SENATE COMMUNITY & REGIONAL AFFAIRS April 21, 1994 9:01 a.m. MEMBERS PRESENT Senator Randy Phillips, Chairman Senator Robin Taylor, Vice Chairman Senator Loren Leman Senator Al Adams MEMBERS ABSENT Senator Fred Zharoff COMMITTEE CALENDAR CS FOR HOUSE BILL NO. 543(STA) "An Act relating to unvented gas space heaters in residential buildings." HOUSE BILL NO. 259 (title am) "An Act relating to general grant land entitlements for the Lake and Peninsula Borough; and providing for an effective date." SENATE BILL NO. 375 "An Act relating to general grant land entitlements." PREVIOUS SENATE COMMITTEE ACTION HB 543 - See Community & Regional Affairs minutes dated 4/19/94. HB 259 - See Community & Regional Affairs minutes dated 4/19/94. SB 375 - See Community & Regional Affairs minutes dated 4/19/94. WITNESS REGISTER ACTION NARRATIVE Jack McGary, State Fire Marshall Division of Fire Prevention Department of Public Safety 5700 E. Tudor Road Anchorage, AK 99507-1225 POSITION STATEMENT: Testified in opposition to HB 543 Steve O'Connor, Assistant Chief Central Emergency Services 231 S. Binkley St. Soldotna, AK 99669 POSITION STATEMENT: Opposes HB 543 Keith Kettler Kettler, Enterprises Longmont, Colorado Phone No. (303) 772-2430 POSITION STATEMENT: Supports HB 543 Ron Smith, Chairman, Direct Heating Division Gas Appliance Manufacturers Association Kentucky Phone No. (502) 745-7858 Joe Mattingly, Director of Government Affairs Gas Appliance Manufacturers Association Arlington, VA Phone No. (703) 525-9565 POSITION STATEMENT: Supports HB 543 Robert Maxwell, Executive Director Interior Weatherization 713 15th Ave. Fairbanks, AK 99701 POSITION STATEMENT: Opposes HB 543 Sue Walker, Chairperson Gas Appliance Manufacturers Association Arlington, VA Phone No. (502) 754-7858 POSITION STATEMENT: Supports HB 543 Burgain Maeler Tennessee Phone No. (615) 479-2842 POSITION STATEMENT: Supports HB 543 Mike Dolph, Alaska Fire Chiefs Association 811 Will St. Kodiak, AK 99615 POSITION STATEMENT: Opposes HB 543 Bill Halterman Suburban Propane 1200 Whitney Road Anchorage, AK 99501 POSITION STATEMENT: Opposes HB 543 Lee Holmes 2522 Arctic Blvd., #200 Anchorage, AK 99503 POSITION STATEMENT: Opposes HB 543 Geoff Feiler Heat Loss Analysis 4128 Wright St. Anchorage, AK 99508 POSITION STATEMENT: Opposes HB 543 Richard Barnes, President Enstar Natural Gas Company 401 E. International Airport Road Anchorage, AK POSITION STATEMENT: Opposes HB 543 Jim Murphy, Executive Director American Lung Association of Alaska 555 W. Northern Lights Blvd. Anchorage, AK POSITION STATEMENT: Opposes HB 543 Jeff Parker Anchorage Fish & Game Advisory Board 1201 Hyder Anchorage, AK 99507 POSITION STATEMENT: Opposes HB 259 Mark Lacrosse Lake & Peninsula Borough Planning Commission Egegik, AK POSITION STATEMENT: Supports HB 259 Walt Reede, Manager Lake & Peninsula Borough King Salmon, AK POSITION STATEMENT: Supports HB 259 Alice Ruby Bristol Bay CSA Board Dillingham, AK POSITION STATEMENT: Opposes HB 259 Ginger Tornes P.O. Box 2497 Homer, AK 99603 POSITION STATEMENT: Opposes HB 259 Mark Bell P.O. Box 486 Soldotna, AK 99669 POSITION STATEMENT: Opposes HB 259 Chris Goll 4127 Raspberry Road Anchorage, AK 99502 POSITION STATEMENT: Opposes HB 259 Ray Peterson 4720 Sportsman Drive Anchorage, AK 99502 POSITION STATEMENT: Opposes HB 259 Angie Gerken P.O. Box 228 Iliamna, AK 99606 POSITION STATEMENT: Opposes HB 259 Fred Nishimura Box 1309 Dillingham, AK POSITION STATEMENT: Opposes HB 259 Lamar Cotten Lake & Peninsula Borough P.O. Box 495 King Salmon, AK 99613 POSITION STATEMENT: Offered information in support of HB 259 Tom Green, Chairman Lake & Peninsula Borough Planning Commission P.O. Box 495 King Salmon, AK 99613 POSITION STATEMENT: Supports HB 259 Senator Al Adams State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Offered information on SB 375 Keith Quintavell North Slope Borough P.O. Box 69 Barrow, AK 99723 POSITION STATEMENT: Supports SB 375 TAPE 94-31, SIDE A Number 001 The Senate Community & Regional Affairs Committee was called to order by Chairman Randy Phillips at 9:01 a.m. He brought CSHB 543 (STA) (UNVENTED GAS HEATERS IN RESIDENTIAL BLDGS) before the committee as the first order of business, and opened the hearing to testimony over the teleconference network. Number 055 JACK MCGARY, State Fire Marshall, Division of Fire Prevention, Department of Public Safety, Anchorage, said when the legislation was originally introduced, the department did not take a position on it, however, after