04/09/2009 09:00 AM Senate FINANCE

SENATE BILL NO. 183                                                                                                           
                                                                                                                                
     "An  Act  authorizing the  Department  of  Environmental                                                                   
     Conservation  to award  grants  for the  control of  air                                                                   
     emissions or  the development and administration  of air                                                                   
     quality   control  programs;   and   providing  for   an                                                                   
     effective date."                                                                                                           
                                                                                                                                
9:41:06 AM                                                                                                                    
                                                                                                                                
DARWIN PETERSON, STAFF TO CO-CHAIR  STEDMAN explained that SB
 provides  the statutory authority  for the  Department of                                                                   
Environmental  Conservation  (DEC)  to  grant funds  for  the                                                                   
control   of   air   emissions    or   the   development   or                                                                   
administration of air quality  control programs in the state.                                                                   
The committee  recalls the  hearing on  SB 161, The  American                                                                   
Recovery  and  Reinvestment  Act   of  2009  as  one  of  DEC                                                                   
appropriations. During the hearing  the department approached                                                                   
the committee and requested introduction  of this legislation                                                                   
to give authority  to receive and expend those  grants if the                                                                   
administration  accepts that  appropriation  in the  American                                                                   
Recovery and  Reinvestment Act.  The legislation  is verbatim                                                                   
as requested  by the  department. During  the SB 161  hearing                                                                   
the  department  gave  the committee  information  about  the                                                                   
intent of expenditure as well as those who qualify.                                                                             
                                                                                                                                
Co-Chair Stedman  asked what would happen if  the legislation                                                                   
were  enacted  and  the  American   Recovery  Act  funds  are                                                                   
declined.  Mr. Peterson answered  that if  the funds  are not                                                                   
accepted  by  the  administration,   this  legislation  would                                                                   
remain  on the books  allowing statutory  grant authority  to                                                                   
exist  if  funds  are appropriated  by  the  legislature.  He                                                                   
stated that there would be no negative impact to the state.                                                                     
                                                                                                                                
Co-Chair Stedman  asked if the  department was in  support of                                                                   
the bill.                                                                                                                       
                                                                                                                                
9:43:31 AM                                                                                                                    
                                                                                                                                
ALICE EDWARDS,  ACTING DIRECTOR, DEPARTMENT  OF ENVIRONMENTAL                                                                   
CONSERVATION/AIR  QUALITY responded  that the department  was                                                                   
in  support  of  the bill.  Co-Chair  Stedman  asked  if  the                                                                   
administration  agreed that the  legislation was "do  no harm                                                                   
legislation." Ms. Edwards concurred.                                                                                            
                                                                                                                                
Senator  Olson  stated  that air  quality  remains  an  issue                                                                   
plaguing  the Red  Dog  mine. He  asked  how the  legislation                                                                   
affects  the   issues  raised  in  the  last   several  years                                                                   
regarding air quality in the mine.                                                                                              
                                                                                                                                
Ms.  Edwards   answered  that   this  legislation   does  not                                                                   
specifically address the issue;  however, with the ability to                                                                   
grant the  funds under competitive  process, an  entity could                                                                   
apply  for  the  funds  and  perhaps   make  improvements  to                                                                   
equipment.                                                                                                                      
                                                                                                                                
Senator Thomas asked about Section  b, Lines 10 and 11 noting                                                                   
that the  department may adopt  regulations to carry  out the                                                                   
purposes of  this section.  He asked if  this means  that the                                                                   
department could  adopt regulations specific to  the awarding                                                                   
of grants. Ms.  Edwards concurred that the  legislation would                                                                   
pertain  to adopting  regulations related  to issuing  grants                                                                   
not for other purposes.                                                                                                         
                                                                                                                                
9:45:44 AM                                                                                                                    
                                                                                                                                
Senator  Huggins  recalled  a similar  debate  regarding  low                                                                   
sulfur production  transportation. He  opined that  the state                                                                   
was now taking low sulfur diesel  and hauling it up the road.                                                                   
He understood the issue to be  about diesel emissions and was                                                                   
perplexed about grants to address  diesel emissions. He asked                                                                   
about  a  timeline  regarding   a  yes  or  no  answer  about                                                                   
acceptance of the stimulus money.  Ms. Edwards responded that                                                                   
she  did   not  know   the  answer.   She  stated   that  the                                                                   
administration preserved  the ability to accept  the fund and                                                                   
a grant application  was submitted per the  federal timelines                                                                   
to accept the grant.                                                                                                            
                                                                                                                                
Co-Chair Stedman asked if the  committee could take action on                                                                   
the bill during  the next session or is the  legislation time                                                                   
sensitive.                                                                                                                      
                                                                                                                                
9:48:29 AM                                                                                                                    
                                                                                                                                
Ms.  Edwards  answered  that   the  stimulus  funds  must  be                                                                   
expended by  September 30  2010 making  it unlikely  that the                                                                   
administration  could  perform  the work  envisioned  by  the                                                                   
American  Recovery  and  Reinvestment   Act  if  passed  next                                                                   
session.                                                                                                                        
                                                                                                                                
Co-Chair   Stedman   commented   about  the   challenges   of                                                                   
understanding  which pieces  of  the legislations  must  move                                                                   
forward in a timely manner preventing  loss of stimulus money                                                                   
available   to  the   state.   The  risk   with   legislation                                                                   
accompanied by  high fiscal notes is the  precarious position                                                                   
of having  the fiscal note flow  against the general  fund as                                                                   
opposed to being offset by federal revenue.                                                                                     
                                                                                                                                
SB  183  was   HEARD  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
9:50:25 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  stated that the  legislature is now  on the                                                                   
24 hour rule.                                                                                                                   
                                                                                                                                
9:51:12 AM