House Environmental Resources & Energy Committee Reports

 

Reports provided by PA Legislative Services

 

10-04-06

 

HARRISBURG - (10/4/06, 10:00 a.m., Hearing Room 1, North Office Building)

The House Environmental Resources and Energy Committee met to consider three bills and one resolution.

HB 1249 Rubley - (PN 1476) Amends Title 27 (Environmental Resources) providing for uniform environmental covenants, and stating that an environmental covenant must: (1) state that the instrument is an environmental covenant, (2) contain a legally sufficient description of the real property subject to the environmental covenant, (3) describe the activity and use limitations on the real property, (4) identify every holder, (5) be signed, with the formalities required for a deed, and identify the name and location of any administrative record for the environmental response project reflected in the environmental covenant. DEP would establish and maintain a registry containing all environmental covenants and any amendment or termination of those covenants. The registry may also contain any other information concerning environmental covenants and the real property subject to them which it considers appropriate. The registry is a public record for purposes of the Right-to-Know Law. - The bill was unanimously reported as amended.

A06895, by Rep. Carole Rubley (R-Chester), makes several language and technical changes to clear up confusion and adds a requirement that a "brief narrative and description of the contamination and the remedy " be attached to the legal description of the property. The amendment was unanimously adopted.

HB 936 Hanna - (PN 1057) Amends Title 35 (Health and Safety) requiring review and update of State, county and local flood maps by the agency at least once every ten years. - The bill was unanimously reported as committed.

Representatives Mike McGeehan (D-Philadelphia), Mike Gerber (D-Montgomery), and Curtis Thomas (D-Philadelphia) applauded the legislation, but asked that the Committee look further into the matter of flood mapping next session by holding public hearings; especially in light of the new geo spatial mapping technologies being used by institutions such as Temple University.

HR 692 Ross - (PN 3858) Resolution directing the Environmental Resources and Energy Committee to study and report on the issue of methods to reduce greenhouse gas emissions. - The bill was reported as committed by a vote of 20-8 with Representatives Martin Causer (R-McKean), Tom Creighton (R-Lancaster), Scott Hutchinson (R-Venango), Ron Miller (R-York), Jeff Pyle (R-Armstrong), Kathy Rapp (R-Warren), Dave Reed (R-Indiana), and Dick Stevenson (R-Mercer) voting in the negative.

Rep. Stevenson said he is concerned that the Resolution holds a basic assumption about global warming being a legitimate concern, while in his view that has not be demonstrably shown. He asked if that was Rep. Ross' intent, as opposed to having the Committee look more closely at whether the issue rises to the level of needed action. Rep. Ross clarified that it was his intent to have the Committee look at specific, practical recommendations on how to reduce greenhouse gas emissions and not to examine whether they should, as it his belief that there is already a scientific consensus. He acknowledged that there is some dispute over how rapid climate changes may take place, but on that score he feels it is better to go "too far," and have the more dire predictions turn out to be wrong than to do nothing and have those same predictions come true.

Rep. Daylin Leach (D-Montgomery) commented that he supports the bill, noting that 98% of the world's scientific community is in agreement that humans are affecting climate change and no peer reviewed study has ever been able to show otherwise.

Rep. Thomas asked what the time table for action is. Rep. Ross said it his hope that the Committee could start at the beginning of next session.

HB 6 Tigue - (PN 4529) Amends the Radiation Protection Act further providing for definitions, for powers of Environmental Quality Board, for nuclear facility and transport fees, for creation of special funds, for response program and for transportation of radioactive materials; and making repeals. Among many changes, the bill charges fees to applicants for and holder of licenses for nuclear power reactor sites, away-from-reactor spent nuclear fuel storage facilities, reactor fuel fabrication facilities, and to transport nuclear waste in PA. Additionally, each nuclear power reactor owner would be required to provide to the department existing plant and radiological monitoring data collected by that owner. - The bill was unanimously reported as committed with the request to re-refer to House Veterans Affairs and Emergency Preparedness.

Peter G. Trufahnestock, PLS 

 

6-20-06

 

House Environmental Resources and Energy


HARRISBURG - (06/20/06, 11:45 a.m., Back of the House Chamber)

The House Environmental Resources and Energy Committee met to consider House Bill 2743.

HB 2743 Hershey - (PN 4181) Amends the Conservation District Law creating the Conservation District Fund, from which all money placed in the fund and the interest it accrues would be appropriated to the State Conservation Commission on a continuing basis for allocation to the conservation districts for activities necessary to meet the requirements of this act. - The bill was unanimously reported as committed with the request to re-refer to Appropriations.

