Legislature(2017 - 2018)BUTROVICH 205

02/16/2018 03:30 PM Senate RESOURCES

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 173 LIABILITY: PESTICIDES & UTILITY POLES TELECONFERENCED
Moved CSSB 173(RES) Out of Committee
-- Testimony <Invitation Only> --
+= SB 92 VESSELS: REGISTRATION/TITLES; DERELICTS TELECONFERENCED
Moved CSSB 92(RES) Out of Committee
-- Testimony <Invitation Only> --
          SB 173-LIABILITY: PESTICIDES & UTILITY POLES                                                                      
                                                                                                                                
3:32:44 PM                                                                                                                    
CHAIR GIESSEL  announced consideration of SB  173 [CSSB 173(RES),                                                               
version  30-LS1332\D, was  before  the committee].  She said  the                                                               
bill  was heard  on Monday  at  which time  public testimony  was                                                               
opened  and closed.  It was  heard  again on  Wednesday when  the                                                               
committee  adopted a  committee substitute  (CS) and  had initial                                                               
discussion. No  amendments were submitted. Today  they would have                                                               
a final discussion and consider some legal questions.                                                                           
                                                                                                                                
3:33:25 PM                                                                                                                    
SENATOR MICCICHE, Alaska State  Legislature, Juneau, Alaska, said                                                               
he wanted  to make sure  Alaskans were protected  from negligence                                                               
and gross negligence  [from pesticides on utility  poles] with SB
173. This bill is designed to  remove strict liability only for a                                                               
specific  reason [from  pesticides on  utility poles].  Other law                                                               
covers  regular liability,  public nuisance,  nuisance, trespass,                                                               
negligence, and gross negligence.                                                                                               
                                                                                                                                
CHAIR GIESSEL  asked what liability  the utilities would  have or                                                               
if they are completely absolved.                                                                                                
                                                                                                                                
ERIC  FJELSTAD,   Attorney,  Perkins  Coie,   representing  Homer                                                               
Electric Association, Anchorage, Alaska,  answered that this bill                                                               
only modifies  the strict liability  scheme in AS  46.03.822 that                                                               
is sometimes called the State  Super Fund Law. All other statutes                                                               
and regulations  that would apply  to this situation  continue to                                                               
be in force.                                                                                                                    
                                                                                                                                
He said discussion at the  outset included whether all applicable                                                               
laws  should be  changed,  and  the answer  was  "no." This  just                                                               
modifies one  law, which is  the strict liability  scheme. Common                                                               
law and nuisance trespass are still in play.                                                                                    
                                                                                                                                
3:35:40 PM                                                                                                                    
SENATOR  COGHILL asked  if contamination  is affecting  someone's                                                               
groundwater, are they saying there is no liability.                                                                             
                                                                                                                                
MR.  FJELSTAD  answered  that they  are  saying  this  particular                                                               
statute  cannot be  used to  recover costs  or require  clean-up.                                                               
However, they are not saying there  isn't a full panoply of other                                                               
authorities  that DEC  and others  can avail  themselves of  like                                                               
water quality  standards and  various other  statutory provisions                                                               
in Title 46 that are not changed at all by this legislation.                                                                    
                                                                                                                                
SENATOR COGHILL said  the question he wanted answered  is if this                                                               
pesticide is used, there is no liability, period.                                                                               
                                                                                                                                
MR. FJELSTAD  replied there is  no liability under  this statute.                                                               
It's not  true that there  is no  liability, period. There  is no                                                               
liability under this statute to require clean-up costs.                                                                         
                                                                                                                                
Focusing on two points, Mr. Fjelstad  said one is what the intent                                                               
of this  issue is. These  poles use pesticides that  are approved                                                               
by EPA and  applied. When the pesticide is  applied in accordance                                                               
with EPA  - a  key point -  EPA has made  a policy  decision that                                                               
that is  appropriate use: it's  common to  have a little  area of                                                               
contamination of the ground around  the pole. So, this focuses on                                                               
the  question of  whether  appropriate to  require  a utility  to                                                               
clean  up that  zone of  impact, which  might be  18 inches  out.                                                               
Testimony has indicated  that is not inexpensive. It  can cost up                                                               
to $30,000/pole.                                                                                                                
                                                                                                                                
MR. FJELSTAD  said the  question has been  asked why  this hasn't                                                               
come up before  and the answer is positive: these  poles have not                                                               
been significant issues.  There aren't any examples  of a utility                                                               
pole  causing ground  contamination  or showing  up in  someone's                                                               
well in Alaska.                                                                                                                 
                                                                                                                                
CHAIR GIESSEL  summarized that he  is saying the small  amount of                                                               
leaching doesn't create a super fund site.                                                                                      
                                                                                                                                
MR. FJELSTAD said that was correct.                                                                                             
                                                                                                                                
3:39:49 PM                                                                                                                    
SENATOR  BISHOP  said Fairbanks  has  contaminated  wells and  he                                                               
understands  what Mr.  Fjelstad is  saying, but  what if  a water                                                               
well had trace elements of Penta  in it, would those people still                                                               
have some recourse?                                                                                                             
                                                                                                                                
MR. FJELSTAD  answered the  other tools in  the toolbox  - common                                                               
law, nuisance  and trespass -  are there and that  DEC absolutely                                                               
has recourse under common law.                                                                                                  
                                                                                                                                
CHAIR GIESSEL  asked MS. Nauman, Legislative  Legal Attorney, who                                                               
drafted the bill if she agreed with that answer.                                                                                
                                                                                                                                
3:41:01 PM                                                                                                                    
EMILY   NAUMAN,   Attorney,   Division  of   Legislative   Legal,                                                               
Legislative  Affairs Agency,  Alaska  State Legislature,  Juneau,                                                               
Alaska, answered yes, she agrees.                                                                                               
                                                                                                                                
