Legislature(2023 - 2024)BELTZ 105 (TSBldg)
04/10/2023 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB70 | |
| HB56 | |
| HB51 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 73 | TELECONFERENCED | |
| += | SB 70 | TELECONFERENCED | |
| *+ | HB 51 | TELECONFERENCED | |
| *+ | HB 56 | TELECONFERENCED | |
HB 51-USE OF DESIGNATED REFRIGERANTS
2:31:14 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of HOUSE BILL NO. 51 "An Act relating to
refrigerants designated as acceptable for use under federal
law."
2:31:37 PM
At ease.
2:32:29 PM
CHAIR BJORKMAN reconvened the meeting and invited the bill
sponsor to present the bill.
2:32:45 PM
REPRESENTATIVE STANLEY WRIGHT, District 22, Alaska State
Legislature, Juneau, Alaska, sponsor of HB 51, stated that this
bill adds a section to Alaska statutes that would allow, but not
mandate, transition away from hydrofluorocarbons (HFC), joining
a nationwide effort to phase in the use of less polluting
alternatives. He deferred to Mr. Henthorn to read the sponsor
statement.
2:34:05 PM
BILL HENTHORN, Intern, Representative Stanley Wright, Alaska
State Legislature, Juneau, Alaska, read the sponsor statement
for HB 51:
[Original punctuation provided.]
Alaska is one of the states where legislation is
needed to prepare for the transition away from
hydrofluorocarbons (HFCs). HFCs are chemicals that are
most commonly found in industrial and residential air
conditioning systems in the form of refrigerant,
According to the Climate and Clean Air Coalition,
"The most abundant HFC is 3,790 times more damaging to
the climate than carbon dioxide over a 20-year period"
(CCA) House Bill 51 aims to give the Heating,
Ventilation, and Air Conditioning (HVAC) Industry the
framework it needs to begin the transitioning process
in the future in a safe and efficient manner, allowing
for them to stay as competitive as possible while also
lowering the global warming potential by approximately
75% through switching to HFC alternatives.
To move forward with the goal of switching out
HFCs, the legislature must ensure that the building
codes in Alaska cannot stop the use of a HFC
alternative as long as the equipment needed to use it
is installed properly and complies with the necessary
safety standards. Supporting the switch to HFC
alternative refrigerants will nationally contribute to
the projected creation of around 33,000 jobs as well
as maintaining 138,400 other existing jobs from now to
2027.
This will embolden Alaska's economy and ensure
that we do all we can to support the need for green
energy techniques and industries in the future. In
combination with other states, the federal transition
to HFC alternatives is projected to decrease America's
greenhouse gas emissions by a total of 2.4 billion
metric tons of Carbon Dioxide for the next 15 years.
The importance of allowing our industrial leaders to
have a functional environment in which to do business,
as well as working on our levels of greenhouse gas
emissions are two very important, related subjects and
HB 51s passage will be a fantastic approach to helping
both.
2:36:40 PM
SENATOR DUNBAR said the bill reads, "notwithstanding a provision
of the state building code" and it allows for federally approved
hydrofluorocarbon (HFC) alternatives to be used. He asked if
there were any current provisions in the state building code
that forbid the use of HFC alternatives.
MR. HENTHORN deferred the question to Mr. Nerozzi.
2:37:12 PM
MIKE NEROZZI, Director, Government Affairs, Air-Conditioning,
Heating, and Refrigeration Institute (AHRI), Arlington, Virgina,
responded to Senator Dunbar's question, stating that the
building code itself is prohibited. Most states that have a
statewide building code operate on a three year update cycle,
typically adopting the ICC model codes that are several versions
behind the most up-to-date code. All of the previous iterations
of model codes are prohibited except for the newly released 2024
ICC model codes. Previous codes do not list these alternatives
as permitted refrigerants. HB 51 would provide a bridge for
Alaska to continue to allow the sale of equipment containing
HFCs until the state can adopt the 2024 codes containing the
permitted refrigerants.
SENATOR DUNBAR asked whether these refrigerants are permitted
under federal law.
2:39:06 PM
MR. NEROZZI answered yes. HB 51 is part of an international
transition away from HFC refrigerants that emerged from the 2020
American Innovation and Manufacturing Act which directed the
U.S. Environmental Protection Agency to phasedown HFC-based
refrigerants. Federal law fully allows these refrigerants, but
building codes need to be updated to complete the transition
smoothly.
SENATOR DUNBAR asked whether federal law preempts state law in
this case.
MR. NEROZZI answered no, federal law would not preempt state
law. States have full autonomy over their building codes.
2:41:13 PM
CHAIR BJORKMAN asked Mr. Nerozzi would whether he had any
closing comments.
MR. NEROZZI paraphrased from the two prepared statements. They
read as follows:
[Original punctuation included.]
