Legislature(1993 - 1994)
04/19/1993 01:36 PM House FIN
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
HOUSE BILL NO. 167 "An Act relating to air quality control and the prevention, abatement, and control of air pollution; 3 relating to civil and criminal penalties, damages, and other remedies for air quality control violations; clarifying the definition of `hazardous substance' to include releases and threatened releases to the atmosphere; amending the lien provisions relating to the oil and hazardous substance release response fund; relating to inspection and enforcement powers of the Department of Environmental Conservation; and providing for an effective date." House Bill 167 was in a subcommittee consisting of chair Representative Therriault with Representatives Hanley, Brown and Parnell. Members were provided with a Committee Substitute for HB 167, Work Draft 8-LS0492\R (Attachment 1). Representative Hanley explained that several amendments had been offered to the Committee during the 4/15/93 House Finance Committee meeting. He noted that four amendments were held from the 4/15/93 meeting (Amendments 15, 16, 17 and 19). CLAYTON HURLESS, COPPER VALLEY ELECTRIC ASSOCIATION asked that utilities be allowed to pass additional administrative costs assessed by the state on to consumers on a monthly pass through basis. He stressed that a rate case would be costly. TOM STAHR, ANCHORAGE MUNICIPAL LIGHT AND POWER COMPANY testified in favor of a monthly pass through of administrative costs assessed by the state. Representative Hanley MOVED to ADOPT Work Draft 8-LS0492\R. There being NO OBJECTION, it was so ordered. Representative Brown discussed CSHB 167 (FIN). She noted that several of her concerns have been addressed in the Committee Substitute. ROBERT REGES, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW discussed sections .010 and .015. He observed that the Department's fiscal concerns have been addressed in the Committee Substitute. He noted that the definition of "facility" has been further clarified. Representative Hanley noted that fees paid by small businesses will be paid under emissions fees not hourly charges. TOM CHAPPELLE, PROJECT MANAGER, PERMITTING GROUP, AIR COMPONENT, DEPARTMENT OF ENVIRONMENTAL CONSERVATION stated that the Department feels that concerns of the Environmental Protection Agency (EPA) have been addressed by the Committee Substitute. 4 Representative Hoffman asked how rural power utilities will be affected. Mr. Chappelle stated that permits will be required of many rural power utilities that have not had to obtained permits previously. He added that they will not necessarily be required to install pollution control equipment at current facilities. He emphasized that many small villages will not be required to obtain permits. He clarified that rural inspections will sample three or four villages a year. Representative Brown referred to page 31, line 20. She noted that the word "may" was deleted by the Subcommittee. She MOVED to delete "may" on page 31, line 20. There being NO OBJECTION, it was so ordered. Representative Brown asked if all of EPA's concerns had been addressed. Mr. Regis replied that the only outstanding issue is addressed in Amendment 17 by the Department of Law. Representative Hanley MOVED to ADOPT AMENDMENT 17 (Attachment 2). Mr. Regis explained that Amendment 17 would allow penalties to be assessed on a daily basis. There being NO OBJECTION, it was so ordered. Representative Brown MOVED to ADOPT AMENDMENT 15 (Attachment 3). She explained that the Amendment would clarify when interest would be accrued when a fee is not paid. A penalty for nonpayment of the fee is established in section (b) of Amendment 15. There being NO OBJECTION, it was so ordered. Representative Brown MOVED to ADOPT AMENDMENT 16 (Attachment 4). She explained that harm to persons or property would be taken into account when assessing damage. There being NO OBJECTION, it was so ordered. Representative Navarre MOVED to ADOPT AMENDMENT 18 (Attachment 5). He explained that the amendment would add a criminal penalties section to CSHB 167 (FIN). The criminal penalties would be addressed by class of felony. He noted that criminal penalties were originally included in HB 167. He maintained that the criminal penalties would act as a deterrent. (Tape Change, HFC 93-109, Side 1) Mr. Regis noted that page 2, subsection (h) "offense" should be changed to "violation". Co-Chair Larson MOVED to delete "offense" and insert "violation" where it occurs in Amendment 18. There being NO OBJECTION, it was so ordered. 5 Mr. Regis suggested that "certified" be deleted. He stressed that the intent is not that the notice be given through certified mail. He added that "send, by certified mail, a copy" be deleted and "provide written notice" be inserted. Representative Navarre MOVED to AMEND Amendment 17: Delete "send, by certified mail, a copy," Insert "provide written notice." Mr. Chappelle further explained the amendment. Representative Hanley requested that the amendment be divided to allow the section concerning notice to stand separately. Mr. Regis stated that if the intent is to separate misdemeanors from felonies then subsections (b) and (c) should be segregated. In addition, the words "knowingly" and "recklessly" would be deleted from (i). Representative Navarre suggested that a conceptional amendment be adopted to divide the portions regarding misdemeanors from the portions regarding felonies. There being NO OBJECTION, it was so ordered. Representative Hanley MOVED to ADOPT portions regarding misdemeanors. Mr. Regis stated that different substantive crimes will not be created by the amendment as divided and moved. Representative Hanley MOVED to RESCIND the Committee's action in dividing Amendment 18. There being NO OBJECTION, it was so ordered. Mr. Regis observed that Amendment 18 should be amended to read: "(g) The department shall provide written notice of this section to an owner operator who applies for a permit under this chapter or who request assistance in applying for a permit under this chapter. For purposes of (a) of this section, a person is considered to have received the notice if the person certifies in writing that the notice was received by a representative, employee, or employer of the person." Co-Chair Larson MOVED to AMEND Amendment 18: "(g) The department shall provide written notice of this section to an owner operator who applies for a permit under this chapter or who request assistance in applying for a permit under this chapter. For purposes of (a) of this section, a person is considered to have received the notice if the person certifies in writing that the notice was received by a representative, employee, or employer of the person." Representative Navarre MOVED to ADOPT AMENDMENT 18 as amended. Representative Therriault OBJECTED. A roll call vote was taken on the motion. 6 IN FAVOR: Brown, Grussendorf, Hoffman, Navarre OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (4-7). Mr. Chappelle discussed the new fiscal note accompanying CSHB 167 (FIN). He noted that an additional $442.8 thousand dollars in authorization is needed to carry out the legislation in FY 94. Representative Hanley MOVED to ADOPT AMENDMENT 19 (Attachment 6). Representative Brown OBJECTED. Representative Hanley stated that the amendment would allow utilities to pass through fees without a rate case. Representative Brown felt that the amendment would remove the incentive to control emissions. A roll call vote was taken on the motion to adopt Amendment 19. IN FAVOR: Foster, Hanley, Hoffman, Martin, Parnell, Therriault, Larson OPPOSED: Brown, Grussendorf, Navarre, MacLean The MOTION PASSED (7-4). Representative Navarre MOVED to report CSHB 167 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSHB 167 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Department of Environmental Conservation and with a fiscal impact note by the Department of Law.