Legislature(2021 - 2022)SENATE FINANCE 532

04/20/2022 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 199 PERM FUND; PERMANENT FUND DIVIDEND TELECONFERENCED
Heard & Held
+= SB 121 PFAS USE & REMEDIATION; FIRE/WATER SAFETY TELECONFERENCED
Heard & Held
*+ SB 243 RAISE POWER COST EQUALIZATION TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 121                                                                                                           
                                                                                                                                
   "An   Act   relating    to   pollutants;    relating   to                                                                    
   perfluoroalkyl and  polyfluoroalkyl substances;  relating                                                                    
   to  the  duties   of  the  Department   of  Environmental                                                                    
   Conservation;  relating   to   firefighting   substances;                                                                    
   relating to  thermal  remediation  of perfluoroalkyl  and                                                                    
   polyfluoroalkyl substance  contamination;  and  providing                                                                    
   for an effective date."                                                                                                      
                                                                                                                                
9:05:59 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop relayed  that it was the  second hearing for                                                                    
SB  121.  It  was  the   committees   intention  to  hear  a                                                                    
presentation   from   the    Department   of   Environmental                                                                    
Conservation (DEC) and then hear from the sponsor.                                                                              
                                                                                                                                
9:06:49 AM                                                                                                                    
                                                                                                                                
TIFFANY  LARSON, DIRECTOR,  SPILL  PREVENTION AND  RESPONSE,                                                                    
DEPARTMENT     OF     ENVIRONMENTAL    CONSERVATION     (via                                                                    
teleconference),   discussed  SB   121.  She   defined  that                                                                    
polyfluoroalkyl substances  (PFAS) was a family  of 5,000 to                                                                    
10,000  manmade chemical  compounds that  were carbon-bonded                                                                    
to fluorine, which  was one of the strongest  bonds known to                                                                    
exist. She  continued that  PFAS were  water, oil,  and heat                                                                    
resistant, and  water soluble. Additionally,  PFAS persisted                                                                    
in  the environment  and bioaccumulated  and magnified.  She                                                                    
stated that while the department  had some concerns with the                                                                    
bill, DEC  appreciated the sponsor Kiehl  bringing attention                                                                    
to the very important topic.                                                                                                    
                                                                                                                                
Ms. Larson  discussed what  DEC had done  in the  absence of                                                                    
legislation  to  protect  the  environment,  which  included                                                                    
listing PFAS and Perfluorooctanoic  acid (PFOA) as hazardous                                                                    
substances. She  cited that in  2016, Alaska was one  of the                                                                    
first  states to  promulgate  soil  and groundwater  cleanup                                                                    
levels  for  two  PFAS compounds.  In  2019  the  department                                                                    
incorporated  (through  its technical  memo)  the  use of  a                                                                    
lifetime health  advisory at  of 70  parts per  trillion for                                                                    
PFOA  and PFOS,  individually or  combined. Since  2018, DEC                                                                    
and the  Department of Transportation and  Public Facilities                                                                    
(DOT) had  been voluntarily testing drinking  water wells at                                                                    
airports required to use aqueous  reforming foam. As part of                                                                    
the effort,  there were  procedures developed  for alternate                                                                    
drinking water when needed.                                                                                                     
                                                                                                                                
Ms. Larson  asserted that  DEC was  actively working  on the                                                                    
issue and had published a strategic  road map in fall of the                                                                    
previous year. There was a  science advisory board reviewing                                                                    
documents for  PFAS and PFOA  that would likely set  a lower                                                                    
lifetime health  advisory. The draft report  was expected to                                                                    
be released  the following  May and  was expected  to reduce                                                                    
the lifetime  health advisory by  an order of  magnitude, at                                                                    
or near 7 parts per trillion or lower.                                                                                          
                                                                                                                                
