Legislature(2001 - 2002)

04/03/2002 01:10 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         April 3, 2002                                                                                          
                           1:10 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Beverly Masek, Co-Chair                                                                                          
Representative Hugh Fate, Vice Chair                                                                                            
Representative Joe Green                                                                                                        
Representative Mike Chenault                                                                                                    
Representative Beth Kerttula                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Drew Scalzi, Co-Chair                                                                                            
Representative Lesil McGuire                                                                                                    
Representative Gary Stevens                                                                                                     
Representative Mary Kapsner                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE CONCURRENT RESOLUTION NO. 28(RES)                                                                                 
Establishing the Joint Legislative Salmon Industry Task Force.                                                                  
                                                                                                                                
     - MOVED CSSCR 28(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 432                                                                                                              
"An Act relating to the labeling of animal and poultry feeds and                                                                
to the agriculture program coordinator; and providing for an                                                                    
effective date."                                                                                                                
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 47                                                                                                   
Urging the United States Environmental  Protection Agency and the                                                               
Alaska  Department  of   Environmental  Conservation  to  provide                                                               
maximum possible flexibility in  application of low-sulfur diesel                                                               
fuel requirements to Alaska.                                                                                                    
                                                                                                                                
     - MOVED CSHJR 47(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 425                                                                                                              
"An Act relating to wildfires and other natural disasters."                                                                     
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                              
BILL: SCR 28                                                                                                                  
SHORT TITLE:JOINT LEGIS SALMON INDUSTRY TASK FORCE                                                                              
SPONSOR(S): SENATOR(S) AUSTERMAN                                                                                                
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
02/19/02     2224       (S)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
02/19/02     2224       (S)        RES, FIN                                                                                     
02/27/02                (S)        RES AT 3:30 PM BUTROVICH 205                                                                 
02/27/02                (S)        Moved CSSCR 28(RES) Out of                                                                   
                                   Committee                                                                                    
02/27/02                (S)        MINUTE(RES)                                                                                  
03/01/02     2341       (S)        RES RPT CS 7DP SAME TITLE                                                                    
03/01/02     2341       (S)        DP: TORGERSON, TAYLOR,                                                                       
                                   HALFORD, STEVENS                                                                             
03/01/02     2341       (S)        LINCOLN, ELTON, WILKEN                                                                       
03/04/02                (S)        FIN AT 9:00 AM SENATE FINANCE                                                                
                                   532                                                                                          
03/04/02                (S)        Heard & Held                                                                                 
03/04/02                (S)        MINUTE(FIN)                                                                                  
03/04/02     2365       (S)        FN1: (LAA)                                                                                   
03/05/02                (S)        FIN AT 9:00 AM SENATE FINANCE                                                                
                                   532                                                                                          
03/05/02                (S)        Moved Out of Committee                                                                       
03/05/02                (S)        MINUTE(FIN)                                                                                  
03/22/02     2500       (S)        COSPONSOR(S): LINCOLN                                                                        
03/27/02     2539       (S)        FIN RPT CS(RES) 6DP 1NR                                                                      
03/27/02     2539       (S)        DP: DONLEY, KELLY, HOFFMAN,                                                                  
                                   OLSON,                                                                                       
03/27/02     2539       (S)        WILKEN, LEMAN; NR: GREEN                                                                     
03/27/02     2539       (S)        FN1: (LAA)                                                                                   
03/28/02                (S)        RLS AT 8:30 AM FAHRENKAMP 203                                                                
03/28/02                (S)        -- Time Change --                                                                            
03/28/02                (S)        MINUTE(RLS)                                                                                  
03/28/02     2556       (S)        RULES TO CALENDAR 3/28/02                                                                    
03/28/02     2560       (S)        READ THE SECOND TIME                                                                         
03/28/02     2560       (S)        RES CS ADOPTED UNAN CONSENT                                                                  
03/28/02     2560       (S)        COSPONSOR(S): TAYLOR,                                                                        
                                   HALFORD, STEVENS,                                                                            
03/28/02     2560       (S)        LEMAN, ELLIS, ELTON, COWDERY,                                                                
                                   DONLEY,                                                                                      
03/28/02     2560       (S)        WARD, KELLY, THERRIAULT,                                                                     
                                   OLSON,                                                                                       
03/28/02     2560       (S)        TORGERSON                                                                                    
03/28/02     2560       (S)        PASSED Y17 N- E3                                                                             
03/28/02     2563       (S)        TRANSMITTED TO (H)                                                                           
03/28/02     2563       (S)        VERSION: CSSCR 28(RES)                                                                       
04/01/02     2732       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/01/02     2732       (H)        RES, FIN                                                                                     
04/03/02                (H)        RES AT 1:00 PM CAPITOL 124                                                                   
                                                                                                                                
BILL: HB 432                                                                                                                  
SHORT TITLE:AGRICULT. PROG.COORDINATOR/ANIMAL FEED                                                                              
SPONSOR(S): REPRESENTATIVE(S)HARRIS                                                                                             
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
02/15/02     2285       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
02/15/02     2285       (H)        RES, FIN                                                                                     
04/03/02                (H)        RES AT 1:00 PM CAPITOL 124                                                                   
                                                                                                                                
BILL: HJR 47                                                                                                                  
SHORT TITLE:LOW SULFUR DIESEL FUEL REQUIREMENTS                                                                                 
SPONSOR(S): COMMUNITY & REGIONAL AFFAIRS                                                                                        
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
03/22/02     2643       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
03/22/02     2643       (H)        RES                                                                                          
04/03/02                (H)        RES AT 1:00 PM CAPITOL 124                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
CLIFF STONE, Staff                                                                                                              
to Senator Alan Austerman                                                                                                       
Alaska State Legislature                                                                                                        
Capitol Building, Room 434                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Presented CSSCR 28(RES) on behalf of                                                                       
Senator Austerman, sponsor.                                                                                                     
                                                                                                                                
KATHY HANSEN, Executive Director                                                                                                
Southeast Alaska Fishermen's Alliance                                                                                           
9369 North Douglas Highway                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Testified in support of SCR 28.                                                                            
                                                                                                                                
PETER FELLMAN, Staff                                                                                                            
to Representative John Harris                                                                                                   
Alaska State Legislature                                                                                                        
Capitol Building, Room 513                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION   STATEMENT:      Presented   HB  432   on   behalf   of                                                               
Representative Harris, sponsor.                                                                                                 
                                                                                                                                
MARTA MUELLER                                                                                                                   
516 Auklet Place                                                                                                                
Fairbanks, Alaska  99709                                                                                                        
POSITION STATEMENT:  Testified in support of HB 432.                                                                            
                                                                                                                                
ROBERT WELLS, Director                                                                                                          
Division of Agriculture                                                                                                         
Department of Natural Resources (DNR)                                                                                           
1800 Glenn Highway, Suite 12                                                                                                    
Palmer, Alaska  99645-6736                                                                                                      
POSITION STATEMENT:   Testified in  support of HB  432; expressed                                                               
some  minor   concerns  regarding  the  organic   inspection  and                                                               
certification, but suggested those  could be addressed before the                                                               
bill went to the House Finance Committee.                                                                                       
                                                                                                                                
MICHAEL C. PURVIANCE, Owner                                                                                                     
Granite Mountain Farms                                                                                                          
P.O. Box 1656                                                                                                                   
Delta Junction, Alaska  99737                                                                                                   
POSITION STATEMENT:   Requested committee's  utmost consideration                                                               
of the program coordinator position created by HB 432.                                                                          
                                                                                                                                
LYALL BRASIER, Owner                                                                                                            
Brasier Farms                                                                                                                   
P.O. Box 483                                                                                                                    
Delta Junction, Alaska  99737                                                                                                   
POSITION STATEMENT:   Testified in  support of HB  432; suggested                                                               
wording  change  to  "invasive species"  to  include  the  spruce                                                               
[bark] beetle, for example.                                                                                                     
                                                                                                                                
REPRESENTATIVE CARL MORGAN                                                                                                      
Alaska State Legislature                                                                                                        
Capitol Building, Room 434                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:   Presented HJR  47 as co-chair of  the House                                                               
Community   and   Regional   Affairs  Standing   Committee,   the                                                               
resolution's sponsor.                                                                                                           
                                                                                                                                
STEVE CLEARY                                                                                                                    
Alaska Public Interest Research Group (AkPIRG)                                                                                  
P.O. Box 101093                                                                                                                 
Anchorage, Alaska  99510                                                                                                        
POSITION STATEMENT:  Testified in opposition to HJR 47.                                                                         
                                                                                                                                
RANDY ROMANESKO, City Manager                                                                                                   
City of Nome                                                                                                                    
P.O. Box 281                                                                                                                    
Nome, Alaska  99762                                                                                                             
POSITION STATEMENT:  Testified in support of HJR 47.                                                                            
                                                                                                                                
RON KING, Program Manager                                                                                                       
Air Non-Point and Mobile Sources                                                                                                
Division of Air and Water Quality                                                                                               
Department of Environmental Conservation                                                                                        
410 Willoughby, Suite 303                                                                                                       
Juneau, Alaska  99801-1795                                                                                                      
POSITION STATEMENT:   During hearing  on HJR 47, reported  on the                                                               
department's efforts  to work  with the  Environmental Protection                                                               
Agency  (EPA) to  transition Alaskan  diesel use  to fit  new EPA                                                               
requirements for low-sulfur diesel fuel.                                                                                        
                                                                                                                                
FRANK DILLON, Executive Vice President                                                                                          
Alaska Trucking Association                                                                                                     
3443 Minnesota Drive                                                                                                            
Anchorage, Alaska  99503                                                                                                        
POSITION STATEMENT:  Testified in support of HJR 47.                                                                            
                                                                                                                                
KEN GATES, General Manager                                                                                                      
Cordova Electric Cooperative                                                                                                    
P.O. Box 20                                                                                                                     
Cordova, Alaska  99574                                                                                                          
POSITION STATEMENT:  Testified in support of HJR 47.                                                                            
                                                                                                                                
