Legislature(2009 - 2010)BELTZ 211
02/10/2009 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB48 | |
| SB93 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 48 | TELECONFERENCED | |
| *+ | SB 93 | TELECONFERENCED | |
SB 93-MUNICIPAL AIR QUALITY PROPERTY TAX CREDIT
CHAIR OLSON announced consideration of SB 93.
4:08:06 PM
JOE PASKVAN, Senator, Alaska State Legislature, read from his
sponsor statement:
Some communities in Alaska have been designated as
non-attainment areas for PM 2.5 by the EPA. Based on
the requirements of the Clean Air Act, the state and
those impacted local governments have three years to
develop attainment plans designed to bring air quality
into compliance with federal air standards.
SB 93 is needed as a first step to allow local
municipalities the latitude in developing tax credit
programs to address the important public health and
community compliance issues that result from poor air
quality.
SB 93 is designed to provide optional tools to
municipalities that can be used to create incentives
for individuals to take actions that will improve
local air quality and reduce fuel consumption.
SB 93 expands the discretion of municipalities in a
manner that allows, by ordinance, the creation of
programs that will offer property tax credits for
actions that the local governing body determines will
improve air quality. This bill requires that
eligibility, conditions and other criteria for the tax
credits be established by ordinance.
SENATOR PASKVAN said the SB 93 can be used by municipalities for
exchanging old wood stoves for EPA certified stoves, which will
significantly reduce fine particulate emissions. It can include
incentives to improve fuel consumption and to convert from a
carbon-based system to alternative energy. SB 93 is designed to
provide a full range of options for local municipalities to
address air quality. There is a zero fiscal note attached.
4:10:44 PM
CHAIR OLSON asked what incentives can produce a zero fiscal
note.
SENATOR PASKVAN said it won't cost the state. The municipality
will provide tax credits. People from Fairbanks will be
testifying on what option they are considering. This is a first
step to improve air quality and meet the EPA's timeline.
4:11:43 PM
CHAIR OLSON asked if this is a property tax credit.
SENATOR PASKVAN said yes.
4:11:55 PM
JIM CONNOR, Air Quality Specialist, Fairbanks North Star
Borough, said Senator Paskvan did a good job of outlining the
issues. In September, 2006, the EPA lowered the allowable levels
of PM 2.5, otherwise known as fine particulates that are smaller
than a blood cell. It went from 65 micrograms per cubic meter to
35. Fairbanks regularly hits 40 to 50 during the winter, so it
fell out of attainment with the EPA. The majority of the
pollution is coming from space heating and transportation. This
bill allows the borough to address the heating component without
finding money. "This really provides us with a wonderful
incentive, and I would really like to see this passed."
4:13:43 PM
CHAIR OLSON asked if there is a problem with particulate matter.
MR. CONNOR said yes, there is a tremendous amount of fine
particulates in the Fairbanks area. From the hillside, "it looks
like the place is on fire just because of all the smoke that's
sitting in the valley."
CHAIR OLSON asked if it is about health troubles or what.
MR. CONNOR said, "We get many calls from people who are
beginning to have health problems. The most sensitive people
call first."
CHAIR OLSON asked if he is talking about people with lung
problems, like asthma and emphysema.
MR. CONNOR said, yes: respiratory and heart disease.
CHAIR OLSON asked about the burden to people who burn wood.
MR. CONNOR said there are very efficient devices for burning
wood, so the inefficient units will be targeted. There is an
estimated 5,000 wood stoves that are not EPA certified. "We
figure we'll get at least a factor of 10 reduction from the
emissions ... by replacing them with more efficient units."
4:15:12 PM
CHAIR OLSON said people who have the older stoves are least able
to afford a new one. They will have to put the cash out first
before they get a tax credit. "How do you take the burden off of
those that are most burdened already?"
MR. CONNOR said the borough will be pursuing wood stove change-
out programs, like the one with the Alaska Department of
Environmental Conservation (DEC). But some people will be
burdened by spending money first and getting the credit later.
4:16:30 PM
SENATOR THOMAS suggested that people are not required to do
anything by this law. They would do it on their own if they want
to and can benefit by the tax credit.
MR. CONNOR said there is also the economic incentive of getting
more heat for their fuel in their stoves. But it doesn't look
very attractive to someone who is asked to pay up to $2,000 to
replace a working system. It is not required. There is no
requirement for anybody to change stoves.
4:17:27 PM
GLEN MILLER, Transportation Director, Fairbanks North Star
Borough, said he didn't intend to testify but after reviewing
the bill he encourages its support. It will speed up the process
that Fairbanks' needs to go through. There are only three years
to come into attainment. He doesn't think control measures will
be enacted for at least another year. It leaves very little time
for Fairbanks. This bill will provide early incentives for
individuals who choose such modifications. It could make
attainment much easier. Future control measures may be relaxed
due to this incentive program.
4:19:24 PM
SENATOR THOMAS asked how many times Fairbanks exceeds EPA
attainment numbers.
MR. MILLER said it is typically 20-30 times per year.
CHAIR OLSON asked the consequences of that.
MR. MILLER said that after two violations, Fairbanks can be put
in the status of nonattainment. It could ultimately have
financial consequences, but this is a health-based standard, and
the public is at risk. It could impact DOT [Department of
Transportation] money for Fairbanks and the state.