a lot of research on the bill, he has changed his position and he does not want to see the state code that affects major residential facilities changed. There is a lot of concern about the manufacturer's instructions requiring the combustion air of 15 square inches being made available so that this heater will get its proper oxygen. In the extreme cold areas, he does not see this happening, so the fire and safety and, primarily, the health concerns for Alaska, where construction is very tight to try to keep cold weather out, is of major concern to him. Number 095 STEVE O'CONNOR, Assistant Chief, Central Emergency Services, Soldotna, stated concern that the legislation presents a large fire/life safety issue. He questioned why the product is safe enough for single family dwellings, but not safe enough for use in four-plexes or better. He added that he shares the fire marshall's concerns about the types of construction and the lack of combustion air space around the unvented heater. He also is concerned about the affect of carbon monoxide, particularly on young children and senior citizens. He urged the defeat the legislation. Number 130 KEITH KETTLER, Kettler Enterprises, Longmont, Colorado, said he has heard the concerns, but he has not heard any data or any evidence to support any of it. Number 140 RON SMITH, Design Engineer and Chairman of the Direct Heating Division of the Gas Appliance Manufacturers' Association (GAMA), testifying from Virginia, said they meet the same requirements as all vented room heaters and other types of appliances. They also adopt the requirement as other gas appliances as far as the adequate combustion for any gas appliance. He pointed out that the appliance has a Oxygen Depletion Sensing (ODS) System, and if low levels of oxygen are present in the proximity of the ODS system, the flame extinguishes. If the appliance is tampered with, it has a tendency to shut off on a nuisance condition. Also, the appliance, as far as its safety, would not be any different in its use in multiple family dwellings and apartments as it would be for a single family dwelling. Number 200 SENATOR TAYLOR asked if in the history of sales and use of this device, has there ever been a fatality, and RON SMITH responded that there has not. Number 250 JOSEPH MATTINGLY, Director of Government Affairs and General Counsel, GAMA Headquarters, testifying from Arlington, Virginia, stated the safety for the vent-free room heaters has been excellent, and they do not know of any deaths caused by a ODS equipped vent-free room heater. There experience has been that the safety record of the vent-free product is superior to that of the vented product. Number 267 ROBERT MAXWELL, Executive Director, Interior Weatherization, Fairbanks, said he has done air tightness testing on over 3,000 dwellings all across the State of Alaska, and the air tightness of dwellings in Alaska, even low income dwellings and poorly constructed dwellings, is much higher than dwellings in the Lower 48. He pointed out that carbon monoxide is the number one cause of poisoning in the United States, and Alaska has the highest per capita death rate in the nation. Many of the poisoning deaths in Alaska can be traced to the use of gas appliances to heat the home during cold weather. He urged the defeat of HB 543. Number 333 SUE WALKER, Chairperson, Gas Appliance Manufacturers Association, testifying from Arlington, Virginia, said that since 1980 there have been approximately 2.8 million vent-free gas heaters sold and installed in homes in the United States and there are no documented deaths due to CO poisoning associated with the use of an ODS system appliance. She added that it is very much a fail safe device and, at this time, 43 of 50 states permit the installation of vent-free heaters. The real key in the use of vent-free heaters is proper installation and adhering to combustion air requirements, and the National Fuel Gas Code is very specific on how much combustion air is required for all gas appliances. Number 395 SENATOR LEMAN asked how many states have adopted the Uniform Mechanical Code. SUE WALKER answered that only a few states have adopted a Uniform Mechanical Code, primarily states west of the Rockies. It is her understanding that most states adopt a primary code and then make all sorts of exceptions and adaptations that take into a lot of special considerations of their environment, building practices, etc. Number 434 KEITH KETTLER agreed that there are