04/27/1999 09:05 AM Senate FIN

                                                                                                                                
CS FOR HOUSE JOINT RESOLUTION NO. 13(HES)                                                                                       
Relating to using oil spill settlement funds to create                                                                          
a long-term research and monitoring endowment.                                                                                  
                                                                                                                                
                                                                                                                                
WILDA RODMAN, staff to Representative Gene Therriault,                                                                          
testified to the bill. She read the sponsor statement into                                                                      
the record. HJR 13 supported the recent action of the Exxon                                                                     
Valdez Oil Spill Trustee Council to create a long-term                                                                          
research and monitoring endowment using $115 million of                                                                         
expected reserve.                                                                                                               
                                                                                                                                
The bill also would encourage the Trustee Council to endow                                                                      
chairs in the sciences at the University of Alaska and                                                                          
supports Trustee efforts work with the congressional                                                                            
delegation to obtain the necessary investment authority to                                                                      
increase the earnings on remaining settlement funds.                                                                            
                                                                                                                                
The EVOS Trustee Council allocated money obtained from                                                                          
settlement of the Exxon Valdez spill litigation.  Over the                                                                      
years, EVOS funds had largely been used to purchase land                                                                        
for habitat preservation, and have been lacking in the area                                                                     
of research.  The sponsor believed this had left a critical                                                                     
gap in our understanding of this spill and how to respond                                                                       
in the future. Endowing scientific chairs at the University                                                                     
would help increase available baseline data, enhance the                                                                        
biological resources of the northern Gulf of Alaska, and                                                                        
significantly improve spill-related technology, restoration                                                                     
methods and ecosystem preservation. For example, it was                                                                         
widely understood that many aspects of the Exxon Valdez oil                                                                     
spill response, such as high-pressure washing of beaches                                                                        
and rock washing, might have caused more long-term harm                                                                         
than benefit.  We also need to know if types of marine                                                                          
ecosystems were extra sensitive to certain cleanup                                                                              
activities, and if so, how the state should respond to a                                                                        
spill in those areas.                                                                                                           
                                                                                                                                
An endowment of this nature would fulfill the intent of the                                                                     
Exxon Valdez oil settlement and the mission of the Trustee                                                                      
Council, which was to restore, rehabilitate, replace,                                                                           
enhance, or acquire equivalent resources and services in                                                                        
the oil spill region.                                                                                                           
                                                                                                                                
MOLLY MCCAMMON, Executive Director, Exxon Valdez Oil Spill                                                                      
Trustee Council, testified via teleconference from                                                                              
Anchorage. The council supported the House Finance                                                                              
committee substitute to the resolution. She explained that                                                                      
the Trustee Council had recently voted to establish a long-                                                                     
term research and monitoring endowment.  They were now in                                                                       
the process of developing a long-term research and                                                                              
monitoring plan for the northern Gulf of Alaska. As part of                                                                     
development of that plan, EVOS would be considering                                                                             
endowing certain scientific chairs at the University.  To                                                                       
this date, the council had not taken action on endowing                                                                         
university chairs. The first priority was to develop the                                                                        
long-term research plan, then determine how any endowed                                                                         
chairs might fit into that research plan.                                                                                       
                                                                                                                                
Senator Al Adams asked if there were plans or programs                                                                          
where the money would be spent.  Molly McCammon replied                                                                         
they were in the process of developing those programs.  She                                                                     
listed some of the areas of planned research. The council                                                                       
wanted to monitor key aspects of the spill area such as                                                                         
oceanographic temperature, currents and those forces that                                                                       
affected the productivity of the marine resources. There                                                                        
would also be monitoring of key species: harbor seals,                                                                          
salmon, herring and those fish that were part of the                                                                            
ecosystem. They would also target questions that resources                                                                      
managers needed answered in order to better manage the                                                                          
resources. They would also tie in traditional ecosystem                                                                         
knowledge and work with stakeholder and local residents so                                                                      
they were part of the overall program.                                                                                          
                                                                                                                                
WENDY REDMOND, Vice President, University Relations,                                                                            
University of Alaska testified.  The university supported                                                                       
the bill. "It would serve a great need and a great                                                                              
opportunity for leveraging some of the investment into the                                                                      
future."                                                                                                                        
                                                                                                                                
Senator Gary Wilken offered a motion to report HJR 13 (FIN)                                                                     
out of committee. There was no objection and it was so                                                                          
ordered.                                                                                                                        
                                                                                                                                
                                                                                                                                
ADJOURNED                                                                                                                       
                                                                                                                                
Senator Torgerson adjourned the meeting at 10:43AM.                                                                             
SFC-99 (19) 4/27/99