00 SENATE CS FOR CS FOR HOUSE BILL NO. 167(JUD) am S                                                                       
01 "An Act relating to air quality control and the prevention, abatement, and                                              
02 control of air pollution; relating to inspection and enforcement powers of the                                          
03 Department of Environmental Conservation; and providing for an effective date."                                         
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  POLICY AND PURPOSES.  (a)  It is the policy of the state to have a                                     
06 program to prevent, abate, control, and identify air pollution that complies with 42 U.S.C.                             
07 7401 - 7671q (Clean Air Act), as amended, and federal regulations adopted under those laws.                             
08  (b)  Changes in state law are necessary to allow the state to continue to have primary                                 
09 management of air quality in the state and to retain federal approval of the state's air quality                        
10 control program in order to ensure the continued receipt of federal highway and air pollution                           
11 control money.  The federal Environmental Protection Agency must prohibit the approval of                               
12 highway projects and highway grants, and may withhold air pollution control grants, if the                              
13 state does not comply with 42 U.S.C. 7401 - 7671q (Clean Air Act).                                                      
14  (c)  It is the intent of the legislature to comply with 42 U.S.C. 7401 - 7671q (Clean                                  
01 Air Act) in a manner that meets the federal requirements, allows efficient and cost effective                           
02 processing of permits, requires accountability from the Department of Environmental                                     
03 Conservation on matters relating to recovery of program costs, and ensures the productivity                             
04 of the state's businesses while protecting the health and welfare of the state's residents.                             
05  (d)  It is the intent of the legislature that the Department of Environmental                                          
06 Conservation implement this Act in a manner that contains costs, minimizes the number of                                
07 staff performing air quality permit duties, fosters accountability, improves efficiency of                              
08 government, and uses its contracting authority as appropriate to undertake alternative methods                          
09 of accomplishing the duties under this Act.  To accomplish this objective, the legislature                              
10 encourages the department to use services from the private sector to accomplish portions of                             
11 the permit program.                                                                                                     
12    * Sec. 2.  AS 46 is amended by adding a new chapter to read:                                                         
13 CHAPTER 14.  AIR QUALITY CONTROL.                                                                                       
14 ARTICLE 1.  GENERAL REGULATIONS AND CLASSIFICATIONS.                                                                    
15  Sec. 46.14.010.  EMISSION CONTROL REGULATIONS.  (a)  After public                                                     
16 hearing, the department may adopt regulations under this chapter establishing ambient                                   
17 air quality standards, emission standards, or exemptions to implement a state air quality                               
18 control program required under 42 U.S.C. 7401 - 7671q (Clean Air Act), as amended,                                      
19 and regulations adopted under those sections.  The standards established under this                                     
20 section may be for the state as a whole or may vary in recognition of local conditions.                                 
21  (b)  Unless the governor has determined that an emergency exists that requires                                        
22 emergency regulations under AS 44.62.250, the department may adopt the following                                        
23 types of regulations only after the procedures established in (a), (c), and (d) of this                                 
24 section and compliance with AS 46.14.015:                                                                               
25   (1)  a regulation that establishes an ambient air quality standard for an                                            
26 air contaminant for which there is no corresponding federal standard;                                                   
27   (2)  a regulation that establishes an ambient air quality standard or                                                
28 emission standard that is more stringent than a corresponding federal standard;                                         
29   (3)  a regulation that establishes an equivalent emission limitation for                                             
30 a hazardous air contaminant for which the federal administrator has not adopted a                                       
31 corresponding maximum achievable control technology standard; or                                                        
01   (4)  a regulation that regulates emissions from a source or facility or                                              
02 establishes an emission standard under the authority of AS 46.14.120(e),                                                
03 46.14.130(a)(3)(B), or 46.14.130(b)(4)(B).                                                                              
04  (c)  In preparation for peer review under AS 46.14.015 and before adopting a                                          
05 regulation described under (b) of this section, the department shall                                                    
06   (1)  find in writing that exposure profiles and either meteorological                                                
07 conditions or source characteristics in the state or in an area of the state reasonably                                 
08 require the ambient air quality standard, or emission standard to protect human health                                  
09 and welfare or the environment; this paragraph does not apply to a regulation under                                     
10 (b)(3) of this section;                                                                                                 
11   (2)  find in writing that the proposed standard or emission limitation is                                            
12 technologically feasible; and                                                                                           
13   (3)  prepare a written analysis of the economic feasibility of the                                                   
14 proposal.                                                                                                               
15  (d)  Before adopting a regulation described in (b)(2) of this section, the                                            
16 department shall find in writing that exposure profiles and either meteorological                                       
17 conditions or source characteristics are significantly different in the state or in an area                             
18 of the state from those upon which the corresponding federal regulation is based.                                       
19  (e)  When incorporated into more than one permit, emission standards and                                              
20 limitations, emissions monitoring and reporting requirements, and compliance                                            
21 verification requirements that are generally applicable statewide or are generally                                      
22 applicable to individual source or facility types shall be adopted in regulation unless                                 
23 they have been requested by the owner and operator to whom the permit is issued.                                        
24 The department shall, by regulation, adopt a standard, limitation, or requirement                                       
25 described in the subsection as soon as its general applicability is reasonably                                          
26 foreseeable.                                                                                                            
27  (f)  An emission standard adopted by the department may be applicable to                                              
28 individual sources within a facility or to all sources within a facility.  For purposes of                              
29 determining compliance with applicable regulations and with permit limitations, the                                     
30 department may allow numerical averaging of the emissions of each air contaminant                                       
31 from several sources within a facility if                                                                               
01   (1)  requested by the owner and operator; and                                                                        
02   (2)  allowed under 42 U.S.C. 7401 - 7671q (Clean Air Act), as                                                        
03 amended, and regulations adopted under those sections.                                                                  
04  Sec. 46.14.015.  SPECIAL PROCEDURE FOR MORE STRINGENT                                                                 
05 REGULATIONS.  (a)  Before the department adopts a regulation described under                                            
06 AS 46.14.010(b), written findings under AS 46.14.010(c) and (d) shall be made                                           
07 available by the department to the public at locations throughout the state that the                                    
08 department considers appropriate.                                                                                       
09  (b)  Before the department adopts a regulation described in AS 46.14.010(b),                                          
10 the department shall submit the findings described under (a) of this section, the studies                               
11 on which the findings are based, and other related data for peer review to a minimum                                    
12 of three separate parties who are not employees of the department and who are                                           
13 determined by the commissioner to be technically qualified in the subject matter under                                  
14 review.  The commissioner shall ensure that the peer review includes an analysis of                                     
15 the factors considered by the commissioner to support the standards proposed to be                                      
16 adopted and recommendations, if any, for additional research or investigation                                           
17 considered appropriate.  Peer review reports shall be submitted to the commissioner                                     
18 within 45 days after the department submits a matter for peer review unless the                                         
19 commissioner determines that additional time is required.                                                               
20  (c)  The department shall make available to the public at least 30 days before                                        
21 the public hearing required under AS 46.14.010(a), at convenient locations, copies of                                   
22 the department's proposed regulation, the findings of the department describing the                                     
23 basis for adoption of the regulation, and the peer review reports, submitted under (b)                                  
24 of this section.                                                                                                        
25  (d)  The department shall contract with persons to perform peer review under                                          
26 (b) of this section.  All persons selected shall be selected on the basis of competitive                                
27 sealed proposals under AS 36.30.200 - 36.30.270 (State Procurement Code).  The                                          
28 commissioner may not contract with a person to perform peer review under this section                                   
29 if the person has a significant financial interest or other significant interest that could                             
30 bias evaluation of the proposed regulation.  An interest is not considered significant                                  
31 under this subsection if it is an interest possessed generally by the public or a large                                 
01 class of persons or if the effect of the interest on the person's ability to be impartial                               
02 is only conjectural.                                                                                                    
03  Sec. 46.14.020.  CLASSIFICATION OF FACILITIES OR SOURCES;                                                             
04 REPORTING.  (a)  The department, by regulation, may classify facilities or sources                                      
05 that, in the department's determination, are likely to cause or contribute to air                                       
06 pollution, according to the levels and types of emissions and other characteristics that                                
07 relate to air quality.  The department may make a classification under this subsection                                  
08 applicable to the state as a whole or to a designated area of the state.  The department                                
09 shall base the classifications on consideration of health, economic, and social factors,                                
10 sensitivity of the receiving environment, and physical effects on property.                                             
11  (b)  The department or a local air quality control program authorized under                                           
12 AS 46.14.400 may require an owner and operator of a facility or source classified                                       
13 under this section to report information to the department or the authorized local                                      
14 program concerning location, size, and height of contaminant outlets or area sources,                                   
15 processes employed, fuels used, the nature and time periods or duration of emissions,                                   
16 and other information relevant to air quality that is available or reasonably capable of                                
17 being calculated and compiled.                                                                                          
18  Sec. 46.14.030.  STATE AIR QUALITY PLAN.  The department shall act for                                                
19 the state in any negotiations relative to the state air quality control plan developed                                  
20 under 42 U.S.C. 7401 - 7671q (Clean Air Act), as amended.  The department may                                           
21 adopt regulations necessary to implement the state plan.                                                                
22 ARTICLE 2.  EMISSION CONTROL PERMIT PROGRAM.                                                                            
23  Sec. 46.14.110.  ADDITIONAL CONTAMINANT CONTROL MEASURES.                                                             
24 (a)  The department may require that notice be given to it before the undertaking of                                    
25 the construction, installation, or establishment of particular types or classes of new air                              
26 contaminant sources specified in its regulations.  Within 15 days of its receipt of the                                 
27 notice, the department shall require, as a condition precedent to the undertaking, the                                  
28 submission of plans and other information it considers necessary in order to determine                                  
29 whether the proposed undertaking will be in accord with applicable regulations in force                                 
30 under this chapter.                                                                                                     
31  (b)  Within 30 days of receipt of the plans and information for a proposed                                            
01 undertaking, the department shall either approve the undertaking and issue a permit,                                    
02 or if the department determines that the proposed undertaking will not meet the                                         
03 requirements of this chapter and applicable regulations, it shall issue a prohibition                                   
04 order against the undertaking.                                                                                          
05  (c)  A person subject to a prohibition order as prescribed in (b) of this section,                                    
06 upon written request in accordance with regulations of the department, is entitled to                                   
07 a hearing on the order.  Following the hearing the order may be affirmed, modified,                                     
08 or withdrawn.                                                                                                           
09  (d)  For the purposes of this chapter, addition to or enlargement or replacement                                      
10 of an air contaminant source, or a major alteration of one, shall be construed as an                                    
11 undertaking for the construction, installation, or establishment of a new air contaminant                               
12 source.                                                                                                                 
13  (e)  Features, machines, and devices constituting parts of or called for by plans                                     
14 or other information submitted under (a) of this section shall be maintained in good                                    
15 working order.                                                                                                          
16  (f)  This section does not authorize the department to require the use of                                             
17 machinery, devices, or equipment from a particular supplier or produced by a particular                                 
18 manufacturer if the required performance standards may be met by machinery, devices,                                    
19 or equipment available from other sources.                                                                              
20  (g)  The absence of or the department's failure to adopt a regulation or issue                                        
21 an order under this section does not relieve a person from compliance with emission                                     
22 control requirements or other provisions of law.                                                                        
23  (h)  The department may require the payment of a reasonable fee for the review                                        