several states where various municipalities and counties in the state have made an exception to the code on an individual basis to allow ODS equipped vent-free appliances. In Alaska, the Municipality of Anchorage and the City of Kenai have provided an exception to the Uniform Mechanical Code to allow the installation of the product. He expressed his surprise that the state with the highest per capita fatality rate from carbon monoxide would not pass a bill to allow a product that has a perfect safety record. Number 460 BURGAIN MAELER, representing a company in Tennessee that invented and manufactures the Oxygen Depletion Sensing System, stated that they have well over 12 million of them that have been produced and no reports back to them of any deaths attributable to the ODS. The system is designed so that it is a fail safe system. They have seen no problems or issues where the safety of the system has been circumvented. Number 475 SENATOR TAYLOR asked if in light of the high number of fatalities in Alaska and the testimony before the committee that those are often caused by gas ranges being inappropriately used, would he recommend that the Alaska Legislature mandate that ODS devices be installed on every gas range in the state. BURGAIN MAELER agreed that it would be a good idea. Number 485 MIKE DOLPH, Alaska Fire Chiefs Association, Anchorage, said the association believes there is a substantial threat to carbon monoxide poisoning with the use of these appliances, because they will not be properly installed and will not be properly used in accordance with the recommendation of the manufactures. He said the Alaska Fire Chiefs Association would like to go on record with unanimous strong opposition to the passage of HB 543. Number 546 SENATOR TAYLOR asked if the Alaska Fire Chiefs Association supports the installation of ODS devices on gas appliances in Alaska. MIKE DOLPH replied that he does not think the association has taken a particular stand on the issue. Number 549 BILL HALTERMAN, Suburban Propane, Anchorage, stated his main concern is that the units will be installed ignoring the manufacturer's requirements for free air. He believes that they will be used in small bush cabins where they will be competing for available oxygen. Also, he believes the ODS can be defeated and they will become a hazard. Mr. Halterman informed the committee that the Municipality of Anchorage has approved only one type of gas appliance with an ODS and that is for a decorative fireplace. Number 586 LEE HOLMES, a registered mechanical engineer testifying from Anchorage, said witnesses from GAMA have stated that the key is a proper installation and combustion air requirement. He has visited over 2,000 homes throughout rural Alaska, and he said he can guarantee that there is not a proper combustion air requirement in one percent of those houses. TAPE 92-31, SIDE B Number 012 Mr. Holmes said there is a proper procedure for amending the codes, and the manufacturers association would be better of spending their time addressing the Uniform Mechanical Code and should have been talking to the state fire marshall a year ago before the state amendments to the Uniform Mechanical Code were adopted. Number 048 GEOFF FEILER, representing Heat Loss Analysis in Anchorage, a business that conducts energy audits in the State of Alaska, responded to inquiries made by Senator Taylor as to the extent of use of gas refrigerators, gas stoves and gas dryers in residences. He said in all of the homes their company has inspected, he has never seen a gas refrigerator. Most gas stoves require that there be a range hood over them that vents to outside, and the same holds true for gas dryers. He voiced his opposition to the use of unvented gas appliances in homes. He disagreed with a previous speaker's comments that there are very few of these unvented heaters installed on an unprofessional basis compared to vented heaters. He said the vented heaters take more expertise for installation. Mr. Feiler related that their company regularly tests homes that have only about 100 CFM natural air leakage, and this is fairly common, especially in new construction. With a 10,000 Btu unvented space heater, there would have to be 500 CFM according to the requirement of 50 CFM per thousand Btu, so most of the homes they test would not have the natural air leakage required to do this. Number 155 RON SMITH commented that if the proper ventilation or combustion air is not provided, the ODS is