Nate Collins, PLS

 

6-13-06

 

House Environmental Resources and Energy


HARRISBURG - (06/27/06, 9:00 a.m., Hearing Room One, North Office Building)

The House Environmental Resources and Energy Committee met to consider two bills.

HB 2619 Bastian - (PN 3934) The Mine Families First Act establishes the Mine Families First Program to provide assistance to persons whose family members are trapped, injured, or waiting rescue during an underground mine emergency. The Department of Environmental Protection would establish the program as part of the Mine Emergency Response Program to facilitate communication between persons in command of a mine emergency response operation and the families of miners trapped, injured or waiting rescue. The Department would be required to develop a mine families first response and communications plan within 90 days and submit it for public review and comment. The department would also have to designate a person to serve as liaison for each mine emergency and to develop a training program for these liaisons. Furthermore, a Mine Families First Response and Communications Advisory Council would be established and comprised of various members of interested parties and would assist the department in developing the initial mine families first response and communications plan and provide assistance through periodic review and updating of the plan. The bill further requires the Department of Environmental Protection to coordinate the development of this program with the Pennsylvania Emergency Management Agency. - The bill was unanimously reported as committed

SB 594 White, Mary Jo - (PN 668) The Dormant Oil and Gas Act states that any person who owns an interest in oil and gas underlying a tract of land may petition the court of common pleas of the county in which the tract or any portion of the tract is located to declare a trust in favor of all unknown owners of an interest in the oil and gas underlying the tract whose identity, present residence or present address is unknown and cannot be determined by diligent efforts. The petitioner's interest may be in fee, by lease, a royalty or by ownership of correlative rights in an oil and gas reservoir. The bill states that before the court would declare a trust in favor of an unknown owner or owners, the petitioner must meet certain requirements. Also, any person who fails to pay any bonuses, rental payments, royalties or other income due owners of interests in oil and gas within six months of the date of which those funds become due would be liable for all attorney fees and court costs of collection, with interest to the date of payment. - The bill was unanimously reported as committed

Rep. Martin Causer (R-McKean) explained that this bill is attempting to address the problem of not being able to locate the owner of mineral rights in an area scheduled to be drilled for oil or gas. He said the bill protects both the interest of the mining company and the absentee owner and called it a "win-win" scenario.

Rep. Greg Vitali (D-Delaware) asked if any group opposes the bill. Rep. Causer said he is not aware of any opposition.

There was then a short discussion where Rep. Vitali, Rep. Ron Miller (R-York), and Minority Chairman Camille "Bud" George (D-Clearfield) all said they are concerned about how this bill affects the rights of property owners. Rep. Causer clarified that the bill deals solely with mineral rights, which are completely separate from surface rights. Rep. Vitali asked if coal rights are part of the bill. Rep. Causer said no, only oil and gas.

Rep. Curtis Thomas (D-Philadelphia) said he doesn't understand why current law on property rights and unclaimed property doesn't address the issue. Chairman Bill Adolph (R-Delaware) recognized Steve Rhoades, the President of the Oil and Gas Association, to speak on the bill and answer some of the concerns.

Rhoades, in answer to Rep. Thomas' question, explained that current law does not apply to mineral rights, only to surface rights. He then explained the bill further by walking the Committee through the following example:

·  An oil and gas producer wishes to drill in a certain area.

·  They take the time to lease the mineral rights from all of the owners in the affected land area.

·  Occasionally, the mineral rights owner of piece of the drilling area cannot be located.

·  Under the bill, the producer could go before the court of common pleas to show that they exercised due diligence in trying to locate the mineral rights owner but was unable to do so.

·  The court could then establish a trust, under protection of the court, into which the producer would deposit all the appropriate leasing fees and/ or royalties due to the absent owner.

·  The money would be held in the trust for five years, per current law dealing with unclaimed property, and then turned over to the state.

Rep. Bob Freeman (D-Northampton) asked what happens now under current law. Rhoades said that the producer is liable for any money owed to an unknown owner, but the problem is that the owner can currently sue for all the money earned from the area in question as opposed to just simply the leasing fees and royalties technically due to them.

Peter G. Trufahnestock, PLS

 

5-06-06

 

HOUSE ENVIRONMENTAL RESOURCES AND ENERGY COMMITTEE

Info hearing on water resources

5-6-06

By Peter G. Trufahnestock, PLS

 

The Committee held an informational meeting on water resources. Members in attendance included: Chairman William Adolph (R-Delaware), Minority Chairman Camille "Bud" George (D-Clearfield) and Representatives Jackie Crahalla (R-Montgomery), Mike Gerber (D-Montgomery), Kate Harper (R-Montgomery), Mike McGeehan (D-Philadelphia), Ron Miller (R-York), Carole Rubley (R-Chester), Dan Surra (D-Elk), Jim Wansacz (D-Lackawanna) and John Yudichak (D-Luzerne).

