Legislature(1993 - 1994)
1993-04-02 House Journal
Full Journal pdf1993-04-02 House Journal Page 0935 HB 269 HOUSE BILL NO. 269 by the House Rules Committee by request of the Governor, entitled: "An Act making special appropriations for restoration projects relating to the Exxon Valdez oil spill and for oil spill response projects; and providing for an effective date." was read the first time and referred to the Finance Committee. The Governor's transmittal letter, dated April 2, 1993, appears below: "Dear Speaker Barnes: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill that provides for special appropriations for restoration projects relating to the Exxon Valdez oil spill and for oil spill response projects. The state and federal governments each received $50,000,000 in restitution as a result of the plea agreement and judgment entered in the criminal case filed by the United States against the Exxon defendants arising out of the Exxon Valdez oil spill. United States v. Exxon Shipping Company and Exxon Corporation, A90-015 CR. The restitution money paid to the state was placed in a separate fund, established by the Department of Revenue, named the "Exxon Valdez Oil Spill Restoration Fund." Under the terms of that final judgment, the restitution money is required to be used exclusively for "restoration 1993-04-02 House Journal Page 0936 HB 269 projects, within the State of Alaska, relating to the Exxon Valdez oil spill." Under the judgment, "restoration" is defined as including "restoration, replacement, and enhancement of affected resources; acquisition of equivalent resources and services; and long-term environmental monitoring and research programs directed to the prevention, containment, cleanup, and amelioration of oil spills." This restitution money is in addition to the $900,000,000 civil settlement entered into between the state, the United States, and Exxon in October 1991, which established a joint trust fund for restoration and provided for certain reimbursements. Sections 2 - 12 of the bill would appropriate a total of $50,000,000 plus interest earned on the criminal case restitution payment since it was received by the state. Section 2 appropriates $12,500,000 to the Department of Administration for payment as a grant to the City of Seward for the development of the Alaska Sea Life Center. This center would serve as a recreation and marine mammal rehabilitation center and as a center for education and research related to the natural resources injured by the Exxon Valdez oil spill and to the prevention and amelioration of marine oil spills. Section 3 appropriates $7,000,000 to the Department of Natural Resources (DNR) to purchase certain holdings inside the Kachemak Bay State Park. A total of $22,000,000 is needed for the purchase under the agreement entered into in March 1993 between the state, the Seldovia Native Association, Cook Inlet Region, Inc., and the Timber Trading Company. The appropriation in sec. 3 of the bill is one of three sources of funds required to finance the purchase. The state and federal trustees have committed to contribute $7,500,000 from the joint trust fund established by the Exxon Civil Settlement. Another $7,500,000 is due as a result of the settlement of the oil spill litigation between the state and federal governments and the Alyeska defendants in November 1992. This latter amount is not addressed in this bill. Section 4 appropriates $500,000 to DNR to construct a Kachemak Bay State Park visitors center. Section 5 appropriates $3,250,000 from the restitution payment to the Department of Fish and Game to develop a shellfish hatchery and 1993-04-02 House Journal Page 0937 HB 269 technical center. This project will assist in the restoration of shellfish resources and subsistence services affected by the oil spill and will provide technical support to the efforts of many individuals and firms that have been attempting to develop a mariculture industry in the area impacted by the oil spill. Section 6 appropriates $4,000,000 to the Department of Fish and Game to construct a water delivery system connecting the Anchorage Municipal Water Utility with the Fort Richardson hatchery. The integration of these facilities will enhance sport fishing services lost or diminished as a result of the Exxon Valdez oil spill. Section 7 appropriates $4,750,000, plus interest accrued on the restitution payment, to DNR to construct or acquire recreational amenities such as cabins, trails, mooring buoys, and floating docks. Section 8 appropriates $3,000,000 to the Department of Fish and Game to undertake restoration and enhancement projects within the Kenai River watershed to help protect commercial and sport fish species injured by the Exxon Valdez oil spill. Section 9 appropriates $2,000,000 to the Department of Commerce and Economic Development for payment as a grant to the Prince William Sound Aquaculture Corporation to upgrade the Main Bay hatchery. Recent damage assessment information suggests that the injury to commercial salmon species in Prince William Sound may be more extensive than originally thought. This project will help to restore or replace commercial and sport fishing resources lost as a result of the Exxon Valdez oil spill. Section 10 appropriates $3,000,000 to the University of Alaska, Fairbanks, Fishery Industrial Technology Center for design and construction of an addition to the existing research facility that would facilitate long-term environmental monitoring and restoration work in the area affected by the oil spill. Section 11 appropriates $5,000,000 to the Department of Community and Regional Affairs for payment as grants to unincorporated rural communities to assist in restoration, replacement, and enhancement of subsistence resources or services injured or lost as a result of the Exxon Valdez oil spill. This appropriation will allow the state trustees 1993-04-02 House Journal Page 0938 HB 269 and the local villages and communities to work together to develop local projects designed to deal with specific dislocations and injuries caused by the spill. Section 12 appropriates $5,000,000 to the Department of Environmental Conservation to enter into contracts for research programs directed to the prevention, containment, cleanup, or amelioration of oil spills in the state. The Exxon Civil Settlement also requires reimbursement of certain state damage assessment, response, and litigation costs incurred as a result of the Exxon Valdez oil spill. Section 13 of the bill appropriates, to the Department of Transportation and Public Facilities, $20,000,000 of the estimated reimbursements due to be paid to the state on September 1, 1993. Of the $20,000,000 appropriation, $15,000,000 is for the construction of a road to Whittier and $5,000,000 is for the design and construction of an oil spill response assistance ferry. The goal of these projects is to increase the ability to respond to oil spills in Prince William Sound by providing road access to Whittier, a logical staging area in the event of a future spill in Prince William Sound, and by providing a specially fitted vessel for use by the state in response actions. Although there are no legal restrictions on the use of the reimbursements made under the Exxon Civil Settlement, it is the view of this Administration, after consultation with the legislative leadership, that it would be appropriate to invest that money in oil spill preparedness and in enhancing access to Prince William Sound for recreational users of all types. The purpose of this bill is to fund projects and programs that will assist in the restoration of resources or services lost or injured as a result of the Exxon Valdez oil spill, to support long-term environmental monitoring of such resources, and to enhance access to the recreational resources that remain abundant in the area impacted by the spill. The bill also will support projects and programs that will promote oil spill preparedness and response capability. I believe that the projects and programs in secs. 2 - 12 of the bill are consistent with the purposes set out in the federal court's restitution order in the Exxon criminal case and that the passage of this bill would be a prudent use of the restitution money. Although the money is the subject of a special restoration charge from the court, that 1993-04-02 House Journal Page 0939 HB 269 purpose, quite frankly, mirrors the objectives of this Administration and, I believe, of most Alaskans. We have just observed the fourth anniversary of an environmental calamity that has affected all of our lives. I believe that it is time for specific, properly focused restoration work to commence. I urge you to pass this bill this session. Sincerely, /s/ Walter J. Hickel Governor"