24 of plans and information required to be submitted. A fee for a single review may not                                    
25 exceed $25.                                                                                                             
26  Sec. 46.14.120.  PERMITS FOR CONSTRUCTION, MODIFICATION, OR                                                           
27 OPERATION.  (a)  Before constructing, installing, modifying, reconstructing, or                                         
28 establishing a facility subject to AS 46.14.130(a), the owner and operator shall obtain                                 
29 a construction permit under this chapter.                                                                               
30  (b)  Except when considered to be in compliance with this chapter under                                               
31 AS 46.14.275 or under a regulation adopted under AS 46.14.140(a)(11), the owner and                                     
01 operator shall obtain an operating permit under this chapter before operating a facility                                
02 subject to AS 46.14.130(b).                                                                                             
03  (c)  A permittee shall comply with the terms and conditions of a permit or a                                          
04 modifying compliance order issued by the department under this chapter or a court                                       
05 order.  A person operating under the application shield available under                                                 
06 AS 46.14.140(a)(11) and 46.14.275, shall comply with the terms and conditions of the                                    
07 pending application and applicable regulations.                                                                         
08  (d)  The department shall ensure that permits issued, modified, amended,                                              
09 renewed, or revoked and reissued under this chapter comply with all applicable federal,                                 
10 state, and local requirements.                                                                                          
11  (e)  If the federal administrator exempts a source from the requirements of                                           
12 42 U.S.C. 7661a(a) (Clean Air Act, sec. 502(a)), the commissioner shall consider the                                    
13 factors used by the administrator in reaching that determination and, by regulation,                                    
14 shall issue a similar determination unless public health or air quality effects provide                                 
15 a reasonable basis to regulate the source.                                                                              
16  Sec. 46.14.130.  FACILITIES REQUIRING PERMITS.  (a)  Before                                                           
17 constructing, installing, modifying, reconstructing, or establishing a facility, the owner                              
18 and operator shall obtain a construction permit from the department if the facility is                                  
19 any one of the following:                                                                                               
20   (1)  a new facility that emits or has the potential to emit 250 tons per                                             
21 year (TPY) or more of a regulated air contaminant;                                                                      
22   (2)  a new facility of a type classified under AS 46.14.020 that emits                                               
23 or has the potential to emit 100 TPY or more of a regulated air contaminant;                                            
24   (3)  a new facility of a type classified under AS 46.14.020                                                          
25   (A)  as having the potential to violate the ambient air quality                                                     
26 standards; or                                                                                                           
27   (B)  under a finding by the department that public health or air                                                    
28 quality effects provide a reasonable basis to regulate the source;                                                      
29   (4)  a new facility that emits or has the potential to emit 10 TPY or                                                
30 more of a hazardous air contaminant or 25 TPY or more, in the aggregate, of two or                                      
31 more hazardous air contaminants;                                                                                        
01   (5)  an existing facility for which                                                                                  
02   (A)  a modification is proposed that would increase actual                                                          
03 emissions of an air contaminant by an amount equal to or greater than the                                               
04 emission quantity set out in regulations adopted under AS 46.14.010,                                                    
05 46.14.020, or 46.14.140; or                                                                                             
06     (B)  reconstruction is proposed.                                                                                    
07  (b)  The owner and operator of a facility shall obtain an operating permit from                                       
08 the department if the facility is a facility subject to (a) of this section or a facility that                          
09   (1)  emits or has the potential to emit 100 TPY or more of a regulated                                               
10 contaminant;                                                                                                            
11   (2)  emits or has the potential to emit 10 TPY or more of a hazardous                                                
12 air contaminant or 25 TPY or more, in the aggregate, of two or more hazardous air                                       
13 contaminants;                                                                                                           
14   (3)  contains a source subject to federal new source performance                                                     
15 standards under 42 U.S.C. 7411 (Clean Air Act, sec. 111) or national emission                                           
16 standards for hazardous air pollutants issued under 42 U.S.C. 7412 (Clean Air Act, sec.                                 
17 112); or                                                                                                                
18   (4)  contains another stationary source designated by                                                                
19    (A)  the federal administrator by regulation; or                                                                    
20   (B)  the department under a finding that public health or air                                                       
21 quality effects provide a reasonable basis to regulate the source.                                                      
22  Sec. 46.14.140.  EMISSION CONTROL PERMIT PROGRAM                                                                      
23 REGULATIONS.  (a)  The department shall adopt regulations to address substantive                                        
24 and procedural elements of the emission control permit program established under this                                   
25 chapter that are not addressed in statute, except elements that relate only to the internal                             
26 management of the department and do not affect the public or govern the way the                                         
27 department deals with the public.  The regulations must be reasonable and adequate,                                     
28 and provide flexibility in the operation of a facility consistent with 42 U.S.C. 7401 -                                 
29 7671q (Clean Air Act), as amended, and applicable federal regulations.  The                                             
30 regulations must include                                                                                                
31   (1)  a standard permit application form that meets the requirements of                                               
01 federal regulations adopted under 42 U.S.C. 7661a(b) (Clean Air Act, sec. 502(b));                                      
02   (2)  procedures for preparation and submission of a monitoring,                                                      
03 reporting, and quality assurance plan and, if required, a compliance schedule describing                                
04 how a permitted facility will comply with the applicable requirements of this chapter;                                  
05   (3)  procedures for                                                                                                  
06    (A)  specifying when permit applications and renewal requests                                                       
07 are to be submitted;                                                                                                    
08    (B)  specifying the time duration for department review of permit                                                   
09 applications;                                                                                                           
10    (C)  processing and reviewing an application;                                                                       
11    (D)  providing public notice, including opportunity for public                                                      
12 comment and hearing; and                                                                                                
13    (E)  issuing permits, including procedures for issuing permits for                                                  
14 temporary operations or open burn activities;                                                                           
15   (4)  reasonable standard permit conditions, including conditions for                                                 
16    (A)  emission standards and limitations;                                                                            
17    (B)  monitoring, record keeping, and reporting for facilities                                                       
18 subject to AS 46.14.130;                                                                                                
19    (C)  inspection and entry;                                                                                          
20    (D)  certification of corporate or other business organization                                                      
21 reports;                                                                                                                
22    (E)  annual certification of compliance;                                                                            
23    (F)  excess emission or process deviation reporting; and                                                            
24   (G)  equipment malfunctions and emergencies;                                                                        
25   (5)  fees and procedures for collecting fees;                                                                        
26   (6)  provisions addressing late payment or nonpayment of fees, which                                                 
27 may include assessment of penalties and interest or refusal to issue, amend, modify,                                    
28 or renew an air quality control permit;                                                                                 
29   (7)  the duration of permits;                                                                                       
30   (8)  procedures for modifying or amending a permit that provide                                                      
31 flexibility in the operation of the facility, including procedures to allow changes to a                                
01 permitted facility without requiring a permit modification, consistent with the purposes                                
02 of this chapter and with 42 U.S.C. 7401 - 7671q (Clean Air Act);                                                        
03   (9)  reasonable provisions for renewing, reopening, revoking and                                                     
04 reissuing, and terminating a permit consistent with the purposes of this chapter and 42                                 
05 U.S.C. 7401 - 7671q (Clean Air Act);                                                                                    
06   (10)  provisions allowing for physical or operational limitations that will                                          
07 reduce a facility's emissions to levels below those that would make the facility subject                                
08 to part or all of AS 46.14.120 and 46.14.130;                                                                           
09   (11)  provisions authorizing facility operation while a permit application                                           
10 is pending, consistent with 42 U.S.C. 7661b(d) (Clean Air Act, sec. 503(d));                                            
11   (12)  provisions for ensuring that compliance with an operating permit                                               
12 issued under this chapter will be considered to be compliance with 42 U.S.C. 7661a                                      
13 (Clean Air Act, sec. 502) and other provisions of state or federal law specifically                                     
14 provided for by the department consistent with 42 U.S.C. 7401 - 7671q (Clean Air                                        
15 Act) and regulations adopted under state and federal law; and                                                           
16   (13)  provisions allowing for certification of inspectors who evaluate                                               
17 compliance with the terms and conditions of a permit, order, regulation, or other                                       
18 provision of law authorized under this chapter.                                                                         
19  (b)  A permit issued under this chapter may not require a person to use                                               
20   (1)  machinery, devices, or equipment of a particular type, from a                                                   
21 particular supplier, or produced by a particular manufacturer; or                                                       
22   (2)  specific methods, processes, procedures, or designs for the                                                     
23 management and operation of a facility regulated under this chapter except to the                                       
24 extent that the federal administrator has                                                                               
25   (A)  adopted a design, equipment work practice, or operational                                                      
26 standard under 42 U.S.C. 7412(h), as amended, for the control of a hazardous                                            
27 air pollutant; or                                                                                                       
28   (B)  approved an alternative hazardous air pollutant standard                                                       
29 under 42 U.S.C. 7412(h)(3), as amended.                                                                                 
30  (c)  The absence of, or the department's failure to adopt, a regulation under this                                    
31 section does not relieve a person from compliance with a permit issued under this                                       
01 chapter and with other provisions of law, including emission control requirements.                                      
02  Sec. 46.14.150.  TIME FOR SUBMISSION OF OPERATING PERMIT                                                              
03 APPLICATIONS.  (a)  The owner and operator of a facility required to have an                                          
04 operating permit under this chapter shall submit the required application and other                                     
05 information required by the department by regulation no later than (1) 12 months after                                  
06 the date on which the facility becomes subject to AS 46.14.120(b); or (2) 60 days                                       
07 before beginning construction of a source if the facility containing the source is a new                                
08 facility that is not required to obtain a construction permit under AS 46.14.130(a),                                    
09 whichever is earlier.                                                                                                   
10  (b)  The department may accept and begin processing applications filed earlier                                        
11 than the submission date.  Applications filed earlier may be given priority for permit                                  
12 issuance.                                                                                                               
13  Sec. 46.14.160.  COMPLETENESS DETERMINATION.  (a)  The department                                                     
14 shall review every application submitted under this chapter for completeness.  To be                                    
15 determined complete, an application must provide the information identified by the                                      
16 department in regulations adopted under AS 46.14.140 and in standard application                                        
17 forms provided by the department under AS 46.14.140(a)(1) and must be certified true                                    
18 and correct by the owner and operator.                                                                                  
19  (b)  The department shall notify the applicant in writing whether the application                                     
20 is complete.  Unless the department notifies the applicant within 60 days of receipt of                                 
21 an application that the application is incomplete, the application is considered to be                                  
22 complete.                                                                                                               
23  (c)  If, during the processing of an application after it has been determined or                                      
24 considered to be complete, the department finds that additional information is                                          
25 necessary to evaluate or take action on that application, the information may be                                        
26 requested in writing from the owner and operator.  A request for information under                                      
27 this subsection does not render the application incomplete.  However, notwithstanding                                   
28 AS 46.14.275, an owner and operator may be found in violation of this chapter for                                       
29 operating without a valid permit if they fail to provide timely additional information.                                 