 

Chairman Adolph said this hearing was being held in part because it has been nearly four years since the passage of the Water Resources Planning Act (Act 220 of 2002) and the time is right for an update on the state's progress. Minority Chairman George concurred and noted that water quality is also a significant issue he hopes is addressed by the end of the legislative session.

 

John Hines, Executive Director of the Office of Water Management at the Department of Environmental Protection (DEP) testified that while Pennsylvania is truly fortunate to be blessed with an abundance of water, PA's water infrastructure needs over the next 20 years are estimated to be $11 billion for safe drinking water and $7.2 billion for wastewater. The Water Resources Planning Act and the development of the State Water Plan create a platform for PA to sustain our water resources, to maintain our natural environment, to boost our economy, and to enhance our recreational opportunities, he said. Hines explained that the Water Resource Planning Act calls for DEP, the State Water Board and the Regional Water Boards (made up of 169 appointed people) to:

·                   Update the State Water Plan within 5 years.

·                   Register and Report Certain Water Withdrawals.

·                   Identify Critical Water Planning Areas.

·                   Create Critical Area Resource Plans in watersheds identified as Critical Water Planning Areas.

·                   Establish a Voluntary Water Conservation Program.

 

Hines then described in detail the four tier planning process currently underway:

·                   Tier One - Data and Analysis. This includes the use of the USGS screening tool, the water use analysis tool, yield analysis tool, registration and reporting, population projections, discharge monitoring reports, the co-location (COLOC) project, and designation of critical water planning areas.

·                   Tier Two - Regional Components and the Regional Atlas Concept. The six regional committees (from the Delaware, Upper/Middle Susquehanna, Lower Susquehanna, Potomac, Ohio and Great Lakes basins) each are charged with addressing key issues that reflect the priorities of that basin. These regional components will then be integrated into the State plan.

·                   Tier Three - Marketing and Engaging the Public. The Statewide Water Resource Committee through the Policy Working Group and DEP's Learning to LEAD program, is working on a portion of the water plan that will help market a "Why Should We Care?" message to capture the attention of all the sectors.

·                   Tier Four - Statewide Action Agenda. The 2008 State Water Plan will be the benchmark that will include a gap analysis for the state and a series of action steps that will set the direction of future versions of the plan through 2030 and beyond.

 

Chairman Adolph said he understands that several of the regional meetings have been canceled recently and asked why. Hines said the decision was made to postpone several of the regional meetings until more substantive data is available.

 

Carol Collier, Executive Director of the Delaware River Basin Commission (DRBC), testified largely on the specific needs and concerns of the Delaware River basin. In addition, she provided the following general Needs and Recommendations:

·                   Data And Access To It - It is critical that the Water Plan is built upon good data. In the past 10+ years, there has been little analysis of water data. In addition, a data management system needs to be put in place that allows PADEP and the river basin commissions to effectively share data. PADEP and the river basin commissions need to have the resources to develop watershed management tools that can provide needed information to municipalities.

·                   Plan Format - The Water Plan should be formatted for three audience levels: 1) the general public; 2) decision makers (legislators, municipal officials, etc.); and 3) public and private water managers. PADEP's latest plan design will address this.

·                   Connection Of Land Use Decisions With Water Management - Currently there is a very weak link between municipal actions, which decide our land use patterns, and water management. We need to provide useful information and assessment tools to the municipal governments so they can make better decisions.

·                   Need for Holistic, Watershed Planning - Decision makers need to have the information and management tools to evaluate impacts on a watershed basis. Cost-effective solutions are currently being missed because of the fragmented nature of current water management.

·                   Water Conservation - Water conservation is a required part of Act 220, but as of yet has not received any attention.

·                   Water Is An Economic Driver - There are areas of the Commonwealth that have abundant water and/or have underutilized water infrastructure. We should use this information in combination with the existing economic incentive programs.

 

Rep. McGeehan asked if DRBC has taken a stand on the dredging issue. Collier said DRBC has not taken a regulatory position, adding that the organization's general position is that there needs to be good scientific basis for how the dredging is done if it is going to happen. For instance, she said, studies show that when the channel is made deeper it can create a salt wedge where more saltwater from the bay will push upriver.