Ms. Larson  noted that  in fall  of 2022,  the Environmental                                                                    
Protection  Agency  (EPA)  expected   to  issue  a  proposed                                                                    
rulemaking  for  the  National Primary  Drinking  Water  Act                                                                    
regulations for PFOA and PFAS,  with the final rule in 2023.                                                                    
In winter of  the current year, the EPA  expected to publish                                                                    
its  ambient water  quality criteria  and begin  identifying                                                                    
PFAS  in  categories  versus regulating  in  a  compound-by-                                                                    
compound  basis. She  reiterated  that there  were 5,000  to                                                                    
10,000 compounds in  the PFAS family, so  science was moving                                                                    
towards categorical  regulation. In the summer  of 2023, the                                                                    
EPA  would have  a  final rulemaking,  designating PFOA  and                                                                    
PFAS   in   the    Comprehensive   Environmental   Response,                                                                    
Compensation,  and Liability  Act  (CERCLA),  known also  as                                                                    
Superfund.                                                                                                                      
                                                                                                                                
9:10:27 AM                                                                                                                    
                                                                                                                                
JENNIFER   CURRIE,   CHIEF   ASSISTANT   ATTORNEY   GENERAL,                                                                    
DEPARTMENT OF  LAW (via  teleconference), wanted  to discuss                                                                    
four legal issues with the  bill. She highlighted that there                                                                    
were two distinct  ways that DEC could  identify a hazardous                                                                    
substance under  state law, by the  definition of  hazardous                                                                    
substance   or  by  listing a  hazardous  substance  in  its                                                                    
promulgating  regulation. She  recounted  that in  instances                                                                    
where DEC  had found a  substance as hazardous  according to                                                                    
definition   and  not   by   regulation,   there  had   been                                                                    
responsible parties  that had  tried to  eliminate liability                                                                    
by  arguing   the  substance  was   not  in   regulation  as                                                                    
hazardous. She  suggested that listing  hazardous substances                                                                    
in  statute  would lead  to  responsible  parties trying  to                                                                    
avoid liability  by claiming that  a valid  determination of                                                                    
another hazardous substance must be in statute.                                                                                 
                                                                                                                                
She discussed  DEC's required disposal  of PFAS  as proposed                                                                    
in   the  bill   and   cited  the   potential  creation   of                                                                    
contaminated sites that could  cause future state liability.                                                                    
She  mentioned the  federal governments   sovereign immunity                                                                    
from lawsuits and the difficulty  of obtaining a waiver. She                                                                    
contended  that   any  provision  that  named   the  federal                                                                    
government  under   state  statute   would  be   subject  to                                                                    
challenge  unless there  was a  valid waiver  from Congress,                                                                    
and it was likely the state  would have to enter into costly                                                                    
litigation to hold the federal government liable.                                                                               
                                                                                                                                
Ms. Currie continued her testimony.  She pointed out that it                                                                    
was unclear as to whether  the bill declared PFAS substances                                                                    
as  hazardous substances  under state  law, as  it was  only                                                                    
referred  to  as  PFAS  substances.   She  noted that  DEC's                                                                    
liability statues  only imposed joint and  several liability                                                                    
upon the release of hazardous substances.                                                                                       
                                                                                                                                
9:13:37 AM                                                                                                                    
                                                                                                                                
Ms.  Larson discussed  challenges that  existed with  DEC in                                                                    
implementing the bill. She mentioned  the lack of a database                                                                    
for  the firefighting  foam (containing  PFAS)  used in  the                                                                    
state.  She mentioned  potential  liability associated  with                                                                    
disposal of PFAS.  She asserted that there  was no mechanism                                                                    
for  DEC to  accept, handle,  or  dispose of  any amount  of                                                                    
PFAS. She asserted that the  bill would require DEC to apply                                                                    
unnecessary and expensive  administrative procedures without                                                                    
changing the  monitoring requirement. She stressed  that DEC                                                                    
had and  used the  authority to require  responsible parties                                                                    
to respond to PFAS  contamination, and to regulate hazardous                                                                    
substances.   She  thought   to   statutorily  declare   any                                                                    
substance as a pollutant could   jump ahead of the science,                                                                     
and could also take the  decision-making out of the hands of                                                                    
DECs technical experts.                                                                                                         
                                                                                                                                