SHANE CARTER, Vice President                                                                                                    
Petroleum and Freight Services                                                                                                  
Yukon Fuel                                                                                                                      
P.O. Box 89                                                                                                                     
Fort Yukon, Alaska  99740                                                                                                       
POSITION STATEMENT:  During hearing on HJR 47, testified in                                                                     
support of legislation promulgating homogenous fuel use.                                                                        
                                                                                                                                
MEERA KOHLER, President and Chief Executive Officer                                                                             
Alaska Village Electric Cooperative                                                                                             
4831 Eagle Street                                                                                                               
Anchorage, Alaska  99503                                                                                                        
POSITION STATEMENT:  Testified in support of HJR 47.                                                                            
                                                                                                                                
CHERYL RICHARDSON                                                                                                               
Alaska Clean Air Coalition                                                                                                      
P.O. Box 244265                                                                                                                 
Anchorage, Alaska  99524                                                                                                        
POSITION STATEMENT:   During hearing on HJR 47,  called for equal                                                               
protection  for  rural children  from  diesel  emissions and  for                                                               
affordable  electricity  for   rural  villages;  highlighted  the                                                               
health hazards of diesel emissions.                                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 02-22, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CO-CHAIR  BEVERLY  MASEK  called  the  House  Resources  Standing                                                               
Committee meeting to  order at 1:10 p.m.   Representatives Masek,                                                               
Fate, Green, Chenault,  and Kerttula were present at  the call to                                                               
order.                                                                                                                          
                                                                                                                                
SCR 28-JOINT LEGIS SALMON INDUSTRY TASK FORCE                                                                                 
                                                                                                                                
CO-CHAIR  MASEK announced  the first  order of  business, CS  FOR                                                               
SENATE CONCURRENT RESOLUTION NO.  28(RES), Establishing the Joint                                                               
Legislative Salmon Industry Task Force.                                                                                         
                                                                                                                                
Number 0125                                                                                                                     
                                                                                                                                
CLIFF  STONE,  Staff  to Senator  Alan  Austerman,  Alaska  State                                                               
Legislature,  presented  SCR  28  on  behalf  Senator  Austerman,                                                               
sponsor,  noting that  the committee  packet  included a  sponsor                                                               
statement and fiscal note.  Mr.  Stone cited a list of issues the                                                               
task  force may  take  up this  interim  in investigating  public                                                               
policy  options  to assist  the  industry  in marketing  more  of                                                               
[Alaska's] fish:   transportation infrastructure and improvements                                                               
that   may  include   better   airports,   roads,  and   shipping                                                               
facilities, as well  as coordination of shipping  to new markets;                                                               
efficiency  in   harvesting  methods   and  the   feasibility  of                                                               
cooperatives such as the one  recently started in Chignik to make                                                               
catching  salmon  more  efficient;   and  improving  quality  and                                                               
developing new product forms.                                                                                                   
                                                                                                                                
MR.  STONE told  members  the money  spent  on research  produces                                                               
results that help  [the state's] salmon fisheries.   He indicated                                                               
hope  that the  task force  could  foster changes  in statute  or                                                               
policies to get this industry, which  is in dire straits, back on                                                               
track.  The  industry provides the State of Alaska  $50 million a                                                               
year in revenue  from taxes and fees, he said,  but that has been                                                               
declining.                                                                                                                      
                                                                                                                                
Number 0370                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN asked  what  the task  force  will do  that                                                               
agencies such as  the Alaska Department of Fish  and Game (ADF&G)                                                               
and the Alaska Seafood Marketing Institute (ASMI) cannot.                                                                       
                                                                                                                                
MR.  STONE answered  that ASMI  had been  charged with  marketing                                                               
Alaska's salmon,  but has a  limited budget.  [The  marketing of]                                                               
farmed  salmon  has had  a  big  impact  and has  infringed  upon                                                               
Alaska's  salmon  industry,  he  indicated;  the  Norwegians  and                                                               
Chileans have  had seemingly unlimited resources  to market their                                                               
product, which looks good and is available year-round.                                                                          
                                                                                                                                
MR.  STONE, in  response to  concern expressed  by Representative                                                               
Green about  the cost, explained  that three  salmon-related task                                                               
forces over  the last seven and  a half years have  produced good                                                               
input but no concrete changes.   Therefore, the cost reflected in                                                               
the fiscal  note is for this  task force to have  enough money to                                                               
identify  and  contract  with  the   University  of  Alaska,  the                                                               
McDowell Group,  or [other organizations] that  could really help                                                               
pin  down the  problem.   The  task force  will  be charged  with                                                               
changing how Alaska  conducts business to compete  with the world                                                               
market;  otherwise,  the  markets   [for  Alaska's  salmon]  will                                                               
continue to decline.                                                                                                            
                                                                                                                                
Number 0678                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN  noted the long  list of cosponsors  for SCR
28.  He  agreed with the need  to educate people in  the Lower 48                                                               
that  wild  salmon   is  far  superior  to   farmed  salmon,  but                                                               
questioned  the value  of spending  money to  find out  that more                                                               
needs to be spent.                                                                                                              
                                                                                                                                
MR.  STONE agreed  and told  Representative Green  he sympathized                                                               
that  it  seems  to  be  "just going  around  in  a  vortex";  he                                                               
characterized some  other approaches as uncoordinated  and willy-                                                               
nilly.   He  emphasized, however,  that this  task force  has the                                                               
support of  state leadership;  the hope  is to  have a  forum and                                                               
staff  to  really get  down  to  business,  bring in  experts  to                                                               
identify  the crux  of the  problem,  and come  up with  concrete                                                               
answers  and  recommendations  such as  legislation  or  lobbying                                                               
Congress for import restrictions or funding.                                                                                    
                                                                                                                                
MR.  STONE pointed  out that  if the  $.5 million  were spent  on                                                               
marketing, the  marketers might  not even know  [where to  use it                                                               
best].   The hope is to  identify such questions so  that if [the                                                               
legislature]  gives $10  million  for marketing  through ASMI  or                                                               
some  contractor,   for  example,  this  task   force  will  have                                                               
identified those  areas.  He  reiterated that ASMI is  limited by                                                               
its  resources,  although  it certainly  has  the  expertise;  he                                                               
indicated ADF&G has some expertise as well.                                                                                     
                                                                                                                                
Number 0966                                                                                                                     
                                                                                                                                
REPRESENTATIVE CHENAULT  noted that  the task force  includes two                                                               
[Senators] and  two [Representatives], with nine  public members.                                                               
He asked how the members will be determined.                                                                                    
                                                                                                                                
MR.   STONE   characterized   the  original   bill   version   as                                                               
"regionalized"; calls had been received  from all over the state,                                                               
he  said, with  recommendations  of certain  individuals for  the                                                               
task force,  including people nominating themselves.   The Senate                                                               
Resources   Standing   Committee,   however,   didn't   want   to                                                               
"Balkanize" this  or limit  it to  six commercial  fishermen from                                                               
the  different areas  as  well  as a  small  processor and  large                                                               
processor; Senator  Austerman had  agreed that a  better approach                                                               
is to  have experts  "from all  over."  They  had felt  that nine                                                               
public members at large would  provide flexibility to find people                                                               
who can deal  with commercial fish, Mr. Stone noted.   In further                                                               
response, he  specified that two  members each of the  Senate and                                                               
House will decide together [who will sit on the task force].                                                                    
                                                                                                                                
Number 1161                                                                                                                     
                                                                                                                                
REPRESENTATIVE  FATE  voiced  an unspecified  concern  about  the                                                               
makeup  of  the  taskforce.    He  then  announced  that  he  was                                                               
"absolutely in favor of this,"  although he shared Representative                                                               
Green's concern about  the money.  He remarked  that usually when                                                               
there is a high-level forum  such as this, the federal government                                                               
will take  up part of  the problem;  the resulting task  force is                                                               
much more  effective than when  "things are done piecemeal."   He                                                               
offered  his belief  that this  [allocation for  the task  force]                                                               
will be money well spent.                                                                                                       
                                                                                                                                
Number 1266                                                                                                                     
                                                                                                                                
KATHY  HANSEN, Executive  Director, Southeast  Alaska Fishermen's                                                               
Alliance, testified  in support of the  resolution.  Highlighting                                                               
the "huge"  size of past summits  and task forces on  salmon, she                                                               
indicated the  need for a  small working group to  determine what                                                               
research and follow-up  needs to be done, and then  to do what is                                                               
necessary  to move  forward.   Although ASMI  does a  really good                                                               
job, she said  there are marketing aspects ASMI isn't  a part of,                                                               
and  cannot  answer;  for example,  direct  marketers  have  some                                                               
problems  relating to  combinations of  regulations and  statutes                                                               
that  conflict somewhat,  and  these  individuals therefore  have                                                               
trouble doing  their own marketing.   A task force could  look at                                                               
that and  perhaps come  up with  simple solutions.   Furthermore,                                                               
processors and  fishermen need to  be able to talk  together; she                                                               
indicated  government sponsorship  is  necessary for  that to  be                                                               
successful.  She concluded that this  task force is a good way to                                                               
help move things forward.                                                                                                       
                                                                                                                                
Number 1390                                                                                                                     
                                                                                                                                
CO-CHAIR  MASEK, offering  her understanding  that there  were no                                                               
further   testifiers,  closed   public   testimony  and   invited                                                               
committee  discussion.     She  conveyed  her   support  for  the                                                               
resolution,  but indicated  she  hoped  the legislature  wouldn't                                                               
have to  provide a high level  of funding in support  of whatever                                                               
[the task force] came up with.                                                                                                  
                                                                                                                                
Number 1500                                                                                                                     
                                                                                                                                
REPRESENTATIVE  FATE   moved  to  report  [CSSCR   28(RES)]  from                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.  There being  no objection, CSSCR 28(RES) was moved                                                               
out of the House Resources Standing Committee.                                                                                  
                                                                                                                                
