04/10/2023 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB70 | |
| HB56 | |
| HB51 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 73 | TELECONFERENCED | |
| += | SB 70 | TELECONFERENCED | |
| *+ | HB 51 | TELECONFERENCED | |
| *+ | HB 56 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 10, 2023
2:02 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Elvi Gray-Jackson
Senator Kelly Merrick
Senator Forrest Dunbar
MEMBERS ABSENT
Senator Click Bishop, Vice Chair
COMMITTEE CALENDAR
SENATE BILL NO. 70
"An Act relating to coverage for additional insureds under owner
and contractor controlled insurance programs; and providing for
an effective date."
- MOVED CSSB 70(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 56
"An Act exempting controlled substances prescribed or dispensed
by a veterinarian to treat an animal from the requirements of
the controlled substance prescription database."
- HEARD & HELD
HOUSE BILL NO. 51
"An Act relating to refrigerants designated as acceptable for
use under federal law."
- HEARD & HELD
SENATE BILL NO. 73
"An Act relating to registered interior designers and interior
design; establishing requirements for the practice of registered
interior design; renaming the State Board of Registration for
Architects, Engineers, and Land Surveyors the State Board of
Registration for Design Professionals; relating to the State
Board of Registration for Design Professionals; relating to
liens for labor or materials furnished; relating to the
procurement of interior design services; and providing for an
effective date."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: SB 70
SHORT TITLE: OWNER & CONTRACTOR CONTROLLED INSURANCE
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/15/23 (S) READ THE FIRST TIME - REFERRALS
02/15/23 (S) L&C
02/17/23 (S) JUD REFERRAL ADDED AFTER L&C
02/20/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/20/23 (S) Heard & Held
02/20/23 (S) MINUTE(L&C)
03/01/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/01/23 (S) -- Public Testimony --
03/17/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/17/23 (S) Heard & Held
03/17/23 (S) MINUTE(L&C)
04/10/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 56
SHORT TITLE: CONTROLLED SUB. DATA: EXEMPT ANIMAL RX
SPONSOR(s): RUFFRIDGE
02/03/23 (H) READ THE FIRST TIME - REFERRALS
02/03/23 (H) HSS, L&C
02/18/23 (H) HSS AT 3:00 PM DAVIS 106
02/18/23 (H) -- MEETING CANCELED --
03/02/23 (H) HSS AT 3:00 PM DAVIS 106
03/02/23 (H) Heard & Held
03/02/23 (H) MINUTE(HSS)
03/11/23 (H) HSS AT 3:00 PM DAVIS 106
03/11/23 (H) Moved HB 56 Out of Committee
03/11/23 (H) MINUTE(HSS)
03/15/23 (H) HSS RPT 6DP
03/15/23 (H) DP: SUMNER, RUFFRIDGE, MCCORMICK,
SADDLER, MINA, PRAX
03/20/23 (H) L&C AT 3:15 PM BARNES 124
03/20/23 (H) Heard & Held
03/20/23 (H) MINUTE(L&C)
03/24/23 (H) L&C AT 3:15 PM BARNES 124
03/24/23 (H) Moved HB 56 Out of Committee
03/24/23 (H) MINUTE(L&C)
03/27/23 (H) L&C RPT 4DP
03/27/23 (H) DP: PRAX, CARRICK, SADDLER, RUFFRIDGE
03/29/23 (H) TRANSMITTED TO (S)
03/29/23 (H) VERSION: HB 56
03/31/23 (S) READ THE FIRST TIME - REFERRALS
03/31/23 (S) L&C
04/10/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 51
SHORT TITLE: USE OF DESIGNATED REFRIGERANTS
SPONSOR(s): WRIGHT
01/30/23 (H) READ THE FIRST TIME - REFERRALS
01/30/23 (H) L&C
02/06/23 (H) L&C AT 3:15 PM BARNES 124
02/06/23 (H) Heard & Held
02/06/23 (H) MINUTE(L&C)
02/10/23 (H) L&C AT 3:15 PM BARNES 124
02/10/23 (H) Moved HB 51 Out of Committee
02/10/23 (H) MINUTE(L&C)
02/13/23 (H) L&C RPT 6DP
02/13/23 (H) DP: FIELDS, SUMNER, SADDLER, PRAX,
CARRICK, RUFFRIDGE
02/24/23 (H) TECHNICAL SESSION 2/24 - ON 2/27
CALENDAR
03/01/23 (H) TRANSMITTED TO (S)
03/01/23 (H) VERSION: HB 51
03/06/23 (S) READ THE FIRST TIME - REFERRALS
03/06/23 (S) L&C
04/10/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
LORI WING-HEIER, Director
Division of Insurance
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Gave a refresher on SB 70.