 

Chairman Adolph asked what actions the General Assembly can take. Collier answered education is key, noting that water conservation should not be an issue just during times of drought, but should be a way of living during all times. She said the issues of underground pipe leakage and above ground plumbing codes need to be further looked at as well as water pricing, because as it stands now the more water you purchase the cheaper the cost which doesn't exactly lend itself to conservation.

 

Rep. Harper noted that last year some extra money was given to the Commission in the budget and asked if the Commission will be requesting that additional money again. Collier explained that for the last two years an extra $250,000 was given to the Commission each year so that they could provide technical support to DEP. This year, she said, they are requesting $500,000 because much of the nuts and bolts work needs to be done this year in order for the State Water Plan to be ready by 2008.

 

Tom Beauduy, Deputy Director and Counsel of the Susquehanna River Basin Commission, echoed many of the comments presented by the first two speakers. He then made special notice of the money allotted to the Commission for technical support in DEP's planning process. These funds are critical, he said, as the commission is uniquely situated to provide assistance with user registration, discharge monitoring reports, data management, the yield analysis tool, and the COLOC project. He then discussed the Commission's efforts to tackle "potentially stressed areas" in the basin before they reach critical status. He gave as an example the Northern Lancaster County Groundwater Study, which the Commission undertook with funds provided by DEP. He concluded by saying "we need to stay focused on the need for good information, and good analysis, so that we can avoid the development of critical areas in the first instance. If given the tools and good scientific data, people and officials at all levels will be able to make better decisions about our water resources."

 

Mark Gutshall from LandStudies, Inc. presented more specific testimony related to the Northern Lancaster County Groundwater Study. His testimony focused on Critical Aquifer Recharge Areas, or CARA's, and the private-public partnership that is attempting to rehabilitate one such CARA called Butterfly Acres. The groundwater study showed that Butterfly Acres is a dry stream valley CARA, he explained, which is essentially a valley without an active stream channel. Local company Pfizer, which needs to withdraw large amounts of water for its commercial operation, has joined with Lititz Borough and LandStudies in an attempt to unlock the groundwater recharge potential of the Butterfly Acres swale, he said. They hope to remove the impermeable clay layer and replace it with a more suitable soil mixture as well install native plantings that will form a dense root zone to help filter pollutants from surface runoff, he explained. This could help put water back in the ground to offset Pfizer's future water withdrawals and improve the quality of the groundwater at the same time, he said.

 

Gutshall said that because this is a pilot project everyone can all learn from, they are doing extra monitoring throughout the project area to measure changes in infiltration patterns, as well as periodic testing that will measure changes in water quality. The hope, he said, is to shine a brighter light on several issues:

·                   How to identify and restore infiltration areas critical to sustaining supplies of high-quality water

·                   How to apply information and guidelines from the state level to community-level improvements

·                   How the private sector can assume an important, proactive role in water resource planning

·                   How communities can incorporate water resource planning into their comprehensive plans

 

Chairman Adolph asked if other states are doing anything similar with regards to public-private partnerships. Hines said that many states, such as South Carolina, Texas and Indiana are going through the same planning process as PA and several of them are utilizing public private partnerships, particularly Texas. Ohio, he mentioned, is doing quite a bit with water trading.

 

 

4-25-06

 

HOUSE ENVIRONMENTAL RESOURCES AND ENERGY COMMITTEE

Consideration of 3 bills

By Nate Collins, PLS

 

HB 2042 Reichley - (PN 2819) Amends The Clean Streams Law further providing for penalties for violations of the law by adding that any person or municipality who intentionally or knowingly violates the act, any rule or regulation of the department, any order of the department, or any condition of any permit issued pursuant to the act is guilty of a third degree felony and would be subject to a fine of at least $5,000 and up to $50,000 for each separate offense or to imprisonment for up to seven years, or both. Also, the actions for criminal penalties under this act may be commenced at any time within a period of five years from the date the offense is discovered. - The bill was unanimously reported as amended by A06276 (Harper), which aligns corporate liability with the Pennsylvania Crimes Code.

 

SB 868 Scarnati - (PN 1332) Amends the Forest Reserves Municipal Financial Relief Law increasing the annual charge to which acquired lands and property are subject to $1.20 per acre from $0.40 per acre. (Prior Printer Number: 1137, 1304) - The bill was reported as committed with Representatives David Levdansky (D-Allegheny) and Jim Wansacz (D-Lackawanna) voting in the negative.  (Note:  This bill will triple the in lieu of taxes paid on our state game lands and cost the PGC and additional $3.5M per year.)