CHAIR OLSON asked what happens if attainment isn't attained
after three years. Will there be heavier measures against wood
stove burning and transportation activities?
4:21:13 PM
MR. MILLER said there are three years to produce a plan and five
years to achieve attainment. After that, an extension can be
requested. Ultimately the state is responsible, and if the state
can't fix it, EPA will take action, which could mean federal
sanctions or controls. Other states have prohibited burning wood
entirely.
CHAIR OLSON said it is a concern if people can't heat their home
because wood is the only option.
4:21:52 PM
NADINE WINTERS, Presiding Officer, Fairbanks North Star Borough
Assembly, said Fairbanks is in a difficult position. Recent oil
prices have caused more people to heat with wood. The borough is
looking for ways to reach attainment and improve air quality
without making it onerous on individuals and businesses. If a
person has a non-EPA certified stove, SB 93 will allow Fairbanks
to give a property tax credit for buying a new stove. It is a
way to deal with EPA and health issues. Another concern is that
being out of attainment is a potential hindrance to economic
development, especially for any project that requires an
environmental assessment or impact statement. She asked the
committee to support the bill.
4:24:41 PM
SENATOR FRENCH said he is envious of Fairbanks's financial
strength. He doesn't think Anchorage would extend a tax credit
to anybody for anything. He asked how much money will be made
available for this credit.
MS. WINTERS said she doesn't know how many people heat with
wood. This approach is an "avoidance of taxes collected versus
direct expenditure." It will be a difficult trade off even
though Fairbanks doesn't have a shortfall. Taxpayers are feeling
pressure everywhere. She said the costs will be looked at
closely and the borough will assess "what we're going to do
without ... as a result of this program." But the stakes are
really high; it involves the community's physical health and
future economic development.
SENATOR THOMAS said he understands there has been a rapid
increase in coal burning stoves when the price of fuel oil went
up, which is not good. "The government's response to that as a
health hazard is to withhold transportation funds. It usually
seems to be the first thing that they approach." He asked if she
has numbers on coal stoves sold in the Fairbanks area.
4:27:13 PM
MS. WINTERS said she doesn't know, but coal stoves are serious
contributors to PM 2.5 and there has been an increase in them as
a result of oil prices. The emissions tend to stay low to the
ground, which is not good. She is not sure there is an EPA
compliant coal stove. That will be another difficult legislative
decision.
SENATOR THOMAS asked if the tax credit will be available for
exchanging a coal stove for a cleaner burning stove.
MS. WINTERS said yes.
4:29:02 PM
ALICE EDWARDS, Acting Director, Division of Air Quality,
Department of Environmental Conservation, Juneau, said the
division received a grant of under $100,000 to do a pilot wood
stove change-out program. It is a drop in the bucket compared to
what is needed. She expects to see about 80 stoves exchanged.
The division is proceeding with it this spring. At this point
the program doesn't necessarily target low income homes,
although there are some other programs in the state offering
weatherization and energy assistance to low income homes.
CHAIR OLSON said, according to the bill sponsor, there are 5,000
to 6,000 wood stoves with an estimated 20 to 30 percent that are
not EPA compliant.
4:30:44 PM
SENATOR PASKVAN said communities such as Fairbanks have already
been designated non-attainment areas, so [SB 93] allows them to
use tax credits to encourage voluntary conduct by individuals.
That will help them figure out if reducing fine particulates,
increasing energy efficiency, or converting to alternative
energy works best for each community. That is a "carrot" that
will help avoid EPA's "stick".
4:32:20 PM
SENATOR KOOKESH asked how to control air quality with all the
forest fires. "You always have fires around that area." Whenever
he is in Fairbanks, he drives through smoke that is not from
wood stoves.
SENATOR PASKVAN said he understands because he has lived through
two of those summers. The bill is primarily designed to control
the problem during winter when there are inversions that trap
fine particulates at ground level. That is why Fairbanks differs
from other communities.
CHAIR OLSON asked if he means that particulates aren't a problem
during forest fires.
SENATOR PASKVAN said he didn't say that at all. That is
something that no government can control. But for controllable
issues, like wood stoves, burning too much oil in inefficient
buildings, and not changing to non-carbon energy, that is where
we are trying to give incentives for voluntary efforts. This
will allow municipalities to come up with the best alternatives
that meet the needs of people.
SB 93 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSSB48 Sectional Analysis.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 48 |
| CSSB48 Work Draft.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 48 |
| SB48 Sponsor Statement.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 48 |
| SB48 Fact Sheet.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 48 |
| SB48 FBks NSB Request for Legislation.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 48 |
| SB48 Fbks NSB Resolution 2008-34.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 48 |
| SB48 Expected Testimony List.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 48 |
| SB48 Fiscal Note DCCED.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 48 |
| SB93 FEDC Study.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 93 |
| SB93 Fbks NSB Letter.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 93 |
| SB93 AML Letter.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 93 |
| SB93 Fiscal Note DCCED.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 93 |
| SB93 Particulate Matter.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 93 |
| SB93 PM2.5.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 93 |
| SB93 Q&A.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 93 |
| SB93 Sponsor Statement.pdf |
SCRA 2/10/2009 3:30:00 PM |
SB 93 |