REPRESENTATIVE JUSTIN RUFFRIDGE, District 7
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 56.
TRACY WARD, DVM, Past President
Alaska State Veterinary Medical Association
Juneau, Alaska
POSITION STATEMENT: Gave a presentation in support of HB 56.
RACHEL BERNGARTT, DVM, Chair
Board of Veterinary Examiners
Juneau, Alaska
POSITION STATEMENT: Gave a presentation in support of HB 56.
REPRESENTATIVE STANLEY WRIGHT, District 22
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 51.
BILL HENTHORN, Intern
Representative Stanley Wright
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Read the sponsor statement for HB 51.
MIKE NEROZZI, Director
Government Affairs
Air-Conditioning, Heating, & Refrigeration Institute (AHRI)
Arlington, Virginia
POSITION STATEMENT: Answered questions about HB 51.
ACTION NARRATIVE
2:02:06 PM
CHAIR JESSE BJORKMAN called the Senate Labor and Commerce
Standing Committee meeting to order at 2:02 p.m. Present at the
call to order were Senators Gray-Jackson, Merrick, Dunbar, and
Chair Bjorkman.
SB 70-OWNER & CONTRACTOR CONTROLLED INSURANCE
2:03:14 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO. 70
"An Act relating to coverage for additional insureds under owner
and contractor controlled insurance programs; and providing for
an effective date."
CHAIR BJORKMAN stated that the committee amended the bill during
the previous hearing. He asked whether there were any questions
for the director of insurance before he looked to the will of
the committee.
2:04:27 PM
SENATOR GRAY-JACKSON requested a refresher on SB 70.
2:04:53 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community and Economic Development, Anchorage, Alaska,
gave a refresher on SB 70. She explained that owner- or
contractor-controlled insurance programs are the opposite of
traditional insurance contracts between the owner or general
contractor and the subcontractors. In a traditional contract,
all the subcontractors are required to buy insurance and pass it
up. In an owner controlled insurance program (OCIP), the owner,
such as Exxon, buys insurance and passes it down to all the
contractors on the project. Worker's compensation, general
liability and professional liability would all be under an
owner- or contractor-controlled insurance program.
When attorneys for the Division of Insurance examined the
statutory language regarding additional insureds on large
infrastructure projects on the North Slope, they said the
language was not sufficient to accommodate OCIPs. Therefore, the
impetus behind SB 70 is to ensure that subcontractors are
covered under the owner's master insurance program.
2:07:01 PM
SENATOR GRAY-JACKSON moved to report SB 70, work order 33-
GS1009\A, as amended, from committee with individual
recommendations and attached fiscal note(s).
CHAIR BJORKMAN found no objections and CSSB 70(L&C) was reported
from the Senate Labor and Commerce Standing Committee.
2:07:28 PM
At ease.
HB 56-CONTROLLED SUB. DATA: EXEMPT ANIMAL RX
2:09:14 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of HOUSE BILL NO. 56 "An Act exempting controlled
substances prescribed or dispensed by a veterinarian to treat an
animal from the requirements of the controlled substance
prescription database."
He noted that the companion bill, SB 51, was heard on March 24,
2023 and held in committee.
2:10:28 PM
REPRESENTATIVE JUSTIN RUFFRIDGE, District 7, Alaska State
Legislature, Juneau, Alaska, sponsor of HB 56, stated that he
became aware of this bill while serving as chair of the Board of
Pharmacy. The Veterinary Medical Association approached the
Board of Pharmacy to look into issues underlying the
Prescription Drug Monitoring Program (PDMP) and how that aligned
with veterinary use of that program. He said medical providers,
particularly those with the Alaska State Medical Association,
are at least neutral to HB 56 for a couple reasons:
1. Veterinarians do not use opioids very much as a dispenser.
They use opiates inside their clinics and sometimes during
surgery, but are not high users of opiate medications. Drugs of
abuse are not dispensed out of veterinary practices with any
regularity. In fact, less than .34 percent of all opiates
dispensed nationwide come through a veterinary practice.