HB 432-AGRICULT. PROG.COORDINATOR/ANIMAL FEED                                                                                 
                                                                                                                                
CO-CHAIR MASEK announced  the next order of  business, HOUSE BILL                                                               
NO. 432, "An  Act relating to the labeling of  animal and poultry                                                               
feeds and  to the agriculture program  coordinator; and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
Number 1540                                                                                                                     
                                                                                                                                
PETER FELLMAN, Staff to Representative  John Harris, Alaska State                                                               
Legislature,  presented  HB  432   on  behalf  of  Representative                                                               
Harris, sponsor.   He informed members that  because the Division                                                               
of  Agriculture [Department  of Natural  Resources (DNR)]  hasn't                                                               
received  general funds  in ten  or twelve  years, some  problems                                                               
haven't  been   addressed  because   of  lack  of   manpower  and                                                               
financing.   This  bill creates  a  position in  the Division  of                                                               
Agriculture  to  address  three  existing  problems  before  they                                                               
mushroom:  "organics," feed labeling, and invasive weeds.                                                                       
                                                                                                                                
MR.  FELLMAN   referred  to  the  proposed   agriculture  program                                                               
coordinator  position.    He suggested  the  "organic"  issue  is                                                               
fairly  clear:    somebody  is   needed  to  coordinate  and  get                                                               
qualified to inspect organic farms  in Alaska to ensure that they                                                               
meet  federal   regulations.    There  have   been  some  federal                                                               
regulation changes with which Alaska  is out of step now; getting                                                               
in step with those would be one responsibility.                                                                                 
                                                                                                                                
MR.  FELLMAN  turned  attention to  the  responsibility  of  feed                                                               
labeling, explaining that some  Alaskan businesses produce animal                                                               
feed and  food for pets,  for instance, but that  nobody inspects                                                               
or utilizes a current federal  system to guarantee the quality of                                                               
that feed.  This comes into  play with issues such as BSE [bovine                                                               
spongiform encephalopathy], [known as]  "mad cow" syndrome, which                                                               
happens because  certain products put  into feed can  spread this                                                               
disease.                                                                                                                        
                                                                                                                                
MR. FELLMAN  addressed the spread  of invasive plants  and weeds,                                                               
noting  that this  could affect  the  state quickly  and be  very                                                               
expensive to control.   Currently in Alaska,  some citizen groups                                                               
and farm groups have  used a lot of their own  money and time, as                                                               
well as a  small amount of state  money - $10,000 last  year - to                                                               
begin setting up a system.                                                                                                      
                                                                                                                                
MR. FELLMAN cited  the "Canadian sow-thistle" as an  example of a                                                               
weed that has  spread from Delta Junction to  the Fairbanks area.                                                               
It not  only has a  rhizome root  system - meaning  that whenever                                                               
the roots  are chopped  up, it  produces more  plants -  but also                                                               
reproduces from  airborne seeds.   In his fields, this  weed took                                                               
hold the  year before,  in a  small patch  of ground,  and killed                                                               
everything else  there.   He cautioned  that when  packhorses are                                                               
allowed into Denali  [National Park and Preserve],  the weed will                                                               
end up  there as well.   If it  spreads throughout the  state, it                                                               
will take  over the  native population of  plants and  dominate -                                                               
not unlike the dandelion, but even more aggressive.                                                                             
                                                                                                                                
Number 1830                                                                                                                     
                                                                                                                                
MR.  FELLMAN clarified  that with  good  program coordination  in                                                               
Delta  Junction, there  was success  in eradicating  the Canadian                                                               
thistle,  a purple-topped  plant that  he indicated  is different                                                               
from the sow-thistle; for that  eradication effort, he indicated,                                                               
the  State  of Alaska  spent  $10,000.    However, if  the  state                                                               
doesn't  spend more  than that  now, in  four or  five years  the                                                               
state will have  to spend millions of dollars  [on weed control],                                                               
as happens  in other Western states.   Therefore, [HB 432]  is to                                                               
create this new position and hopefully get money to fund it.                                                                    
                                                                                                                                
MR. FELLMAN  acknowledged that  there wasn't  a fiscal  note yet,                                                               
but mentioned  that perhaps  $60,000 in  GF [general  fund] money                                                               
would cover the position.   He indicated some federal grant money                                                               
could be  obtained once [Alaska's]  weeds are identified  and the                                                               
program is  set up.   Then the hope is  to control the  spread of                                                               
these invasive plants.                                                                                                          
                                                                                                                                
Number 1944                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN remarked  that this  sounds as  bad as  the                                                               
spruce bark beetle.                                                                                                             
                                                                                                                                
MR. FELLMAN explained that if  it gets into Denali [National Park                                                               
and Preserve], it  will be a real battle  logistically to control                                                               
because of the  wind, for example.  He  reiterated how aggressive                                                               
the plant  is.  In  further response,  he said Alaska  has become                                                               
more aggressive at  the border, requiring that  seeds coming into                                                               
the  state  are  certified,  for  instance.    There  also  is  a                                                               
mechanism for  inspecting hay that  comes into Alaska.   If there                                                               
were a feed coordinator to watch  what is going into the feed, he                                                               
suggested, and  if there were  somebody to "target the  areas and                                                               
really find  out where  this is  at, and stop  it now,"  it would                                                               
save the state a lot of money [in the long run].                                                                                
                                                                                                                                
Number 2029                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN  asked  how  one person  can  do  this;  he                                                               
surmised that  travel all over  the state would require  a fairly                                                               
large travel budget, for example.                                                                                               
                                                                                                                                
MR. FELLMAN  conveyed the  hope of  having this  [coordinator] be                                                               
the  "center of  the  wheel."   He  reiterated  that many  farmer                                                               
groups  are  working  on  this,  for instance,  as  well  as  the                                                               
[cooperative] extension service.  He told members:                                                                              
                                                                                                                                
     What we  lack is the  continuity. ... We need  a person                                                                    
     who can  get us in  touch with the  federal government,                                                                    
     with federal regulations - a  person who can keep us in                                                                    
     touch with what's going on  at the border; what ... the                                                                    
     [regulations] are  and how that's affecting  us; what's                                                                    
     going into  the feed;  where the stuff  is coming  in -                                                                    
     whether it's  coming up on  the barge or  whatever; and                                                                    
     how clean is  the corn that comes in, how  clean is the                                                                    
     soybean  that comes  in,  and  so on.    And then  this                                                                    
     person would coordinate.                                                                                                   
                                                                                                                                
     There's  already  an  effort   ...  within  the  farmer                                                                    
     groups, who  have put their  own money into this.   And                                                                    
     the soil  and water conservation people  have put money                                                                    
     into it.   So we're hoping that by  coordinating we can                                                                    
     target the problems and stop  them before they become a                                                                    
     situation where we're spending a lot of money on it.                                                                       
                                                                                                                                
Number 2123                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN recalled  that a  person raising  cattle on                                                               
the Channel  Islands off California  would have every  plane that                                                               
came  in  spray-cleaned because  of  the  fear of  mustard  seed,                                                               
because California mustard does the same sort of thing.                                                                         
                                                                                                                                
MR.  FELLMAN  responded that  other  states  are very  aggressive                                                               
about this.                                                                                                                     
                                                                                                                                
Number 2150                                                                                                                     
                                                                                                                                
MARTA  MUELLER  testified   via  teleconference  from  Fairbanks,                                                               
noting  that  she is  a  lifelong  Alaskan  who  grew up  in  the                                                               
Matanuska Valley on  a "hobby farm" with "chickens  and ducks and                                                               
plants," and  graduated from  Palmer High  School.   In addition,                                                               
she  is  a  seasonal  employee  with  the  cooperative  extension                                                               
service.   Ms. Mueller  said she  understands what  native plants                                                               
exist, as well as what is present in agricultural fields.                                                                       
                                                                                                                                
MS.  MUELLER spoke  in support  of  HB 432,  suggesting that  the                                                               
agriculture  coordinator  position  will benefit  development  in                                                               
Alaska.   First,  by  enforcing  federally mandated  organic-food                                                               
regulations,  it  will  help Alaskan  food  producers  to  market                                                               
organic  foods, because  there will  be standards  that consumers                                                               
can follow and  appreciate.  Second, by  enforcing existing state                                                               
noxious-weed codes and reviewing  regulations, it can help ensure                                                               
that  disturbed areas  - including  mineral  leases, oil  leases,                                                               
transportation corridors,  public recreation  areas, and  farms -                                                               
remain weed-free.                                                                                                               
                                                                                                                                
MS. MUELLER  pointed out  that working towards  this end  now are                                                               
many  organizations  such  as  the  "committee  for  noxious  and                                                               
invasive plant  management."  However,  they need  state support,                                                               
and need that coordinator position  to ensure that efforts aren't                                                               
duplicated, and perhaps to see  what areas are being neglected or                                                               
need  some help.   She  also  suggested that  tourists to  Alaska                                                               
don't want  to see the  same old weeds  here that grow  along the                                                               
Iowa roadside; rather, they want to see Alaska's native plants.                                                                 
                                                                                                                                
Number 2255                                                                                                                     
                                                                                                                                
ROBERT WELLS,  Director, Division  of Agriculture,  Department of                                                               
Natural Resources  (DNR), came forward  to testify,  thanking Mr.                                                               
Fellman  and Representative  Harris for  getting the  bill before                                                               
the legislature.   He  spoke in  support of  the bill,  saying it                                                               
covers three areas that the division needs to be more active in.                                                                
                                                                                                                                
MR. WELLS expressed what he  called minor concerns with regard to                                                               
the  organic  inspection  and  certification  in  the  bill,  but                                                               
suggested  those could  be addressed  between the  time the  bill                                                               
moves  out of  this  committee  and when  it  goes  to the  House                                                               
Finance  Committee.   He characterized  it  as "a  little bit  of                                                               
getting  our law  into conformity  with the  federal rule  that's                                                               
finally been adopted and will go into effect this October."                                                                     
                                                                                                                                