the safety device on the appliance to counter that particular condition and will shut the unit off. Number 190 KEITH KETTLER, responding to the concern of outside combustion air being blocked off, said the simple fact is that with a vented product, if there is not adequate combustion air because somebody has it blocked off, it causes a negative pressure in a house which causes spillage which means the chimneys don't work and that is how people end up with carbon monoxide poisoning. With a vent-free appliance, if that were to happen to the unlikely degree that oxygen were to be depleted at 18 percent, the ODS would simply shut off the gas appliance and there would not be a fatality. Mr. Kettler also pointed out that a specific in the ANSI standard is that there cannot be any adjustment to the ODS system in an appliance. He further pointed out that the combustion air requirements on gas-fuel appliances are in Chapter 6 of the Uniform Mechanical Code, and it is very clear it requires 50 cubic feet of free air space per thousand Btu per hour. SUE WALKER added that GAMA has sent to the committee an extensive table of how combustion air can be calculated, and she clarified that with regard to vent-free heaters, they are not necessarily talking about creating any sort of opening that brings in fresh air. If there is adequate volume of space in the room or the rooms to be heated, then no outside air source needs to be created. Number 315 LEE HOLMES clarified that he is on the Municipality of Anchorage's Uniform Mechanical Code Amendment Committee, and that committee did allow decorative fireplaces with the ODS to be installed in the municipality. The unvented heaters being discussed are not allowed in the Municipality of Anchorage. Number 385 RICHARD BARNES, President of Enstar Natural Gas Company, testifying in Juneau, stated that if HB 543 passes, Enstar, along with the propane distributors, would probably pick up some additional revenues that they otherwise wouldn't get, and they welcome new business, but safety to them is an overriding concern. They spend a lot of money each year trying to prevent carbon monoxide deaths. Mr. Barnes outlined the following objections to vent-free appliances: (1) Relying on inside ventilation is not realistic. (2) The safety device that shuts the heater off when oxygen is depleted does not shut it off if carbon monoxide is produced. (3) The heater, if it passes the ANSI standard, would be nearly six times the amount that OSHA says there should be for maximum allowable concentration. Mr. Barnes also demonstrated to the committee how a oxygen depletion sensor device could easily be impaired with a simple paper clip. Number 586 JIM MURPHY, Executive Director, American Lung Association of Alaska, stated that with Alaska having the highest per capita death from CO, they are very concerned about the fact that there will be more CO indoors. The serious problem they have is that people don't follow directions, they don't pay attention - when it's cold they try to get warm. Also, the ODS is not a CO detector and does not respond specifically to carbon monoxide. Further, directions on the devices that he has researched so far talk about the need for a yearly cleaning by a certified person, and the reality in Alaska is that it is not going to happen. Concluding his comments, he said he thinks these appliances do have a place, but they don't belong in Alaska. Number 675 JOSEPH EASAW, staff to Representative Al Vezey, stated deaths related to vented gas heaters and appliances can be documented with statistics and facts, and it cannot be documented against the devices being addressed in HB 543. TAPE 94-32, SIDE A Number 001 Mr. Easaw continued to respond to various issues brought up by witnesses testifying in opposition to HB 543. Number 086 SENATOR RANDY PHILLIPS closed the public hearing and stated CSHB 543(STA) would be held in committee. Number 090 SENATOR RANDY PHILLIPS brought HB 259(title am) (LAND GRANT FOR LAKE & PENINSULA BOROUGH) before the committee as the next order of business, stating that testimony would be taken over the Legislative Teleconference Network. Number 100 JEFF PARKER, representing the Anchorage Fish & Game Advisory Committee, Alaska Sport Fishing Association and Trout Unlimited, said the question of what lands should be retained for the public is the first issue that should be decided. He directed attention to a petition containing over 430 signatures, an economic study by the Hotel-Motel