Legislature(2023 - 2024)ADAMS 519

05/01/2024 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 5:30 PM --
+= SB 187 APPROP: CAP; REAPPROP; SUPP TELECONFERENCED
<Bill Hearing Canceled>
+= HB 307 INTEGRATED TRANSMISSION SYSTEMS TELECONFERENCED
Heard & Held
+= SB 67 PFAS: USE FOR FIREFIGHTING, DISPOSAL TELECONFERENCED
Moved HCS CSSB 67(FIN) Out of Committee
-- Public Testimony --
+ HB 196 FOOD STAMP PROGRAM ELIGIBILTY TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 223 TAX & ROYALTY FOR CERTAIN GAS TELECONFERENCED
Scheduled but Not Heard
+= HB 119 MARIJUANA TAX TELECONFERENCED
Scheduled but Not Heard
CS FOR SENATE BILL NO. 67(RES)                                                                                                
                                                                                                                                
     "An Act relating to firefighting substances; and                                                                           
     providing for an effective date."                                                                                          
                                                                                                                                
6:02:02 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster invited the sponsor and staff to the table.                                                                     
                                                                                                                                
SENATOR JESSE  KIEHL, SPONSOR,  explained that  SB 67  was a                                                                    
"no   new  spills"   bill  for   Per-  and   polyfluoroalkyl                                                                    
substances  (PFAS). He  reported that  PFAS combined  carbon                                                                    
and fluorine in  ways that were difficult to  break down and                                                                    
are known as forever chemicals.  The chemicals were toxic to                                                                    
people in  very small amounts.  The chemicals had  gotten in                                                                    
the water  mainly due to  firefighting foams in  Alaska. The                                                                    
legislation  prohibited   the  use  of   firefighting  foams                                                                    
containing   PFAS  with   a  very   limited  exception.   He                                                                    
delineated that there  was a delayed effect for  the oil and                                                                    
gas industry  where suitable  alternate chemicals  were non-                                                                    
existent. The  bill also  required the  state to  help small                                                                    
villages safely dispose of small quantities of PFAS foam.                                                                       
                                                                                                                                
Co-Chair  Foster  noted  that  he  would  set  an  amendment                                                                    
deadline.                                                                                                                       
                                                                                                                                
Co-Chair Foster  OPENED public testimony. He  noted that Ms.                                                                    
Lesh was a member of his office staff.                                                                                          
                                                                                                                                
MELANIE LESH,  SELF, GUSTAVUS (via  teleconference), thanked                                                                    
Senator Kiehl  and his  staff for  their work  on addressing                                                                    
the issue  in Alaska.  She thanked Representative  Stapp for                                                                    
offering the  companion bill. She  relayed that in  the last                                                                    
six years, it  was not safe for her to  drink the water from                                                                    
her well in Gustavus. She believed  that the bill was a good                                                                    
starting point in removing the  toxic substance from Alaskan                                                                    
rural communities  and villages. She shared  that four years                                                                    
earlier her oncologist had been  worried about the chemicals                                                                    
Ms.  Lesh had  been  exposed to  while  living in  Gustavus.                                                                    
Testing did  not exist  at the time;  however she  had since                                                                    
been  plasma tested  along with  her  neighbors and  family;                                                                    
they  all had  PFAS  levels much  higher  than the  lifetime                                                                    
limit. The  test determined that everyone  living downstream                                                                    
from the  Gustavus Airport all  had the extremely  high PFAS                                                                    
levels. She asked the committee to please support the bill.                                                                     
                                                                                                                                
Co-Chair Foster  did not realize  that the  specific testing                                                                    
was available. He thought that was educational.                                                                                 
                                                                                                                                
Representative   Josephson   thanked   Ms.  Lesh   for   her                                                                    
testimony. He observed  from a prior visit  to Gustavus that                                                                    
it was  spread out. He  asked if  the situation was  a plume                                                                    
issue  and  not  isolated  to   the  area  around  the  fire                                                                    
department. He asked what she knew about how PFAS spreads.                                                                      
                                                                                                                                
