Legislature(2005 - 2006)FBX LIO Conf Rm

04/08/2005 09:00 AM Senate FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 71 NONUNION PUBLIC EMPLOYEE SALARY & BENEFIT TELECONFERENCED
Scheduled But Not Heard
+ SB 130 WORKERS' COMPENSATION TELECONFERENCED
<Pending Referral>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 144 EMISSION CONTROL PROGRAM PERMITS/REGS TELECONFERENCED
Moved CSSB 144(RES) Out of Committee
+= HCR 2 IN-STATE NATURAL GAS NEEDS TELECONFERENCED
Moved HCR 2 Out of Committee
+= SB 70 CRIMES INVOLVING CONTROLLED SUBSTANCES TELECONFERENCED
Heard & Held
+= SB 103 OIL & GAS: REG. OF UNDERGROUND INJECTION TELECONFERENCED
Moved SB 103 Out of Committee
+= SB 110 POLLUTION DISCHARGE & WASTE TRMT/DISPOSAL TELECONFERENCED
Heard & Held
+= SB 155 APPROP: SCHOOLS/UNIV/VIROLOGY LAB/MUSEUM TELECONFERENCED
Moved CSSB 155(FIN) Out of Committee
9:16:44 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR SENATE BILL NO. 144(RES)                                                                                            
     "An Act relating to regulations, definitions, and permits                                                                  
     under the emission control permit program; and providing for                                                               
     an effective date."                                                                                                        
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
MARY  JACKSON, staff  to Senator  Tom  Wagoner, testified  that  two                                                            
years prior, the "current  reform package" was passed at the request                                                            
of Governor Murkowski.  One portion of that package  was intended to                                                            
streamline the  air permit process. However, some  deficiencies were                                                            
discovered.  In  order  to comply  with  federal  regulations,  this                                                            
legislation provides  definitions identical to federal  definitions.                                                            
                                                                                                                                
9:17:56 AM                                                                                                                    
                                                                                                                                
Co-Chair  Green  understood  this  legislation   would  bring  State                                                            
statute into compliance  with federal regulations on air primacy and                                                            
"air permitting".                                                                                                               
                                                                                                                                
Ms. Jackson affirmed.                                                                                                           
                                                                                                                                
9:18:20 AM                                                                                                                    
                                                                                                                                
JOHN  KUTERBACH,  Air  Permits  Program  Manager,  Division  of  Air                                                            
Quality, Department of  Environmental Conservation, testified he was                                                            
available  to answer  questions on  this technical  bill. He  stated                                                            
this legislation adjusts  the definitions adopted two years prior to                                                            
comply with federal regulations.                                                                                                
                                                                                                                                
9:18:57 AM                                                                                                                    
                                                                                                                                
Co-Chair Green  asked the consequence  if this legislation  does not                                                            
pass into law.                                                                                                                  
                                                                                                                                
Mr. Kuterbach replied that  the Department would be unable to obtain                                                            
approval of  the permitting process  from the federal Environmental                                                             
Protection  Agency  (EPA). The  "critical  deficiency"  is that  the                                                            
current State  definitions identify  "who needs an operating  permit                                                            
more narrowly  than the  federal regulations  require." The  federal                                                            
regulations  require  that  multi-stationary  sources  under  single                                                            
ownership  be combined in  determining whether  a permit is  needed.                                                            
Alaska laws consider each source individually.                                                                                  
                                                                                                                                
9:19:52 AM                                                                                                                    
                                                                                                                                
Co-Chair  Green  noted  that  with the  exception  of  a  definition                                                            
change, this  legislation amends few  words of the current  statute.                                                            
She asked for  an explanation of the  repeal provision contained  in                                                            
Section 8.                                                                                                                      
                                                                                                                                