Association, the Alaska Professional Sport Fishing Association and the Alaska Sport Fishing Association and various other pieces of data which he had forwarded to the committee. He said the borough has no data to support its argument that it is feasible, economic, or practicable to introduce expansion of large industry in this region, and all this data indicates otherwise. He urged the legislation not be moved out of committee. Number 195 MARK LACROSSE, a member of the Lake & Peninsula Borough Assembly and Planning Commission, said there is a perception that the land selection has not involved an intensive public process, when, in fact, borough land selection has been two years in the making and public notices have been issued and posted in all of the communities. In these land selections, it is their desire to ensure the economic viability of the borough as state dollars continue to shrink. He noted that they have added the Bristol Bay Coastal Management Plan in the makeup of their own coastal management plan. Number 226 WALT REEDE, Manager of the Lake & Peninsula Borough, echoed the previous speaker's comments. He said he knows there has been a fair amount of opposition to HB 253, but they are working with Fish & Game, DNR and some of the villages in trying to work out some of the problems that people perceive with the bill. He offered his assurance that the people in the borough are very sensitive to habitat values in the region and have no intention of doing anything that would jeopardize those resources. Number 252 ALICE RUBY, testifying on behalf of the Bristol Bay CSA Board, reiterated her previous testimony on HB 253 that people in the region had virtually no opportunity to find out about the bill and its implications. The legislation will have a major affect on their area, and they believe the Legislature needs to consider the bigger picture of what this legislation means, particularly its effect on the commercial fisheries, subsistence and recreational activities. Concluding her comments, she urged the committee delay its action until next session. Number 303 GINGER TORNES, a commercial fisherman in the Bristol Bay area, stated the grant of 187,000 acres is more than 16 times the amount of land the borough is entitled to under current state law, and she expressed her concern that it would set a dangerous precedent. She is concerned that much of land that has been identified is important wildlife and recreation land. She does not believe that the Lake & Peninsula Borough needs to increase their tax base. She urged defeat of HB 259. Number 335 MARK BELL, a resident of Soldotna, voiced his opposition to HB 259 and urged more input by the agencies involved and by the public. He said the area does not need more lodges and public access which would put additional pressure on their resources. Number 360 CHRIS GOLL, a twenty-eight year Alaska resident residing at Rainbow River Lodge located near Iliamna and a former two-term member of the Alaska Board of Fisheries, voiced his opposition to HB 259. The fisheries resources, as well as the wildlife resources that exist in the area are already totally utilized by the Alaska peninsula users, the subsistence users and the commercial businesses that exist there. Speaking to the priority subsistence issue, he said the federal government has indicated, through Judge Holland, that they are going to be taking over management of subsistence out there and will be utilizing the resident stocks, as well as the anadromous stocks, thereby further complicating the problem. Number 404 RAY PETERSON of Anchorage voiced his opposition to HB 259. He noted he has contacted many of the Alaskan operators of sport fishing operations that use these lands in question, and they are unanimously opposed to the land grant. He expressed his concern on whether the borough can be trusted to maintain the free and open access that the residents of the area now enjoy. He asserted the only people in favor of HB 259 are the ones who run the borough. Number 425 ANGIE GERKEN of Homer stated her support for Mr. Goll's and Mr. Peterson' comments. She said she does not want to see the state make a short-term decision that will be a detriment to all Alaskans and will have little benefit for the villages in that area. She urged the legislation be held in committee. Number 465 FRED NISHIMURA of Dillingham, informed the committee that he is the manager of three village corporations in the Nushagak Bay drainage that