2. The main reason for supporting HB 56 is the issue of privacy.
The veterinarian is required to query the Prescription Drug
Monitoring Program and look up the pet owners data if a
controlled substance is to be used in the animal's care to
determine if a veterinary prescription is appropriate.
Veterinarians are not trained in human medication and do not
spend any time learning about human medication. Human data is
not relevant to making a decision about dispensing a
prescription to a pet. Being required to access this database,
gives veterinarians access to human information that they do not
need.
REPRESENTATIVE RUFFRIDGE opined that imposing the PDMP
requirements on veterinarians was an oversight in the state's
haste to solve some of the problems with the current opiate
crisis. He said he and others who signed on as co-sponsors do
not believe that HB 56 would worsen the opiate crisis. He
reminded the committee that they heard the companion bill
earlier in the session, and noted that two local veterinarians
were available to deliver a brief presentation.
2:14:18 PM
SENATOR GRAY-JACKSON asked whether there was any difference
between HB 56 and the similar bill proposed last year.
REPRESENTATIVE RUFFRIDGE answered that they are the same.
2:14:52 PM
SENATOR DUNBAR asked whether this presentation was different
from the one that the committee heard when they considered the
companion bill.
REPRESENTATIVE RUFFRIDGE answered that he didn't know because he
was not part of the earlier presentation.
SENATOR DUNBAR stated that he supported the bill before and
supports it now, and didnt need to hear it again.
2:15:41 PM
SENATOR MERRICK asked why the effective dates differ between the
House and Senate versions of the bill.
REPRESENTATIVE RUFFRIDGE answered there wasn't a reason.
CHAIR BJORKMAN invited Dr. Berngartt and Dr. Ward to begin the
presentation.
2:17:15 PM
TRACY WARD, DMV, Past President, Alaska State Veterinary Medical
Association, Juneau, Alaska, presented the slideshow to exempt
veterinarians from the Prescription Drug Monitoring Program, in
support of HB 56. She stated this is the same slideshow
presented previously and if everyone is comfortable, they could
skip the presentation and go straight to questions.
CHAIR BJORKMAN said it would be helpful to hear the
presentation, why the bill is important to veterinarians
statewide, how this bill simplifies processes and makes
veterinarian businesses run better, and how it protects the
private medical information of people who happen to own pets and
want them to be treated.
DR. WARD began the presentation on slides 2 and 3. She read the
following:
HB 56: AN ACT EXEMPTING VETERINARIANS FROM THE
REQUIREMENTS OF THE CONTROLLED SUBSTANCE PRESCRIPTION
DATABASE.
THE ALASKA STATE VETERINARY MEDICAL ASSOCIATION
(AKVMA) SUPPORTS HB 56.
THE ALASKA BOARD OF VETERINARY EXAMINERS (BOVE)
SUPPORTS HB 56.
THE ALASKA BOARD OF PHARMACY
SUPPORTS
EXEMPTING VETERINARIANS FROM PARTICIPATING IN THE PDMP
3 2.18.2022 Board of Pharmacy Meeting Voted and Passed
Motion to Support
DR. WARD advanced to slide 4 and paraphrased the following:
Background: The PDMP.
2008: Alaska's PDMP established by SB 196.
2017: In reaction to growing opioid epidemic, the PDMP
was amended by via HB 159 to include all DEA permit
holders, including veterinarians.
Neither AKVMA nor BOVE were consulted regarding this
amendment.
PDMP reporting is required for all actively licensed
practitioners who hold a Federal Drug Enforcement
Agency registration number and who prescribe,
administer, or dispense federally scheduled II IV
controlled substances in the state.
DR. WARD reviewed slide 5:
Why it Makes Sense to Exempt:
The PDMP is not an effective database for
veterinarians or our patients.
• The PDMP was established for human medicine.
Querying of PDMP data for animals is not possible
with the PDMP (and reported drugs for an animal
are not visible in the PDMP database).
• A query is made on the individual(s) that bring
the animal to the veterinarian and human data is
obtained, not animal data.
• Human data obtained from the PDMP query is not
usable for the veterinarian. Veterinarians are
not trained in human medicine to understand what
the dosages mean.
2:21:22 PM
DR. WARD advanced to slide 6:
Why it Makes Sense to Exempt:
Querying human PDMP information is invasion into an
individual's medical privacy.
• Clients find it intrusive when the veterinarian
is required to query their private health data in
the PDMP.