30  Sec. 46.14.170.  ADMINISTRATIVE ACTIONS REGARDING PERMITS. (a)                                                        
31 Except as provided in AS 46.14.220 or in regulations adopted under                                                      
01 AS 46.14.140(a)(6), after receipt of a complete application, and after notice and                                       
02 opportunity for public comment and hearing, the department shall issue or deny                                          
03   (1)  a construction permit within 30 days after the close of the public                                              
04 comment period;                                                                                                         
05   (2)  an operating permit, other than a general operating permit or                                                   
06 temporary operating permit, within 12 months after receipt of the complete application                                  
07 by the department.                                                                                                      
08  (b)  Notwithstanding (a) of this section, the department may establish a phased                                       
09 schedule for acting on operating permit applications submitted within 12 months                                         
10 following the date on which the federal administrator approves the state program under                                  
11 42 U.S.C. 7661a(d).  A phased schedule must ensure that at least one-third of the                                       
12 applications submitted during the first 12 months of the state's operation of its permit                                
13 program after federal approval will be acted on by the department during each of the                                    
14 first three 12-month periods following federal approval of the program.  The                                            
15 department shall give priority to the issuance of permits for new facilities and                                        
16 modifications of existing facilities.                                                                                   
17  (c)  Failure by the department to act within the time limits established in or                                        
18 under (a) or (b) of this section is considered to be a final agency action, but only for                                
19 the purpose of judicial review to determine whether the court will require that action                                  
20 be taken by the department.                                                                                             
21  Sec. 46.14.180.  MONITORING.  Monitoring by the owner and operator of                                                 
22 stack emissions or ambient air quality shall be required by the department only for                                     
23 purposes of demonstrating compliance with applicable permit program requirements.                                       
24 Monitoring requirements must be reasonable and based on test methods, analytical                                        
25 procedures, and statistical conventions approved by the federal administrator or the                                    
26 department or otherwise generally accepted as scientifically competent.  Unless                                         
27 otherwise agreed to by the owner and operator and the department,                                                       
28   (1)  the department may not require an owner and operator of a source                                                
29 to monitor emissions or ambient air quality solely for the purpose of scientific                                        
30 investigation or research; and                                                                                          
31   (2)  monitoring activities must be consistent with the applicable                                                    
01 emission standards and other permit or permit application requirements.                                                 
02  Sec. 46.14.190.  SINGLE PERMIT.  (a)  Except as provided in (b) of this                                               
03 section, the department shall issue only a single operating permit to a facility,                                       
04 regardless of whether a facility contains a single source or multiple sources.                                          
05  (b)  The department may, upon request of a facility owner or operator, issue                                          
06 more than one permit for a facility.  Substantive and procedural requirements otherwise                                 
07 applicable to a facility remain applicable regardless of whether the facility owner and                                 
08 operator apply for one or more permits.                                                                                 
09  Sec. 46.14.200.  REVIEW OF PERMIT ACTION.  A person who has a private,                                                
10 substantive, legally protected interest under state law that may be adversely affected                                  
11 by the permit action, the owner and operator, or a person who participated in the                                       
12 public comment process may request an adjudicatory hearing under the department's                                       
13 adjudicatory hearing procedures.  After the issuance of an adjudicatory hearing                                         
14 decision, a party to the hearing may obtain judicial review of that decision as provided                                
15 in the Alaska Rules of Appellate Procedure.                                                                             
16  Sec. 46.14.210.  GENERAL OPERATING PERMITS.  After notice and                                                         
17 opportunity for public comment and hearing, the department may, unless the permit                                       
18 is disapproved by the federal administrator, establish a general operating permit that                                  
19 would be applicable to more than one facility determined by the department to be                                        
20 similar in source structure.  A general operating permit must contain provisions that                                   
21 meet the requirements of this chapter that are applicable to operating permits.  A                                      
22 general operating permit issued to a particular person takes effect when the person's                                   
23 application is determined to be complete unless the department notifies the applicant                                   
24 that the general permit is not applicable to the person's facility.                                                     
25  Sec. 46.14.215.  TEMPORARY OPERATIONS.  The department may issue a                                                    
26 single operating permit under AS 46.14.170, authorizing a facility to operate at specific                               
27 multiple locations in the state for temporary periods of time.  A permit described in                                   
28 this section is valid only for the specific locations identified in the application and                                 
29 authorized by the department.  The department may not issue a permit under this                                         
30 section unless the permit contains conditions that will ensure compliance with this                                     
31 chapter at each authorized location, including compliance with ambient air quality                                      
01 standards and applicable increment or visibility requirements adopted under this                                        
02 chapter.  A permit under this section must require the owner and operator to notify the                                 
03 department at least 30 days before a change in location of a facility permitted under                                   
04 this section.                                                                                                           
05  Sec. 46.14.220.  OBJECTION BY FEDERAL ADMINISTRATOR.  (a)  An                                                         
06 operating permit may not be issued under this chapter until the federal administrator                                   
07 approves the permit, or until 45 days after a copy of the final draft permit has been                                   
08 provided by the department to the federal administrator, whichever is earlier.  If,                                     
09 during the 45-day period, the federal administrator files an objection with the                                         
10 department, the department shall notify the applicant of the objection.  The department                                 
11 may not issue the permit until the objection is resolved or the permit is revised to meet                               
12 the objection of the federal administrator.  Upon request of an applicant, the                                          
13 department shall assist the applicant in an effort to resolve promptly an objection by                                  
14 the federal administrator.                                                                                              
15  (b)  Within 60 days after the close of the 45-day period under (a) of this                                            
16 section and in accordance with procedures established in federal regulations adopted                                    
17 under 42 U.S.C. 7661d(b)(2) (Clean Air Act, sec. 505(b)(2)), a person may petition the                                  
18 federal administrator to file an objection to the permit.                                                               
19  Sec. 46.14.230.  DURATION OF OPERATING PERMITS.  (a)  An operating                                                    
20 permit under this chapter, including an operating permit that contains a compliance                                     
21 schedule, shall be issued for a fixed term of five years after the date of issue, except                                
22 as provided for temporary operations under AS 46.14.215 or unless a shorter term is                                     
23 requested by the permit applicant.                                                                                      
24  (b)  If a timely and complete application for renewal of an operating permit is                                       
25 submitted to the department, the existing permit issued under this chapter does not                                     
26 expire until the renewal permit has been issued or denied.                                                              
27  Sec. 46.14.235.  FEDERAL TERMINATION, MODIFICATION, OR                                                                
28 REVOCATION AND REISSUANCE OF PERMITS.  The department shall take                                                        
29 measures practicable and otherwise lawful to avoid termination, modification, or                                        
30 revocation and reissuance by the federal administrator of permits issued by the                                         
31 department under this chapter.                                                                                          
01  Sec. 46.14.240.  PERMIT ADMINISTRATION FEES.  (a) The owner or                                                      
02 operator of a facility who is required to apply for a permit under AS 46.14.130 shall                                   
03 pay to the department all assessed permit administration fees established under (b) of                                  
04 this section except that the person named in a permit issued under AS 46.14.170 shall                                   
05 pay assessed permit administration fees incurred after the date the permit is issued.                                   
06  (b)  The department shall establish by regulation a permit administration fee                                         
07 rate.  The rate shall be set on the basis of dollars per hour of service provided for a                                 
08 specific permittee.  The department may periodically modify a fee rate to reflect                                       
09 increases or decreases in the actual reasonable costs of providing the services.  The                                   
10 department shall assess permit administration fees on a periodic basis after service is                                 
11 rendered, but the department may assess a retainer toward this fee at the time work                                     
12 commences on a permit application or at the time departmental services are requested                                    
13 for the development of a permit application.                                                                            
14  (c)  In (a) and (b) of this section, "permit administration fees" are fees assessed                                   
15 to recover costs incurred by the department and other state or local governmental                                       
16 agencies, to the extent required under 42 U.S.C. 7661a(b)(3)(A) and federal regulations                                 
17 implementing that provision, for the following services to a specific facility that are                                 
18 performed in order to implement the permit program established under  this chapter:                                     
19   (1)  providing preapplication consultation, assistance, and completeness                                             
20 review of applications for a permit, permit amendment, permit modification, or                                          
21 renewal, except as provided in (d) of this section;                                                                     
22   (2)  reviewing or assisting in preparation of facility specific permit                                               
23 support documents, including on-site evaluations, except as provided in (d) of this                                     
24 section;                                                                                                                
25   (3)  receiving, reviewing, preparing, processing, and issuing permits,                                               
26 permit amendments, modifications, reopenings, renewals and revocations, and                                             
27 reissuance;                                                                                                             
28   (4)  preparing general operating permits under AS 46.14.210; however,                                                
29 costs must be allocated on an equitable basis to each facility covered by the general                                   
30 operating permit;                                                                                                     
31   (5)  performing facility inspections and compliance evaluations;                                                     
01   (6)  reviewing, compiling, and reporting facility specific emission,                                                 
02 ambient monitoring, or process measurement data;                                                                        
03   (7)  preparing, evaluating, or processing plans or documents to obtain                                               
04 facility compliance or rectify noncompliance with permit terms and conditions, but not                                  
05 including any enforcement actions; and                                                                                  
06   (8)  assessing and collecting delinquent permit administration fees and                                              
07 emission fees.                                                                                                          
08  (d)  Costs incurred by the department and other state or local governmental                                           
09 agencies for services described in (c)(1) - (2) of this section to facilities that qualify                              
10 for assistance under AS 46.14.300 - 46.14.310 shall be recovered from emission fees                                     
11 under AS 46.14.250(h)(2).                                                                                               
12  Sec. 46.14.250.  EMISSION FEES.  (a)  A person named as permittee in a                                              
13 permit issued under AS 46.14.170 shall pay to the department all assessed emission                                      
14 fees established under this section.                                                                                    
15  (b)  The department shall establish by regulation an emission fee rate.  The rate                                     
16 shall be set on the basis of dollars per ton of air contaminant emitted.  The department                                
17 shall assess emission fees annually on or before July 1 based on a facility's estimated                                 
18 assessable emissions for the subsequent fiscal year.  The department may allow                                          
19 installment payments of assessed emission fees.                                                                         
20  (c)  For a facility that begins operation during a fiscal year, the department                                        
21 shall prorate the first year's fee to cover the time period occurring before the next                                   
22 annual payment date.  The owner or operator shall pay the initial emission fee upon                                     
23 commencement of lawful facility operation unless authorized to pay by installments                                      
24 under (b) of this section.  The first year's emission fee may not duplicate a fee paid                                  
25 by a permittee under AS 44.46.025 for the same sources for the same time period.  If                                    
26 the fees would otherwise be duplicative, the department shall provide a credit toward                                   
27 the emission fee in the amount of the unused balance of the fee collected under                                         
28 AS 44.46.025.  The unused balance to be credited shall be based on prorating the total                                  
29 original fee under AS 44.46.025 for the time period for which an emission fee applies.                                  
30  (d)  The department shall design the emission fee rate to distribute the total                                      
31 annual incurred costs described under (h) of this section in a manner so that each                                      
01 permittee is assessed an annual emission fee that reflects an equitable apportionment                                   
02 of the fees paid by each facility type, size, or category.  In making an apportionment                                  
03 under (f)(6) of this section, the department shall consider factors such as exemptions                                  
04 or reduced rates for small amounts of emissions, limits upon assessable emissions,                                      
05 exempting small business facilities from the costs of the small business assistance                                     
06 program established under AS 46.14.300, air pollution prevention efforts, and other                                     
07 factors that may ensure fair distribution of the costs described under (h) of this section.                             
