Miscellaneous Committee Reports

 

Reports provided by PA Legislative Services

 

 

11-06-06

 

INDEPENDENT REGULATORY REVIEW COMMISSION

Consideration of 6 regs, including emissions and alternative energy regs

By Nate Collins & Kimberly Hess, PLS

11-3-06

 

Regulation No. 2523 Environmental Quality Board #7-398: Pennsylvania Clean Vehicle Program was approved by a vote of 4-1, with Chairman Alvin Bush voting in the negative.

 

IRRC staff explained that the EPA allows states to choose between the federal Tier II and the California Air Resources Board's Low Emission Vehicle (CA LEV) standards. It was explained that this regulation will update existing regulations to keep the CA LEV standards in place. Under the regulation, the requirements will not be enforced until 2008. Staff then said the Commission received two substantive comments on the final-form regulation, including a letter from Senators Roger Madigan (R-Bradford) and Mary Jo White (R-Venango).

 

Gene Barr, PA Chamber of Business and Industry Vice President of Political and Regulatory Affairs, spoke in opposition to the regulation. He commented that previous studies of the California standards have shown that Tier II makes more sense for Pennsylvania. He said the increase in price comes because California regulates carbon dioxide, which Pennsylvania does not currently do. It was clear that the intent when the original regulation was passed implementing the California standard was for it to serve as a bridge to implementation of Tier II, he stated. Barr said at that time a regulation could not be written regarding Tier II because it did not exist. However, he said, stakeholders were assured at that time that the state would implement Tier II.

 

Commissioner David Barasch inquired about the number of states north and east of Pennsylvania that have adopted CA LEV. Barr replied that he is not sure of the number but he knows some have adopted it. Commissioner Barasch asked what makes Pennsylvania so fundamentally different that it shouldn't adopt CA LEV. Barr stated he is not sure what happened in the other states. He added that the cost of the California standards outweigh the benefits. He suggested that maybe the state should complete another study of the California standards to see if they are a good fit for Pennsylvania.

 

Chairman Alvin Bush said it is his understanding that if the regulation is approved it would put Pennsylvania at the mercy of the California legislature. Barr said that is correct, adding that once the state commits to taking one path it can't go back. It makes sense for the state to really think about adopting CA LEV, he remarked. Chairman Bush stated his concern about Pennsylvania giving up power to California.

 

Craig Shuey, Executive Director of the Senate Transportation Committee, also spoke in opposition to the regulation. He told the commissioners that Chairman Roger Madigan issued a statement on this regulation, noting his concern that the current interpretation of the regulation doesn't meet the intent when it was adopted in 1998. Had there been a concern about California standards at that time, the Chairman and other stakeholders would have voiced opposition, he said. The California car is not the car of choice for Pennsylvania, he stated.

 

Jan Jarrett, Vice President for PennFuture, spoke in support of the regulation. She told the commissioners they have the opportunity to save $7.9 billion for Pennsylvania consumers. She said, the California car is cleaner and more fuel-efficient than the federal car, adding that consequently people will use less gas and the state will have cleaner air. Jarrett offered that full implementation will help Pennsylvania achieve a 6-12%% reduction in volatile organic compounds (VOC), a 9% reduction in nitrogen oxides (NOx) and a 7-15% in benzene. These reductions are necessary to help Pennsylvania meet its clean air standards, she stated. She said the argument that CA LEV hinders customer choice is false, adding that some diesel vehicles meet the standard. CA LEV is included in the State Implementation Plan (SIP), which must be approved by the EPA, and if the state changes course it will have to change its SIP, which is a long process, she told commissioners.

 

Charles Territo, from the Alliance of Automobile Manufacturers, spoke in opposition to the regulation. Following up on an earlier question from Commissioner Barasch, he said when New York adopted CA LEV there was no Tier II, which is why they adopted that standard. He also offered that unlike CA LEV, all cars under Tier II will have to meet clean air standards by 2009. He acknowledged that states surrounding Pennsylvania have adopted the California standards, but he noted they are not upwind from our state. The California standards will stop diesel vehicles in Pennsylvania, Territo stated, adding that currently there are no diesel vehicles under 8,500 pounds available in California. CA LEV has a huge bureaucracy with very little or no benefits to the environment, he opined. With passage of the regulation, Pennsylvania will adopt a program over which it will have no control, he concluded.

