Legislature(2009 - 2010)HOUSE FINANCE 519

04/07/2009 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 2:20 pm Today --
*+ HB 214 GRANT AUTHORITY FOR AIR QUALITY TELECONFERENCED
Moved Out of Committee
+ HB 64 GIFT CARDS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 214                                                                                                            
                                                                                                                                
     "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."                                                                                                           
                                                                                                                                
Co-Chair  Hawker   commented  that   HB  214  resulted   from                                                                   
conversations of the economic  stimulus package. He explained                                                                   
that  $2 million  could  be available  to  the Department  of                                                                   
Environmental  Conservation (DEC)  for grant  awards for  air                                                                   
emissions development  and air quality control  programs. The                                                                   
Department  of  Environmental  Conservation has  had  limited                                                                   
participation in  the program in  the past. The  new stimulus                                                                   
money creates  a competitive grant program that  would extend                                                                   
to  municipalities.  House  Bill  214  provides  the  generic                                                                   
authority to issue grants, subject to appropriation.                                                                            
                                                                                                                                
2:26:59 PM                                                                                                                    
                                                                                                                                
Representative Austerman noted  that HB 214 also provides the                                                                   
department with blanket authority when necessary.                                                                               
                                                                                                                                
Representative  Kelly read from  the sponsor statement,  "The                                                                   
authority  is  needed  so  that   DEC  can  distribute  funds                                                                   
available  through  the  Air  Quality  Grant-Diesel  Emission                                                                   
Reduction program  in the American Recovery  and Reinvestment                                                                   
Act   (AARA)  of   2009."  He   believed  there   to  be   an                                                                   
inconsistency between the bill and sponsor statement.                                                                           
                                                                                                                                
2:28:23 PM                                                                                                                    
                                                                                                                                
Co-Chair  Hawker  acknowledged  that  the  wording  could  be                                                                   
clarified. He  explained that authority is necessary  for the                                                                   
department to distribute funds  through the stimulus package,                                                                   
but the authority is not limited to the package.                                                                                
                                                                                                                                
Representative  Kelly   maintained  that  the   language  was                                                                   
inconsistent.                                                                                                                   
                                                                                                                                
2:29:15 PM                                                                                                                    
                                                                                                                                
ALICE  EDWARDS, ACTING  DIRECTOR,  DIVISION  OF AIR  QUALITY,                                                                   
DEPARTMENT  OF   ENVIORMENTAL  CONSERVATION,   testified  via                                                                   
teleconference, that the legislation  authorizes the Division                                                                   
of  Air  Quality  to award  grants  related  to  air  quality                                                                   
control  programs to  communities  and others  entities.  The                                                                   
statutory  authority  could  be used  for  sub-grant  funding                                                                   
received from the Environmental  Protection Agency (EPA). The                                                                   
department  receives   EPA  grant  funds  for   programs  and                                                                   
projects to  reduce air pollutants  from emissions  of diesel                                                                   
engines.  The  new authority  allows  the division  to  grant                                                                   
funds to municipalities  for local diesel  emission reduction                                                                   
programs. She  remarked that directly funding  local programs                                                                   
and   projects  through   the  granting   program  would   be                                                                   
efficient,  and allow  more  flexibility  in distribution  of                                                                   
funds to Alaska's communities.                                                                                                  
                                                                                                                                
2:31:03 PM                                                                                                                    
                                                                                                                                
Representative Fairclough asked  if the division would create                                                                   
a  new  position  to oversee  the  broadened  authority.  Ms.                                                                   
Edwards replied no.                                                                                                             
                                                                                                                                
Representative  Kelly  asked  how  the  cases  are  currently                                                                   
handled. Ms. Edwards  remarked that the division  looked into                                                                   
agreements with other state agencies  for different projects,                                                                   
exploring the  use of the  procurement process  to distribute                                                                   
funds,  she emphasized  that the  granting  process would  be                                                                   
more efficient.                                                                                                                 
                                                                                                                                
2:32:04 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze closed public testimony.                                                                                       
                                                                                                                                
Representative  Kelly   questioned  if  the  $2   million  in                                                                   
stimulus  funds   was  contingent  on  the   passing  of  the                                                                   
legislation.                                                                                                                    
                                                                                                                                
2:33:13 PM                                                                                                                    
                                                                                                                                
Representative  Co-Chair Hawker  replied that  the Office  of                                                                   
Management and  Budget with  the Department of  Environmental                                                                   
Conservation  have  identified  the program  as  a  statutory                                                                   
necessity.                                                                                                                      
                                                                                                                                
2:33:42 PM                                                                                                                    
                                                                                                                                
MARIT   CARLSON   VAN   DORT,  SPECIAL   ASSISTANT   TO   THE                                                                   
COMMISSIONER,     LEGISLATIVE    LIASON,    DEPARTMENT     OF                                                                   
ENVIRONMENTAL  CONSERVATION, reiterated  that the  additional                                                                   
granting authority is needed to  best use the stimulus funds.                                                                   
She added that  the funds could be distributed  through other                                                                   
methods, but this method would be the most efficient.                                                                           
                                                                                                                                