Ms.  Larson  relayed  that  the  department  understood  the                                                                    
publics   concern regarding  PFAS,  and the  desire to  have                                                                    
clear  lines of  safety. She  continued that  the scientific                                                                    
community  was  still  working  to  determine  the  critical                                                                    
levels  of  PFAS  in  food,   water,  and  bodies,  and  she                                                                    
emphasized that the  bill would not make  the process happen                                                                    
any faster.                                                                                                                     
                                                                                                                                
Senator  Wilson  wondered if  the  committee  could get  Ms.                                                                    
Larson's and Ms. Currie's testimony in writing.                                                                                 
                                                                                                                                
Co-Chair Bishop requested the testimony in writing.                                                                             
                                                                                                                                
9:16:53 AM                                                                                                                    
                                                                                                                                
Senator  Olson thought  the state  was facing  a significant                                                                    
chemical issue. He remarked that  he liked the fact that the                                                                    
state had  firefighting foams that were  effective. He asked                                                                    
Ms.  Larson  about any  alternatives  she  would propose  in                                                                    
order to mitigate damage to  future generations from the use                                                                    
of PFAS. He referenced the past use of asbestos.                                                                                
                                                                                                                                
Ms. Larson thought Senator Olson  was asking if there was an                                                                    
alternative firefighting treatment substance.                                                                                   
                                                                                                                                
Senator  Olson asked  what Ms.  Larson's alternative  was to                                                                    
the proposed legislation.                                                                                                       
                                                                                                                                
Ms. Larson did  not have an alternative to  put forward, but                                                                    
thought it  was important that  the state fell in  line with                                                                    
science and  gave researchers the  ability to find  the best                                                                    
way to  regulate the substances.  She reiterated  that there                                                                    
were  somewhere between  5,000 and  10,000 compounds  in the                                                                    
PFAS family  and contended  that if  the state  continued to                                                                    
address  the  issue  on a  compound-by-compound  basis,  the                                                                    
conversation would  last for generations. She  asserted that                                                                    
the scientific community was  putting forward a concentrated                                                                    
effort towards investigating the  substances, and one of the                                                                    
efforts  was to  categorize the  substances into  a category                                                                    
based on research. She thought  the best path forward was to                                                                    
follow  the   science  and  allow   the  substances   to  be                                                                    
categorized.                                                                                                                    
                                                                                                                                
Senator   Olson  mentioned   the   sovereign  immunity   and                                                                    
differences  between   the  state  and  federal   levels  of                                                                    
government.  He  asked Ms.  Currie  about  her area  of  law                                                                    
expertise.                                                                                                                      
                                                                                                                                
Ms.  Currie  stated  she  had been  practicing  law  in  the                                                                    
Department  of Law's  Environmental  Section  for 17  years,                                                                    
prior to  which she  had practiced  environmental law  for 5                                                                    
years and worked in litigation for approximately 7 years.                                                                       
                                                                                                                                
Senator Olson  asked Ms.  Currie what  she perceived  as the                                                                    
best public policy pathway to protect the public from PFAS.                                                                     
                                                                                                                                
Ms.  Currie  was  prepared  to speak  to  legal  issues  but                                                                    
declined to address questions related  to policy and thought                                                                    
the agency could better address the topic.                                                                                      
                                                                                                                                
Senator   Olson  observed   that  people   who  had   voiced                                                                    
opposition to the  bill had made it apparent  that there was                                                                    
no alternative  other than  changing statute.  He emphasized                                                                    
the importance of addressing the problem.                                                                                       
                                                                                                                                
9:21:41 AM                                                                                                                    
                                                                                                                                
Senator Wielechowski heard  DEC say that PFAS  was listed as                                                                    
"hazardous"  by  the  state.   He  asked  what  hazards  the                                                                    
department had found were associated with exposure to PFAS.                                                                     
                                                                                                                                
Ms. Larson relayed  that once the department  would take the                                                                    
human  health   toxicological  data  and  list   PFAS  as  a                                                                    
hazardous  substance,  it  would  allow  the  department  to                                                                    
regulate  the substance  and  talk  about ultimate  disposal                                                                    
options.                                                                                                                        
                                                                                                                                
