SENATE BILL NO. 183 "An Act authorizing the Department of Environmental Conservation to award grants for the control of air emissions or the development and administration of air quality control programs; and providing for an effective date." 9:41:06 AM DARWIN PETERSON, STAFF TO CO-CHAIR STEDMAN explained that SB 183 provides the statutory authority for the Department of Environmental Conservation (DEC) to grant funds for the control of air emissions or the development or administration of air quality control programs in the state. The committee recalls the hearing on SB 161, The American Recovery and Reinvestment Act of 2009 as one of DEC appropriations. During the hearing the department approached the committee and requested introduction of this legislation to give authority to receive and expend those grants if the administration accepts that appropriation in the American Recovery and Reinvestment Act. The legislation is verbatim as requested by the department. During the SB 161 hearing the department gave the committee information about the intent of expenditure as well as those who qualify. Co-Chair Stedman asked what would happen if the legislation were enacted and the American Recovery Act funds are declined. Mr. Peterson answered that if the funds are not accepted by the administration, this legislation would remain on the books allowing statutory grant authority to exist if funds are appropriated by the legislature. He stated that there would be no negative impact to the state. Co-Chair Stedman asked if the department was in support of the bill. 9:43:31 AM ALICE EDWARDS, ACTING DIRECTOR, DEPARTMENT OF ENVIRONMENTAL CONSERVATION/AIR QUALITY responded that the department was in support of the bill. Co-Chair Stedman asked if the administration agreed that the legislation was "do no harm legislation." Ms. Edwards concurred. Senator Olson stated that air quality remains an issue plaguing the Red Dog mine. He asked how the legislation affects the issues raised in the last several years regarding air quality in the mine. Ms. Edwards answered that this legislation does not specifically address the issue; however, with the ability to grant the funds under competitive process, an entity could apply for the funds and perhaps make improvements to equipment. Senator Thomas asked about Section b, Lines 10 and 11 noting that the department may adopt regulations to carry out the purposes of this section. He asked if this means that the department could adopt regulations specific to the awarding of grants. Ms. Edwards concurred that the legislation would pertain to adopting regulations related to issuing grants not for other purposes. 9:45:44 AM Senator Huggins recalled a similar debate regarding low sulfur production transportation. He opined that the state was now taking low sulfur diesel and hauling it up the road. He understood the issue to be about diesel emissions and was perplexed about grants to address diesel emissions. He asked about a timeline regarding a yes or no answer about acceptance of the stimulus money. Ms. Edwards responded that she did not know the answer. She stated that the administration preserved the ability to accept the fund and a grant application was submitted per the federal timelines to accept the grant. Co-Chair Stedman asked if the committee could take action on the bill during the next session or is the legislation time sensitive. 9:48:29 AM Ms. Edwards answered that the stimulus funds must be expended by September 30 2010 making it unlikely that the administration could perform the work envisioned by the American Recovery and Reinvestment Act if passed next session. Co-Chair Stedman commented about the challenges of understanding which pieces of the legislations must move forward in a timely manner preventing loss of stimulus money available to the state. The risk with legislation accompanied by high fiscal notes is the precarious position of having the fiscal note flow against the general fund as opposed to being offset by federal revenue. SB 183 was HEARD and HELD in Committee for further consideration. 9:50:25 AM Co-Chair Stedman stated that the legislature is now on the 24 hour rule. 9:51:12 AM