Legislature(2003 - 2004)

02/12/2004 08:30 AM House CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE COMMUNITY AND REGIONAL AFFAIRS                                                                            
                       STANDING COMMITTEE                                                                                     
                       February 12, 2004                                                                                        
                           8:30 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Carl Morgan, Chair                                                                                               
Representative Pete Kott                                                                                                        
Representative Sharon Cissna                                                                                                    
Representative Albert Kookesh                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Kelly Wolf, Vice Chair                                                                                           
Representative Tom Anderson                                                                                                     
Representative Ralph Samuels                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
^OVERVIEW OF LOW SULFUR DIESEL FUEL                                                                                             
                                                                                                                                
[For the regular  meeting minutes, see the 8:10  a.m. minutes for                                                               
this date.]                                                                                                                     
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
04-4, SIDE(S) A                                                                                                                 
                                                                                                                                
CHAIR CARL  MORGAN convened  the meeting  of the  House Community                                                             
and Regional Affairs Standing Committee at 8:30 a.m.                                                                            
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                                
TOM  CHAPPLE,   Director,  Division  of  Air   &  Water  Quality,                                                               
Department of  Environmental Conservation (DEC), stated  that the                                                             
Environmental  Protection  Agency  (EPA) will  be  requiring  low                                                               
sulfur  diesel  fuel [15  parts  per  million (ppm)  sulfur]  for                                                               
trucks manufactured in model year  2007.  These trucks will begin                                                               
being sold in the  fall of 2006.  If these  diesel trucks are not                                                               
used with low  sulfur diesel fuel, the warranties  will be voided                                                               
and there  may be engine problems.   The EPA has  determined that                                                               
particulates associated with combustion  from current diesel fuel                                                               
is a significant  health problem.  The health  benefits from less                                                               
particulates  and  less air  pollution  may  be  as much  as  $80                                                               
billion,  he estimated.    He noted  that  rural communities  use                                                               
diesel  for   vehicles,  home  heating,  and   power  generation.                                                               
However, low  sulfur fuel  is not required  for home  heating and                                                               
power generation.                                                                                                               
                                                                                                                                
MR. CHAPPLE  explained that the  EPA gave DEC the  opportunity to                                                               
develop  an implementation  plan  tailored  to Alaska's  specific                                                               
needs.   Alaska  has  an  urban [roadway]  plan  under which  low                                                               
sulfur diesel  fuel will be available  by the fall of  2006.  The                                                               
rural  transition plan  allows rural  communities  to have  until                                                               
2010 to make decisions.   Rural residents who purchase new diesel                                                               
trucks will be responsible for  getting their own low sulfur fuel                                                               
to their community.   By 2010 the rural communities  will have to                                                               
have the  low sulfur  fuel.  Mr.  Chapple informed  the committee                                                               
that DEC  received a  capital appropriation  to study  the health                                                               
affects  of diesel  fuel in  villages.   He pointed  out that  in                                                               
rural  communities  the  power  generation  plant  is  frequently                                                               
centrally located and has short stacks.                                                                                         
                                                                                                                                
MR. CHAPPLE mentioned that in Puget  Sound there has been a pilot                                                               
project looking at costs.  The  pilot project found that the cost                                                               
is from  3 to 8  cents per gallon higher.   A 5-cent  increase is                                                               
what  EPA anticipated  so  this is  in that  range.   The  energy                                                               
produced is only showing a .5 percent decrease.                                                                                 
                                                                                                                                
MR. CHAPPLE highlighted  that Alaska will need  Arctic grade fuel                                                               
because of Alaska's  climate.  Flint Hills, the new  owner of the                                                               
North Pole refinery, has committed  to producing Arctic grade low                                                               
sulfur fuel.  He  noted that there has not been  a decision as to                                                               
whether  communities will  choose to  have  one or  two types  of                                                               
fuel.                                                                                                                           
                                                                                                                                
CHAIR  MORGAN asked  how communities  will retro  fit their  bulk                                                               
storage tanks.                                                                                                                  
                                                                                                                                
RON  KING,  Program Manager,  Air  Non-Point  & Mobile  Services,                                                               
Division  of Air  & Water  Quality,  Department of  Environmental                                                               
Conservation, explained  that if a  community started to  buy low                                                               
sulfur fuel several  years before required, it can  be mixed with                                                               
the remains  of the  current fuel  in the  tank and  over several                                                               
seasons the mixture will be useable as low sulfur.                                                                              
                                                                                                                                
MR.  KING, in  further response  to Chair  Morgan, said  that the                                                               
power  generating  plants  will  not need  to  be  retro  fitted.                                                               
However,  there  are  gaskets  and  seals that  may  need  to  be                                                               
replaced and some injectors have required some work.                                                                            
                                                                                                                                
ANNOUNCEMENTS                                                                                                                 
                                                                                                                                
There were no announcements.                                                                                                    
                                                                                                                                
COMMITTEE ACTION                                                                                                              
                                                                                                                                
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
NOTE:   The meeting was  recorded and handwritten log  notes were                                                               
taken.  A  copy of the tape(s)  and log notes may  be obtained by                                                               
contacting the  House Records  Office at  State Capitol,  Room 3,                                                               
Juneau,  Alaska  99801  (mailing address),  (907)  465-2214,  and                                                               
after  adjournment  of the  second  session  of the  Twenty-Third                                                               
Alaska  State Legislature  this  information may  be obtained  by                                                               
contacting the Legislative Reference Library at (907) 465-3808.                                                                 

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