Senator  Wielechowski relayed  that he  was trying  to gauge                                                                    
how hazardous  the department believed  PFAS to be  and what                                                                    
kind of human health problems exposure caused.                                                                                  
                                                                                                                                
Ms. Larson did not have  a list of potential health problems                                                                    
caused by exposure  to PFAS. She detailed that  DEC used the                                                                    
EPAs    and  Agency   for  Toxic   Substances  and   Disease                                                                    
Registrys  assessments.  She offered to provide  a follow-up                                                                    
in writing.                                                                                                                     
                                                                                                                                
Senator Wielechowski assumed that  the department had listed                                                                    
PFAS as  a hazardous  substance and  would be  interested in                                                                    
knowing what the  department believed the hazards  to be. He                                                                    
mentioned  the concern  expressed over  AS 46.033.45  (b) by                                                                    
the  Department of  Law, in  that the  department could  get                                                                    
potentially   involved  in   litigation  with   the  federal                                                                    
government.   He  asked   what  agencies   of  the   federal                                                                    
government  required release  of a  fire-fighting substances                                                                    
containing PFAS.                                                                                                                
                                                                                                                                
Ms.  Larson  believed  the Federal  Aviation  Administration                                                                    
(FAA)  required  testing  of PFAS  substances  at  federally                                                                    
certified airports.                                                                                                             
                                                                                                                                
Senator Wilson  asked about current  state mapping  of PFAS-                                                                    
contaminated sites.                                                                                                             
                                                                                                                                
Ms. Larson stated that there was  a map published on the DEC                                                                    
website  that   identified  all  contaminated   sites.  Upon                                                                    
reporting, the sites  were added to the  database, and there                                                                    
was 100 percent mapping of known sites.                                                                                         
                                                                                                                                
Senator Wilson  asked about  the sites  that were  not known                                                                    
and  asked  for an  estimation  of  the  ratio of  known  to                                                                    
unknown sites.                                                                                                                  
                                                                                                                                
Ms. Larson could not speculate about unknown sites.                                                                             
                                                                                                                                
9:26:02 AM                                                                                                                    
                                                                                                                                
SENATOR JESSE  KIEHL, SPONSOR, appreciated  the conversation                                                                    
and DECs   contribution to the discussion.  He asserted that                                                                    
DEC  had made  some  contributions over  the  years and  the                                                                    
problems  that  the state  had  arose  from two  things.  He                                                                    
asserted  that  the  levels  that   DEC  had  set  (for  two                                                                    
chemicals only)  were set  at a much  higher level  than was                                                                    
safe.  He agreed  with  a previous  testifier  from DEC  who                                                                    
testified that  the best was  to protect health was  to list                                                                    
thousands of  the chemicals  by class  at lower  levels, but                                                                    
the bill did not do so.  He emphasized that the research was                                                                    
abundantly clear  regarding PFAS substances, and  there were                                                                    
still  some  questions  about a  class.  The  bill  involved                                                                    
substances about which there was no question.                                                                                   
                                                                                                                                
Senator Kiehl thought it was  important to note that nothing                                                                    
in the  bill would  prevent DEC  from setting  lower limits,                                                                    
nor from regulating classes of chemicals.                                                                                       
                                                                                                                                
Co-Chair Bishop thought he had  heard Ms. Larson say that by                                                                    
May  it  appeared the  level  would  go  from 70  parts  per                                                                    
million to 7 parts per million.                                                                                                 
                                                                                                                                
Senator Kiehl  deferred to  DEC in  predicting what  the EPA                                                                    
would do. He noted that the  bill proposed to set limits for                                                                    
the two substances and 8 parts  per million and 16 parts per                                                                    
million as  the highest  amounts the  state could  allow. He                                                                    
cited that  research showed with  even more risk  the limits                                                                    
could go lower.                                                                                                                 
                                                                                                                                