08  (e)  The department shall set the initial fee rate for the first two years following                                  
09 approval of the permit program under this chapter by the federal administrator on the                                   
10 basis of dollars per ton of assessable emissions.  In calculating assessable emissions                                  
11 for the purpose of this subsection, the department may not include an amount in excess                                  
12 of 4,000 tons per year of an air contaminant not defined as a regulated pollutant under                                 
13 42 U.S.C. 7661a(b)(3)(B)(ii) (Clean Air Act, sec. 502 (b)(3)(B)(ii)).                                                   
14  (f)  After the two years described in (e) of this section, the department shall set                                   
15 the emission fee rate in regulation to implement the policy established in (d) of this                                  
16 section.  The department shall base the regulation on the findings of a report, which                                   
17 the department shall make available to the public with proper notice before adoption                                    
18 of the regulation, that examines                                                                                        
19    (1)  fees assessed;                                                                                                  
20    (2)  alternative fee rates or formulas;                                                                              
21   (3)  types, sizes, or categories of facilities, their respective emission                                            
22 quantities, and their previous or proposed fee burden;                                                                  
23   (4)  apparent inequities encountered in the initial fee rate;                                                        
24   (5)  total costs incurred or anticipated to be incurred under (h) of this                                            
25 section; and                                                                                                            
26   (6)  other factors that ensure fair distribution of the costs described in                                           
27 (h) of this section.                                                                                                    
28  (g)  The department shall periodically, and at least every three years, evaluate                                      
29 the fee rate set under this section to determine if it is responsive to the policy                                      
30 established in (d) of this section and shall provide its findings in a report.                                          
31  (h)  In this section,                                                                                                 
01   (1)  "assessable emission" means the quantity of each air contaminant                                                
02 for which emission fees are assessed and is the lesser of                                                               
03   (A)  the annual rate of emissions, in tons per year, of each air                                                    
04 contaminant authorized by the facility's operating permit; or                                                           
05   (B)  the projected annual rate of emissions, in tons per year, of                                                   
06 each air contaminant by the facility based upon previous actual annual                                                  
07 emissions if the permittee can demonstrate to the department its previous actual                                        
08 annual rate of emissions through monitoring, modelling, calculations, or other                                          
09 method acceptable to the department;                                                                                    
10   (2)  "emission fees" mean fees assessed to recover costs incurred by the                                             
11 department and other state or local governmental agencies, to the extent required under                                 
12 42 U.S.C. 7661a(b)(3)(A) and federal regulations implementing that provision, for                                       
13 execution of the permit program established under this chapter that are generally not                                   
14 associated with service provided to a specific facility, including the costs incurred by                                
15 the department or a local air quality program to comply with AS 46.14.010 -                                             
16 46.14.015; the costs may include rent, utilities, permit program management,                                            
17 administrative and accounting services, and other costs as identified by the department                                 
18 in regulations; the fees shall also be sufficient to recover the cost of the small business                             
19 assistance program under AS 46.14.300 - 46.14.310.                                                                      
20  Sec. 46.14.255.  INTEREST AND SANCTIONS FOR NONPAYMENT.  (a)                                                          
21 The department may assess interest against the owner and operator after a fee is due                                    
22 under this chapter and is unpaid.  Interest assessed under this subsection shall be                                     
23 computed at two percentage points higher than the prime rate, as defined in                                             
24 AS 44.88.599, for the day the fee was due.                                                                              
25  (b)  If a permittee has failed to pay a fee imposed under AS 46.14.240 -                                              
26 46.14.250, a penalty, assessment, or damage award imposed under AS 46.03.760(f) or                                      
27 46.03.790 for a violation of this chapter, or interest imposed under (a) of this section,                               
28 the department may, after 30 days' written notice to the permittee refuse to issue or                                   
29 renew permits requested by the permittee or refuse to amend or modify a permit when                                     
30 the amendment or modification is requested by the permittee.                                                            
31  Sec. 46.14.260.  CLEAN AIR PROTECTION FUND.  (a)  The clean air                                                       
01 protection fund is established.  The fund consists of fees collected by the department                                  
02 under AS 46.14.240 and 46.14.250 and under regulations authorized by AS 46.14.140,                                      
03 as required by 42 U.S.C. 7661a(b)(3)(C)(iii) (Clean Air Act, sec. 502(b)(3)(C)(iii)) for                                
04 state participation in the federal emission control permit program.                                                     
05  (b)  The money deposited into the clean air protection fund may only be used                                          
06 to cover the reasonable direct and indirect costs required to support the permit program                                
07 under this chapter and the activities of the small business assistance program that are                                 
08 directed at facilities subject to this chapter, not including court costs or other costs                                
09 associated with an enforcement action.                                                                                  
10  Sec. 46.14.270.  SPECIAL ACCOUNT.  Civil or criminal penalties, fines,                                                
11 assessments, or damages, and interest, attorney fees, and costs collected as a result of                                
12 a violation relating to this chapter and interest collected under AS 46.14.255 shall be                                 
13 deposited in the general fund and credited to a special account called the "clean air                                   
14 protection account."                                                                                                    
15  Sec. 46.14.275.  TIMELY AND COMPLETE APPLICATION AS SHIELD.                                                           
16 If an owner and operator have submitted a timely and complete application for a                                         
17 permit or a permit renewal, as applicable, but final action has not been taken on the                                   
18 application, the owner's and operator's failure to have an operating permit is not a                                    
19 violation of this chapter unless the delay in final action was due to the failure of the                                
20 owner and operator to submit, in a timely manner, additional information required or                                    
21 requested to process the application.  An owner and operator required to have an                                        
22 operating permit under this chapter are not in violation of the operating permit program                                
23 established under this chapter before the date on which the owner and operator are                                      
24 required to submit an application under AS 46.14.150.                                                                   
25  Sec. 46.14.280.  TERMINATION, MODIFICATION, REOPENING, OR                                                             
26 REVOCATION AND REISSUANCE OF PERMITS BY THE DEPARTMENT.  (a)                                                            
27 After 30 days' written notice to the permittee, the department                                                          
28   (1)  may terminate, modify, or revoke and reissue a construction or                                                  
29 operating permit if the department finds that                                                                           
30   (A)   the permit was obtained by misrepresentation of material                                                      
31 fact or by failure of the owner and operator to disclose fully the facts relating                                       
01 to issuance of the permit;                                                                                              
02   (B)  the permittee has violated this chapter, a regulation, a                                                       
03 judicial or administrative order, or a material term or condition of a permit,                                          
04 approval, or acceptance issued under this chapter; or                                                                   
05   (C)  the permittee has failed to construct or modify a facility                                                     
06 within the time period specified in a construction permit, if any, required under                                       
07 AS 46.14.130(a);                                                                                                        
08   (2)  may modify, or revoke and reissue a construction or operating                                                   
09 permit if the department finds that                                                                                     
10   (A)  the permit contains a material mistake; or                                                                     
11   (B)  there has been a material change in the quantity or type of                                                    
12 air contaminant emitted from the facility; or                                                                           
13   (3)  shall reopen a permit issued under this chapter                                                                 
14   (A)  based on a determination of the federal administrator or the                                                   
15 department that the permit must be revised to comply with 42 U.S.C. 7401-7671q (Clean Air Act) and regulations          
16 adopted thereunder; or                                                                                                  
17   (B)  to incorporate changes in law, or to impose equivalent                                                         
18 emission limitation, that become applicable after the permit is issued if the                                           
19 permit is issued to a major facility and has a remaining duration of three or                                           
20 more years; the department shall make revisions allowed under this                                                      
21 subparagraph as soon as practicable, but, regarding a change in law, no later                                           
22 than 18 months after the change in law takes effect; the department may not                                             
23 reopen the permit of a major facility under this subparagraph if the change in                                          
24 law is not effective until after the date that the permit expires.                                                      
25  (b)  Reopening of a permit under (a)(3) of this section shall be treated as a                                         
26 permit renewal by the department if the procedural requirements for permit renewal                                      
27 have been met.                                                                                                          
28  (c)  Proceedings to reopen a permit under this section shall follow the same                                          
29 procedure as for initial permit issuance and shall affect only those parts of the permit                                
30 for which the department had cause to reopen under this section.                                                        
31  Sec. 46.14.285.  AMENDMENT AND MODIFICATION OF PERMIT UPON                                                            
01 REQUEST OF PERMITTEE.  (a)  A permittee may request                                                                     
02   (1)  a permit amendment that provides for administrative changes to a                                                
03 permit that do not result in material changes in permit terms or conditions, such as                                    
04 changes in the name of the owner or operator, mailing address, registered agent, or                                     
05 assessable emissions;                                                                                                   
06   (2)  an expedited authorization for minor changes in permit terms and                                                
07 conditions that provide for flexibility in the operation of a facility consistent with 42                               
08 U.S.C. 7661a(b)(10) (Clean Air Act, sec. 502(b)(10)), and regulations adopted under                                     
09 that paragraph; the department may adopt regulations that include procedures under                                      
10 which the public may participate when an expedited authorization is requested under                                     
11 this paragraph; or                                                                                                      
12   (3)  a modification of a permit to authorize significant changes in permit                                           
13 terms and conditions consistent with this chapter and regulations adopted under                                         
14 AS 46.14.140.                                                                                                           
15  (b)  The department shall review all requests submitted under (a) of this section                                     
16 and issue or deny the permit amendment or modification or otherwise authorize or                                        
17 deny the request consistent with this chapter and regulations adopted under this                                        
18 chapter.                                                                                                                
19  Sec. 46.14.290.  PERMIT AS SHIELD.  (a)  To the extent allowed under                                                  
20 42.U.S.C. 7661c(f) (Clean Air Act, sec. 504(f)), a permittee is considered in                                           
21 compliance with applicable requirements of this chapter, regulations adopted under this                                 
22 chapter and 42 U.S.C. 7401 - 7671q (Clean Air Act) and regulations adopted under it,                                    
23 if                                                                                                                      
24   (1)  the applicable requirements are included and specifically identified                                            
25 in the owner or operator's permit; or                                                                                   
26   (2)  the requirements are determined in writing not to be applicable to                                              
27 the permitted facility; a determination made under this paragraph shall be included in                                  
28 the permit.                                                                                                             
29  (b)  This section does not alter or affect                                                                            
30   (1)  the owner's and operator's obligation to comply with an emergency                                               
31 order issued under AS 46.03.820 or 42.U.S.C. 7603 (Clean Air Act, sec. 303);                                            
01   (2)  the liability of an owner and operator for a violation of applicable                                            
02 requirements of law before or at the time of permit issuance; or                                                        
03   (3)  the ability of the department to obtain information from an owner                                               
04 or operator of a facility under AS 46.14.020(b).                                                                        
05 ARTICLE 3.  SMALL BUSINESS ASSISTANCE PROGRAM.                                                                          
06  Sec. 46.14.300.  SMALL BUSINESS ASSISTANCE PROGRAM.  (a)  A small                                                   
07 business assistance program is established in the department.  The department shall                                     
08 include the program in the state air quality control plan developed under 42 U.S.C.                                     