 

DEP Secretary Kathleen McGinty said there are various views of the history of these regulations. She stated that in her position she must follow the regulations that are on the books, adding that Pennsylvania has been on CA LEV since 1998. When the regulation was first adopted it was not a rushed or lighthearted process, she told commissioners. She offered that not every part of the California standards was adopted, including the zero emission program and the alternative fuels program. Secretary McGinty then addressed the concerns about price increases under CA LEV. There is a zero price differential at this time, she stated. She added that there is speculation that changes would increase price, however, the potential price increases will be offset when people save money with cleaner, more efficient vehicles. The Secretary explained that this regulation is just part of a larger program to meet federal clean air standards. She offered that she knows of no other regulations that help the state reach its federal requirement without an additional cost. She continued, stating that Pennsylvania must not only meet its federal clean air requirements, it must sustain them for 20 years. To reach our requirements, the Pennsylvania Clean Vehicles Program is essential, Secretary McGinty said. The Secretary then addressed Chairman Bush's comments about Pennsylvania giving up powers to California. She said Pennsylvania has been under CA LEV since 1998 and the regulation postpones the next compliance deadline to 2008. She then commented on arguments that diesel vehicles are not available in California. Secretary McGinty stated diesel vehicles are being proposed to be certified under CA LEV, adding that only one diesel vehicle is certified under the Federal rule. Carmakers have not attempted to have diesel vehicles certified up to this point because there was a lack of interest by consumers, she remarked.

 

Commissioner Barasch asked if not using this program to reach federal clean air requirements will cause more regulation to be placed on power plants. Secretary McGinty confirmed this to be true.

 

Chairman Bush said everyone is in support of clean air but Pennsylvania has come a long way and he feels the regulation has many unanswered questions so he will vote against its approval.

 

8-15-06

 

House Democratic Policy Committee


HARRISBURG - (8/15/06, 10:00 a.m., Room 205, Ryan Office Building)

The House Democratic Policy Committee held a public hearing on House Bill 2744.

HB 2744 Vitali - (PN 4182) Amends Title 27 (Environmental Resources) providing for Municipal Climate Change Action Plans. The bill creates the Municipal Climate Change Action Plan Grant Program to provide financial assistance to a municipality or a group of municipalities for the preparation of municipal greenhouse gas inventories and municipal climate change action plans. A municipality or a group of municipalities that is awarded a grant would provide to the department a copy of the municipal greenhouse gas inventory and the municipal climate change action plan upon their respective completion. The bill appropriates $300,000 to DEP for the fiscal year 2006-2007 to carry out the provisions of the chapter.

Members in attendance included Representatives Greg Vitali (Delaware), Thomas Caltagirone (Berks), Nick Kotik (Allegheny), Thomas Blackwell (Philadelphia), Don Walko (Allegheny), Todd Eachus (Luzerne), and Dante Santoni (Berks).

Rep. Vitali opened the meeting by remarking on the importance of his legislation. He stated global warming is one of the most important environmental issues facing the planet, as it will lead to melting of glaciers, flooding and more powerful storms. Global warming, he explained, is caused by increased emissions of greenhouse gases, largely from the burning of fossil fuels. Rep. Vitali stated the US Government isn't doing anything to reduce these emissions, so it is up to the state and local governments to step up. He stated his legislation will encourage municipalities to address greenhouse gases as a local issue by distributing grants to municipalities to do a greenhouse gas inventory and develop a strategic action plan for reduction.

Lou Thieblemont, Mayor of Camp Hill, discussed his efforts to increase conservation and efficiency in Camp Hill and expressed his support

for HB 2744, stating it will help him in his initiative to find a baseline of carbon usage in Camp Hill. He noted the existence of current programs, which come with a cost, and stated the legislation would assist in the study of borough usage patterns and come up with plans to reduce greenhouse gases. Thieblemont also noted his personal efforts to reduce emissions, remarking that he bikes or walks whenever possible. He expressed hope for grants that will allow him to quantify the savings from his efforts. He concluded by arguing that simple efforts to increase efficiency can have an affect, noting that it costs $5.60 to run a standard 100 watt light bulb each month.

Rep. Eachus asked what the mayor is doing to incentivize change and how the legislature can help. Thieblemont noted he took office in May, so he hasn't had a lot of time to do much, but in that time efforts have begun to replace traffic lights with LED lights where possible. He commented on the importance of being able to show that conservation efforts are directly resulting in decreased costs. Rep. Eachus then remarked that he was surprised recently when traveling to see that some states are using SUVs for police enforcement. He then asked what can be done at the state level to reduce emissions. Thieblemont stated Camp Hill police patrol on bicycles, which provides an element of stealth and efficiency. Rep. Eachus noted motorcycles can be useful in more rural municipalities. Thieblemont replied the local Harley Davidson dealership has a loan program that allows police to use their motorcycles. He stressed the importance of first setting a baseline of emissions and then developing plans to reduce those emissions.