 

View the letter from the PGC

View the letter from PFSC

 

Rep. Greg Vitali (D-Delaware) asked how much the bill will increase the payment in lieu of taxes. Rep. Martin Causer (R-McKean) said it would increase from $1.20 to $3.60 per acre. Rep. Vitali asked how much this will cost the state. Rep. Causer replied that currently at $1.20 per acre, the cost is $4.1 million, so he estimated the cost to be $12.5 million.

 

Rep. Carole Rubley (R-Chester) commented that she does not believe this is the best way to solve a funding problem. She added that this is a huge increase. Rep. Causer argued that the revenue can be recovered by correctly managing forest land. He added that this is a tax fairness issue, as he represents a county in which 60% of the land is state-owned and off tax rolls.

 

Rep. Daylin Leach (D-Montgomery) asked when the rate was last increased, to which Rep. Causer answered 1995. Rep. Leach commented his concern is that the cost is not gradually increased so the state must implement large increases all at once. He inquired if there is a way to increase the payment on an annual basis. Rep. Causer said an amendment to do that can be introduced on the House floor.

 

Rep. Dan Surra (D-Elk) urged members of the committee to support the legislation. He suggested that $8 million for the increase isn't a large amount of the state budget. This is a necessary increase because tax revenues are currently locked in a low level ($1.20 per acre), he stated.

 

Rep. Art Hershey (R-Chester) noted that the Game Commission buys land when it has extra money, and he suggested this legislation will slow down their efforts to purchase more land. Rep. Causer agreed, adding that many rural counties don't want the state to buy more land.

 

Rep. Levdansky was going to offer A07419, which would have required the Commonwealth to pay the Game Commission's and Fish and Boat Commission's share of the per acre cost, but it was withdrawn.

 

Rep. Levdansky said it is unfair for hunters and anglers to pay for this increase, which he believes is a budget breaker for the Game Commission. He offered that it will cost about $9 million for the state to pay for all payments for state land. He said he will likely offer this amendment on the House floor.

 

Rep. Wansacz said this bill will hurt the Game Commission, so he will support them and vote no.

 

HB 1195 Yudichak - (PN 1401) Amends the Storage Tank & Spill Prevention Act by removing the provision that states that only fill pipes of underground storage tanks "which have not been upgraded" are eligible for sealing under the Underground Storage Tank Pollution Prevention Program. - The bill was unanimously reported as committed.

 

2/23/06

The House Environmental Resources and Energy Committee held an informational meeting on mercury emissions management.

Members in attendance included: Chairmen Bill Adolph (R-Delaware) and Bud George (D-Clearfield) and Representatives Jacqueline Crahalla (R-Montgomery), Dave Levdansky (D-Allegheny), Chuck McIlhinney (R-Bucks), Ron Miller (R-York), Dave Reed (R-Indiana), Chris Ross (R-Chester), Carole Rubley (R-Chester), Dick Stevenson (R-Mercer), Greg Vitali (D-Delaware) and Jim Wansacz (D-Lackawanna).

Chairman Adolph opened by stating that mercury is a global pollutant. He offered that efforts are underway to attempt to control mercury emissions but there is no simple answer. This is an important environmental topic that requires the utmost care, he said.

Democratic Chairman George offered that the cost of pollution will be incredible on Pennsylvania. He commented that he does not know which is worse, having mercury poisoning or limiting the number of fish we eat. He suggested that DEP is working with the energy industry and not against it, adding that "we all want Pennsylvania to be an energy leader". He concluded by saying the goal is to tackle mercury emissions in the most fair and reasonable way.

Kathleen McGinty, Secretary of the Department of Environmental Protection (DEP), said the EPA has recognized that mercury is a dangerous pollutant. After studying the EPA's mercury emission reduction rule, DEP has determined it to be negative for Pennsylvania bituminous coal, she stated. She remarked the EPA rule will not be sufficient for Pennsylvania, specifically citing a different standard for different coal types. Secretary McGinty explained that waste coal, which the state is heavily invested in, has the strongest standard. She added that the second toughest standard is for bituminous coal. In her opinion, having a tough standard for this type of coal does not make sense because it has a significant amount of chlorine in it and it is much cleaner. The Secretary then commented that the EPA rule does not sufficiently protect the health of Pennsylvanians. She offered that she is a strong advocate for credit trading to reduce pollution but the Environmental Quality Board (EQB) is concerned with local deposition of pollutants. Under the EPA rule, toxic "hotspots" could develop around the state, which could result in a net increase in mercury, she told the committee. Secretary McGinty announced the EQB has worked to design a rule that will be better for Pennsylvania because it protects the economy and is better for the environment. She added that because many power plants have existing "scrubbers" in place to reduce sulfur dioxide (SO2) and nitrogen oxide (NOx), there is no need for mercury-specific reduction requirements.