09 7401 - 7671q (Clean Air Act).                                                                                           
10  (b)  The small business assistance program shall, by regulation, meet the                                             
11 requirements of 42 U.S.C. 7661f(a) (Clean Air Act, sec. 507(a)), including the                                          
12 requirement that a small business advocate be designated.                                                               
13  (c)  Except as provided in AS 46.14.310(b), the department shall provide                                              
14 assistance as described in (b) of this section to a requesting facility that is not a small                             
15 business concern as defined in 15 U.S.C. 631 but that is subject to the requirements                                    
16 of this chapter if the legislature appropriates money from the general fund for this                                    
17 purpose.                                                                                                                
18  Sec. 46.14.310.  POWER TO LIMIT SMALL BUSINESS ASSISTANCE                                                             
19 PROGRAM.  (a)  After consultation with the federal administrator and the                                                
20 administrator of the United States Small Business Administration and after providing                                    
21 notice and opportunity for public hearing, the department may exclude from the scope                                    
22 of the small business assistance program established in AS 46.14.300 a category or                                      
23 subcategory of small business facilities that the department finds to have sufficient                                   
24 technical and financial capabilities to meet the requirements of this chapter and federal                               
25 law without the assistance provided under AS 46.14.300 - 46.14.320.                                                     
26  (b)  Nothing in AS 46.14.300(c) precludes the department from excluding a                                             
27 business facility or category of business facilities that the department finds to have                                  
28 sufficient technical and financial capabilities to meet the requirements of this chapter                                
29 without assistance from the department.                                                                                 
30  Sec. 46.14.320.  COMPLIANCE ADVISORY PANEL.  (a)  There is                                                            
31 established in the department a compliance advisory panel whose members shall serve                                     
01 staggered three-year terms.  A member may not serve more than two three-year terms                                      
02 consecutively.                                                                                                          
03   (b)  The panel consists of                                                                                            
04   (1)  two members who are not owners or representatives of owners of                                                  
05 small business facilities, selected by the governor to represent the general public;                                    
06   (2)  one member selected by the commissioner to represent the                                                        
07 department; and                                                                                                         
08   (3)  four members who are owners or representatives of owners of small                                               
09 business facilities, selected as follows:                                                                               
10   (A)  one shall be selected by the president of the senate and one                                                   
11 shall be selected by the speaker of the house;                                                                          
12   (B)  if there are members of the senate who are not part of the                                                     
13 majority caucus of the senate, the leader of the largest nonmajority group shall                                        
14 select a panel member; if all members of the senate are in the majority caucus,                                         
15 then the president of the senate shall select a second panel member in addition                                         
16 to the selection authorized under (A) of this paragraph;                                                                
17   (C)  if there are members of the house who are not part of the                                                      
18 majority caucus of the house, the leader of the largest nonmajority group shall                                         
19 select a panel member; if all members of the house are in the majority caucus,                                          
20 then the speaker of the house shall select a second panel member in addition                                            
21 to the selection authorized under (A) of this paragraph.                                                                
22  (c)  The panel members shall serve without compensation but are entitled to                                           
23 transportation expenses and per diem as authorized for members of boards and                                            
24 commissions under AS 39.20.180.                                                                                         
25  (d)  The compliance advisory panel shall                                                                              
26   (1)  elect a chair and agree upon procedures by which the panel will                                                 
27 function;                                                                                                               
28   (2)  meet annually and at the call of the chair and give public notice of                                            
29 panel meetings as required under AS 44.62.310 - 44.62.312;                                                              
30   (3)  prepare advisory opinions concerning the effectiveness of the small                                             
31 business assistance program, difficulties encountered in making the program efficient                                   
01 and effective, and degree of enforcement and severity of air pollution offenses;                                        
02   (4)  make periodic reports to the administrator concerning the                                                       
03 compliance of the small business assistance program with requirements of 44 U.S.C.                                      
04 3501 (Paperwork Reduction Act), 5 U.S.C. 601 (Regulatory Flexibility Act), and 5                                        
05 U.S.C. 504 (Equal Access to Justice Act);                                                                               
06   (5)  review information designed to assist small business facilities in                                              
07 complying with this chapter to ensure that the information is understandable by the                                     
08 public; and                                                                                                             
09   (6)  use the assistance of the small business advocate designated under                                              
10 AS 46.14.300(b) in the development and dissemination of panel reports and advisory                                      
11 opinions.                                                                                                               
12 ARTICLE 4.  LOCAL PROGRAMS.                                                                                             
13  Sec. 46.14.400.  LOCAL AIR QUALITY CONTROL PROGRAMS.  (a)  With                                                     
14 the approval of the department, a municipality may establish and administer within its                                  
15 jurisdiction a local air quality control program that operates in lieu of and is consistent                             
16 with all or part of the department's air quality program as established under this                                      
17 chapter.  A first or second class borough may administer an air quality control program                                 
18 approved by the department under this subsection on an areawide basis and is not                                        
19 subject to the restrictions  for  acquiring additional areawide powers specified in                                     
20 AS 29.35.300 - 29.35.350.  A third class borough may administer a local air quality                                     
21 control program approved by the department under this subsection only in a service                                      
22 area formed under AS 29.35.490(b) or (c).                                                                               
23  (b)  With the approval of the department, two or more municipalities or other                                         
24 entities may create a local air quality district for the purpose of jointly administering                               
25 a local air quality control program within the boundaries of the air quality district.                                  
26  (c)  If the department finds that the location, character, or extent of particular                                    
27 concentrations of population, air contaminant sources, the geographic, topographic, or                                  
28 meteorological considerations, or a combination of these factors make impracticable                                     
29 the maintenance of appropriate levels of air quality without an areawide air pollution                                  
30 control program, the department may determine the boundaries within which a local                                       
31 air quality control program is necessary and direct that a local air quality control                                    
01 program spanning those boundaries is the only acceptable alternative to direct state                                    
02 administration.                                                                                                         
03  (d)  A municipality or a local air quality district seeking department approval                                       
04 for a local air quality control program shall enter into a cooperative agreement with                                   
05 the department that is designed to avoid unnecessary duplication of responsibilities.                                   
06 The cooperative agreement must include provisions specifying                                                            
07   (1)  the respective duties and authority of the department and the                                                   
08 municipality or local air quality district in the administration of the local air quality                               
09 control program;                                                                                                        
10   (2)  the authority of the municipality or the local air quality district to                                          
11 employ staff to administer the local air quality control program;                                                       
12   (3)  duties of staff employed under (2) of this subsection;                                                          
13   (4)  the procedures that must be followed by the municipality or local                                               
14 air quality district when requesting money from the clean air protection fund to cover                                  
15 the costs of implementing the municipality's or district's air quality program;                                         
16   (5)  the procedures that will be used by the department in approving a                                               
17 request under (4) of this subsection and submitting it to the legislature for funding;                                  
18   (6)  respective enforcement responsibilities of the department and the                                               
19 municipality or the local air quality district;                                                                         
20   (7)  that if the municipality or local air quality control district seeks                                            
21 authority to take action under (f) of this section, the municipality or local air quality                               
22 control district will use procedures that are substantially equivalent to those required                                
23 under AS 46.14.010 and 46.14.015.                                                                                       
24  (e)  A local air quality control program shall provide for the exemption of a                                         
25 locally registered motor vehicle from motor vehicle emission requirements adopted                                       
26 under AS 46.14.510 if the motor vehicle is not used within the program's jurisdiction.                                  
27  (f)  A municipality or a local air quality district administering a program under                                     
28 this section shall administer its local air quality control program according to this                                   
29 chapter, regulations adopted under those sections, and its cooperative agreement under                                  
30 (d) of this section.  A municipality or local air quality district's program may, upon                                  
31 a finding by the local agency and an affirmative agreement by the department,                                           
01 establish a more stringent requirement than the stationary source permit program                                        
02 authorized under this chapter if public health or air quality effects provide a reasonable                              
03 basis to regulate the source with the additional or more stringent requirement and the                                  
04 municipality or district has used procedures substantially equivalent to those required                                 
05 under AS 46.14.010 - 46.14.015 before establishing the more stringent requirement.                                      
06 This subsection does not prohibit a municipality or local air quality control district                                  
07 from establishing a mobile source emissions program more stringent than the state                                       
08 program without making findings of public health or air quality effects or using                                        
09 procedures substantially equivalent to those required under AS 46.14.010 - 46.14.015.                                   
10 In this subsection, "mobile source" does not include tank vessels or other watercraft.                                  
11  (g)  A determination, order, permit, or permit action issued under a local air                                        
12 quality control program is considered to be a determination, order, permit, or permit                                   
13 action of the department.                                                                                               
14  (h)  Notwithstanding any other law or rule of law, the department may not                                             
15 delegate or enable another department or government entity to establish fee rates or                                    
16 collect fees under AS 46.14.240 or 46.14.250.                                                                           
17  Sec. 46.14.410.  INADEQUACY OF LOCAL PROGRAM.  (a)  If a                                                              
18 municipality or a local air quality district has an approved local air quality control                                  
19 program under AS 46.14.400 and the department determines that the program is being                                      
20 implemented in a manner that fails to meet the terms of the cooperative agreement or                                    
21 is otherwise being inappropriately administered, the department shall give written                                      
22 notice setting out its determination to the municipality or local air quality district.                                 
23 Within 45 days after giving written notice, the department shall conduct a public                                       
24 hearing on the matter.  The hearing shall be recorded by any means that ensures an                                      
25 accurate record.                                                                                                        
26  (b)  If, after the hearing, the department upholds the determination made in the                                      
27 written notice, the department shall provide the municipality or local air quality district                             
28 with a written finding setting out the nature of the deficiencies and a description of the                              
29 necessary action to be taken to ensure that the local air quality control program                                       
30 prevents or controls air pollution.  The department shall provide its finding to the                                    
31 municipality or district within 45 days after closure of the public hearing record.  The                                
01 department shall set a reasonable period of time for the municipality or local air                                      
02 quality district to take corrective action in response to the department's finding.                                     
03  (c)  If the municipality or local air quality district fails to take corrective action                                
04 within the time period set by the department under (b) of this section, the department                                  
05 shall terminate the cooperative agreement and resume management of air quality                                          
06 control in the affected jurisdiction.  If the municipality or the local air quality district                            
07 partially remedies, to the department's satisfaction, the deficiencies found in the                                     
08 determination, the department shall amend the cooperative agreement to reflect a                                        
09 modified allocation of responsibilities between the department and municipality or the                                  
10 local air quality district.                                                                                             
11  (d)  A municipality or local air quality district that has had its cooperative                                        
12 agreement terminated may, with the department's approval, resume a local air quality                                    
13 control program if the municipality or district agrees to comply with AS 46.14.400 and                                  
14 with any corrective action plan required by the department.                                                             
15  (e)  If the department finds that control of a particular class of facility or                                        
16 source, because of its complexity or magnitude, is beyond the reasonable capability of                                  
17 the municipality or the local air quality district or may be more efficiently and                                       
18 economically controlled at the state level, the department may assume and retain                                        
19 jurisdiction over the class of facility or source.  Classifications under this subsection                               
20 may be based on the nature of facilities or sources involved, their size relative to the                                
21 size of the communities in which they are located, or another basis established by the                                  
22 department.                                                                                                             
23 ARTICLE 5.  MISCELLANEOUS PROVISIONS.                                                                                   
24  Sec. 46.14.500.  AIR POLLUTION FROM OUTER CONTINENTAL SHELF                                                           
25 ACTIVITIES.  (a)  The department shall seek delegation of authority from the federal                                    
26 administrator to implement and enforce the terms and provisions of 42 U.S.C. 7627                                       
27 (Clean Air Act, sec. 328) for the Pacific and Arctic Ocean areas offshore of the state.                                 