6:08:17 PM                                                                                                                    
Ms. Lesh responded that the  fire department was not located                                                                    
in the groundwater  plume area. She expounded  that her home                                                                    
was  down  "a  groundwater  plume from  the  airpor    on  a                                                                    
riverbank. During  World War  II (WWII),  the river  was the                                                                    
nearest water  delivery for the  construction work  to build                                                                    
the  airport.  Therefore, the  river  had  been the  natural                                                                    
channel for  the PFAS chemicals  to flow right past  her and                                                                    
her  neighbors  property.  The fire  department  was on  the                                                                    
other   side   of   the  river   and   was   not   affected.                                                                    
Representative  Josephson asked  for  verification that  she                                                                    
was reporting a many decades  old problem. Ms. Lesh answered                                                                    
in the affirmative.  She detailed that the  exposure was due                                                                    
to  the  PFAS  foam  that  had been  released  by  the  fire                                                                    
department at the airport.                                                                                                      
                                                                                                                                
Representative  Galvin presumed  the chemicals  had traveled                                                                    
in an underground river that  fed Ms. Lesh's well. She asked                                                                    
if it was  a problem for gardens in Gustavus.  She was aware                                                                    
that it  was an issue  in Anchorage  in Sand Lake  soil. Ms.                                                                    
Lesh  replied in  the affirmative.  She elucidated  that the                                                                    
saturation was  in her well  and she had received  a cistern                                                                    
as part  of a  settlement of release  of liability  with the                                                                    
state.  She could  not drink  the well  water nor  water her                                                                    
garden.                                                                                                                         
                                                                                                                                
Representative  Hannan shared  that  in past  years she  had                                                                    
represented Gustavus and had no  prior knowledge of PFAS and                                                                    
its dangers. Gustavus was a  community of scientists, due to                                                                    
its location near Glacier Bay  National Park. She noted that                                                                    
there  was no  community water  system, and  everyone had  a                                                                    
cistern or  well. The  community activists  had been  on the                                                                    
front  line  of alerting  Alaskans  about  PFAS dangers  and                                                                    
called  for  plasma  testing   before  there  were  accepted                                                                    
methods and levels  of testing. She voiced that  there was a                                                                    
lot  of  work  to  do  to  protect  Alaskans  and  that  the                                                                    
longitudinal   health   of    many   Alaskans   was   harmed                                                                    
significantly by PFAS exposure.  The state needed to prevent                                                                    
more  harm  going  forward  and clean  up  PFAS  sites.  She                                                                    
offered that  most people in  Gustavus had not been  able to                                                                    
harvest from their  gardens or eat eggs  from their chickens                                                                    
pecking in the  soil. Currently, game meat  was being tested                                                                    
to  determine  the PFAS  level  in  moose harvested  in  the                                                                    
community. She declared that the  harm had been extensive in                                                                    
Gustavus  and  many  other communities  across  Alaska.  She                                                                    
thanked Ms. Lesh  for sharing a painful  history in Gustavus                                                                    
with the committee.                                                                                                             
                                                                                                                                
6:14:00 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster CLOSED Public Testimony.                                                                                        
                                                                                                                                
Co-Chair Foster noted there were  two fiscal notes. He asked                                                                    
the department to review them.                                                                                                  
                                                                                                                                
ANDY    MILLS,    LEGISLATIVE   LIAISON,    DEPARTMENT    OF                                                                    
TRANSPORTATION AND  PUBLIC FACILITIES  (via teleconference),                                                                    
reviewed  the new  Department of  Transportation and  Public                                                                    
Facilities (DOT)  fiscal note  dated May  9, 2023.  He noted                                                                    
that part  of the information  was from the prior  year, but                                                                    
the information  was still relevant.  He explained  that DOT                                                                    
had discovered  fairly extensive research that  revealed the                                                                    
number  of  Project Code  Red  sites  throughout the  state,                                                                    
which  allowed   the  department  to   obtain  environmental                                                                    
contractors  to gather  rough estimates  of disposal  costs.                                                                    
The fiscal  note identified one  new position  to coordinate                                                                    
the disposal program  and an estimated capital  cost of $2.5                                                                    
million calculated by averaging  the cost estimates from two                                                                    
contractors.                                                                                                                    
                                                                                                                                