Number 2325                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN  asked  why   Mr.  Wells  wasn't  proposing                                                               
improving the bill in the current committee.                                                                                    
                                                                                                                                
MR. WELLS answered  that it was Mr. Fellman's  preference that it                                                               
be  handled   "on  down   the  line."     Calling   the  concerns                                                               
"technical," he explained  that current state law  with regard to                                                               
"organic" doesn't reflect the rigorous  standards included in the                                                               
new federal rule.  He added,  "So we've drafted up those changes,                                                               
and certainly  would defer to  your wishes about where  ... those                                                               
changes are made."                                                                                                              
                                                                                                                                
REPRESENTATIVE GREEN  suggested the  bill should be  corrected in                                                               
the current committee.                                                                                                          
                                                                                                                                
CO-CHAIR MASEK  responded that  she wasn't  planning to  move the                                                               
bill out that  day, and was hoping the sponsor  could return with                                                               
information on the necessary changes mentioned by Mr. Wells.                                                                    
                                                                                                                                
Number 2411                                                                                                                     
                                                                                                                                
MICHAEL C.  PURVIANCE, Owner,  Granite Mountain  Farms, testified                                                               
via teleconference,  noting that  he'd attended a  state workshop                                                               
on invasive  and noxious weeds.   He  asked members to  give this                                                               
proposed    program    coordinator    [position]    the    utmost                                                               
consideration; because  of the  federal financing,  Mr. Purviance                                                               
said he  didn't see why  this can't be  supported.  He  said he'd                                                               
only been  farming here for  a couple  of years, and  yet already                                                               
was  seeing  the  invasion  of   foxtail  barley  and  chickweed,                                                               
although fortunately not sow-thistle.   "We are trying very hard,                                                               
as [an] organization  here, to spearhead this and  get this taken                                                               
care  of before  it becomes  a real  problem for  the state,"  he                                                               
said.  "And  we've already demonstrated how we can  do that.  And                                                               
with a  program coordinator,  we're going to  make sure  ... that                                                               
the hub ... is there so that this program proceeds."                                                                            
                                                                                                                                
Number 2490                                                                                                                     
                                                                                                                                
LYALL    BRASIER,   Owner,    Brasier   Farms,    testified   via                                                               
teleconference.  A member of  the "Delta farm bureau noxious weed                                                               
committee,"  he  spoke  in  support  of  HB  432.    Mr.  Brasier                                                               
mentioned  his seven-year  fight  against  sow-thistle, which  he                                                               
said hasn't been completely eradicated  despite many thousands of                                                               
dollars spent  in the  effort.   He cautioned  that this  weed is                                                               
continually spread to new areas by wind, wildlife, and vehicles.                                                                
                                                                                                                                
MR. BRASIER  suggested that the  phrase "invasive  plant species"                                                               
be  modified.    He  pointed out  that  federal  regulations  say                                                               
"invasive  species";  that  includes  not only  plants  but  also                                                               
insects,  for example.   Under  that  scenario, this  coordinator                                                               
could  help with  the  fight against  spruce  [bark] beetles,  he                                                               
noted.                                                                                                                          
                                                                                                                                
CO-CHAIR MASEK asked  whether anyone else wished  to testify; she                                                               
then closed  public testimony.   She  requested that  Mr. Fellman                                                               
talk to  Representative Harris and  Mr. Wells and then  come back                                                               
with a  fiscal note and the  necessary information.  [HB  432 was                                                               
held over.]                                                                                                                     
                                                                                                                                
HJR 47-LOW SULFUR DIESEL FUEL REQUIREMENTS                                                                                    
                                                                                                                                
CO-CHAIR  MASEK  announced the  final  order  of business,  HOUSE                                                               
JOINT RESOLUTION  NO. 47, Urging the  United States Environmental                                                               
Protection  Agency and  the  Alaska  Department of  Environmental                                                               
Conservation   to  provide   maximum   possible  flexibility   in                                                               
application of low sulfur diesel fuel requirements to Alaska.                                                                   
                                                                                                                                
[Additional information on  this topic can be found  in the House                                                               
Community  and Regional  Affairs Standing  Committee minutes  for                                                               
March 5, 2002, at 9:08 a.m.]                                                                                                    
                                                                                                                                
Number 2639                                                                                                                     
                                                                                                                                
REPRESENTATIVE CARL  MORGAN, Alaska State  Legislature, presented                                                               
HJR  47  on  behalf  the House  Community  and  Regional  Affairs                                                               
Standing Committee,  sponsor, which  he co-chairs.   He explained                                                               
that to  his belief,  the new  requirements of  the Environmental                                                               
Protection Agency  (EPA) pertaining to low-sulfur  diesel are the                                                               
"tip of the  iceberg."  He likened this situation  to the Steller                                                               
sea  lion   matter  in   the  Aleutians:     "We  took   it  very                                                               
nonchalantly, but it came and [bit] us later," he said.                                                                         
                                                                                                                                
REPRESENTATIVE   MORGAN   expressed    his   understanding   that                                                               
requirements would be in place  to produce only low-sulfur diesel                                                               
by 2006.  By  2007, all trucks, cars, and buses  in the U.S. will                                                               
be required to  burn low-sulfur diesel; trucks from  the Lower 48                                                               
will be entering Alaska and requiring  this fuel.  The North Pole                                                               
refinery refines about 100 million  gallons of diesel; 30 million                                                               
gallons of  that total  is jet  fuel and  [number] 1  diesel, and                                                               
5,000  a  day  is  refined  for transportation  fuel.    He  said                                                               
retrofitting the  refinery to  produce low-sulfur  [diesel] would                                                               
cost in excess  of $100 million.  Therefore, Alaska  will have to                                                               
import low-sulfur diesel from either the Lower 48 or Canada.                                                                    
                                                                                                                                
REPRESENTATIVE MORGAN  noted that these  forthcoming requirements                                                               
will  affect the  Bush, but  indicated uncertainty  regarding how                                                               
they will affect marine [uses of  diesel].  He also indicated his                                                               
belief that people  in agencies such as the  EPA don't understand                                                               
the conditions  in Alaska, although they  create regulations that                                                               
affect  Alaska.    He  asserted  that  Alaska  doesn't  have  the                                                               
pollution problems present in the [Lower  48],  but will be under                                                               
the  same requirements  as New  York City  and Los  Angeles.   He                                                               
estimated that this imported fuel would  cost 20 to 45 cents more                                                               
a gallon.   He said  he pays $2.85 a  gallon for heating  fuel in                                                               
Aniak, which  has a tank  farm.   He offered his  impression that                                                               
when  an increase  [occurs]  with a  minimum of  20  cents and  a                                                               
maximum of 45 cents, it usually  translates to at least a 45-cent                                                               
increase for [rural areas].                                                                                                     
                                                                                                                                
Number 2805                                                                                                                     
                                                                                                                                
REPRESENTATIVE MORGAN pointed  out that much of the  power in the                                                               
Bush  is generated  from diesel;  heating-fuel consumption  is in                                                               
addition to the  diesel used for generating power.   It will cost                                                               
more  to purchase,  and will  require more  low-sulfur diesel  to                                                               
produce  the same  British thermal  units (BTUs)  as the  current                                                               
type of diesel.   He offered his opinion that  the new low-sulfur                                                               
requirements will  not affect  airplanes in  spite of  their high                                                               
emissions.   He  said  this  is an  issue  that  should be  taken                                                               
seriously and that has the  potential for dire effects statewide.                                                               
He  also  said  freight  costs  will  increase  as  a  result  of                                                               
increased fuel  prices.  He  offered that Alaska  is inextricably                                                               
linked  with the  Lower 48  by the  Alaska Marine  Highway System                                                               
(AMHS)  and  the  traditional  highway system.    He  noted  that                                                               
Department  of  Environmental  Conservation (DEC)  personnel  had                                                               
more   information,  and   he  commended   DEC  for   effectively                                                               
communicating with rural Alaska about this matter.                                                                              
                                                                                                                                
Number 2894                                                                                                                     
                                                                                                                                
STEVE  CLEARY, Alaska  Public Interest  Research Group  (AkPIRG),                                                               
testified via  teleconference in  opposition to HJR  47, offering                                                               
the  belief that  it would  be  detrimental to  public health  in                                                               
Alaska.   On behalf of AkPIRG,  he commended DEC for  its efforts                                                               
in traveling to  rural areas and DEC's recent  decision to switch                                                               
to ultra-low sulfur diesel in urban  areas.  He said the decision                                                               
for rural Alaska has been delayed  one year.  He offered AkPIRG's                                                               
position  that  when  consumers weigh  the  public  health  costs                                                               
against  the  increased  costs   of  electricity  production  and                                                               
heating, the  choice will be  clear:  public health  is valuable,                                                               
and protecting  citizens should be  "the price of  doing business                                                               
in Alaska."                                                                                                                     
                                                                                                                                
MR. CLEARY turned  attention to the "whereas" clauses  in HJR 47.                                                               
He  referred  to  [page  1,  lines  12-14],  which  says  Alaskan                                                               
villages cannot import  multiple grades of diesel fuel.   He said                                                               
he believes this  to be true, but offered that  arctic Canada has                                                               
switched to solely low-sulfur fuel.   He said [AkPIRG] views this                                                               
as the  best option for  rural Alaska; this would  ameliorate the                                                               
problems  of separate  "tankage" and  transportation.   He turned                                                               
attention  to [page  2,  lines 4-6],  which  says emissions  from                                                               
large trucks and buses are  not a health or environmental problem                                                               
in rural Alaska.                                                                                                                
                                                                                                                                
TAPE 02-22, SIDE B                                                                                                              
Number 2960                                                                                                                     
                                                                                                                                