are also involved in a lawsuit with the Lake & Peninsula Borough and the Local Boundary Commission over the drawing of the northwest boundary. He said these villages are very concerned about HB 259, because it disregards the concerns that people have who live outside of the LPB boundary; concerns such as their lifestyles, their own lands, their use of the land and resources. They believe the bill exemplifies natural resource management at its worst and that it should not be passed. Number 506 LAMAR COTTEN, representing the Lake & Peninsula Borough, said the borough has held over 20 meetings on the land grant issue, and they have documentation showing that public notice was given for those meetings. In addition, all residents received at least three newsletters concerning this issue, along with a series of other reports that went to interested parties. He also said the Lake & Peninsula Borough has no interest in obtaining or proposing lands in the disputed area until that issue has been resolved by the court. The borough has worked with DNR and Fish and Game and explained that they have no problem with access. He pointed out these are proposed selections, and they still need to go through a series of public hearings and a public hearing process working with DNR. Number 533 TOM GREEN, Chairman of the Planning Commission for the Lake and Peninsula Borough, agreed with Mr. Cotten's comments on the meetings held by the borough. He said the bill only allows the borough an entitlement and does not allow them any lands they have specified. They have backed away from obtaining land in the areas of the Mulchatna, the Nushiak, and the northwest boundaries. Number 567 SENATOR RANDY PHILLIPS closed the public hearing on HB 259, stating that it would be back before the committee at its next meeting. Number 570 SENATOR AL ADAMS expressed his appreciation to the chairman of the Senate Judiciary Committee for introducing SB 375. The basic premise of SB 375 is that municipal ownership of up to 10 percent of the state lands within the municipal boundaries, when it is available, would promote strong government as provided in Alaska's Constitution, would provide municipalities with the opportunity to stimulate their economic development, could potentially increase tax revenue through an expanded tax base and an overall improved ability to provide quality public services. By retaining ownership to 90 percent of the state land within municipal boundaries, the state retains the ability to provide for statewide public interests. The bill sections with most importance are Sections 8 and 10. Section 8 deletes the words "newly formed" from the policy statement regarding the 10 percent designation so that the policy applies across the board to all municipalities. Section 10 changes the designation of VUU land so that it would include land that had been classified as unobtainable for municipal selection. Senator Adams said he believes the legislation is particularly timely considering the present proposals by the Governor and certain members of the Alaska Legislature to decrease municipal assistance and revenue sharing. Increasing the land base available to municipalities would offset the negative effects of diminishing the revenue stream flowing from the state to the local governments. Senator Adams noted that the legislation is supported by the Alaska Municipal League. TAPE 94-32, SIDE B Number 001 KEITH QUINTAVELL, representing the North Slope Borough, said their is conflict in the statutes relating to land areas available to municipalities to fulfill their land entitlements. He added that he doesn't know if the Legislature anticipated that when planning to give municipalities 10 percent of the state land within their boundaries some boroughs would get actually less than 1 percent of the land within their boundaries. Section 10 of SB 375 would allow boroughs to get their 10 percent instead of a much smaller amount. Mr. Quintavell said if the state can no longer give municipalities funding, which is in short supply, perhaps they can give them land so that they can use that land to make money and pay for their own municipal public services. The land will still be public land, and the public will still be able to use most of it. Number 054 SENATOR RANDY PHILLIPS closed the hearing on SB 375, stating it would back before the committee at its next meeting. There being no further business to come before the committee, the meeting was adjourned at 11:32 a.m.