Rep. Caltagirone expressed his support for the bill, stating it is a good first step. He noted efforts at the state level, including the Governor's mandate of fuel efficient purchasing and air conditioning is turned up in the capitol complex. He agreed that governments should gauge their emissions and then implement savings techniques, noting that cost savings from conservation efforts can be passed on to taxpayers.

Jim Yienger, Director, International Council for Local Environmental Initiatives (ICLEI), USA Policy Institute, explained that his organization is a local government organization dedicated to solving problems with local action. He stated HB 2744 provides resources, which is one of the most effective things government can do, but suggested that the grants be scaled to the size of the municipality. He noted that 170 ICLEI municipalities across the country saved $500 million following efforts to reduce emissions. Yienger stated just a small intervention provides a lot of return, noting that grants can bring together entities such as universities and community groups. He concluded by stating the legislation provides an opportunity for PA to be a leader.

Rep. Eachus asked about the size of the 170 municipalities that participated in the program to reduce emissions. Yienger replied the size varied from about 20,000 residents to Chicago, Los Angeles and New York City. He remarked the issue is scalable as everyone has light bulbs. He noted that it is easier for smaller municipalities to obtain records than in bigger cities. Rep. Eachus asked what records are being evaluated, to which Yienger replied energy bills. Rep. Eachus then commented on efforts regarding a small non-profit hydroelectric project. Yienger remarked the impact of such a project will be amazing.

Rep. Vitali asked about some of the more common conservation policies. Yienger replied energy efficiency in lighting, landfill intervention to capture methane, more efficient vehicle fleet purchasing and biodiesel are common. He stated the 10-15% target reduction can be reached immediately with implementation of such technologies.

John Dernbach, a Professor of Law at Widener University and formerly with the Department of Environmental Protection, commented that climate change is a real concern within the scientific community, which, he argued, is quite alarming as in the past they have not been as concerned about other issues that the public was concerned about. He remarked that efforts to affect climate change are not stand-alone issues, as they can also affect the economy, create jobs, and reduce dependence on foreign oil. Dernbach remarked on a paper he wrote six years ago in which he found that efforts underway to reduced emissions were undertaken with the goal to create jobs, increase competitiveness, or foster new technology, not necessarily to reduce emissions, but the goals are bundled together. He stressed the economic positives that can result from lowering greenhouse gases. Lastly, Dernbach stressed the importance of efficiency, stating we "can just about stabilize US energy consumption using efficiency alone". He noted that efficiency doesn't have to be costly, citing an example of his neighbor, who insulated his attic and recouped the cost of the insulation in savings in his energy bill. Dernbach expressed support for efforts to educate homeowners on the benefits of efficiency, concluding "the more positive stories we can tell, the more likely we are to move forward."

Rep. Caltagirone discussed HB 1413, which passed the House last year, explaining that the bill would provide tax credits to animal waste recycling facilities. He remarked DEP and the Department of Revenue expressed concerns with the bill, but it is already being undertaken in PA and across the country. He also noted a plant in Philadelphia that is recycling sewage waste. Rep. Caltagirone stated PA is an agriculture state with agriculture byproducts that can used for energy. We need a better policy for the state, he remarked. Dernbach noted he is not aware of the specifics of animal waste recycling, but stated we should take advantage of opportunities. Rep. Caltagirone remarked on the cyclical feeling of energy policy as some days there's a crisis and other days there is not and stated we can come up with solutions with a little guidance. Dernbach concurred there is a "Groundhog Day" aspect to energy policy, but noted today's energy climate is different from that of the 1970s due to changes such as globalization. He commented choices are based on needs and opportunities.

Rep. Kotik commented that homes being built today are huge and consume energy. He asked about incentives to build more efficiently. Dernbach replied today's homes are more efficient than older homes, however, he continued, that increased efficiency may be lessened due to the larger size and the number of appliances. He suggested that building codes could require efficiency, but added that the bigger need is for existing housing to be retrofitted and upgrades to increase efficiency. He stated there is potential for substantial savings in upgrading existing housing.

Rep. Vitali asked about policy options that could benefit homeowners and reduce greenhouse gases. Yienger remarked that is a challenge, but is possible through incentives or by requiring it in building codes. Rep. Vitali asked about quantifying reductions, but Yienger remarked that may be difficult.