MR. CLEARY  pointed out that there  is no safe level  of exposure                                                               
to diesel emissions.  Diesel  particulates enter the lung and are                                                               
very  dangerous.    He  referenced   an  abstract  faxed  to  the                                                               
committee from  a [proposed]  study of  diesel exposure  in rural                                                               
Alaska;  study  consortium  members include  personnel  from  the                                                               
University  of Alaska  Anchorage, the  Institute for  Circumpolar                                                               
Health, DEC,  and the Alaska  Native Health Board.   Arctic areas                                                               
are  subject  to  severe climatic  inversions  that  prevent  air                                                               
mixing  and  create severe  air  pollution  conditions, he  said.                                                               
Children   in  rural   Alaska   have  been   found   to  have   a                                                               
disproportionate incidence of respiratory  illness; this could be                                                               
created or exacerbated by diesel pollution.                                                                                     
                                                                                                                                
MR. CLEARY  reported that the  EPA estimates switching  to ultra-                                                               
low-sulfur  diesel will  save $70  billion a  year; DEC  has said                                                               
this will  be a savings  of $160 million  a year [in  the state].                                                               
When compared  to the $100 million  for refiners in the  state to                                                               
switch  to  ultra-low-sulfur  diesel, Alaskans  would  save  more                                                               
money  by  valuing  public  health,   he  suggested.    He  again                                                               
indicated  his support  for DEC's  efforts to  travel around  the                                                               
state.   Expressing hope  that information  would be  provided to                                                               
consumers to enable them to make  a wise choice, he concluded, "I                                                               
think HJR  47 is flying  in the face of  that by calling  for ...                                                               
more  delays   in  implementing  this  important   public  health                                                               
standard."                                                                                                                      
                                                                                                                                
Number 2880                                                                                                                     
                                                                                                                                
REPRESENTATIVE   GREEN   asked   whether   the   disproportionate                                                               
incidence  of  respiratory  illness  has been  determined  to  be                                                               
attributable to diesel  emissions.  He asked whether  it could be                                                               
related to confinement in homes with heavy smoking.                                                                             
                                                                                                                                
MR.  CLEARY  acknowledged   this  as  a  possible   cause.    The                                                               
aforementioned  study,  if  funded,  will seek  to  identify  the                                                               
specific causes,  he noted, pointing  out that urinalysis  can be                                                               
used to identify factors and  determine the causes.  He suggested                                                               
that confinement  can also result in  diesel exhaust [inhalation]                                                               
that  might  be  due  to   a  temperature  inversion  that  keeps                                                               
pollution low to the ground.                                                                                                    
                                                                                                                                
Number 2800                                                                                                                     
                                                                                                                                
RANDY  ROMANESKO,  City  Manager,  City of  Nome,  testified  via                                                               
teleconference.  He  told members that the City  of Nome supports                                                               
legislation  that  has a  clear  human  health and  environmental                                                               
benefit, but believes  the new fuel regulations  will impact Nome                                                               
and  other remote  communities [while  providing] neither  health                                                               
nor  environmental  benefits.    The  fuel  needed  to  meet  the                                                               
standards is an insignificant part  of the total fuel required in                                                               
community like Nome.                                                                                                            
                                                                                                                                
MR. ROMANESKO  expressed concern  about the potential  impacts to                                                               
residents of  Nome and the  Bering Straits region;  the financial                                                               
impact  will be  so great  that  it will  adversely affect  every                                                               
aspect  of  community  life,  he  suggested.    Diesel  fuel  for                                                               
vehicles currently  sells for  $2.17 a  gallon; home  heating oil                                                               
costs $1.96 a  gallon.  He said local meetings  with DEC provided                                                               
information indicating that fuel  costs might increase between 15                                                               
and 30  cents a  gallon; this  is roughly  7 to  15 percent.   He                                                               
added  his  opinion  that  this  is a  low  estimate  because  it                                                               
minimizes the  shoreside infrastructure  costs such  as "tankage"                                                               
pipelines required for separate handling.                                                                                       
                                                                                                                                
MR.  ROMANESKO   explained  that   the  need  to   have  separate                                                               
infrastructure  for the  clean [low-sulfur  diesel] would  impact                                                               
the City of  Nome, which operates the port  and the fuel-delivery                                                               
system  associated  with  it;   this  infrastructure  could  cost                                                               
hundreds of  thousands of dollars.   Fuel storage costs  are very                                                               
high,  he said,  and the  impact  to private,  bulk fuel  storage                                                               
operators to supply this product  is likely to be as significant;                                                               
these  costs are  passed on  to consumers.   Nome  residents have                                                               
expressed concerns  about commercial  availability of  this clean                                                               
fuel in remote  locations, he told members; the  demand [will be]                                                               
limited to  the few  trucks in  Nome that require  the fuel.   He                                                               
asked who will  supply the marketplace.  If  low-sulfur fuel were                                                               
the  only  fuel  available  to   the  community,  the  impact  to                                                               
electrical costs  would be significant  because of  the increased                                                               
cost of the product and the  decreased BTUs that the cleaner fuel                                                               
provides.                                                                                                                       
                                                                                                                                
MR. ROMANESKO commended DEC for  its good-faith effort to solicit                                                               
input  from communities  early in  the regulatory  implementation                                                               
process;  he noted  the importance  of this  dialogue.   He urged                                                               
members to  adopt HJR  47 with provisions  that require  [DEC] to                                                               
request the  EPA to reevaluate  and address the  ramifications to                                                               
remote  Alaskan consumers,  and that  the regulations  be adopted                                                               
with maximum flexibility for implementation.                                                                                    
                                                                                                                                
Number 2635                                                                                                                     
                                                                                                                                
RON  KING, Program  Manager, Air  Non-Point  and Mobile  Sources,                                                               
Division of  Air and Water  Quality, Department  of Environmental                                                               
Conservation (DEC),  testified that on  April 1, 2002,  DEC filed                                                               
with  the  EPA  a  transition  plan for  Alaska  to  address  the                                                               
aforesaid  issues.   The transition  focuses  on requiring  urban                                                               
Alaska -  the contiguous road  system and  the major hubs  on the                                                               
AMHS - to  follow the national plan for  implementation of ultra-                                                               
low-sulfur diesel  fuel in  the fall  of 2006.   He said  this is                                                               
essential for  health issues; recent studies  link diesel-related                                                               
sulfur  particulates  to  adverse  health effects.    The  second                                                               
essential reason is that the  vehicles produced will require this                                                               
fuel; this includes vehicles purchased and operated in Alaska.                                                                  
                                                                                                                                
Number 2550                                                                                                                     
                                                                                                                                
MR. KING reported that DEC  has requested additional time to work                                                               
with tribes  and rural  residents to assess  the issues  in rural                                                               
areas.  In June 2003, DEC  must submit a final recommendation for                                                               
rural Alaska to the EPA.   He acknowledged that this assumes that                                                               
the EPA will agree with and  accept the submitted plan.  He added                                                               
that  DEC  has  attempted  to maintain  flexibility  for  Alaskan                                                               
refineries; the  decision is  now in  the EPA's  hands.   The EPA                                                               
will prepare and  make public that decision within  12 months; it                                                               
must  be  adopted  as  a   regulation  and  implemented  to  give                                                               
certainty  to   Alaskan  refineries   and  others  who   wish  to                                                               
participate in Alaska's fuel market.                                                                                            
                                                                                                                                
Number 2506                                                                                                                     
                                                                                                                                
MR.  KING  offered  that  the  economic  impacts  to  Alaska  are                                                               
difficult to assess.  The EPA  has predicted a 5-cent increase in                                                               
the Lower 48;  this is irrespective of transportation  costs.  He                                                               
noted that the increases referenced  earlier were [calculated] as                                                               
a result  of information  given to  DEC over the  last year.   He                                                               
referred  to  the  presentation  DEC  gave  to  rural  and  urban                                                               
residents  that focused  on the  history of  [diesel regulations]                                                               
and  the  options  for  Alaska.   He  noted  that  the  EPA  does                                                               
recognize  Alaska's differences;  as  a  result, flexibility  was                                                               
afforded to DEC to request the alternative transition plan.                                                                     
                                                                                                                                
Number 2457                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN  asked about distribution and  the source of                                                               
diesel fuel in the state.                                                                                                       
                                                                                                                                
MR. KING  replied that it is  a mix of in-state  and out-of-state                                                               
supply.   Some fuel is  imported from the Lower  48, particularly                                                               
from  the   West  Coast;  some   is  distributed   from  in-state                                                               
refineries.   The main issue is  that diesel fuel refined  in the                                                               
Lower 48 will not necessarily  meet Alaskan arctic specifications                                                               
for winter use.   The pour point, the [temperature]  at which the                                                               
fuel gels, is minus 60  degrees Fahrenheit for Interior and rural                                                               
Alaska; by contrast, the Seattle  pour point is minus 27 degrees,                                                               
and Minnesota's  pour point is  minus 33  degrees.  He  said this                                                               
causes  great concern,  particularly  when  referring to  Alaskan                                                               
locations not on the coast.                                                                                                     
                                                                                                                                
MR.  KING told  members  that once  the  question of  appropriate                                                               
arctic-grade  fuel has  been answered,  the question  of how  the                                                               
fuel reaches the  communities must be addressed.   He pointed out                                                               
that fuel is either transported by  road or barged and then moved                                                               
by pipeline or truck.   He said this is similar  to the Lower 48,                                                               
but more fuel in Alaska is  moved by truck.  Southeast Alaska and                                                               
some  rural  communities  receive  bulk  fuel  by  barge;  it  is                                                               
offloaded to  smaller barges  to work its  way up  river systems.                                                               
Communities not on  a river receive fuel shipments by  air.  Once                                                               
the fuel  arrives in a rural  community, it is put  into a single                                                               
tank farm from which it is subsequently distributed.                                                                            
                                                                                                                                
MR.  KING noted  that  fuel in  Nome, for  example,  is used  for                                                               
aircraft,  home heating,  the few  trucks, and  power generation.                                                               
The fuel for on-highway vehicles  would have to be separated from                                                               
the  rest  of  the  fuel  and handled  differently.    Some  fuel                                                               
distributors   limit  the   number   of   products  they   carry;                                                               
distributors will  have to  decide which type  of diesel  fuel to                                                               
haul.   In  Southeast Alaska,  the  market approach  has been  to                                                               
bring in  500 parts per million  (ppm) sulfur fuel.   Even though                                                               
this  is not  yet required,  distributors are  bringing it  in to                                                               
limit the number  of products they haul.  This  is the issue that                                                               
has  the potential  for significant  impact to  rural Alaska  for                                                               
power generation and home heating.                                                                                              
                                                                                                                                