6:16:16 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster moved  to  the zero  fiscal  note from  the                                                                    
Department of Public Safety.                                                                                                    
                                                                                                                                
LISA  PURINTON, ACTING  LEGISLATIVE  LIAISON, DEPARTMENT  OF                                                                    
PUBLIC  SAFETY, explained  that  the  published zero  fiscal                                                                    
note (FN1 DPS)  dated February 24. 2023.  The department was                                                                    
not anticipating a significant fiscal impact from the bill.                                                                     
                                                                                                                                
6:17:18 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster  asked the committee  if any  member planned                                                                    
to submit an amendment.                                                                                                         
                                                                                                                                
6:17:44 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:22:31 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Foster  noted  the committee  would  consider  one                                                                    
amendment.                                                                                                                      
                                                                                                                                
Representative Stapp MOVED to ADOPT Amendment 1:                                                                                
     Page 1, following line 2:                                                                                                  
     Insert a new bill section to read:                                                                                         
        "* Section  1. AS 46.03  is amended by adding  a new                                                                    
     section to read:                                                                                                           
     Article    3A.    Firefighting   Substances    Disposal                                                                    
     Reimbursements.                                                                                                            
     Sec.   46.03.135.   Firefighting  substances   disposal                                                                    
     reimbursements. (a) A  firefighting substances disposal                                                                    
     reimbursement   program    is   established    in   the                                                                    
     department.                                                                                                                
     (b)   The  department shall  accept an  application for                                                                    
     disposal  reimbursement  on  a  form  provided  by  the                                                                    
     department from a person domiciled in                                                                                      
     (1)   a  community in  the state  with a  population of                                                                    
     less  than  2,000  that  is off  the  road  system  who                                                                    
     received  a  firefighting  substance  that  contains  a                                                                    
     perfluoroalkyl substance  or polyfluoroalkyl substance;                                                                    
     or                                                                                                                         
     (2)   the state  who received a  firefighting substance                                                                    
     that   contains    a   perfluoroalkyl    substance   or                                                                    
     polyfluoroalkyl  substance  from   a  partially  state-                                                                    
     funded fire safety project.                                                                                                
     (c)     The  department  may  accept   a  reimbursement                                                                    
     application  only if  the  application provides  proper                                                                    
     disposal   documentation    showing   compliance   with                                                                    
     regulations  adopted by  the department  and any  other                                                                    
     applicable law.                                                                                                            
     (d)  The department  shall prioritize reimbursements as                                                                    
     follows:                                                                                                                   
     (1)   activities related  to the  proper disposal  of a                                                                    
     firefighting substance  that contains  a perfluoroalkyl                                                                    
     substance   or  polyfluoroalkyl   substance,  including                                                                    
    disposal of the equipment containing the substance;                                                                         
     (2)    activities related  to  the  proper disposal  of                                                                    
     firefighting  equipment  residually contaminated  by  a                                                                    
     perfluoroalkyl substance or polyfluoroalkyl substance;                                                                     
     (3)  replacement of  equipment containing or residually                                                                    
     contaminated   by   a   perfluoroalkyl   substance   or                                                                    
     polyfluoroalkyl substance."                                                                                                
                                                                                                                                
     Page 1, line 3:                                                                                                            
     Delete "Section 1"                                                                                                         
     Insert "Sec. 2"                                                                                                            
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
     Page 1, line 4:                                                                                                            
     Delete "substances"                                                                                                        
     Insert "foam"                                                                                                              
                                                                                                                                
     Page 1, line 5:                                                                                                            
     Delete "substance"                                                                                                         
     Insert "foam"                                                                                                              
                                                                                                                                
     Page 1, line 9:                                                                                                            
     Delete "substance"                                                                                                         
     Insert "foam"                                                                                                              
                                                                                                                                
     Page 1, line 10:                                                                                                           
     Delete the first occurrence of "substance"                                                                                 
     Insert "foam"                                                                                                              
                                                                                                                                
     Page 1, line 13:                                                                                                           
     Delete "substance"                                                                                                         
     Insert "foam"                                                                                                              
                                                                                                                                