• An individual's private medication information
becomes known to the veterinarian for certain
drugs, such as narcotics, sedatives, and
stimulants.
Examples of some common medications seen include, but
are not limited to: Adderall, Ritalin, anabolic
steroids such as testosterone, postpartum depression
medications, sex hormones, Xanax, Klonopin, Valium,
Ativan, Domar, and sleep aids like Ambien and Lunesta.
DR. WARD reviewed slide 7:
Why It Makes Sense to Exempt:
Veterinarians are monitored by the Drug Enforcement
Agency and must adhere to controlled substance
regulations.
• Veterinarians who prescribe or dispense
controlled substances are licensed through the
Drug Enforcement Agency (DEA). There is already a
significant level of accountability, record
keeping, and medication storage requirements that
veterinarians must adhere to.
• Distributors of controlled substances monitor
utilization patterns of veterinarians. The
Suspicious Order Monitoring System is in place
and data is gathered by distribution companies
who are required by the DEA to monitor and report
unusual purchase patterns a veterinarian may
have. Distributors are required to flag purchases
that fall outside of norms for either previous
purchase history or the norms for practices of
similar size/type. DEA oversight is to
control/prevent diversion from licensed
professionals to drug dealers and users.
2:23:37 PM
RACHEL BERNGARTT, DVM, Chair, Board of Veterinary Examiners,
Juneau, Alaska, continued the presentation to exempt
veterinarians from the Prescription Drug Monitoring Program, in
support of HB 56. She mentioned that one big step forward this
year was that the Alaska State Medical Association does not
oppose exempting veterinarians from the PDMP.
DR. BERNGARTT paraphrased slide 8:
33 other states have exempted veterinarians from
participating in the PDMP.
• 10 states formerly mandated veterinary reporting
but repealed their inclusion due to the problems
experienced, lack of identified benefits to
veterinary participation, and demonstration that
exempting veterinarians does not decrease
protection of public health and safety. These
states are Alabama, Arizona, Idaho, Illinois,
Kansas, Kentucky, Louisiana, New Mexico, West
Virginia (2021), and Wyoming.
• Missouri was the last state to implement a PDMP
in 2021 and did not require veterinarians to
participate.
2:24:40 PM
DR. BERNGARTT reviewed slide 9:
Why It Makes Sense to Exempt:
Veterinarians are not a source of the drugs of primary
concern.
Synthetic opioids excluding methadone overdose deaths
increased 97-fold
Psychostimulants with abuse potential (primarily
methamphetamine) overdose deaths increased 59-fold
Cocaine increased 6.4-fold
Rx opioid deaths increased 4.9-fold
Opioid medications prescribed by veterinarians
(728,223) were only 0.34% of the total opioid
prescriptions (214 million) that were dispensed by
U.S. retail pharmacies in 2017.
DR. BERNGARTT advanced to slide 10:
Why It Makes Sense to Exempt:
The unwieldy PDMP leads to costly and burdensome
investigations of veterinarians by the Alaska Board of
Veterinary Examiners.
Costly and onerous requirements for monitoring
veterinarians have been placed on the board of
veterinary examiners (BOVE).
2:26:49 PM
DR. BERNGARTT advanced to slide 11:
Why It Makes Sense to Exempt:
Licensing fees for veterinarians will likely increase
as a result of the cost to conduct needless
investigations of veterinarians with DEA licenses. The
cost of doing business will be passed on to consumers.
Alaska has the highest licensing fees for
veterinarians in the country.
Licensing fees are expected to increase in the State
of Alaska as a result of the cost of PDMP
investigations.
Charging veterinarians for the cost of enforcement of
an unusable PDMP system, and regulations with which
they are unable to comply, is not responsible
stewardship of resources.
2:28:07 PM
DR. BERNGARTT advanced to slide 12:
AKVMA and BOVE ask for Support
of HB 56
An Exemption of Veterinarians from participating in
the PDMP:
Will allow veterinarians to provide the
appropriate, timely, medical management
appropriate for each patient.
Will increase the efficiency of the PDMP system
for its intended purpose, by allowing for
accurate interpretation of data and trends in
human medicine.
Will allow continued judicious use of controlled
substances that is already practiced by
veterinarians.
Will eliminate unnecessary and disproportionate
business burdens for veterinarians.
2:28:58 PM
CHAIR BJORKMAN thanked the presenters and held HB 56 in
committee.
2:29:02 PM
At ease.
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.]
2:45:57 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:45 p.m.