Legislature(2005 - 2006)CAPITOL 124

04/27/2005 01:00 PM House RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HCR 10 SUPPORTING KENSINGTON GOLD MINE TELECONFERENCED
Moved CSHCR 10(RES) Out of Committee
+ SB 144 EMISSION CONTROL PROGRAM PERMITS/REGS TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
SB 144-EMISSION CONTROL PROGRAM PERMITS/REGS                                                                                  
                                                                                                                                
1:18:34 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS  announced that the  next order of  business would                                                              
be  SENATE  BILL  NO.  144,  "An   Act  relating  to  regulations,                                                              
definitions,  and  permits  under   the  emission  control  permit                                                              
program; and providing for an effective date."                                                                                  
                                                                                                                                
CO-CHAIR SAMUELS moved to adopt CSSB 144(RES), labeled 24-                                                                      
LS0677\F, as the working document.  There being no objection,                                                                   
Version F was before the committee.                                                                                             
                                                                                                                                
1:19:22 PM                                                                                                                    
                                                                                                                                
AMY  SEITZ,  Staff   to  Senator  Thomas  Wagoner,   Alaska  State                                                              
Legislature,  presented  CSSB 144(RES),  labeled  24-LS0677\F,  on                                                              
behalf  of the  Senate Resources  Standing  Committee, sponsor  by                                                              
request, which is chaired by Senator Wagoner.  She explained:                                                                   
                                                                                                                                
     Senate Bill  144 is a  cleanup bill.   Back in  2003 the                                                                   
     legislature passed  a bill, I believe it  was House Bill                                                                   
     160,  that's purpose  was to streamline  the Alaska  air                                                                   
     permitting  program  by  aligning   it  to  the  federal                                                                   
     requirements  for  air  permitting.   And  when  [Alaska                                                                   
     Department  of  Environmental Conservation  (ADEC)]  was                                                                   
     adopting  regulations  to  carry the  changes  out  they                                                                   
     realized  that  there  were   some  problems  that  were                                                                   
     missed that  needed to be  addressed - not  very serious                                                                   
     ones,  but ones  that  needed to  be  addressed so  that                                                                   
     they  could be  in  alignment with  federal  regulations                                                                   
     for  requirements,  and  so  the state  could  keep  the                                                                   
     primacy over the air permitting process.                                                                                   
                                                                                                                                
     One  of the  changes  is that  it  just  works with  the                                                                   
     definitions,  makes sure the  definitions match  federal                                                                   
     definitions.   And another  change is  dealing with  the                                                                   
     fees.  Right  now the air permitting program  is funding                                                                   
     entirely  by its user  fees.   So SB 144  puts in  a way                                                                   
     for {ADEC] to  revoke permits if the fees  are not paid.                                                                   
     This  will ensure that  the air  permitting program  can                                                                   
     continue being funded by fees.                                                                                             
                                                                                                                                
1:22:23 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SAMUELS asked if "major source" is a federal term.                                                                     
                                                                                                                                
MS. SEITZ replied that the definition of "major source" referred                                                                
to on page 2, line 7 of the bill.                                                                                               
                                                                                                                                
CO-CHAIR SAMUELS asked if "stationary source" is also a federal                                                                 
term.                                                                                                                           
                                                                                                                                
MS. SEITZ deferred the question to an ADEC representative.                                                                      
                                                                                                                                
REPRESENTATIVE  LEDOUX asked  what the  actual federal  definition                                                              
for "major source" was.                                                                                                         
                                                                                                                                
MS. SEITZ deferred the question to a ADEC representative.                                                                       
                                                                                                                                
1:23:32 PM                                                                                                                    
                                                                                                                                
JOHN  KUTERBACH, Program  Manager,  Air Permits,  Division of  Air                                                              
Quality,  Department of  Environmental  Conservation, stated  that                                                              
he was available to answer questions from the committee.                                                                        
                                                                                                                                
REPRESENTATIVE  LEDOUX  reiterated   her  question  regarding  the                                                              
federal definition of "major source."                                                                                           
                                                                                                                                
1:24:10 PM                                                                                                                    
                                                                                                                                
MR. KUTERBACH replied  that the federal definition  comes from the                                                              
Clean  Air Act,  and he  said, "It  parrots the  language that  is                                                              
being removed,  but not exactly."   He pointed out that  under the                                                              
Clean  Air Act  the  term "major  source"  means: "Any  stationary                                                              
source  or   group  of   stationary  sources   located  within   a                                                              
contiguous area  and under  common control that  is either  of the                                                              
following: a  major source as defined  in Section 112,  or a major                                                              
stationary source  as defined  in Section 302  or Part D  of Title                                                              
I."     He  noted  that  the   difference  between   that  federal                                                              
definition and  the current state  definition is that  the federal                                                              
definition  refers   to  a  stationary   source  or  a   group  of                                                              
stationary  sources  under common  control,  while  the state  law                                                              
only  refers  to  a  single  stationary  source.    Therefore,  he                                                              
explained,  the state  regulations  are not  as  stringent as  the                                                              
federal regulations,  and cannot be approved under Title  V of the                                                              
Clean Air Act.                                                                                                                  
                                                                                                                                
1:25:46 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SAMUELS turned  to page 4, line 22 of the  bill and noted                                                              
that the bill  would give the ADEC  the ability to revoke  a minor                                                              
permit.  He asked  for an explanation of the difference  between a                                                              
minor permit and a major permit.                                                                                                
                                                                                                                                
MR.  KUTERBACH  clarified  that  the difference  between  a  minor                                                              
permit and a major  permit was spelled out two years  ago in House                                                              
Bill  160.   He  said  that the  minor  permit program  are  those                                                              
permits that are  required for management of Alaska's  air quality                                                              
that  aren't specifically  required  under the  federal Clean  Air                                                              
Act, and  it is  based on the  potential of  [a facility]  to emit                                                              
air pollutants.   He pointed out that the reason  why this part of                                                              
the bill  only refers to  minor permits  and not major  permits is                                                              
that  major permits  must  be renewed  every  five  years and  the                                                              
state  has the  ability to  refuse  renewal if  fees aren't  paid.                                                              
Whereas  minor   permits  may  last  forever  and   therefore,  he                                                              
concluded, the state  needs to have the authority  to revoke those                                                              
permits if the fees aren't paid.                                                                                                
                                                                                                                                
1:27:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SAMUELS noted that  on page  6, line  3, the  bill would                                                              
repeal AS 46.14.990(18).  He asked what this statute says.                                                                      
                                                                                                                                
MR. KUTERBACH  replied that  this would  repeal the definition  of                                                              
modification, which  was originally needed two years  ago in House                                                              
Bill 160  to tell what  types of  modifications need  new permits.                                                              
However,  he said,  there  is nothing  currently  in statute  that                                                              
refers  to  modifications  and  therefore  this  definition  isn't                                                              
needed.  He noted,  "The definition that we did  have prevented us                                                              
from  using  that term  in  our  regulations consistent  with  the                                                              
federal regulations."                                                                                                           
                                                                                                                                
1:28:23 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS closed public testimony.                                                                                        
                                                                                                                                
1:28:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON  moved  to   report  CSSB  144(RES)  out  of                                                              
committee  with individual  recommendations  and the  accompanying                                                              
fiscal notes.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  GATTO  clarified  that the  committee  was  moving                                                              
Version F  of the bill.  There  being no objection,  CSSB 144(RES)                                                              
was reported from the House Resources Standing Committee.                                                                       

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