Legislature(1993 - 1994)

1993-04-02 Senate Journal

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1993-04-02                     Senate Journal                      Page 1065
SB 183                                                                       
SENATE BILL NO. 183 by the SENATE 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 Resources, Judiciary and           
Finance Committees.                                                            
                                                                               
Governor's transmittal letter dated April 2:                                   
                                                                               
Dear Mr. President:                                                            
                                                                               
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  projects, within  the State of  Alaska, relating to the      

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SB 183                                                                       
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             

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SB 183                                                                       
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         

1993-04-02                     Senate Journal                      Page 1068
SB 183                                                                       
trustees 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          

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SB 183                                                                       
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 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