The Maryland House Appropriations Committee yesterday heard testimony on two bills to aid the state's domestic fuel production. But the committee took no action on either bill.

One of the bills would set up a fund for the state to build its first manufaturing plant -- a facility to produce alcohol for gasohol, the controversial 90 percent gasoline and 10 percent alcohol fuel. The plant would be funded by $4 million in state bonds and a one-cent per gallon levy on state fuel sales. The levy alone would amount to $21 million.

The other proposal would provide a $5 million incentive for private companies to construct a coal liquefaction plant, a new and costly way of turning coal into liquid synthetic fuel

That legislation would authorize the sale of $5 million in state bonds to be used for the acquisition, planning, design, construction and equipping of a coal liquefaction plant to be built by a private company. The plant would have the potential of producing 50,000 barrels of liquid fuel per day if located in the coal-rich counties of Western Maryland, the bill's sponsor said.

Meanwhile, a bill to limit to 5 percent the amount of bank stock that foreigners may own has passed its third reading in the Senate and was taken up yesterday by a House committee. No action by the committee was taken yesterday, according to a spokesperson for the House Economic Matters committee.

A bill discussed on Feb. 1, to prevent foreigners from owning agricultural land has not yet been acted on by the Senate Judicial Proceedings Committee according to a committee spokesperson.