Douglas Biden, President of the Electric Power Generation Association, questioned whether Pennsylvania should adopt a go-it-alone approach to regulating mercury emissions or follow the requirements of the federal Clean Air Mercury Rule (CAMR). He offered that his organization supports strict regulations to reduce recommendations but it will be a challenge. He also questioned whether a policy of this type should be "run through the General Assembly" upfront or on the backend. Biden explained that coal in Pennsylvania contains more mercury, which is why the state has more stringent requirements. He noted that power plants in the state face the highest compliance costs under the federal requirements. He suggested that Pennsylvania would benefit the most from interstate credit trading. He argued that DEP's assumption that trading will create hotspots is unfounded. Biden offered that power plants in the state must compete with other states that allow energy producers to pass pollution control costs on to customers. This is currently not possible in Pennsylvania and it puts energy producers in the state at a disadvantage, he added. He remarked that "DEP seems to be going out of its way to make this more difficult on us". If a state rule is such a good idea, legislation should have been introduced in the General Assembly instead of going through the regulation process, he remarked. He added that environmental policy shouldn't be made by petitions filed to the EQB.

Robert Wayland from the EPA Office of Air and Radiation said the EPA believes mercury is highly toxic and needs to be regulated. He added that they are concerned because of the number of people who eat fish, especially women of childbearing age. He explained that U.S. power plants contribute 1% of the mercury in the world, and the U.S. as a whole contributes a total of 3%. "We can't control 97% of global mercury emissions," he told the committee. He said with the implementation of CAMR and the Clean Air Interstate Rule (CAIR) the greatest area of mercury reduction will be in the eastern United States. Wayland estimated that by 2025 the U.S. will see a 70% reduction in mercury emissions with CAMR and CAIR. He added that eastern states will see an even higher reduction because of credit trading.

Rep. Rubley said the different testimony has numerous discrepancies and she asked for clarification. She specifically asked if technology will be available if the state goes forward with EQB's 90% reduction plan. Secretary McGinty answered yes, adding that the reduction is based on co-benefits for interstate rules regarding SO2 and NOx. Wayland offered that bituminous coal is the easiest coal from which to remove mercury but he expressed concern about EQB's timeframe. Biden acknowledged that technology used to reduce SO2 and NOx emissions can be used for mercury reduction but it has seen mixed results at different power plants. He said he hopes the state will see 90% reduction but he believes they may need mercury-specific technology.

Rep. Wansacz expressed concern about the cost for mercury reduction. He inquired about the cost of the state specific plan versus the federal plan. Secretary McGinty stated the federal rule would not reach an 86% reduction in mercury emissions, adding that credit trading may mean the state may not see a reduction at all. She continued, stating that CAIR will cost coal states billions of dollars while the state rule would not because it does not require mercury-specific emissions reduction technology. Biden offered that the costs for mercury control are site-specific and power plant size specific. He added that is why his organization supports the federal rule allowing a trading program. Disallowing mercury credit trading will have a significant impact on smaller power plants, he concluded. Wayland offered that CAIR will provide significant mercury reductions. He suggested that the United States needs one federal plan, not 50 state specific plans to show the world it is serious about mercury reduction.

Rep. McIlhinney asked what guarantee the energy industry could provide that it will meet the 86% reduction under CAIR. He specifically asked whether the industry is willing to limit the purchase of credits. Biden answered some smaller power plants may need to buy credits from other states to survive. He argued that credits are designed to help plants facing higher costs. He told the committee that he could not guarantee there would be an 86% mercury emission reduction. Secretary McGinty interjected that if Biden would agree an 86% reduction could be met "we would have a deal", but she added that it can't be guaranteed.

Rep. Levdansky said he was taken aback by an EPA chart showing that southwestern Pennsylvania has the highest mercury deposition in the country. He said he is concerned that the rules will involve investments in technology, and he questioned whether the energy industry will be able to recover the cost. Biden replied power plants need to know that answer before they make a decision to invest in technology because investors want to know how much of the cost they can recoup. He added that if costs in the state are higher than competing states it is ultimately less competitive.

Rep. Stevenson questioned the process used to bring the state regulations forward. He commented that the Legislature is last in line to see the regulations and he asked why there was no legislation introduced. Secretary McGinty replied the rule is proceeding in the same manner that all similar regulations do. She stated it is incumbent upon DEP to come up with a state compliance plan. She explained that the department gets all of the Clean Air Act regulations from the federal government and then it can adopt the regulations or tailor them through the EQB. She added that the department feels the federal regulation is not in the state's interest economically or for public health. Biden said he never remembers policy subject to a petition under the EQB. He added that energy producers are continually asked by legislators to produce low-cost power, which will have to come from coal-fired power plants and nuclear power plants.

