Number 217                                                                   
                                                                               
  REPRESENTATIVE BILL HUDSON asked if the governor would have                  
  a bill prepared regarding the $50 million criminal                           
  settlement from the Exxon Valdez case, similar to HB 411                     
  that was introduced during the 17th Legislative Session.                     
                                                                               
  MR. TREADWELL said the administration wanted to see what                     
  action the trustees took on January 19, 1993, and he felt                    
  there would be a proposal or a position on existing                          
  proposals forthcoming.                                                       
                                                                               
  REPRESENTATIVE HUDSON said he thought the action taken by                    
  the trustees was that the state agreed to spend $7.5 million                 
  and the federal government agreed to another $7.5 million to                 
  buy back Kachemak Bay land, for a total of $15 million.                      
                                                                               
  MR. TREADWELL said the state, in addition to the lawsuit                     
  against Exxon, had filed a lawsuit against Alyeska.                          
  Involved in that $30 million settlement was a $7.5 million                   
  payment to buy back lands at Kachemak Bay.  The federal and                  
  state trustees who jointly administered the $900 million in                  
  the civil settlement had agreed to spend $7.5 million from                   
  that $900 million to help buy back the land at Kachemak Bay                  
  State Park.  He understood one of the conditions the                         
  trustees placed on the agreement was that the buy-back would                 
  not be greater than $22.5 million.                                           
                                                                               
  MR. TREADWELL concluded the administration would like to                     
  work with the legislature in finding funding sources,                        
  possibly out of the general fund, or other sources such as                   
  land or timber trades, he added.                                             
                                                                               
  Number 250                                                                   
                                                                               
  REPRESENTATIVE JOHN DAVIES asked for an update on the                        
  oxygenated fuel issues.                                                      
                                                                               
  MR. TREADWELL said a meeting would be scheduled with                         
  scientists and policy makers to look at the work done by the                 
  Center for Disease Control (CDC), the Alaska Department of                   
  Health, and other research that had been done on the                         
  oxygenated fuel issue as soon as the CDC was ready to make a                 
  presentation.  In Fairbanks, the EPA had given the governor                  
  the option of canceling that oxygenated fuel program because                 
  of health concerns raised in the community.  The program was                 
  then canceled.  The EPA agreed to step up the studies on                     
  health effects on this issue, he added.                                      
                                                                               
  MR. MENGE said the DEC expected to hear from the CDC in the                  
  next few days.                                                               
                                                                               
  REPRESENTATIVE DAVIES asked about the status of studies in                   
  Anchorage and whether the CDC would perform studies there.                   
                                                                               
  MR. TREADWELL said one of the major questions that would be                  
  addressed was whether the concerns found in Fairbanks also                   
  applied to Anchorage.                                                        
                                                                               
  MR. MENGE said the Department Health and Human Services had                  
  done parallel studies in Fairbanks and Anchorage, but the                    
  CDC had only done studies in Fairbanks.                                      
                                                                               
  Number 293                                                                   
                                                                               
  REPRESENTATIVE DAVIES asked for the status of the "Air                       
  Quality Permit Bill" proposed by the DEC Air Quality                         
  Legislative Working Committee on the Clean Air Act and what                  
  the DEC's position would be if the governor introduced that                  
  bill.                                                                        
                                                                               
  MS. ADAIR said the DEC supported the committee's proposed                    
  legislation and a consensus had been reached as a result of                  
  four months of hard work by individuals who devoted their                    
  own time and energy.  She understood the Senate Resources                    
  Committee would be introducing this bill and the DEC would                   
  be working to help move it through the process.  She said                    
  the bill must be passed during the 18th Legislative Session                  
  to keep Alaska Highway Fund sanctions from taking place.