03/21/2005 03:30 PM Senate RESOURCES

          SB 144-EMISSION CONTROL PROGRAM PERMITS/REGS                                                                      
                                                                                                                              
                                                                                                                                
CHAIR   THOMAS  WAGONER   announced   SB  144   to   be  up   for                                                               
consideration.                                                                                                                  
                                                                                                                                
4:28:15 PM                                                                                                                    
SENATOR SEEKINS  moved CSSB  144(RES), Version  F. There  were no                                                               
objections and it was so ordered.                                                                                               
                                                                                                                                
MARY JACKSON,  staff to Senator  Wagoner, said the  discussion on                                                               
this bill has been around  its definitions on page 6. "Stationary                                                               
source"  has the  meaning given  in 40  C.F.R. 51.66  and SB  144                                                               
inserts   "or 40 C.F.R. 70.2,  depending on the context  in which                                                               
the  term  is used."  The  department  did not  feel  comfortable                                                               
working with the  previous definition. It was felt  that the most                                                               
reasonable   way  to   clarify  it   was  to   reference  federal                                                               
definitions. She pointed out that SB 144 has a zero fiscal note.                                                                
                                                                                                                                
4:30:36 PM                                                                                                                    
SENATOR GUESS asked  about the impact and purpose of  the July 1,                                                               
2005 effective date.                                                                                                            
                                                                                                                                
MS. JACKSON deferred the answer to the department.                                                                              
                                                                                                                                
4:31:01 PM                                                                                                                    
JOHN  KUTERBACH,  Manager,  Air Permits  Program,  Department  of                                                               
Environmental Conservation  (DEC), explained  that two  years ago                                                               
Governor  Murkowski   started  to  reform  Alaska's   air  permit                                                               
programs to better meet the needs of our state.                                                                                 
                                                                                                                                
     The reforms  were intended to make  Alaska's air permit                                                                    
     programs  more consistent  with the  underlying federal                                                                    
     requirements. Consistency with  federal law would allow                                                                    
     Alaska to  take advantage  of the  flexibility afforded                                                                    
     by changes  in federal law  and to follow  the guidance                                                                    
     and interpretations  used elsewhere  in the  nation. We                                                                    
     have completed the necessary  regulations and are ready                                                                    
     to submit them for  federal approval. However, we found                                                                    
     several  places where  the statute  did not  quite meet                                                                    
     federal requirements.                                                                                                      
                                                                                                                                
     We  need to  require  operating permits  for groups  of                                                                    
     stationery   sources.  We   need  the   definitions  of                                                                    
     'emissions  unit' and  'stationery  source' to  include                                                                    
     both the  federal construction  permit and  the federal                                                                    
     operating  permit definitions.  And we  need to  insure                                                                    
     that all  permittees pay their assessed  emission fees.                                                                    
     This bill makes these  technical corrections and allows                                                                    
     the  department  to  revoke   a  minor  permit  when  a                                                                    
     permittee refuses to pay their fees.                                                                                       
                                                                                                                                
4:32:41 PM                                                                                                                    
MS. JACKSON repeated  Senator Guess's question about  the July 1,                                                               
2005 effective date.                                                                                                            
                                                                                                                                
MR. KUTERBACH replied that he  wasn't certain, but suspected that                                                               
it might have  to do with the fact that  the permitting fees have                                                               
a split  in their  fund source  that occurs  at the  beginning of                                                               
next fiscal year.                                                                                                               
                                                                                                                                
CHAIR WAGONER said  that Steve Mulder from the  Department of Law                                                               
could  answer  further  legal questions.  There  was  no  further                                                               
testimony.                                                                                                                      
                                                                                                                                
4:33:54 PM                                                                                                                    
SENATOR DYSON  moved to  pass CSSB  144(RES) from  committee with                                                               
individual recommendations.  There were no objections  and it was                                                               
so ordered.