Rep. Vitali said Pennsylvanians are suffering health problems because of mercury emissions and the state appears to be one of the worst for mercury deposition. He commented it seems power plants can buy credits under the federal rule and not have to produce any reductions in all. He inquired if anyone has analyzed the cost of mercury emissions on society. Wayland replied the EPA cannot quantify the amount.

Rep. Reed said that under the DEP rule if power plants produce overallowances the department can contribute the credits to power plants not meeting requirements. He suggested that this seems to be an improper seizure of a marketable quantity by the department. Secretary McGinty countered that the argument is based on the assumption that there is a property right to emit mercury, adding that no such right exists so there is no seizure. She added that the state will receive its mercury budget under the federal regulation.

Rep. Miller commented that the federal proposal does not address the fact that most deposition occurs around power plants. He expressed his belief that credit trading should be allowed in those areas. Secretary McGinty said that while it is a commendable approach, it is unlawful under the Clean Air Act. Wayland offered that Pennsylvania power plants use bituminous coal, which is high in chlorine so the mercury is highly controllable by existing scrubbers.

Rep. Ross said he is confused by the differences in the federal program and the state specific plan. He asked Secretary McGinty to explain why Pennsylvania power plants that can't meet their requirements won't be closed down. Secretary McGinty replied NOx is very expensive to remove and the department wants mercury reduction to be part of the federal rule for NOx reduction instead of requiring new technology like under CAIR. Biden interjected that it will not be economical for smaller power plants to pay for scrubbers. He said he is unsure what the future of the smaller power plants will be but he believes a state-only rule will lead to the closing of more power plants in Pennsylvania. Wayland said the EPA did numerous studies on bituminous coal and it has determined that a significant number of mercury reductions in other states will be led by mixing their coal with eastern bituminous coal found in Pennsylvania because it is high in chlorine.

Dr. Terry Sullivan from the Brookhaven Natural Laboratory said coal-fired power plants in the United States emit approximately 46 tons of mercury per year (which is 11% of all mercury emissions in the U.S.). He offered that the EPA estimates that mercury deposition will be reduced 8% on average in the eastern United States if CAIR and CAMR are implemented. He explained that a "hotspot" is an area where the level of mercury is much higher than expected. He said that while coal power plants are considered hotspots they may not be human health risk spots. The EPA defines those spots as areas with a large body of water in a region where people eat a lot of fish, he explained. He said that in three studies completed by Brookhaven National Laboratory these conditions have not been met.

Eugene Trisko, an environmental attorney representing the United Mine Workers of America and the Pennsylvania Coal Association, said this is a complex issue of vital importance to coal producers. Anything that makes Pennsylvania less competitive in the PJM market will have a negative effect on Pennsylvania coal, he stated. He then explained that requirements to reduce acid rain had a significant impact on coal with high sulfur content. Trisko offered that Illinois lost half of its mine industry because of federal regulations on SO2 emissions. He believes that could happen in Pennsylvania because of the mercury debate. He offered that the organizations he represents support CAMR even though it has some flaws. He commented that it is the most stringent rule in Pennsylvania, and no other state has a higher reduction compliance burden. Emissions credit trading is essential to mercury reduction in Pennsylvania, he told the committee. He cautioned that an inflexible 90% reduction requirement will cause power plants to close. Trisko estimated that the cost to reach 90% emission reduction will be $1 billion in upfront capital for power plants and $100 to $200 million each year. He urged the committee not to go beyond EPA's rule. He then commented that he had little opportunity to review DEP's rule and he would like proper time to evaluate it and its impact. He then questioned whether this state specific rule will hold up in court. Power plants that overcomply with reduction requirements should be able to sell their credits to power plants out-of-state, he suggested.

Jan Jarrett, Vice President of Citizens for Pennsylvania's Future (PennFuture), told the committee that her organization is essentially responsible for this meeting because it filed a petition with the EQB to reduce mercury emissions by 90%. She said they filed the petition on behalf of a broad coalition of organizations and advocate groups. She expressed her opinion that CAMR will not help Pennsylvania's economy or its public health. She said Pennsylvania has a pervasive mercury contamination problem, and it is a powerful neurotoxin that poses a threat to the proper development of babies' brains. Jarrett offered that 90% mercury emission reductions can be achieved with existing technology at minimal cost. She told the committee that every boiler at the state's 36 power plants could be retrofitted while costing Pennsylvania consumers only $1.08 more on their monthly electric bills. "The overall cost of compliance for Pennsylvania utilities was calculated to be approximately 2% of annual revenues," she stated. Jarrett added that installing scrubbers will create construction jobs. Pennsylvania will benefit from a strong mercury reduction rule, she concluded.