Number 2270                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN  observed that  Mr. King is  likely familiar                                                               
with  the gas-to-liquids  (GTL) aspect  of clean-burning  diesel.                                                               
He also  noted that he'd  traveled to South Africa  several years                                                               
ago to visit  a conversion plant.  He then  said BP's refinery in                                                               
the  Nikiski area  is a  pilot  site; he  indicated that  another                                                               
organization was proposing to convert  gas on the North Slope and                                                               
"batch"  it down  the  pipeline.   He asked  if  either of  these                                                               
solutions would be a practical  way to [add low-sulfur diesel] to                                                               
Alaska's  distribution  system,  and  whether it  could  save  in                                                               
transportation costs to rural areas.                                                                                            
                                                                                                                                
MR. KING  responded that  the fuel  would still  require separate                                                               
handling.     Additionally,   there  are   issues  in   terms  of                                                               
"lubricity"  and combustion  characteristics  with  the GTL  fuel                                                               
produced; he  indicated additives are available  to address these                                                               
issues.  He  referred to the aforementioned BP plant  and said it                                                               
isn't large  enough to meet the  on-road demand for fuel.   It is                                                               
an  alternative  form of  fuel  that  could  be used;  there  are                                                               
additives that  can be  used [to  make it  usable], but  it still                                                               
requires separation  from other fuels.   He pointed out  that the                                                               
GTL has  absolutely no sulfur  in it, whereas the  fuel currently                                                               
in the  system ranges from 300  or 400 ppm to  3,000 ppm, allowed                                                               
under  the  specifications.    He  said it  won't  take  much  to                                                               
contaminate fuel with a 0- to 15-ppm sulfur content.                                                                            
                                                                                                                                
Number 2146                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN  replied, "I  was  thinking  the other  way                                                               
around."   He  acknowledged that  the  pilot plant  would not  be                                                               
capable of  meeting all  the demand, but  presuming the  pilot is                                                               
found to be economically viable,  the production might expand, as                                                               
BP has indicated, to meet Alaska's  needs as well as to export to                                                               
the West  Coast.   He offered his  impression that  unless Alaska                                                               
converts  completely  [to  low-sulfur fuel],  rural  Alaska  will                                                               
still be impacted  with high transportation costs  in addition to                                                               
the more expensive fuel.                                                                                                        
                                                                                                                                
MR.  KING  concurred.   He  referenced  a  comment from  a  rural                                                               
resident who'd  indicated that the best  way to do this  would be                                                               
to mandate  it across the  board.   That, however, still  has the                                                               
potential for  economic impact.   He  acknowledged that  in time,                                                               
this  [low-sulfur  fuel]  likely  will become  the  only  product                                                               
available to meet the needs.                                                                                                    
                                                                                                                                
Number 2076                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA  observed that there might  not be enough                                                               
information to  support the "whereas" clause  that says emissions                                                               
from large  trucks and  buses are not  a health  or environmental                                                               
problem in off-road  or rural Alaska.  She suggested  it might be                                                               
more accurate  to say that "we  just don't know", and  that there                                                               
isn't enough information to show  it is a health or environmental                                                               
problem.                                                                                                                        
                                                                                                                                
MR.  KING replied  that it  is  currently not  possible to  state                                                               
unequivocally  that there  is  a  health issue.    He noted  that                                                               
diesel-exhaust  pollutants have  been linked  to various  cancers                                                               
and  other health  problems.   The  types of  emissions in  rural                                                               
Alaska  are  somewhat   different  due  to  the   nature  of  the                                                               
combustion process.   Nevertheless, DEC is  concerned about those                                                               
emissions; that  is why  DEC is seeking  funding with  the Alaska                                                               
Native  Health Board  and other  entities  to design  a study  to                                                               
[ascertain  the  health  impacts  of diesel  emissions  in  rural                                                               
Alaska].    He  added  that  this study  is  not  inexpensive  to                                                               
undertake; the  first step is to  design the study, and  the next                                                               
step  is to  conduct  it.   He  said  testimony  received by  DEC                                                               
indicated that bus and truck emissions  were not believed to be a                                                               
health issue because of the  vehicles' limited numbers.  Specific                                                               
pollutants from these vehicles are a problem, he said.                                                                          
                                                                                                                                
Number 1963                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA asked,  "But right  at the  moment, they                                                               
haven't  been shown  to  be; is  that fair  enough?"   She  again                                                               
indicated it would be better to  say that, because it isn't known                                                               
that they aren't [hazardous].                                                                                                   
                                                                                                                                
MR. KING agreed that Representative  Kerttula's statement is more                                                               
accurate:  the emissions have  not been shown to be [detrimental]                                                               
in the concentrations that exist in rural Alaska.                                                                               
                                                                                                                                
Number 1923                                                                                                                     
                                                                                                                                
FRANK   DILLON,  Executive   Vice   President,  Alaska   Trucking                                                               
Association, testified  via teleconference,  noting that  the 43-                                                               
year-old trade  association has members in  Annette, Tok, Barrow,                                                               
Dutch Harbor, and in between.   The association has been involved                                                               
in the  issue of low-sulfur  fuel since 1992, when  it recognized                                                               
that the introduction of low-sulfur  fuel into Alaska presented a                                                               
conundrum fraught  with myriad  unknowns.   "It remains  that way                                                               
ten years later," he said.                                                                                                      
                                                                                                                                
MR.  DILLON complimented  DEC on  its efforts  to determine  what                                                               
using low-sulfur  fuel will mean  in Alaska.   He noted  that the                                                               
Alaska  Trucking Association  has accepted  the inevitability  of                                                               
its use  in order to  power trucks; engines purchased  after 2004                                                               
will most likely  require 400-ppm fuel; by 2006,  all the engines                                                               
available to purchase  will require 15-ppm sulfur fuel  to run at                                                               
all.                                                                                                                            
                                                                                                                                
MR.  DILLON indicated  he takes  exception to  earlier statements                                                               
about the health hazards in Alaska.   He offered his opinion that                                                               
a figure  of $100  million in health  costs attributed  to diesel                                                               
smoke in  Alaska is  entirely "bogus science."   This  number was                                                               
derived from  some national, "fuzzy  science" wherein  costs were                                                               
assigned to  the United States  and then  divided by 50  - Alaska                                                               
being one-fiftieth of  the total cost in the  U.S., he suggested.                                                               
He  said  this  is  not  representative,  simply  because  Alaska                                                               
doesn't  come close  to burning  in a  year the  amount that  the                                                               
Seattle  area  burns  in  one  month.    He  urged  caution  when                                                               
listening to  health statistics related  to diesel, and  he added                                                               
that  the suggestion  that the  health impacts  are unknown  is a                                                               
good way to word that "whereas" section.                                                                                        
                                                                                                                                
MR.  DILLON  noted  that  he  chairs  the  Citizens  Air  Quality                                                               
Advisory  Committee in  Anchorage,  which is  looking for  diesel                                                               
particulates  in  Anchorage;  so far,  measurable  concentrations                                                               
have  not been  found,  he  said.   Furthermore,  he offered  his                                                               
belief   that  describing   health   impacts  of   non-measurable                                                               
emissions is  not possible.   He said what  is known is  that the                                                               
conversion to ultra-low-sulfur diesel  will be expensive; it will                                                               
produce some  miniscule effect toward cleaner  air, he suggested,                                                               
a negligible effect in terms of a person's life-risk factors.                                                                   
                                                                                                                                
MR. DILLON  concluded by saying  the Alaska  Trucking Association                                                               
supports HJR  47.  He reiterated  support for DEC's efforts.   He                                                               
added that he  was pleased with the EPA's  attitude toward Alaska                                                               
over the years, and recently  in expressing its concern about the                                                               
impacts on rural Alaska.                                                                                                        
                                                                                                                                
Number 1721                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA  asked Mr.  Dillon  whether  he had  any                                                               
objection to  clarifying that  health and  environmental problems                                                               
have not  [been shown to be  linked to diesel emissions  in rural                                                               
Alaska].  She  acknowledged that the benefits  of low-sulfur fuel                                                               
will probably be minimal; there are many other factors involved.                                                                
                                                                                                                                
MR. DILLON replied, "I thinks it's  safe to say that we, in fact,                                                               
don't know.   What we are  trying to determine is  whether or not                                                               
there  is  a  health  risk   associated  in  Alaska  with  diesel                                                               
emissions; that has  not been determined."   He acknowledged that                                                               
not burning  diesel makes for  cleaner air, but said  Alaska does                                                               
burn diesel and will continue  to need diesel for the foreseeable                                                               
future.    Low-sulfur  fuel  might  help  reduce  the  number  of                                                               
particulates, and  may have some  minor benefits for health.   No                                                               
study in Alaska has proven  a connection between diesel emissions                                                               
and illness,  he said.   He told members  that he would  be happy                                                               
with that sort of language change.                                                                                              
                                                                                                                                
Number 1622                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN   asked  about  the  longevity   of  diesel                                                               
tractors  and  whether most  of  them  stay  in  the state.    He                                                               
observed  that trailers  are shipped  up to  the state,  and that                                                               
tractors pick them up and distribute them.                                                                                      
                                                                                                                                
MR. DILLON  answered in  the affirmative.   He reported  that the                                                               
truck fleet  was redone ten years  ago in response to  changes in                                                               
air  quality  standards.   He  noted  that discussions  with  the                                                               
Alaska  [Trucking]  Association  and  engine  manufacturers  have                                                               
offered ways in which they  will bring themselves into compliance                                                               
with regard to  fuel emissions.  He pointed out  that the problem                                                               
occurs when higher-sulfur-content fuel is  used in newer engines;                                                               
one tank of fuel  will ruin a $60,000 engine.   He said that from                                                               
an  economic standpoint,  the trucking  industry  isn't going  to                                                               
burn high-sulfur  fuel in engines  designed for  low-sulfur fuel;                                                               
over the next eight to ten  years, most of the distribution fleet                                                               
will switch over to engines that burn only low-sulfur fuel.                                                                     
                                                                                                                                