28 The department may adopt regulations that are necessary to acquire this delegated                                       
29 authority.                                                                                                              
30  (b)  In adopting regulations under this section, the department shall ensure that                                     
31 facilities located within 25 miles of the seaward boundary of the state are subject to                                  
01 the same air quality control requirements that would be applicable if the facility were                                 
02 located in the corresponding onshore area.  For purposes of this subsection, facilities                                 
03 located within 25 miles of the seaward boundary of the state include a vessel servicing                                 
04 or associated with the facility while at the facility or en route to or from the facility                               
05 and within 25 miles of the facility.                                                                                    
06  (c)  In this section, "corresponding onshore area" means, with respect to a                                           
07 facility located within 25 miles of the seaward boundary of the state, the onshore                                      
08 attainment or nonattainment area that is closest to the facility, unless the commissioner                               
09 determines that another area with more stringent requirements relating to control and                                   
10 abatement of air pollution may reasonably be expected to be affected by emissions                                       
11 from the offshore facility; this determination shall be based on the potential for air                                  
12 contaminants from the facility to reach the other onshore area and the potential of the                                 
13 air contaminants to affect the efforts of the other onshore area to attain or maintain a                                
14 federal ambient air quality standard set under 42 U.S.C. 7470 - 7492 (Title I, Part C,                                  
15 Clean Air Act) or a state equivalent.                                                                                   
16  Sec. 46.14.510.  MOTOR VEHICLE POLLUTION.  (a)  When the department                                                   
17 determines that the state of knowledge and technology may allow or make appropriate                                     
18 the control of emissions from motor vehicles to further air quality control, the                                        
19 department may provide, by regulation, for the control of the emissions from motor                                      
20 vehicles.  The regulations may prescribe requirements for the installation and use of                                   
21 equipment designed to reduce or eliminate emissions and for the proper maintenance                                      
22 of this equipment.                                                                                                      
23  (b)  Unless otherwise exempted by law, a person shall maintain in operating                                           
24 condition any element of the air pollution control system or mechanism of a motor                                       
25 vehicle that the department, by regulation, requires to be maintained in or on the motor                                
26 vehicle.  Failure to maintain a required system or mechanism in operating condition                                     
27 subjects the motor vehicle's registration to suspension or cancellation.  A motor                                       
28 vehicle whose registration has been suspended or canceled under this subsection is not                                  
29 eligible for subsequent registration until the owner or operator obtains certification                                  
30 from the department, based on a demonstration that the air pollution control system or                                  
31 mechanism is restored to operating condition.                                                                           
01  (c)  The department shall consult with the Department of Public Safety                                                
02 regarding implementation of the motor vehicle pollution control program.  The                                           
03 Department of Public Safety shall cooperate with the department in implementing the                                     
04 program.                                                                                                                
05  (d)  If the department adopts regulations requiring the maintenance of air                                            
06 pollution control systems or mechanisms in motor vehicles to control emissions from                                     
07 the vehicle, a motor vehicle subject to those regulations may not be issued a certificate                               
08 of inspection unless the required air pollution control system or mechanism has been                                    
09 inspected in accordance with the standards, testing techniques, and instructions                                        
10 furnished by the department and the motor vehicle has been found to meet those                                          
11 standards.  A valid certificate of inspection for the emission control system, if required                              
12 by the department, must be presented to the Department of Public Safety before that                                     
13 department may register a motor vehicle.                                                                                
14  Sec. 46.14.515.  INSPECTION.  (a)  An officer or employee of the department                                           
15 designated by the commissioner or an inspector authorized by the commissioner and                                       
16 certified under regulations adopted under AS 46.14.140(a)(13) may, upon presentation                                    
17 of credentials and at reasonable times with the consent of the owner or operator, enter                                 
18 upon or through any premises of a facility regulated under this chapter to                                              
19   (1)  inspect and copy any records required to be maintained;                                                         
20   (2)  inspect any source, monitoring equipment, or method required to                                                 
21 be used; or                                                                                                             
22   (3)  sample any emissions that the owner and operator of the facility is                                             
23 required to sample.                                                                                                     
24  (b)  During an inspection under this section, the inspector shall comply with                                         
25 applicable health and safety standards.                                                                                 
26  Sec. 46.14.520.  CONFIDENTIALITY OF TRADE SECRETS.  Records,                                                          
27 reports, and information, and parts of records, reports, and information, other than                                    
28 emission data, in the department's possession or control are considered confidential                                    
29 records and shall be kept confidential and in separate files if the owner and operator                                  
30 have certified under oath to the department or authorized local program that                                            
31   (1)  public disclosure would tend to affect adversely the owner's and                                                
01 operator's competitive position; and                                                                                    
02   (2)  the records, reports, or information, or parts of the records, reports,                                         
03 or information, would divulge production figures, sales figures, processes, production                                  
04 techniques, or financial data of the owner and operator that are entitled to protection                                 
05 as trade secrets under AS 45.50.910 - 45.50.945 (Alaska Uniform Trade Secrets Act).                                     
06  Sec. 46.14.525.  PUBLIC RECORDS.  Except as provided in AS 46.14.520,                                                 
07 permits, permit applications, emissions and monitoring reports, compliance reports,                                     
08 certifications, and monitoring, reporting, and quality assurance plans in the                                           
09 department's possession or control are available to the public for inspection and                                       
10 copying.                                                                                                                
11  Sec. 46.14.530.  STATE AND FEDERAL AID.  (a)  A municipality or local                                                 
12 air quality district with a local air quality control program may apply for, receive,                                   
13 administer, and spend state aid for the control of air emissions or the development and                                 
14 administration of the program if an application is first submitted to and approved by                                   
15 the department.  Subject to available money appropriated by the legislature for the                                     
16 purpose of this section, the department may approve an application if it is consistent                                  
17 with the terms and conditions of the applicable cooperative agreement and meets the                                     
18 requirements of this chapter.                                                                                           
19  (b)  A municipality or local air quality district with a local air quality control                                    
20 program may apply for, receive, administer, and spend federal aid for the control of                                    
21 air emissions or the development and administration of the program.                                                     
22  Sec. 46.14.540.  AUTHORITY OF DEPARTMENT IN CASES OF                                                                  
23 EMERGENCY.  (a)  When the commissioner finds that an act of God, act of war, act                                        
24 of terrorism, or similar catastrophe necessitates emergency use of an unpermitted                                       
25 source or emergency use of a permitted source in a manner not authorized by the                                         
26 permit, the commissioner may waive procedural requirements of this chapter and issue                                
27 an order to authorize emergency use of the source.  When acting under this section,                                     
28 the commissioner shall impose conditions necessary to protect life, human health,                                       
29 welfare, property, and the environment and may impose other conditions the                                              
30 commissioner finds necessary and appropriate.                                                                           
31  (b)  An authorization issued under this section automatically terminates within                                       
01 a reasonable time after abatement of the emergency, subject to a maximum of 30 days                                     
02 from the date of issuance.  However, the commissioner may reissue an authorization,                                     
03 if warranted, that may remain in effect for up to another 30 days.  An authorization                                    
04 may be reissued more than once.                                                                                         
05  (c)  A person acting under an order issued under (a) of this section is                                               
06 considered to be acting in compliance with the operating permit program established                                     
07 in this chapter.                                                                                                        
08  (d)  The commissioner may delegate the commissioner's authority under this                                            
09 section to deputy commissioners and division directors in the department.                                               
10  Sec. 46.14.550.  RESPONSIBILITIES OF OWNER AND OPERATOR.                                                              
11 Notwithstanding use of the conjunctive or disjunctive in a provision of this chapter,                                   
12 before issuance of a permit under AS 46.14.170 both the owner and operator of a                                         
13 facility are responsible for compliance with this chapter and regulations adopted under                                 
14 this chapter.  If the owner and operator of the facility are separate persons, only one                                 
15 person is required to discharge a specific responsibility.  After issuance of a permit                                  
16 under AS 46.14.170, only the permittee is responsible for permitted operations.  The                                    
17 permittee shall have a designated agent for service of process in the state.                                            
18  Sec. 46.14.560.  UNAVOIDABLE MALFUNCTIONS AND EMERGENCIES.                                                            
19 Excess emissions caused by an unavoidable emergency, malfunction, or nonroutine                                         
20 repairs of a source including pollution control equipment or process equipment                                          
21 constitute an affirmative defense, when asserted under regulations adopted under                                        
22 AS 46.14.140, to an action brought for noncompliance with a technology-based                                            
23 emission standard.  This section does not limit the department's power to enjoin the                                    
24 emission or require corrective action.  This provision is in addition to any emergency                                  
25 or upset provision contained in an applicable requirement.                                                              
26 ARTICLE 6.  GENERAL PROVISIONS.                                                                                         
27  Sec. 46.14.900.  LIMITATIONS.  This chapter does not                                                                  
28   (1)  grant jurisdiction or authority with respect to air contamination                                               
29 existing solely within a residential dwelling or a commercial or industrial plant,                                      
30 workplace, or shop;                                                                                                     
31   (2)  affect the relations between employers and employees with respect                                               
01 to or arising out of a condition of air contamination or air pollution; or                                              
02   (3)  supersede or limit the applicability of a law or ordinance relating                                             
03 to sanitation, industrial health, or safety.                                                                            
04  Sec. 46.14.990.  DEFINITIONS.  In this chapter,                                                                       
05   (1)  "air contaminant" means a regulated air contaminant or a hazardous                                        
06 air contaminant;                                                                                                        
07   (2)  "ambient air" means that portion of the atmosphere, external to                                                 
08 buildings, to which the general public has access;                                                                      
09   (3)  "ambient air quality standard" means a standard, other than an                                                  
10 emission standard, adopted under AS 46.14.010, 46.14.140, 46.14.400(f), or 42 U.S.C.                                    