     Page 2, line 2:                                                                                                            
                                                                                                                                
     Delete "substance"                                                                                                         
     Insert "foam"                                                                                                              
                                                                                                                                
     Page 2, lines 4 - 6:                                                                                                       
     Delete all material.                                                                                                       
                                                                                                                                
     Page 2, following line 6:                                                                                                  
     Insert new bill sections to read:                                                                                          
        "*  Sec.  3. The  uncodified  law  of the  State  of                                                                    
    Alaska is amended by adding a new section to read:                                                                          
     TRANSITION:    REGULATIONS.    The   commissioner    of                                                                    
     environmental   conservation   may   adopt   or   amend                                                                    
     regulations as necessary to  implement the changes made                                                                    
     by  this  Act. The  regulations  take  effect under  AS                                                                    
     44.62  (Administrative Procedure  Act)  but not  before                                                                    
     the   effective  date   of  law   implemented  by   the                                                                    
     regulation.                                                                                                                
        *  Sec.  4.  Section  3 of  this  Act  takes  effect                                                                    
     immediately under AS 01.10.070(c)."                                                                                        
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
     Page 2, line 7:                                                                                                            
     Delete "This"                                                                                                              
     Insert  "Except as  provided  in sec.  4  of this  Act,                                                                    
     this"                                                                                                                      
     Delete "2024"                                                                                                              
     Insert "2025"                                                                                                              
                                                                                                                                
Co-Chair Foster objected for discussion.                                                                                        
                                                                                                                                
Representative  Stapp explained  the amendment.  He informed                                                                    
the  committee  that  the  amendment  made  some  structural                                                                    
changes to  the disposal reimbursement requirements  and the                                                                    
amendment  was done  in conjunction  with the  sponsor. They                                                                    
both worked had  worked to find language  that best remedied                                                                    
the  concerns  DEC had. He asked the senator  to discuss the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Senator  Kiehl   explained  that  the   amendment  reflected                                                                    
substantial  work done  by the  Department of  Environmental                                                                    
Conservation (DEC) and Department of  Law (DOL) and built on                                                                    
the work  DOT used  to build its  fiscal note.  The approach                                                                    
shifted the removal  of PFAS foam from  small rural villages                                                                    
from  the state  to a  reimbursement program.  He delineated                                                                    
that the bill  was still limited to the same  group of rural                                                                    
villages  who  received  the PFAS  from  a  partially  state                                                                    
funded  program.  He noted  that  he  was referring  to  the                                                                    
Project  Code Red  from  about a  decade  ago. The  villages                                                                    
would  be  able   to  dispose  of  the   foams  and  receive                                                                    
reimbursement  through the  mechanism in  the amendment.  In                                                                    
addition, it mitigated the potential  concerns DOL had about                                                                    
liability. He  claimed that the  amendment got the  job done                                                                    
and appreciated the amendment.                                                                                                  
                                                                                                                                
CATHY  SHLINGHEYDE, STAFF,  SENATOR  JESSE KIEHL,  explained                                                                    
that there  were two other  small changes in  the amendment.                                                                    
One change  was brought  to the  sponsor by  industries like                                                                    
telecom  companies that  had  a lot  of  server rooms  using                                                                    
clean  agent firefighting  gases worked  by removing  oxygen                                                                    
from the  room. Some  of the  halon replacements  were being                                                                    
classified  as  PFAS  in  other  states.  She  informed  the                                                                    
committee that  the bill did not  address clean firefighting                                                                    
agents, which  had no replacements. The  amendment clarified                                                                    
that the  bill addressed foam exclusively.  The other change                                                                    
also updated the effective date by one year.                                                                                    
                                                                                                                                
6:26:03 PM                                                                                                                    
                                                                                                                                
CRYSTAL   KOENEMAN,  LEGISLATIVE   LIAISON,  DEPARTMENT   OF                                                                    
ENVIRONMENTAL  CONSERVATION,  indicated that  both  sponsors                                                                    
had   worked   very   closely   with   the   Department   of                                                                    
Environmental  Conservation (DEC)  on the  language and  the                                                                    
department   was  comfortable   with   the  amendment.   The                                                                    
department had no concerns.                                                                                                     
                                                                                                                                