Number 1515                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN  inquired  whether  the  engine  changeover                                                               
would create a  significant increase in the cost  of delivery; he                                                               
asked if  by the  time [low-sulfur fuel  is required],  the fleet                                                               
will  have  already  made the  transition  to  low-sulfur-burning                                                               
engines.                                                                                                                        
                                                                                                                                
MR. DILLON  expressed his belief  that the transition would  be a                                                               
marketplace  occurrence, and  that  low-sulfur  fuel will  become                                                               
available in  Alaska.  He noted  that he had discussed  this very                                                               
matter  with  a  refiner  in   Edmonton  [Alberta,  Canada]  that                                                               
produces  fuel   with  a  pour   point  consistent   with  arctic                                                               
[conditions].   This refinery  is currently  selling all  of this                                                               
fuel to Canadian  customers, Mr. Dillon reported,  but is willing                                                               
to sell  to Alaskan customers  if they  are willing to  pay more.                                                               
It  will  cost significantly  more  to  do business  with  diesel                                                               
engines in Alaska than it does now.                                                                                             
                                                                                                                                
Number 1437                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN  asked  Mr.   Dillon  if,  given  that  the                                                               
changeover will  occur in the  next several years, he  foresees a                                                               
problem with a resolution like  this, for that time of transition                                                               
or until the conversion to low-sulfur fuel has occurred.                                                                        
                                                                                                                                
MR. DILLON  replied, "I  think this  resolution is  excellent, in                                                               
that it is  asking for maximum flexibility and it  is also trying                                                               
to  address  some  of  the  questions we  have  with  our  unique                                                               
distribution system."   He  said some  of these  problems include                                                               
not being able  to use a tank that was  used for high-sulfur fuel                                                               
for  years,  until  it  is  completely clean.    The  removal  of                                                               
sedimentary  sulfur from  a large  storage tank  in a  rural area                                                               
used  for multiple  purposes can  cost hundreds  of thousands  of                                                               
dollars.                                                                                                                        
                                                                                                                                
Number 1343                                                                                                                     
                                                                                                                                
KEN  GATES,   General  Manager,  Cordova   Electric  Cooperative,                                                               
testified via  teleconference.  He encouraged  members to support                                                               
HJR  47,  and  conveyed  appreciation for  others'  comments  and                                                               
concerns expressed about the low-sulfur-fuel  issue.  The Cordova                                                               
Electric  Cooperative is  approaching the  issue from  the diesel                                                               
generation  perspective,  he  said.   Recently,  a  hydroelectric                                                               
project was put online to  help lower diesel emissions by burning                                                               
less  fuel.    He  expressed   his  hope  for  consideration  for                                                               
communities that have taken action to reduce diesel consumption.                                                                
                                                                                                                                
MR.  GATES cautioned  that with  regard to  public health,  it is                                                               
important to  also consider  emotional and  economic health.   He                                                               
offered his  belief that when  people cannot pay their  bills and                                                               
their businesses suffer, there is  an emotional impact due to the                                                               
economic impact.                                                                                                                
                                                                                                                                
MR.  GATES  suggested  that  communities  on  the  Alaska  Marine                                                               
Highway System  don't have dense vehicular  traffic when compared                                                               
with [more]  urban areas.   Consequently,  air quality  issues in                                                               
these coastal  communities aren't  necessarily the same  as those                                                               
of larger communities.  He noted  that he was very concerned that                                                               
[this low-sulfur-diesel  requirement] could increase the  cost of                                                               
fuel by 20 to  30 cents a gallon.  If this  increase is passed to                                                               
the  cooperative's small  membership  of 1,600,  it  will have  a                                                               
significant cost impact to these  customers.  He pointed out that                                                               
Cordova  has recently  lost numerous  businesses; the  economy is                                                               
"on edge."   He  reiterated his request  for members'  support of                                                               
HJR 47.                                                                                                                         
                                                                                                                                
Number 1107                                                                                                                     
                                                                                                                                
SHANE  CARTER, Vice  President, Petroleum  and Freight  Services,                                                               
Yukon Fuel, testified via teleconference,  noting that Yukon Fuel                                                               
sells  and  distributes fuel  and  offers  freight services  from                                                               
Kotzebue Sound to Bristol Bay,  including the Yukon River to Fort                                                               
Yukon and  the Kuskokwim  River to Nikolai.   He  offered support                                                               
for any  movement toward a  homogenous product that  will qualify                                                               
[as] heating  fuel.  One  of the few efficiencies  experienced by                                                               
Yukon Fuel  is that  everything sold for  home heating  and power                                                               
generation is  actually downgraded jet  fuel, he reported.   This                                                               
allows the company  flexibility when moving fuel  from Cook Inlet                                                               
or down the Yukon River  from Nenana.  Should legislation require                                                               
further  segregation of  fuel types,  the  costs associated  with                                                               
tanks clean enough  to handle the low-sulfur fuel  will result in                                                               
higher costs of transport.                                                                                                      
                                                                                                                                
MR.  CARTER offered  his  belief that  the  Denali Commission  is                                                               
moving  toward building  new tank  farms and  helping communities                                                               
build new  power-generation facilities to  enable sustainability.                                                               
The engines being used will be obsolete in the event that low-                                                                  
sulfur fuel is mandated.  He  said he thinks that is an important                                                               
issue for consideration.                                                                                                        
                                                                                                                                
Number 0890                                                                                                                     
                                                                                                                                
MEERA  KOHLER,  President  and Chief  Executive  Officer,  Alaska                                                               
Village    Electric    Cooperative    (AVEC),    testified    via                                                               
teleconference,  noting  that  AVEC  serves  about  22,000  rural                                                               
Alaskans  in  51  remote  communities;  it  operates  stand-alone                                                               
generating  and distributing  systems  in 47  of those  villages,                                                               
with   tie   lines   connecting   the   remaining   4   villages.                                                               
Approximately 150 diesel generators and  500 fuel tanks are owned                                                               
by AVEC, and  it buys more than 5 million  gallons of diesel fuel                                                               
annually.    This  fuel  is   transported  by  small  barges  and                                                               
airplanes at an average cost of  $1.37 a gallon.  The retail cost                                                               
of electricity is  about 40 cents a kilowatt-hour;  28 percent of                                                               
that is direct fuel cost.                                                                                                       
                                                                                                                                
MS.  KOHLER  related  that  she has  heard  of  anticipated  fuel                                                               
increases  ranging from  10 cents  to  one dollar  a gallon;  she                                                               
offered he  belief that an  increase of approximately 25  cents a                                                               
gallon can  reasonably be expected.   For AVEC's  consumers, most                                                               
of whom  are well below  national and state poverty  levels, this                                                               
25-cent  increase translates  to  more than  2  cents a  kilowatt                                                               
hour,  or $1.25  million annually.    She reported  that the  BTU                                                               
value  of ultra-low-sulfur  diesel  is  approximately 15  percent                                                               
lower than  regular diesel - more  fuel is required for  the same                                                               
energy;  that adds  24 cents  a gallon.   Additional  maintenance                                                               
costs will  be incurred  to change  the seals  and valves  on the                                                               
entire generator  fleet, to  clean the  tanks to  accommodate the                                                               
new fuel,  and to provide  for other  unidentified modifications.                                                               
She  estimated that  increases surpassing  $2.5  million will  be                                                               
incurred by AVEC consumers.                                                                                                     
                                                                                                                                
Number 0760                                                                                                                     
                                                                                                                                
MS.  KOHLER  explained  that  diesel  fuel  is  used  in  Alaskan                                                               
villages  for  space  heating  and  electric  generation;  it  is                                                               
therefore  presumably  exempt from  the  EPA's  rules.   However,                                                               
because a  single transportation and  storage system is  used, it                                                               
is likely  that non-transport diesel users  will be inadvertently                                                               
impacted by  any general requirement  for a transition  to ultra-                                                               
low-sulfur diesel.                                                                                                              
                                                                                                                                
MS. KOHLER  expressed strong  support for  HJR 47,  but suggested                                                               
some  language changes.   First,  she suggested  that on  page 2,                                                               
line  15,  the word  "cooperatives"  be  changed to  "utilities".                                                               
Many utilities  serving rural communities are  municipal, tribal,                                                               
or  privately   owned,  she  said.     Regardless  of  ownership,                                                               
utilities face  the same  issues that  cooperatives do.   Second,                                                               
page 2,  lines 18-19,  speaks to the  anticipated retail  cost of                                                               
electricity.  She offered her  opinion that the range of increase                                                               
in the bill of  45 cents to 70 cents is not  quite accurate.  She                                                               
told members:                                                                                                                   
                                                                                                                                
      The reality is, the current cost of energy in rural                                                                       
     Alaska is anywhere from 40 to 60 cents a ... kilowatt-                                                                     
     hour.  In those cases, you  could see rises of up to 70                                                                    
     cents  per kilowatt-hour.   But,  typically, I  believe                                                                    
     that retail fuel prices will  rise by 25 cents or more,                                                                    
     but the  retail cost  of electricity in  each community                                                                    
     will depend  on the utility's efficiency,  and the rise                                                                    
       will be ... anywhere from 5 to 15 cents a kilowatt-                                                                      
     hour.                                                                                                                      
                                                                                                                                
Number 0633                                                                                                                     
                                                                                                                                
MS. KOHLER  told members  that she had  read DEC's  press release                                                               
regarding recommendations to  the EPA; she is  concerned that the                                                               
blanket applicability of the national  plan to communities on the                                                               
road and  on ferry routes is  rather broad.  Minto,  for example,                                                               
is technically on  the road, but is a remote,  rural village upon                                                               
which this requirement would have  a significant monetary impact,                                                               
with  minimal,   if  any,  health   benefits.     Marine  highway                                                               
communities  will also  be greatly  impacted  monetarily by  this                                                               
requirement, she suggested.                                                                                                     
                                                                                                                                