Rep. Vitali then asked about suggestions for improving the language in the bill. Dernbach suggested that funding could be stretched by turning the grants into loans, which would be paid back with the savings in energy cost. He also suggested integrating the program with the Center for Local Government Services in the Department of Community and Economic Development and making the payments on scale with the size of the municipality.

Rep. Caltagirone concluded the meeting by remarking it would be great if more hearings like this could be held across the state.

Kimberly Hess, PLS

 

6-20-06

 

SENATE FINANCE COMMITTEE

6-20-06

Consideration of bills

By Lynn Deary, PLS

 

HB 10 Semmel - (PN 2399) Amends the Bingo Law by further defining "bona fide member" by deleting the requirement that a member of an association has to be a member for at least one year. The bill increases license fees for nonprofit associations, senior citizen groups and agricultural associations. The legislation also raises the maximum prize for jackpot games from $2,000 in one day to $8,000 in one day. Associations would be required to obtain a signature receipt from the winner of any prize greater than $600. Lastly, the bill requires an association to submit a financial report on their bingo activities with each application for bingo license renewal. (Prior Printer Number: 909) - The bill was reported as amended by A08212 (Wozniak), which was stated to be technical in nature, and A07799 (Earll), which adds a winner take all provisions, clarifies leasing arrangements, restores advertising limitations and calls for an annual financial report to be filed. Senators Rob Wonderling (R-Montgomery), John Gordner (R-Columbia) and Gib Armstrong (R-Lancaster) voted against the bill as amended.

 

Senator Browne inquired if, because there was such a significant increase in the fee, there had been any negative feedback to which he was told there had not been. It was noted that this is probably because the fee was now bi -annual instead of an annual one.

 

Minority Chair Wozniak then went on to further inquire "just who is eligible and who is not, to hold bingo and small games of chance? And where does all the money go?" Addressing that question was Mike McLaughlin who represents Allied Charities of Pennsylvania. McLaughlin told the committee that the bill calls for license holders to file annual reports which will provide much of this information in regards to where the money goes. He further clarified that social clubs have had bingo since the 1981 law and that his charities would welcome further oversight and having a closer look taken at those who are and are not eligible.

 

Chairman Earll commented that enforcement of the regulations is not even level across the state and hopefully when this bill passes these issues will get addressed. Sen. Anthony Williams stated that there would probably be amendments on the Floor addressing the profit-nonprofit, charitable issue, as well as uniform enforcement. Chairwoman Earll then stated her intent was to report out the bill, but noted she is completely in agreement with accepting further amendments.

 

Senator Gordner commented that because of gaming it appears that bingo and small games of chance prize levels will need to increase. Chairwoman Earll noted that the same has taken place with the lottery.

 

Minority Chair Wozniak asked McLaughlin when was the last time the prize threshold was raised to which he was told, 1981 for bingo and 1989 for small games of chance.

 

HB 11 Semmel - (PN 2400) Amends the Local Option Small Games of Chance Act further providing for prize limits by adding that the maximum cash value that may be awarded for any single chance would be $1,000 (increased from $500). The legislation states that an eligible organization may award up to $20,000 (increased from $5,000) in cash or merchandise in a seven-day period. Progressive games would be permitted with a maximum cash value of $25,000. The legislation states that insured games must be backed by a valid insurance contract issued by an insurance company. The bill would require organizations to report all prize payouts worth $600 or more to the department. License renewal would be changed from annual renewal to biennial and the license fee would be increased from $100 to $300. Additionally, a limited occasion license fee would be increased from $10 to $30. Lastly, the bill allows for the department to conduct background checks on each person who signs a license application. (Printer Number: 910) - The bill was reported as amended by A08215 (Wozniak), which was described to the committee as technical in nature, and A08068 (Earll), which adds several provisions to the Local Small Games of Chance Act including raising the limit on weekly drawings from $5,000 to $20,000. Senators Wonderling, Gordner and Armstrong voted against the bill as amended.

 

Senator Armstrong inquired of McLaughlin and the committee how many are licensees in PA. He was told 22,000 to 23,000 between bingo and small games of chance, 10% of which probably have liquor licenses. Senator Armstrong then stated that he felt that they are in competition with the taverns by passing on more favorable pricing on alcohol. McLaughlin told him that this would be illegal.

 

Senator Gordner asked where the licenses are processed - is it in the county treasurers offices? The reply was yes and that even one day permit for raffles and such are included in the above numbers.

 

Senator Anthony Williams (D-Philadelphia) stated that he had grave concerns in this area because of drinking and gambling going on both in the same locations and wanted to take a much greater look at the overall issue.