SENATOR COGHILL asked what other  tools outside of the Super Fund                                                               
Act would a liability issue follow under these pole conditions.                                                                 
                                                                                                                                
3:42:01 PM                                                                                                                    
KRISTIN RYAN,  Director, Division Spill Prevention  and Response,                                                               
Department  of   Environmental  Conservation   (DEC),  Anchorage,                                                               
Alaska,  answered that  this legislation  would  say the  utility                                                               
company  is not  liable for  contamination or  leeching from  the                                                               
pole.                                                                                                                           
                                                                                                                                
SENATOR COGHILL asked what the  middle ground is if liability was                                                               
found, because the Super Fund is pretty big hammer.                                                                             
                                                                                                                                
MS. RYAN  replied that the  department recognizes  the situation:                                                               
if six inches of soil is  contaminated around a utility pole. But                                                               
if  contamination has  leaked further  and is  of a  more serious                                                               
nature, it's  nice to have this  tool in the toolbox  to say they                                                               
caused damage.                                                                                                                  
                                                                                                                                
She said the department uses  discretion and only uses the hammer                                                               
when it  is needed.  They try  to work  with operators  with best                                                               
management practices and other methods  and don't need the hammer                                                               
in this situation.                                                                                                              
                                                                                                                                
3:44:32 PM                                                                                                                    
SENATOR BISHOP asked  if she has a toxicology report  and when it                                                               
will be available.                                                                                                              
                                                                                                                                
MS. RYAN  answered yes; some tests  are being done on  some poles                                                               
that  have been  moved on  the Kenai  Peninsula by  a DOTPF  road                                                               
project to see if there has  been any leeching onto wetlands. The                                                               
goal  for  that  work  is  to  help  the  department  draft  best                                                               
management practices. The research is  on-going, and they hope to                                                               
have some results by the end of March.                                                                                          
                                                                                                                                
SENATOR BISHOP asked  if they have baseline data to  say there is                                                               
a real problem.                                                                                                                 
                                                                                                                                
MS.  RYAN responded  that  some  data was  taken  from the  Kenai                                                               
Wildlife Refuge  that started  this conversation,  but it  was an                                                               
unscientific  process  and  no significant  event  is  triggering                                                               
concern at the moment.                                                                                                          
                                                                                                                                
3:46:34 PM                                                                                                                    
CHAIR  GIESSEL asked  how long  this pesticide  has been  used to                                                               
treat poles in Alaska.                                                                                                          
                                                                                                                                
MS. RYAN  replied Penta  has been  approved for  this use  by the                                                               
Environmental Protection  Agency (EPA)  at least since  2008. She                                                               
added that some  committee members wanted to  know the difference                                                               
between Penta and  creosote. The EPA still allows  Creosote to be                                                               
used, but  they encourage  using Penta instead  for a  variety of                                                               
reasons, the main one being  safety of utility workers; Creosote-                                                               
covered poles are slippery and  cause injuries. Penta tends to be                                                               
a drier inhibitor of growth that is being used all over the U.S.                                                                
                                                                                                                                
3:47:59 PM                                                                                                                    
CHAIR   GIESSEL  asked   if  the   Department  of   Environmental                                                               
Conservation (DEC) is the agency  that tests and approves on-site                                                               
water wells for homes.                                                                                                          
                                                                                                                                
MS. RYAN answered that the  Department of Natural Resources (DNR)                                                               
provides water use  rights; the DEC protects  and approves public                                                               
water systems,  which are defined as  being used by 25  people or                                                               
more.                                                                                                                           
                                                                                                                                
3:48:34 PM                                                                                                                    
CHAIR  GIESSEL asked  if Penta  had shown  up in  any of  the DEC                                                               
tests from these wells.                                                                                                         
                                                                                                                                
MS. RYAN answered no.                                                                                                           
                                                                                                                                
SENATOR MICCICHE said this issue  isn't about calculation of risk                                                               
because  the U.S.  has  tens  of millions  of  treated poles  and                                                               
they've heard  a story about one  well in the Northeast  that may                                                               
have had  a problem. The  reality is that  all they are  doing is                                                               
changing the  level of state  liability to the  liability defined                                                               
under the  federal EPA, a  very conservative agency.  Language is                                                               
being changed  from not  observing the  federal law  exemption to                                                               
observing  it  under  the  Federal  Insecticide,  Fungicide,  and                                                               
Rodenticide Act (FIFRA).                                                                                                        
                                                                                                                                
SENATOR  COGHILL  said the  line  of  questioning is  appropriate                                                               
because a strict exemption needs  context and that there is still                                                               
some recourse.                                                                                                                  
                                                                                                                                
SENATOR MICCICHE said  he wanted to be able  to look constituents                                                               
in the  eye and tell them  that there is other  recourse if there                                                               
is that  minute nearly non-existent  probability that  Penta ever                                                               
transfers to a water table that it has to be evaluated.                                                                         
                                                                                                                                
3:51:03 PM                                                                                                                    
SENATOR  COGHILL moved  to  report CSSB  173  (RES), version  30-                                                               
LS1332\D,  from  committee  with individual  recommendations  and                                                               
attached zero  fiscal note. There  were no objections and  it was                                                               
so ordered.                                                                                                                     

Document Name Date/Time Subjects
Senate Resources - Agenda - 2 - 16 - 18.pdf SRES 2/16/2018 3:30:00 PM
SB173 - Supporting Document - Response from Homer Electric Assoc.pdf SRES 2/16/2018 3:30:00 PM
SB 173
SB173 - Comments - AK Comm Act on Toxics - 2 - 15 - 2018.pdf SRES 2/16/2018 3:30:00 PM
SB 173