Representative Ortiz  deduced that the amendment  called for                                                                    
the  removal of  the PFAS  by  the village  rather than  the                                                                    
state. He  asked if he  was correct. Senator  Kiehl answered                                                                    
that the PFAS removal would  be done by a contractor trained                                                                    
in the removal of the hazardous substances.                                                                                     
                                                                                                                                
Co-Chair Foster WITHDREW the OBJECTION to Amendment 1.                                                                          
                                                                                                                                
There being no further objection it was so ordered.                                                                             
                                                                                                                                
Co-Chair Foster  asked for a  review of the new  zero fiscal                                                                    
note  from  the  Department  of  Environmental  Conservation                                                                    
allocated to Spill Prevention and Response (SPAR).                                                                              
                                                                                                                                
Ms. Koeneman replied that no  costs were anticipated by DEC.                                                                    
She noted that the fiscal  note was currently in draft form.                                                                    
She  explained that  the  communities  would be  contracting                                                                    
with  a  third  party   and  submit  reimbursements  to  the                                                                    
department which was part  of standard operating procedures.                                                                    
The  department  believed  it could  absorb  the  processing                                                                    
costs. The $2.5 million  of Unrestricted General Funds (UGF)                                                                    
capital expenditure  was maintained  in the fiscal  note for                                                                    
reimbursement to the communities  and would be sufficient to                                                                    
cover all the mitigation costs.  The department did not have                                                                    
the funds to take on the capital costs.                                                                                         
                                                                                                                                
6:30:37 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:30:52 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Ms. Koeneman  noted that  the DEC  fiscal note  replaced the                                                                    
DOT fiscal note.                                                                                                                
                                                                                                                                
Co-Chair  Edgmon MOVED  to REPORT  HCS CSSB  67(FIN) out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  notes and giving Legislative  Legal the                                                                    
ability to make technical and conforming changes.                                                                               
                                                                                                                                
There being no objection it was so ordered.                                                                                     
                                                                                                                                
HCS CSSB  67(FIN) was  REPORTED out  of committee  with nine                                                                    
"do  pass" recommendations  and with  one new  fiscal impact                                                                    
note  by the  Department of  Environmental Conservation  and                                                                    
one previously published zero note: FN2 (DPS).                                                                                  
                                                                                                                                
Senator Kiehl thanked the committee.                                                                                            
                                                                                                                                

Document Name Date/Time Subjects
HB 196 Presentation HFIN 03.06.24.pdf HFIN 5/1/2024 1:30:00 PM
HB 196
HB 196 Combined Bill File 03.06.24.pdf HFIN 5/1/2024 1:30:00 PM
HB 196
HB 196 Letters of Support 03.06.24.pdf HFIN 5/1/2024 1:30:00 PM
HB 196
HB 196 Public Testimony Rec'd by 040424.pdf HFIN 5/1/2024 1:30:00 PM
HB 196
HB 196 Sectional Analysis Version A 03.06.24.pdf HFIN 5/1/2024 1:30:00 PM
HB 196
HB 196 Sponsor Statement Version A 03.06.24.pdf HFIN 5/1/2024 1:30:00 PM
HB 196
HB 196 Supporting Document - CBPP Report BBCE Supports Working Families 03.06.24.pdf HFIN 5/1/2024 1:30:00 PM
HB 196
HB 196 Supporting Document - Fact Sheets 03.06.24.pdf HFIN 5/1/2024 1:30:00 PM
HB 196
HB307 HFIN Presentation 5.1.24.pdf HFIN 5/1/2024 1:30:00 PM
HB 307
HB 223 Amendment 1 to Amendment 13 ( D.12) 050124.pdf HFIN 5/1/2024 1:30:00 PM
HB 223
SB 67 Amendment 1 Stapp 050124.pdf HFIN 5/1/2024 1:30:00 PM
SB 67
SB 67-NEW FN DEC-SPAR-05-01-24.pdf HFIN 5/1/2024 1:30:00 PM
SB 67