance 6,000,000 10 * Sec. 25. (a) The unexpended and unobligated balance of a grant funded by an 11 appropriation made by secs. 2, 9, and 11 of this Act lapses into the fund from which the 12 appropriation was made if work on the grant project has not begun by December 1, 1999. 13 (b) The unexpended and unobligated balances of the appropriations made by secs. 2, 14 9, 11, and 12 of this Act lapse into the fund from which the appropriations were made 15 December 1, 1997. 16 * Sec. 26. The appropriations made in secs. 3 - 8, 10, 13 - 17, 19 - 22, and 24 of this Act 17 are for capital projects and are subject to AS 37.25.020. 18 * Sec. 27. Sections 1 - 15, 23, and 25 - 26 of this Act take effect immediately under 19 AS 01.10.070(c). 20 * Sec. 28. Except as provided by sec. 27 of this Act, this Act takes effect July 1, 1993.