Representative  Kelly expressed his  desire that the  bill be                                                                   
limited to the purpose identified in the sponsor statement.                                                                     
                                                                                                                                
2:35:43 PM                                                                                                                    
                                                                                                                                
Representative  Fairclough  questioned   the  possibility  of                                                                   
limiting  the  authority to  ARRA  2009 funding  rather  than                                                                   
giving  total grant authority.  She believed  there would  be                                                                   
cost to  the state  to rewrite  regulations for grant  giving                                                                   
authority. She wondered  if the state would  be in compliance                                                                   
if it only  allowed the granting  of the ARRA 2009  money, as                                                                   
opposed to  the full amount.  Co-Chair Hawker  explained that                                                                   
after discussions with the involved  departments, it was felt                                                                   
that  continued  authority  was necessary  for  the  existing                                                                   
program to operate more efficiently.                                                                                            
                                                                                                                                
Representative  Fairclough asked  Ms. Edwards  how the  grant                                                                   
process is  currently run, without  the grant  authority. Ms.                                                                   
Edwards explained  that the grant program is  new. She listed                                                                   
several entities that the department has been working with.                                                                     
                                                                                                                                
2:38:52 PM                                                                                                                    
                                                                                                                                
Representative  Fairclough  requested  a dollar  amount.  Ms.                                                                   
Edwards reported  that the initial grant for  the program was                                                                   
$295,000.  Representative  Fairclough   asked  how  long  the                                                                   
program had been  in existence. Ms. Edwards  replied that the                                                                   
first grant was received in the fall of 2008.                                                                                   
                                                                                                                                
2:39:31 PM                                                                                                                    
                                                                                                                                
Representative Kelly  maintained his concern in  granting the                                                                   
department  more  authority.   He  questioned  the  level  of                                                                   
importance, at this time, of allowing  the department ongoing                                                                   
authority when deciding the use of the stimulus dollars.                                                                        
                                                                                                                                
2:40:12 PM     AT EASE                                                                                                        
2:40:48 PM     RECONVENED                                                                                                     
                                                                                                                                
Co-Chair  Hawker  entered  into  record  an  email  from  the                                                                   
Division of  Administrative Services  with the Department  of                                                                   
Environmental   Conservation  (DEC)   (copy  on  file.)   The                                                                   
language in  this bill  is exactly  verbatim as requested  by                                                                   
ADEC  concerning   the  grant  authority.  He   stressed  the                                                                   
importance of committee support of the bill.                                                                                    
                                                                                                                                
Representative   Kelly  understood   that   DEC  needed   the                                                                   
authority to issue  the stimulus money. His  concern was with                                                                   
the  request   for  additional  authority.  He   wondered  if                                                                   
language  could  be  written  into  the  bill  to  limit  the                                                                   
department's grant authority to the stimulus dollars.                                                                           
                                                                                                                                
2:42:15 PM                                                                                                                    
                                                                                                                                
Vice-Chair Thomas remarked that  often small villages are out                                                                   
of  compliance and  cannot  receive grant  applications.  The                                                                   
bill would  allow rural  communities to  work through  DEC to                                                                   
obtain   grant  monies.   He  believed   that  allowing   the                                                                   
department the  grant authority would be beneficial  to rural                                                                   
village communities.                                                                                                            
                                                                                                                                
2:43:46 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  reported on  the zero fiscal  note attached                                                                   
to the bill.                                                                                                                    
                                                                                                                                
Co-Chair Hawker MOVED to report  HB 214 out of Committee with                                                                   
individual recommendations and  the accompanying fiscal note.                                                                   
                                                                                                                                
Representative Kelly OBJECTED.                                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford,   Fairclough,   Joule,  Salmon,   Thomas,                                                                   
          Austerman, Stoltze, Hawker                                                                                            
OPPOSED: Foster, Kelly                                                                                                          
                                                                                                                                
Representative Gara was absent from the vote.                                                                                   
                                                                                                                                
The MOTION PASSED (8-2).                                                                                                        
                                                                                                                                
HB  214  was REPORTED  out  of  Committee  with a  "do  pass"                                                                   
recommendation  and with  a  new zero  fiscal  note from  the                                                                   
Department of Environmental Conservation.                                                                                       
                                                                                                                                
2:45:35 PM                                                                                                                    
                                                                                                                                

Document Name Date/Time Subjects
Article on Gift Cards.pdf HFIN 4/7/2009 1:30:00 PM
HB 64
HB214 Sponsor Statement.pdf HFIN 4/7/2009 1:30:00 PM
HB 214
Newspaper Artcle.pdf HFIN 4/7/2009 1:30:00 PM
HB 64
Legislative research report.pdf HFIN 4/7/2009 1:30:00 PM
HB 64
HB64 Sponsor Statement.PDF HFIN 4/7/2009 1:30:00 PM
HB 64
HB64 Sectional Analysis.PDF HFIN 4/7/2009 1:30:00 PM
HB 64
HB64 NFIB Letter to Rep Gatto.pdf HFIN 4/7/2009 1:30:00 PM
HB 64
HB214-DEC-AQ-4-3-09.pdf HFIN 4/7/2009 1:30:00 PM
HB 214