TESTIMONY OF MIKE NEROZZI
DIRECTOR OF GOVERNMENT AFFAIRS
ON BEHALF OF
THE AIR-CONDITIONING, HEATING, AND REFRIGERATION
INSTITUTE
BEFORE THE ALASKA HOUSE OF REPRESENTATIVES
LABOR AND COMMERCE COMMITTEE
HEARING ON HOUSE BILL 51
FEBRUARY 10, 2023
Good morning, Chairman Sumner and members of the Labor
and Commerce Committee. My name is Mike Nerozzi,
Director of Government Affairs for the Air-
Conditioning, Heating, and Refrigeration Institute
(AHRI). Thank you for allowing me to speak with you
today and convey AHRI's strong support for House Bill
51, sponsored by Representative Wright, which will
provide American manufacturers in the heating,
ventilation, air conditioning, and refrigeration
(HVACR) and water heating industry with the certainty
needed to comply with forthcoming federal regulations
phasing down the use of hydrofluorocarbons (HFCs)
refrigerants.
AHRI represents more than 330 manufacturers of air
conditioning, heating, commercial refrigeration, and
water heating equipment. Our member companies produce
more than 90 percent of the residential and commercial
air conditioning, heating, and commercial
refrigeration equipment made in North America. In
North America, the annual economic activity resulting
from the HVACR industry is approximately $256 billion.
In the United States alone, AHRI member companies,
along with distributors, contractors, and technicians
employ more than 1.3 million people, and more than 700
jobs in Alaska.
In December 2020, the American Innovation and
Manufacturing Act (AIM Act) was signed into law by
President Trump, which directs the U.S. Environmental
Protection Agency (EPA) to issue rules that will phase
down the use of current refrigerants, restricting
their use in certain applications such as commercial
refrigeration, chillers, and air conditioning. This
allows for an orderly transition to next generation
refrigerants, many of which are made in the United
States.
However, our manufacturers face a pressing challenge.
Building codes need to be updated this year to remove
regulatory barriers to the use of these new
refrigerants. Efforts are underway to do so, both in
Alaska and across the country, but the regulatory
timelines for these efforts are two to three years
away. This is too late for American manufacturers and
Alaskan consumers.
HB 51 amends the state building code to allow any
substitute refrigerant deemed safe under federal
standards to be used in Alaska. This will eliminate
the mismatch of the building code schedule and enable
the use of new refrigerant one to two years earlier,
ensuring that there is no regulatory disruption for
consumers, by making new products available for sale
in Alaska on the same schedule as other states.
In short, HB 51 eliminates a timing barrier without
imposing any new regulatory standards. It simply
allows for harmonization with the 2024 model codes,
benefitting consumers and businesses that rely on air
conditioning and refrigeration equipment.
Thank you again for the opportunity to present
testimony at this hearing. AHRI looks forward to
continuing to work with the Alaska State Legislature
to achieve both the economic and environmental
benefits of the phase down of HFCs.
[Original punctuation included.]
February 4, 2023
RE: Building code legislation to support HFC phasedown
In December 2020, former President Trump signed into
law the American Innovation and Manufacturing Act (AIM
Act), which directs the U.S. Environmental Protection
Agency (EPA) to issue rules that will phasedown the
use of hydrofluorocarbons (HFCs) and authorizes EPA to
restrict the use of HFCs in certain applications, such
as commercial refrigeration, chillers, and stationary
air conditioning equipment. As a result, building
codes in all fifty states must be updated to enable
the safe, efficient transition to HFC replacement
refrigerants in HVACR equipment. Manufacturers,
distributors, contractors, and consumers need the
building code update to be completed as soon as
possible before the refrigerant transition goes into
effect. To that end, states must adopt legislation
specifying that building codes cannot prohibit the use
of a substitute refrigerant allowed by EPA.
HFCs are chemicals, with a high global warming
potential, that are typically used in refrigerants.
Today, HVACR manufacturers use HFCs in most of the
equipment they produce. The new federal regulations
will require manufacturers to begin producing
equipment that utilize new substitute refrigerants
that have a lower global warming potential. Over the
past decade, the HVACR industry has spent hundreds of
millions of dollars preparing for this transition. We
have invested in research and development, facility
construction and expansion, and training, to ensure a
safe and efficient transition when the federal
regulations go into effect in the U.S.
This orderly, national transition will allow U.S.
manufacturers to maintain technological leadership in
the global HVACR marketplace, while creating new
domestic jobs and driving domestic economic growth.
The phasedown is projected to create 33,000 new
manufacturing jobs and will also help sustain 138,400
existing jobs between now and 2027, while increasing
direct manufacturing output by $12.5 billion.
State legislation is essential to the orderly and
effective phasedown of HFCs, and we urge states to
pass legislation that will ensure a victory U.S.
manufacturers, distributors, contractors, and
consumers by preparing for an orderly transition to
next generation refrigerants.
Signed,
Air-Conditioning, Heating, and Refrigeration Institute
Alliance for Responsible Atmospheric Policy
Heating, Air-conditioning, & Refrigeration
Distributors International
Plumbing-Heating-Cooling ContractorsNational
Association
Contact: Mike Nerozzi, Director of Government Affairs,
AHRI mnerozzi@ahrinet.org
"Economic Impacts of U.S. Ratification of the Kigali
Amendment." Industry Forecasting at the University of
Maryland (INFORUM) and JMS Consulting, 2018.
CHAIR BJORKMAN thanked Mr. Nerozzi and solicited questions.
2:44:46 PM
SENATOR GRAY-JACKSON thanked Representative Wright for doing the
right thing. She said she welcomes all efforts to address
climate change.
[CHAIR BJORKMAN held HB 51 in committee.]