Mr.  Kuterbach   explained   the  "repeal   is  the  definition   of                                                            
modification."  Modification  is used "very  precisely" in  "several                                                            
federal  programs that we're  required to  implement." These  differ                                                            
slightly  for each  program.  The initial  intent was  to adopt  the                                                            
correct definition  in statute,  which was  possible for one  of the                                                            
federal  program,  but not  the others.  This  legislation  proposes                                                            
repealing the  definition from statute; another section  of the bill                                                            
would  require  the Department  to  adopt  language  in regulations                                                             
consistent with the federal program implemented.                                                                                
                                                                                                                                
9:20:59 AM                                                                                                                    
                                                                                                                                
Co-Chair  Green noted the  July 1 2005 effective  date and  asked if                                                            
the Department  would  be prepared  to implement  the provisions  of                                                            
this legislation by that time.                                                                                                  
                                                                                                                                
Mr. Kuterbach assured this date was adequate.                                                                                   
                                                                                                                                
9:21:18 AM                                                                                                                    
                                                                                                                                
Ms.  Jackson stated  that  initially  the Department  had  requested                                                            
authority to adopt  definitions. Upon discussion,  it was determined                                                            
that establishing  the definitions in statute was  more appropriate.                                                            
                                                                                                                                
9:21:40 AM                                                                                                                    
                                                                                                                                
Senator  Olson  asked  if  any  party  in  the  private  sector  has                                                            
commented on this legislation.                                                                                                  
                                                                                                                                
Ms. Jackson  informed that  the Department  sent letters to  parties                                                            
that would be  affected by this legislation, particularly  those who                                                            
hold mining  permits.  No responses  were received  and no  concerns                                                            
were  voiced.  She  personally  contacted  the Alaska  Oil  and  Gas                                                            
Association  and the  Alaska Mining  Association,  and was told  the                                                            
organizations had no concerns.                                                                                                  
                                                                                                                                
Co-Chair Green  stated that the mining association  has a history of                                                            
providing input on legislation affecting its membership.                                                                        
                                                                                                                                
Senator  Olson  clarified  the Alaska  Mining  Association  has  not                                                            
voiced any objection to this legislation.                                                                                       
                                                                                                                                
Ms. Jackson affirmed.                                                                                                           
                                                                                                                                
9:22:48 AM                                                                                                                    
                                                                                                                                
Co-Chair Wilken  offered a motion to report the bill  from Committee                                                            
with individual recommendations and accompanying fiscal note.                                                                   
                                                                                                                                
Co-Chair  Wilken objected  to the  motion  to pose a  question.   He                                                            
asked if Mr. Kuterbach  is responsible for all air permits issued by                                                            
the State.                                                                                                                      
                                                                                                                                
Mr. Kuterbach answered he is.                                                                                                   
                                                                                                                                
Co-Chair Wilken asked if  the witness is familiar with the situation                                                            
involving Husky Lumber in Kenai.                                                                                                
                                                                                                                                
Mr. Kuterbach was involved in resolving the issue.                                                                              
                                                                                                                                
Co-Chair Wilken asked if  he was satisfied with the analysis of that                                                            
issue and the resolution reached.                                                                                               
                                                                                                                                
Mr. Kuterbach  was satisfied the issue  has been resolved,  although                                                            
was "sorry that  it turned out the way it did in the  initial stages                                                            
and that we didn't catch it earlier."                                                                                           
                                                                                                                                
Co-Chair Wilken  appreciated the involvement of the  witness and the                                                            
commissioner in resolving the issue.                                                                                            
                                                                                                                                
Co-Chair Wilken removed his objection.                                                                                          
                                                                                                                                
9:24:01 AM                                                                                                                    
                                                                                                                                
Without objection SB 144  MOVED from Committee with zero fiscal note                                                            
#1 from the Department of Environmental Conservation.                                                                           
                                                                                                                                
9:24:30 AM                                                                                                                    
                                                                                                                                
[Pause on the record.]                                                                                                          
                                                                                                                                

Document Name Date/Time Subjects