Nathan Wilcox, a Clean Air Advocate with PennEnvironment, said many Pennsylvanians support a 90% reduction in mercury emissions. He cited EPA studies showing that 83% of predator fish composite samples in Pennsylvania were contaminated with mercury levels that exceed EPA's safe consumption limit for women. He added that mercury's threat extends beyond fish populations to trees, which take mercury out of the air. He then cited studies showing birds are testing positive for mercury, along with mink and otters. Wilcox then discussed mercury hotspots. He told the committee that Pennsylvania's coal-fired power plants emitted about 6,700 pounds of mercury in 2003, the third most nationally. He argued it is imperative to consider hotspots in the discussion to cut mercury pollution in Pennsylvania because they are created by power plants. He stated findings have shown that upwards of 50% of ionic mercury emitted from a stationary source can be deposited within 310 miles of the source. He then referenced an EPA study of rain collection at a monitoring site in Steubenville, Ohio, which determined that mercury and rain originated from coal burning power plants up to 400 miles from the site. Wilcox then commented that technology exists to reduce mercury pollution from power plants. He discussed activated carbon injection (ACI), which is a mercury-specific technology that traps mercury before it leaves the smokestack. He said the cost of achieving 80% mercury reductions in Pennsylvania will be roughly $70 million annually, and the National Wildlife Federation determined that 90% mercury reductions will cost the states' utilities $223 million annually. He concluded by urging state regulators to move forward with state specific regulations to achieve a 90% mercury reduction.

Click here to view an EPA PowerPoint of the preliminary findings of the Steubenville, Ohio study.

Rep. Ross said the question is whether 90% reduction will make that much difference over the reduction from the federal proposal, and at what cost. He then stated that much of today's testimony is in conflict and asked if problems exist with Dr. Sullivan's testimony. Wilcox said Dr. Sullivan's study may not be most appropriate for Pennsylvania because it was done in grassy plains instead of forested areas like in Pennsylvania. He said he agrees that deposition occurs within five miles of power plants, but reiterated that the EPA is studying mercury deposition up to 400 miles. Jarrett added that the Steubenville, Ohio study captures mercury in every precipitation event, and it has concluded there is a hotspot phenomenon. Dr. Sullivan agreed that deposition is higher in forested areas and agreed mercury can be deposited 300 miles away from the source. However, he argued, at that distance the concentration would not be high enough to be considered a hotspot.

Rep. Levdansky said he lives downwind from two power plants and consequently he soaks the fruits and vegetables in his garden to move the fly ash. He asked if he is wasting his time soaking his food. Dr. Sullivan replied fly ash causes health problems, including respiratory ailments. He said the representative should wash off the fly ash, but he added that it is a different issue than mercury emission.

Rep. Wansacz said he is concerned with both the economic impact of the regulation and the health of Pennsylvania citizens. He said the difference between the federal and state plans is trading credits. He expressed concern that companies would just buy credits and the state won't see any real mercury reduction. Trisko replied CAIR will lead to increased installation of scrubbers, which will be a huge investment. He then explained that CAIR does not require 100% of coal-fired plants to be scrubbed because some are not economically viable to retrofit. He added that his concern with DEP's rule is that it creates a control system in which the department controls the credit allowances. Even if mercury is zeroed out in Pennsylvania's power plants there will be no change in the number of fish with mercury because of increased international emissions, he stated. Jarrett countered that DEP's proposal relies on the co-benefits of scrubbers used for SO2 and NOx reduction. She added that DEP will hold the mercury credits but power plants will still be able to sell other credits on the open market. She said the cost difference would come when power plants decide to have mercury-specific technology only.

Rep. McIlhinney asked if the CAIR production estimates include trading of credits. Trisko said yes, adding that EPA already knows who will buy the credits. Rep. McIlhinney said the reduction amount depends on how many credits power plants will buy. Trisko argued there is "no way Pennsylvania would revert to achieving 70% reduction" because under the federal rule the state has a high reduction requirement.

Chairman Adolph thanked everyone for their testimony and noted there is a lot of interest on this issue. He said the state will have to go through this slowly during the regulatory process. He urged interested stakeholders to continue to talk to DEP during the process because everyone wants the best plan for the state.

Nate Collins, PLS