Legislature(2003 - 2004)
02/12/2004 08:30 AM House CRA
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS
STANDING COMMITTEE
February 12, 2004
8:30 a.m.
MEMBERS PRESENT
Representative Carl Morgan, Chair
Representative Pete Kott
Representative Sharon Cissna
Representative Albert Kookesh
MEMBERS ABSENT
Representative Kelly Wolf, Vice Chair
Representative Tom Anderson
Representative Ralph Samuels
COMMITTEE CALENDAR
^OVERVIEW OF LOW SULFUR DIESEL FUEL
[For the regular meeting minutes, see the 8:10 a.m. minutes for
this date.]
TAPES
04-4, SIDE(S) A
CHAIR CARL MORGAN convened the meeting of the House Community
and Regional Affairs Standing Committee at 8:30 a.m.
SUMMARY OF INFORMATION
TOM CHAPPLE, Director, Division of Air & Water Quality,
Department of Environmental Conservation (DEC), stated that the
Environmental Protection Agency (EPA) will be requiring low
sulfur diesel fuel [15 parts per million (ppm) sulfur] for
trucks manufactured in model year 2007. These trucks will begin
being sold in the fall of 2006. If these diesel trucks are not
used with low sulfur diesel fuel, the warranties will be voided
and there may be engine problems. The EPA has determined that
particulates associated with combustion from current diesel fuel
is a significant health problem. The health benefits from less
particulates and less air pollution may be as much as $80
billion, he estimated. He noted that rural communities use
diesel for vehicles, home heating, and power generation.
However, low sulfur fuel is not required for home heating and
power generation.
MR. CHAPPLE explained that the EPA gave DEC the opportunity to
develop an implementation plan tailored to Alaska's specific
needs. Alaska has an urban [roadway] plan under which low
sulfur diesel fuel will be available by the fall of 2006. The
rural transition plan allows rural communities to have until
2010 to make decisions. Rural residents who purchase new diesel
trucks will be responsible for getting their own low sulfur fuel
to their community. By 2010 the rural communities will have to
have the low sulfur fuel. Mr. Chapple informed the committee
that DEC received a capital appropriation to study the health
affects of diesel fuel in villages. He pointed out that in
rural communities the power generation plant is frequently
centrally located and has short stacks.
MR. CHAPPLE mentioned that in Puget Sound there has been a pilot
project looking at costs. The pilot project found that the cost
is from 3 to 8 cents per gallon higher. A 5-cent increase is
what EPA anticipated so this is in that range. The energy
produced is only showing a .5 percent decrease.
MR. CHAPPLE highlighted that Alaska will need Arctic grade fuel
because of Alaska's climate. Flint Hills, the new owner of the
North Pole refinery, has committed to producing Arctic grade low
sulfur fuel. He noted that there has not been a decision as to
whether communities will choose to have one or two types of
fuel.
CHAIR MORGAN asked how communities will retro fit their bulk
storage tanks.
RON KING, Program Manager, Air Non-Point & Mobile Services,
Division of Air & Water Quality, Department of Environmental
Conservation, explained that if a community started to buy low
sulfur fuel several years before required, it can be mixed with
the remains of the current fuel in the tank and over several
seasons the mixture will be useable as low sulfur.
MR. KING, in further response to Chair Morgan, said that the
power generating plants will not need to be retro fitted.
However, there are gaskets and seals that may need to be
replaced and some injectors have required some work.
ANNOUNCEMENTS
There were no announcements.
COMMITTEE ACTION
The committee took no action.
ADJOURNMENT
NOTE: The meeting was recorded and handwritten log notes were
taken. A copy of the tape(s) and log notes may be obtained by
contacting the House Records Office at State Capitol, Room 3,
Juneau, Alaska 99801 (mailing address), (907) 465-2214, and
after adjournment of the second session of the Twenty-Third
Alaska State Legislature this information may be obtained by
contacting the Legislative Reference Library at (907) 465-3808.
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