MS.  KOHLER  concluded by  saying  the  EPA's rule  for  reducing                                                               
sulfur emissions was intended to  apply only to heavy-duty trucks                                                               
and buses  - not stationary fuel  uses.  Yet because  of Alaska's                                                               
unique conditions,  its needs  will be  unaccounted for,  and the                                                               
state will perforce be swept under  the rules.  She urged members                                                               
to  request  DEC  to   reconsider  its  recommendation  requiring                                                               
application  of  the  ultra-low-sulfur  diesel to  all  road  and                                                               
marine highway communities.   She added her support  for the one-                                                               
year extension to  study the impacts to rural Alaska  so that the                                                               
rule can  be applied  in a  sensible and  practical manner.   She                                                               
reiterated her support for HJR 47.                                                                                              
                                                                                                                                
Number 0504                                                                                                                     
                                                                                                                                
CHERYL   RICHARDSON,  Volunteer   Director,   Alaska  Clean   Air                                                               
Coalition,  testified via  teleconference,  noting  that she  has                                                               
worked on  this issue  for ten  years and that  [clean air]  is a                                                               
passion of  hers.  She  recounted that  she grew up  in Anchorage                                                               
smelling very  sweet air;  over the years,  however, the  air has                                                               
become dirty  from vehicles,  and it doesn't  smell good  most of                                                               
the time - even in the summer.                                                                                                  
                                                                                                                                
MS. RICHARDSON  concurred with  testimony calling  for affordable                                                               
home  heating  and  electric   generation,  especially  in  rural                                                               
Alaska,  where  she  has observed  residents  struggling  to  pay                                                               
electric bills that  were equivalent to her Anchorage  rent.  She                                                               
also  noted   that  she   is  pleased   that  the   committee  is                                                               
reconsidering [page 2,  lines 4 to 6], which  says emissions from                                                               
large trucks and buses are  not a health or environmental problem                                                               
in rural  Alaska; she conveyed  her surprise at the  inclusion of                                                               
that statement.  Large amounts  of documentation exist that there                                                               
is no safe level of exposure  to diesel exhaust, she pointed out.                                                               
She highlighted the importance of  protecting rural children from                                                               
unhealthy diesel as much as city children are protected.                                                                        
                                                                                                                                
Number 0278                                                                                                                     
                                                                                                                                
MS. RICHARDSON  indicated that  ten years ago  "we" were  told it                                                               
would be  unaffordable to bring  in 500-ppm-sulfur  diesel, which                                                               
has  proven untrue.   She  pointed out  that this  500-ppm-sulfur                                                               
diesel is  cheaper out of  Seattle than  is "dirty" diesel.   She                                                               
added   that  concerns   still  exist   regarding  how   fuel  is                                                               
manufactured  and distributed  in the  state; the  [coalition] is                                                               
unable to  get numbers on  that.  This is  a concern to  her, she                                                               
told members.   How can the  state plan for cleaner  fuel when it                                                               
cannot  get  what  appears to  be  proprietary  information  from                                                               
refineries and distributors?                                                                                                    
                                                                                                                                
MS.  RICHARDSON told  members  that the  Office  of the  Attorney                                                               
General  has been  investigating  Alaska's fuel  companies for  a                                                               
number of years  for price fixing.  The  [coalition] is concerned                                                               
about  the  potential for  windfall  profits  to be  realized  by                                                               
Alaskan fuel companies by charging  higher rates for fuel without                                                               
having made the capital investments  necessary to produce cleaner                                                               
fuel  in  the  state;  local companies  might  charge  clean-fuel                                                               
prices for  dirty fuel and  profit from increased  pollution, she                                                               
cautioned.                                                                                                                      
                                                                                                                                
MS. RICHARDSON  advised members that  diesel has  been documented                                                               
to   cause   respiratory    diseases,   increase   mortality   in                                                               
communities, retard lung development,  and increase the incidence                                                               
of  asthma.   She  said it  is unfortunate  that  Alaska has  not                                                               
measured  its diesel  [particulate] levels;  the [coalition]  has                                                               
been requesting those measurements for  ten years.  She indicated                                                               
the  state is  just  now  beginning to  collect  particles.   She                                                               
pointed  out  that this  doesn't  substantiate  the premise  that                                                               
[diesel emissions]  are not a problem.   It is clearly  a problem                                                               
in Anchorage, she  stated, because one can smell and  see it; the                                                               
public knows it is a noxious pollutant.                                                                                         
                                                                                                                                
MS. RICHARDSON  said the  EPA chose to  pursue the  "biggest bang                                                               
for the buck"  when [applying the low-sulfur  diesel standard] to                                                               
on-road vehicles;  the agency  was looking out  for the  Lower 48                                                               
population.   She  suggested  if  the EPA  had  focused on  rural                                                               
Alaska,  it  would  have  addressed  home  heating  and  electric                                                               
generation, but that Alaska has  too small a population to garner                                                               
that  type  of  focus.   Therefore,  it  is  up  to DEC  and  the                                                               
legislature  to  protect  rural  villages  the  way  the  EPA  is                                                               
protecting the  rest of the  nation, she  said.  She  agreed that                                                               
the EPA has  been doing a good job lately;  the evaluation of the                                                               
regulation  is   moving  the  right   direction.    The   EPA  is                                                               
acknowledging  that there  are  health  problems associated  with                                                               
diesel  exhaust; this  is  a  new position  for  the agency,  she                                                               
added.  She requested that the  legislature work with DEC to make                                                               
the conversion  [to low-sulfur diesel]  affordable and  to ensure                                                               
that rural children are protected as city children are.                                                                         
                                                                                                                                
TAPE 02-23, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN remarked that it  has been a long time since                                                               
he was subjected to living in a  place with poor air quality.  He                                                               
noted that when he lived in  California many years ago there were                                                               
many  publications supporting  the  premise  that gasoline  fumes                                                               
were  the   culprit  that  created  photochemical   smog;  diesel                                                               
emissions looked terrible, but were  not considered as noxious or                                                               
as  serious a  respiratory  hazard.   He  asked,  "Has that  been                                                               
changed?"                                                                                                                       
                                                                                                                                
MS. RICHARDSON  replied in the  affirmative.  She noted  that she                                                               
is not  a chemist, but became  involved in these issues  20 years                                                               
ago,  when the  message was  that carbon  monoxide from  gasoline                                                               
exhaust, but not  diesel, was a hazard.   However, evidence began                                                               
pouring in  10 or 12  years ago, and  it is now  irrefutable that                                                               
[diesel exhaust  is harmful].   She offered that  California, the                                                               
World  Health  Organization,  and  others  are  declaring  diesel                                                               
exhaust  a  carcinogen;  it  has   in  excess  of  40  toxic  air                                                               
chemicals.   She  concluded that  there is  no safe  threshold at                                                               
which diesel is okay to breathe.                                                                                                
                                                                                                                                
Number 0186                                                                                                                     
                                                                                                                                
CO-CHAIR MASEK closed public testimony on HJR 47.                                                                               
                                                                                                                                
REPRESENTATIVE MORGAN noted  that he had not  anticipated a great                                                               
deal of discussion of health issues.   He pointed out that in the                                                               
1950s, when most  rural villages had no  electricity, the [health                                                               
standard  was   much  lower].     He  offered  his   belief  that                                                               
electricity has  increased the lifespan  of every  Native Alaskan                                                               
in [rural villages], saving many  babies' lives and powering many                                                               
health  clinics;  he  suggested  its benefits  far  outweigh  the                                                               
[potential hazards] of diesel emissions.                                                                                        
                                                                                                                                
Number 0355                                                                                                                     
                                                                                                                                
REPRESENTATIVE MORGAN indicated his  belief that dust from three-                                                               
and four-wheelers  in the  Bush is  a greater  respiratory hazard                                                               
than diesel emissions.  He encouraged members to support HJR 47.                                                                
                                                                                                                                
Number 0398                                                                                                                     
                                                                                                                                
CO-CHAIR  MASEK expressed  her belief  that urban  residents also                                                               
breathe more dust  than diesel [fumes].  She  turned attention to                                                               
amendments.                                                                                                                     
                                                                                                                                
REPRESENTATIVE MORGAN stated that  eliminating page 2, lines 4-6,                                                               
would be fine with him.                                                                                                         
                                                                                                                                
REPRESENTATIVE  GREEN  moved to  adopt  Amendment  1, which  read                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Page 1, Line 3.  after "of" insert "ultra-.                                                                                
                                                                                                                                
There being no objection, Amendment 1 was adopted.                                                                              
                                                                                                                                
Number 0622                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN  moved to  adopt  Amendment  2, which  read                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
         Page 2, line 15. strike "cooperatives" and add                                                                         
     "utilities"                                                                                                                
                                                                                                                                
There being no objection, Amendment 2 was adopted.                                                                              
                                                                                                                                
Number 0687                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN  moved to  adopt  Amendment  3, which  read                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
       Page 2, lines 18 and 19.  strike "to approximately                                                                       
     $.70 per kilowatt hour" and add "approximately 10 per                                                                      
     cent or more."                                                                                                             
                                                                                                                                
There being no objection, Amendment 3 was adopted.                                                                              
                                                                                                                                
CO-CHAIR MASEK suggested a fourth amendment, to strike lines 4-6                                                                
on page 2.                                                                                                                      
                                                                                                                                
REPRESENTATIVE GREEN moved to adopt the foregoing as Amendment                                                                  
4.  There being no objection, Amendment 4 was adopted.                                                                          
                                                                                                                                
Number 0730                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN moved  to report HJR 47, as  amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.  There being  no objection, CSHJR 47(RES) was moved                                                               
out of the House Resources Standing Committee.                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 2:57 p.m.                                                                 

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