11 7409 (Clean Air Act, sec. 109);                                                                                         
12   (4)  "construct" or "construction" means to fabricate, erect, or install, or                                         
13 to make a physical change, that would result in emissions;                                                              
14   (5)  "construction permit" means a permit under AS 46.14.130(a),                                                     
15 including all relevant exhibits, addendums, transmittal letters, compliance schedules,                                  
16 administrative orders, emergency orders, and court orders;                                                              
17   (6)  "contaminant outlet" includes exhaust stacks, flares, vents, and other                                          
18 openings in a facility from which an air contaminant could be emitted;                                                  
19   (7)  "emission" means a release of one or more air contaminants to the                                               
20 atmosphere;                                                                                                             
21   (8)  "emission limitation" and "emission standard" mean a requirement                                                
22 established by the department or the federal administrator, other than an ambient air                                   
23 quality standard, that limits the quantity, rate, or concentration of emission of an air                                
24 contaminant, including a requirement relating to the operation or maintenance of a                                      
25 source to ensure sustained emission reduction, and design, equipment, work practice,                                    
26 or operational standard adopted under this chapter or 42 U.S.C. 7401 - 7671q (Clean                                     
27 Air Act);                                                                                                               
28   (9)  "facility" means                                                                                                
29   (A)  one or more structures, buildings, installations, or properties                                                
30 that are contiguous or adjacent and are owned or operated by the same person                                            
31 or by persons under common control; and                                                                                 
01   (i)  upon which a source or sources are located; or                                                                
02   (ii)  that is a source of emissions associated with tank                                                           
03 vessel loading and unloading, consistent with 42 U.S.C. 7401 - 7671q                                                    
04 (Clean Air Act) and regulations adopted under those sections; or                                                        
05   (B)  a vessel                                                                                                       
06   (i)  that is anchored or otherwise permanently or                                                                  
07 temporarily stationed within a locale;                                                                                  
08   (ii)  upon which a source or sources are located, not                                                              
09 including sources engaged in propulsion of the vessel; and                                                              
10   (iii)  that is used for an industrial process, excluding a                                                         
11 tank vessel in the trade of transporting cargo; in this provision,                                                      
12 "industrial process" means the extraction of raw material or the physical                                               
13 or chemical transformation of raw material in either composition or                                                     
14 character;                                                                                                              
15   (10)  "federal administrator" means the administrator of the United                                                  
16 States Environmental Protection Agency;                                                                                 
17   (11)  "fugitive emissions" means emissions of an air contaminant that                                                
18 could not reasonably be emitted from a contaminant outlet;                                                              
19   (12)  "hazardous air contaminant" means a pollutant listed in or under                                               
20 42 U.S.C. 7412(b) (Clean Air Act, sec. 112(b));                                                                         
21   (13)  "local air quality control program" means a program authorized                                                 
22 under AS 46.14.400 to implement some or all of the provisions of this chapter;                                          
23   (14)  "modification" or "modify" means to make a change or a series                                                  
24 of changes in operation, or any physical change or addition to a facility or source, that                               
25 increases the actual emissions of an air contaminant;                                                                   
26   (15)  "operating permit" means a permit under AS 46.14.130(b),                                                       
27 including all relevant exhibits, addendums, transmittal letters, compliance schedules,                                  
28 administrative orders, emergency orders, and court orders;                                                              
29   (16)  "operator" means a person or persons who direct, control, or                                                   
30 supervise a facility or source that has the potential to emit an air contaminant to the                                 
31 atmosphere;                                                                                                             
01   (17)  "owner" means a person or persons with a proprietary or                                                        
02 possessory interest in a facility or source that has the potential to emit an air                                       
03 contaminant to the atmosphere;                                                                                          
04   (18)  "person" has the meaning given in AS 01.10.060 and also includes                                               
05 an agency of the United States, a municipality, the University of Alaska, the Alaska                                    
06 Railroad Corporation, and other departments, agencies, instrumentalities, units, and                                    
07 corporate authorities of the state;                                                                                     
08   (19)  "potential to emit" means the maximum quantity of a release of                                               
09 an air contaminant, considering a facility's physical or operational design, based on                                   
10 continual operation of all sources within the facility for 24 hours a day, 365 days a                                   
11 year, reduced by the effect of pollution control equipment and approved state or                                        
12 federal limitations on the capacity of the facility's sources or the facility to emit an air                            
13 contaminant, including limitations such as restrictions on hours or rates of operation                                  
14 and type or amount of material combusted, stored, or processed; "potential to emit"                                     
15 does not include                                                                                                        
16   (A)  a one-time, accidental release of an air contaminant; or                                                       
17   (B)  the fugitive emissions specifically exempted under 42                                                          
18 U.S.C. 7401 - 7671q (Clean Air Act);                                                                                    
19   (20)  "reconstruct" means to replace components of a facility with new                                               
20 components to such an extent that the fixed capital cost of the new components                                          
21 exceeds 50 percent of the fixed capital cost that would be required to construct a                                      
22 comparable entirely new facility;                                                                                       
23   (21)  "regulated air contaminant" means                                                                              
24   (A)  a material, compound, or element for which a national or                                                       
25 state ambient air quality standard has been adopted;                                                                    
26    (B)  oxides of nitrogen;                                                                                            
27    (C)  a volatile organic compound;                                                                                   
28   (D)  a pollutant that is addressed by a                                                                             
29   (i)  standard adopted under 42 U.S.C. 7411 - 7412 (Clean                                                           
30 Air Act, sec. 111 - 112);                                                                                               
31   (ii)  permit authorized under 42 U.S.C. 7412(g) or (j)                                                             
01 (Clean Air Act, sec. 112(g) or (j)); or                                                                                 
02   (iii)  regulation adopted under AS 46.14.010(b)(3); and                                                            
03   (E)  a substance regulated under 42 U.S.C. 7671a (Clean Air                                                         
04 Act, Sec. 602);                                                                                                         
05   (22)  "small business facility" means a facility that                                                                
06   (A)  is owned or operated by a person who employs 100 or                                                            
07 fewer individuals;                                                                                                      
08   (B)  is a small business concern as defined in 15 U.S.C. 631                                                        
09 (Small Business Act); and                                                                                               
10   (C)  emits less than 100 TPY of regulated air contaminants;                                                         
11   (23)  "source" means a device, process, activity, or equipment that                                                  
12 causes, or could cause, a release of an air contaminant;                                                                
13   (24)  "tank vessel" means a waterborne vessel, ship, or barge, whether                                               
14 or not self-propelled, that is constructed or converted to carry cargo; "tank vessel"                                   
15 includes a tanker, tank ship, or combination carrier, but does not include a vessel that                                
16 is loading or unloading                                                                                                 
17   (A)  cargo in sealed drums, barrels, or other packages; or                                                          
18   (B)  petroleum or petroleum products solely as fuel for use on                                                      
19 that vessel;                                                                                                            
20   (25)  "TPY" means tons per year.                                                                                   
21    * Sec. 3.  AS 28.10.041(a)(10) is amended to read:                                                                   
22   (10)  the vehicle is subject to a state-approved [LOCAL] emission                                                    
23 inspection program adopted [BY MUNICIPAL ORDINANCE] under AS 46.14.400 or                                              
24 46.14.510 [AS 46.03.210], and the vehicle does not meet the standards of that                                          
25 program, unless the vehicle uses a fuel source that does not primarily emit carbon                                      
26 monoxide;                                                                                                               
27    * Sec. 4.  AS 28.10.423 is amended to read:                                                                          
28  Sec. 28.10.423.  EMISSION CONTROL INSPECTION PROGRAM FEES.  In                                                        
29 addition to the annual registration fee specified in AS 28.10.421, a $1 fee is imposed                                  
30 upon every vehicle required to be inspected under an emission control program                                           
31 established under AS 46.14.400 or 46.14.510 [AS 46.03.210].  This fee shall be                                        
01 collected at the same time and in the same manner as the registration fee.                                              
02    * Sec. 5.  AS 29.10.200 is amended by adding a new paragraph to read:                                                
03   (51)  AS 29.35.055 (local air quality control program).                                                              
04    * Sec. 6.  AS 29.35 is amended by adding a new section to read:                                                      
05  Sec. 29.35.055.  LOCAL AIR QUALITY CONTROL PROGRAM.  A                                                                
06 municipality may establish a local air quality control program as provided in                                           
07 AS 46.14.400 only if the municipality has obtained the consent of its governing body                                    
08 through an ordinance authorizing the participation.  This section applies to home rule                                  
09 and general law municipalities.                                                                                         
10    * Sec. 7.  AS 29.35.200(b) is amended to read:                                                                       
11  (b)  A first class borough may by ordinance exercise the following powers on                                          
12 an areawide basis:                                                                                                      
13   (1)  provide transportation systems;                                                                                 
14   (2)  provide water pollution control;                                                                                
15   (3)  provide air pollution control in accordance with AS 46.14.400                                                 
16 [AS 46.03.140 -  46.03.230];                                                                                            
17   (4)  license day care facilities;                                                                                    
18   (5)  license, impound, and dispose of animals.                                                                       
19   * Sec. 8.  AS 29.35.210(a) is amended to read:                                                                        
20  (a)  A second class borough may by ordinance exercise the following powers                                            
21 on a nonareawide basis:                                                                                                 
22   (1)  provide transportation systems;                                                                                 
23   (2)  regulate the offering for sale, exposure for sale, sale, use, or                                                
24 explosion of fireworks;                                                                                                 
25   (3)  license, impound, and dispose of animals;                                                                       
26   (4)  subject to AS 29.35.050, provide garbage, solid waste, and septic                                               
27 waste collection and disposal;                                                                                          
28   (5)  provide air pollution control under AS 46.14.400 [IN                                                          
29 ACCORDANCE WITH AS 46.03.140 - 46.03.230];                                                                              
30   (6)  provide water pollution control;                                                                                
31   (7)  participate in federal or state loan programs for housing                                                       
01 rehabilitation and improvement for energy conservation;                                                                 
02   (8)  provide for economic development;                                                                               
03   (9)  provide for the acquisition and construction of local service roads                                             
04 and trails under AS 19.30.111 - 19.30.251;                                                                              
05   (10)  establish an emergency services communication center under                                                     
06 AS 29.35.130;                                                                                                           
07   (11)  subject to AS 28.01.010, regulate the licensing and operation of                                               
08 motor vehicles and operators;                                                                                           
09   (12)  engage in activities authorized under AS 29.47.460;                                                            
10   (13)  contain, clean up, or prevent a release or threatened release of oil                                           
11 or a hazardous substance, and exercise a power granted to a municipality under                                          
12 AS 46.04, AS 46.08, or AS 46.09; the borough shall exercise its authority under this                                    
13 paragraph in a manner that is consistent with a regional master plan prepared by the                                    
14 Department of Environmental Conservation under AS 46.04.210.                                                            
15    * Sec. 9.  AS 29.35.210(b) is amended to read:                                                                       
16  (b)  A second class borough may by ordinance exercise the following powers                                            
17 on an areawide basis:                                                                                                   
18   (1)  provide transportation systems;                                                                                 
19   (2)  license, impound, and dispose of animals;                                                                       
20   (3)  provide air pollution control under AS 46.14.400 [IN                                                          
21 ACCORDANCE WITH AS 46.03.140 -  46.03.230];                                                                             
22   (4)  provide water pollution control;                                                                                
23   (5)  license day care facilities.                                                                                    
24    * Sec. 10.  AS 37.05.146(4) is amended by adding a new subparagraph to read:                                         
25   (R)  clean air protection fund (AS 46.14.260).                                                                      
26    * Sec. 11.  AS 42.05.381 is amended by adding a new subsection to read:                                              
27  (g)  The commission shall allow, as a necessary and reasonable expense, all                                           
28 payments made to the Department of Environmental Conservation under AS 46.14.240                                        
29 - 46.14.250.  The commission shall allow the public utility to recover these fees                                       