Senator   Kiehl  objected   to   DEC's   notions  that   the                                                                    
legislature  should  never  declare  anything  hazardous  by                                                                    
statute, which he thought the  legislature did all the time.                                                                    
He  cited  that the  DEC  statutes  declared crude  oil  (in                                                                    
uncontrolled  release  the   environment),  DDT,  and  other                                                                    
pesticides  as hazardous.  He emphasized  that the  bill did                                                                    
not  propose a  new  or  novel approach.  He  was sure  that                                                                    
potentially responsible parties might  come to court with an                                                                    
argument  about other  pollutants as  the Department  of Law                                                                    
had  suggested. He  thought the  department  would also  say                                                                    
that the  arguments had  been unsuccessful  in the  past. He                                                                    
deferred  to   the  department  regarding  the   history  of                                                                    
litigation.                                                                                                                     
                                                                                                                                
9:30:15 AM                                                                                                                    
                                                                                                                                
Senator  Kiehl addressed  the question  of whether  the bill                                                                    
should speak to federal  agencies that required the releases                                                                    
being  jointly  and  severally liable.  He  noted  that  the                                                                    
subject  had   been  vigorously  discussed  in   the  Senate                                                                    
Resources Committee,  and members of the  committee had felt                                                                    
strongly  that  the  party that  required  spilling  of  the                                                                    
substance  into  the  environment  should  share  joint  and                                                                    
several liability. The provision  did not reduce the states                                                                     
ability to  recover the  costs of  clean drinking  water for                                                                    
Alaskans  from other  parties. He  referenced the  committee                                                                    
addressing lawsuits and emphasized  that the provision in SB
121  was not  significantly different  than many  things the                                                                    
legislature  had  done  in  challenging  wrongdoing  by  the                                                                    
federal government.                                                                                                             
                                                                                                                                
Senator  Kiehl summarized  that there  were other  important                                                                    
provisions in  the bill  that would not  be solved  when the                                                                    
EPA  got around  to a  more protective  health standard.  He                                                                    
mentioned protection  for local  fire departments  and their                                                                    
liability, and the  phase-out for the oil  and gas industry.                                                                    
He   referenced   Senator   Olson's   remarks   about   safe                                                                    
replacements  for fire-fighting  foams  for everything  save                                                                    
for the oil and gas industry.                                                                                                   
                                                                                                                                
Senator Kiehl reminded  that the bill gave  the fire marshal                                                                    
the ability to only  trigger the firefighting foam phase-out                                                                    
when there  was a  safe alternative available.  He discussed                                                                    
the up  to 25 gallons  of substance take-back and  provide a                                                                    
way  for  small communities  to  get  rid  of the  foam.  He                                                                    
emphasized  that  the state  had  a  lot  of PFAS  foam.  He                                                                    
mentioned the large amounts of  PFAS that DEC had warehoused                                                                    
at airports.                                                                                                                    
                                                                                                                                
Co-Chair Bishop  set an amendment  deadline of  Friday April                                                                    
22, at five oclock.                                                                                                             
                                                                                                                                
SB  121  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 121 Support Szczepanski PFAS.pdf SFIN 4/20/2022 9:00:00 AM
SB 121
SB 121 Support Sylvester PFAS.pdf SFIN 4/20/2022 9:00:00 AM
SB 121
SB 121 Support Miller.pdf SFIN 4/20/2022 9:00:00 AM
SB 121
SB 121 ACC testimony on SB 121 - April 12.pdf SFIN 4/20/2022 9:00:00 AM
SB 121
SB 121 Support PWSRCAC.pdf SFIN 4/20/2022 9:00:00 AM
SB 121
SB 243 Sectional Analysis ver. B 4.19.22.pdf SFIN 4/20/2022 9:00:00 AM
SB 243
SB 243 Supporting Document - AEA PCE Analysis from 500 to750.pdf SFIN 4/20/2022 9:00:00 AM
SB 243
SB 199 SFIN Fiscal Modeling Presentation 4-20-22 UPDATED.pdf SFIN 4/20/2022 9:00:00 AM
SB 199