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.