30 through a periodic fuel surcharge rate adjustment.                                                                      
31    * Sec. 12.  AS 44.46.025(a) is amended to read:                                                                      
01  (a)  The Department of Environmental Conservation may adopt regulations that                                          
02 prescribe reasonable fees, and establish procedures for the collection of the fees, to                                  
03 cover the direct costs of the following services provided by the department:                                            
04   (1)  inspections, permit administration, plan review and approval, and                                               
05 other related services provided under AS 03.05, AS 17.20, and AS 18.35;                                                 
06   (2)  certificates of inspection for motor vehicles under AS 46.14.400                                               
07 or 46.14.510 [AIR QUALITY PERMITS UNDER AS 46.03.140 AND 46.03.160];                                                   
08   (3)  hazardous waste permits under AS 46.03.299 and 46.03.302;                                                       
09   (4)  plan approvals and permits for sewerage system and treatment                                                    
10 works and wastewater disposal systems, and plan approvals for drinking water systems,                                   
11 under AS 46.03.720;                                                                                                     
12   (5)  oil discharge financial responsibility approvals under AS 46.04.040;                                            
13   (6)  oil discharge contingency plan approvals under AS 46.04.030;                                                    
14   (7)  water and wastewater operator training under AS 46.30.                                                          
15    * Sec. 13.  AS 44.46.025 is amended by adding a new subsection to read:                                              
16  (c)  The department may adopt regulations that prescribe reasonable fees to                                           
17 cover the direct and indirect costs of air quality permit programs under AS 46.14 and                                   
18 may establish procedures for the collection of those fees.                                                              
19    * Sec. 14.  AS 44.62.330(a)(44) is amended to read:                                                                  
20   (44)  Department of Environmental Conservation, except to the extent                                                 
21 that AS 44.62.360 - 44.62.400 are inconsistent with the manner in which proceedings                                     
22 are initiated under the provisions of AS 46.03 and AS 46.14;                                                          
23    * Sec. 15.  AS 45.45.400(a) is amended to read:                                                                      
24  (a)  A person engaged in the business of selling used motor vehicles may not                                          
25 transfer or assign the owner's title or interest in the used vehicle to a person who                                    
26 resides in an area subject to a state-approved emission inspection [A                                                 
27 MUNICIPALITY THAT HAS AN AIR POLLUTION CONTROL] program                                                                 
28 established under AS 46.14.400 or 46.14.510 [AS 46.03.210] and who intends to use                                     
29 the vehicle in that area [MUNICIPALITY], unless the vehicle has a certificate of                                      
30 compliance or noncompliance as required under the air pollution control requirements                                    
31 applicable in that area [MUNICIPALITY].                                                                               
01    * Sec. 16.  AS 46.03.760(f) is amended to read:                                                                      
02  (f)  A person who violates or causes or permits to be violated a provision of                                         
03 AS 46.03.250 - 46.03.314, AS 46.14, or a regulation, a lawful order of the department,                                
04 or a permit, approval, or acceptance, or term or condition of a permit, approval, or                                    
05 acceptance issued under AS 46.03.250 - 46.03.314 or AS 46.14 is liable, in a civil                                    
06 action, to the state for a sum to be assessed by the court of not less than $500 nor                                    
07 more than $100,000 for the initial violation, nor more than $10,000 for each day after                                  
08 that on which the violation continues, and that shall reflect, when applicable,                                         
09   (1)  reasonable compensation in the nature of liquidated damages for                                                 
10 any adverse environmental effects caused by the violation, that shall be determined by                                  
11 the court according to the toxicity, degradability and dispersal characteristics of the                                 
12 substance discharged, the sensitivity of the receiving environment, and the degree to                                   
13 which the discharge degrades existing environmental quality; for a violation relating                                  
14 to AS 46.14, the court, in making its determination under  this paragraph, shall                                        
15 also consider the degree to which the discharge causes harm to persons or                                               
16 property; this paragraph may not be construed to limit the right of parties other                                       
17 than the state to recover for personal injuries or damage to their property;                                           
18   (2)  reasonable costs incurred by the state in detection, investigation, and                                         
19 attempted correction of the violation;                                                                                  
20   (3)  the economic savings realized by the person in not complying with                                               
21 the requirement for which a violation is charged; and                                                                   
22   (4)  the need for an enhanced civil penalty to deter future                                                          
23 noncompliance.                                                                                                          
24    * Sec. 17.  AS 46.03.765 is amended to read:                                                                         
25  Sec. 46.03.765.  INJUNCTIONS.  The superior court has jurisdiction to enjoin                                          
26 a violation of this chapter, AS 46.04, [OR] AS 46.09, AS 46.14, or of a regulation, a                                 
27 lawful order of the department, or permit, approval, or acceptance, or term or condition                                
28 of a permit, approval, or acceptance issued under this chapter, AS 46.04, [OR]                                          
29 AS 46.09, or AS 46.14.  In actions brought under this section, temporary or                                           
30 preliminary relief may be obtained upon a showing of an imminent threat of continued                                    
31 violation, and probable success on the merits, without the necessity of demonstrating                                   
01 physical irreparable harm.  The balance of equities in actions under this section may                                   
02 affect the timing of compliance, but not the necessity of compliance within a                                           
03 reasonable period of time.                                                                                              
04    * Sec. 18.  AS 46.03.780(a) is amended to read:                                                                      
05  (a)  A person who violates a provision of this chapter, AS 46.04, [OR]                                                
06 AS 46.09, or AS 46.14, or who fails to perform a duty imposed by this chapter,                                        
07 AS 46.04, [OR] AS 46.09, or AS 46.14, or violates or disregards an order, permit, or                                  
08 other determination of the department made under the provisions of this chapter,                                        
09 AS 46.04, [OR] AS 46.09, or AS 46.14, respectively, and thereby causes the death of                                   
10 fish, animals, or vegetation or otherwise injures or degrades the environment of the                                    
11 state is liable to the state for damages.                                                                               
12    * Sec. 19.  AS 46.03.790(a) is amended to read:                                                                      
13  (a)  Except as provided in (d) of this section, a person is guilty of a class A                                       
14 misdemeanor if the person with criminal negligence                                                                      
15   (1)  violates a provision of this chapter, AS 46.04, [OR] AS 46.09, or                                              
16 AS 46.14, a regulation or order of the department, or a permit, approval, or acceptance,                               
17 or a term or condition of a permit, approval, or acceptance issued under this chapter,                                  
18 AS 46.04, [OR] AS 46.09, or AS 46.14;                                                                                 
19   (2)  fails to provide information or provides false information required                                             
20 by AS 46.03.755, AS 46.04, or AS 46.09, or by a regulation adopted by the                                               
21 department under AS 46.03.755, AS 46.04, or AS 46.09; [OR]                                                              
22   (3)  makes a false statement or representation in an application, label,                                             
23 manifest, record, report, permit, or other document filed, maintained, or used for                                      
24 purposes of compliance with AS 46.03.250 - 46.03.314 applicable to hazardous wastes                                     
25 or a regulation adopted by the department under AS 46.03.250 - 46.03.314;                                             
26   (4)  makes a false statement, representation, or certification in an                                                
27 application, notice, record, report, permit, or other document filed, maintained,                                       
28 or used for purposes of compliance with AS 46.14 or a regulation adopted under                                          
29 AS 46.14; or                                                                                                            
30   (5)  renders inaccurate a monitoring device or method required to                                                    
31 be maintained under AS 46.14, a regulation adopted under AS 46.14, or a permit                                          
01 issued by the department or a local air quality control program under AS 46.14.                                        
02    * Sec. 20.  AS 46.03.790 is amended by adding a new subsection to read:                                              
03  (h)  Notwithstanding AS 12.55.035(b), upon conviction of a violation related                                          
04 to AS 46.14 and described in (a) of this section, a defendant who is not an                                             
05 organization may be sentenced to pay a fine of not more than $10,000 for each                                           
06 separate violation.                                                                                                     
07    * Sec. 21.  AS 46.03.850(a) is amended to read:                                                                      
08  (a)  When, in the opinion of the department, a person is violating or is about                                        
09 to violate a provision of this chapter, [OR] AS 46.04, or AS 46.14, or a regulation or                              
10 lawful order of the department, or a permit or certificate, or a term or condition of a                                 
11 permit or certificate issued by the department under this chapter, [OR] AS 46.04,                                     
12 AS 46.14, the department may notify the person of its determination by personal                                       
13 service or certified mail. The determination and notice do not constitute an order under                                
14 AS 46.03.820.                                                                                                           
15    * Sec. 22.  AS 46.03.860 is amended to read:                                                                         
16  Sec. 46.03.860.  INSPECTION WARRANT.  The department may seek search                                                  
17 warrants for the purpose of investigating actual or suspected sources of pollution or                                   
18 contamination or to ascertain compliance or noncompliance with AS 46.14 or this                                       
19 chapter or a regulation adopted under AS 46.14 or this chapter.                                                       
20    * Sec. 23.  AS 46.03.875 is amended to read:                                                                         
21  Sec. 46.03.875.  REMEDIES CUMULATIVE.  All remedies provided by this                                                  
22 chapter, [OR] AS 46.04, or AS 46.14 are cumulative, and the securing of relief,                                     
23 whether injunctive, civil, or criminal, under a section of this chapter, [OR] AS 46.04,                              
24 or AS 46.14 does not stop the state from obtaining relief under any other section of                                   
25 this chapter, [OR] AS 46.04, or AS 46.14.                                                                           
26    * Sec. 24.  AS 46.03.890(b) is amended to read:                                                                      
27  (b)  Inspection and enforcement employees of the department designated by the                                         
28 commissioner are peace officers in the performance of their duties under this chapter,                                  
29 AS 46.04, [AS 46.03, AND] AS 46.09, and AS 46.14.                                                                   
30    * Sec. 25.  AS 46.35.200(4)(A) is amended to read:                                                                   
31   (A)  emission control [AIR EMISSIONS] permit - AS 46.14                                                         
01 [AS 46.03.150], 18 AAC 50.120;                                                                                          
02    * Sec. 26.  AS 46.35.200(8) is amended to read:                                                                      
03   (8)  "state agency" means a state department, commission, board or                                                   
04 other agency of the state; for the purposes of this chapter "state agency" also means                                   
05 a local or regional air pollution control authority established under AS 46.14.400                                    
06 [AS 46.03.210].                                                                                                         
07    * Sec. 27.  AS 46.03.140, 46.03.150, 46.03.160, 46.03.170, 46.03.180, 46.03.190, 46.03.210,                          
08 46.03.220, 46.03.225, 46.03.230, and 46.03.245 are repealed.                                                            
09    * Sec. 28.  AS 46.14.110, enacted by sec. 2 of this Act, is repealed on the day after the day                        
10 the federal administrator approves the state's program under 42 U.S.C. 7661a(d) (Clean Air                              
11 Act, sec. 502(d)).                                                                                                      
12    * Sec. 29.  COMPLIANCE ADVISORY PANEL; INITIAL TERMS.  Notwithstanding                                               
13 AS 46.14.320, added by sec. 2 of this Act, the terms of the initial members of the compliance                           
14 advisory panel shall be as follows:                                                                                     
15   (1)  the terms of the members appointed under AS 46.14.320(b)(1) shall be one                                         
16 year;                                                                                                                   
17   (2)  the terms of the members appointed under AS 46.14.320(b)(3)(A) shall be                                          
18 three years;                                                                                                            
19   (3)  the terms of the members appointed under AS 46.14.320(b)(3)(B) and (C)                                           
20 shall be two years.                                                                                                     
21    * Sec. 30.  REGULATIONS.  (a)  The Department of Environmental Conservation may                                      
22 adopt regulations as authorized by this Act, and other statutory authority, to implement                                
23 changes made by this Act.  Regulations adopted under this section may not take effect until                             
24 the corresponding enabling statute takes effect under sec. 31 or sec. 32 of this Act.                                   
25  (b)  Notwithstanding AS 46.14.010 - 46.14.015, added by sec. 2 of this Act, and                                        
26 notwithstanding any other provision of this Act, a regulation in effect on the effective date of                        
27 this section that regulates a facility, source, or air contaminant more strictly than required                          
28 under 42 U.S.C. 7401 - 7671q (Clean Air Act), as amended, or that regulates a facility, source,                         
29 or air contaminant that is not required to be regulated under 42 U.S.C. 7401 - 7671q (Clean                             
30 Air Act), as amended, remains in effect and may continue to be implemented and enforced                                 
31 until amended or repealed by the Department of Environmental Conservation.  In addition, the                            
01 department may repeal a regulation that is subject to this subsection and readopt its substance                         
02 in another regulation without complying with AS 46.14.010(b) - (d) or 46.14.015 if, upon                                
03 readoption, the regulation is neither more stringent nor applicable to more facilities, sources,                        
04 or air contaminants than it was before being readopted.  In this subsection, "air contaminant,"                         
05 "facility," and "source" have the meanings given in AS 46.14.990, added by sec. 2 of this                               
06 Act."                                                                                                                   
07    * Sec. 31.  Sections 1, 3 - 30, and AS 46.14.010, 46.14.015, 46.14.020, 46.14.030,                                   
08 46.14.110, 46.14.120(a) and (c) - (e), 46.14.130(a)(1) - (3) and (5), 46.14.140, 46.14.170,                             
09 46.14.180, 46.14.190, 46.14.200, 46.14.215, 46.14.255, 46.14.280, 46.14.300, 46.14.310,                                 
10 46.14.320, 46.14.400, 46.14.410, 46.14.500, 46.14.510, 46.14.515, 46.14.520, 46.14.525.                                 
11 46.14.530, 46.14.540, 46.14.550, 46.14.560, 46.14.900, and 46.14.990, enacted by sec. 2 of                              
12 this Act, take effect immediately under AS 01.10.070(c).                                                                
13    * Sec. 32.  AS 46.14.120(b), 46.14.130(a)(4) and (b), 46.14.150, 46.14.160, 46.14.210,                               
14 46.14.220, 46.14.230, 46.14.235, 46.14.240, 46.14.250, 46.14.260, 46.14.270, 46.14.275,                                 
15 46.14.285, and 46.14.290, enacted by sec. 2 of this Act, take effect on the day after the day                           
16 the federal administrator approves the state program under 42 U.S.C. 7661a(d) (Clean Air Act,                           
17 sec. 502(d)).  The commissioner shall immediately notify the lieutenant governor and the                                
18 revisor of statutes of the day of the federal administrator's approval.