 

Senator Browne asked McLaughlin how many license holders are complying with the Department of State requirements because he believes the filing requirements being added in this bill would be duplicative. McLaughlin noted that this was added at the request (filing of reporting requirements) of the District Attorneys Association and was supported by the Allied Charities.

 

Chairwoman Earll ended the meeting by saying that the bill was a long way from being in its final stage but since it had been lingering in committee so long, it was time to get it out and worked on.

 

 

4-5-06

 

The HOUSE INTERGOVERNMENTAL AFFAIRS COMMITTEE met to the following bills:

 

·       SB 601 Wonderling - (PN 1239) Act relating to confidentiality of Social Security numbers by prohibiting a person, entity, state agency, or political subdivision from publicly posting a Social Security number, printing the number on any cards required for individual access to products or services, requiring an individual to transmit his or her Social Security number over an insecure connection on the Internet, or print a Social Security number on materials mailed to an individual unless Federal or State law requires the number to be on the document mailed. Actions in violation of the act would be considered a summary offense and punishable by a fine of $50-$500, which would be distributed equally between the Crime Victim's Compensation Fund and the Office of Attorney General for future identity theft prevention. The bill will not apply to a financial institution, a covered entity, or an entity subject to the Fair Credit Reporting Act. The legislation provides for criminal enforcement by district attorneys and the Attorney General. (Prior Printer Number: 633, 896, 1142) - The bill was unanimously reported as amended by A07144 (Fairchild), which removes Section 1(f) of the bill pertaining to the courts, State agencies and political subdivisions and replaces it with a new subsection (f) that provides guidance to the courts and a new subsection (g) that provides guidance to state agencies and political subdivisions with regard to access to public documents that contain Social Security numbers. The amendment adds a penalty for second and subsequent violations of the act and changes the effective date from July 1, 2006 to 180 days. The amendment also makes several technical changes. Rep. Jim Wansacz (D-Lackawanna) asked if universities would be affected by the bill. Staff replied no as they are neither state agencies nor political subdivisions. Rep. Steve Samuelson (D-Northampton) asked if passage of the bill would mean that the state would no longer be able to print Social Security numbers on PACE cards. Staff confirmed this would be true, commenting that they could develop a system that would tie and individuals account number to a Social Security number for internal purposes. Rep. Tina Pickett (R-Bradford) asked if the bill would affect death certificates. Staff confirmed that it would.

 

 

 

4-4-06

 

SENATE DEMOCRATIC POLICY COMMITTEE

Public hearing re mine safety

By Nate Collins, PLS

 

The held a public hearing to discuss new proposals to make Pennsylvania's mines safer. Members in attendance included Chairman Richard Kasunic (Fayette) and Senators Raphael Musto (Luzerne), Barry Stout (Washington), Gerald LaValle (Beaver), Jay Costa (Allegheny), Sean Logan (Allegheny) and Wayne Fontana (Allegheny).

 

Chairman Kasunic said this meeting is necessary because of the dangers associated with mining. He noted that Pennsylvania's mining regulations have not been updated since 1961, and he believes an update is necessary. He added that West Virginia has had recent mining tragedies, and as a result Pennsylvania is trying to make its mines safer to avoid disasters.

 

Jay Scott Roberts, DEP Deputy Secretary of Mineral Resource Management, and Joe Sbaffoni, Director of the Bureau of Deep Mine Safety, were the first to testify. They discussed Pennsylvania's mine safety record and detailed Governor Rendell's proposed mine safety legislation. Roberts stated that since taking office, Governor Rendell has proposed a series of changes to enhance mine safety in Pennsylvania, including: revising mine permitting and inspection procedures, putting in place stringent requirements concerning validation and verification of underground mine maps, an effort to digitize mine maps, and revising training protocols for the Bureau of Mine Safety staff and mine workers. He added that despite these improvements legislative changes are still necessary. He then outlined Governor Rendell's legislative proposal, which is incorporated in SB 949. He explained the bill would:

·       Make the mine owner or operator primarily responsible for safety compliance at the mine

·       Create a three-member Mine Safety Board with the authority to promulgate regulations to keep pace with mine safety   

               technology

·       Eliminate obsolete language in Pennsylvania's mine safety statutes

·       Increase to 500 feet from 200 feet the distance from which a bituminous underground operator must conduct advanced drilling

               when approaching an adjacent mine

·       Authorize the Department to use emergency contracting provisions to pay for mine rescue and other mine safety activities

 

He noted that mine safety provisions are also incorporated in SB 1092, but the administration is concerned about moving that legislation without the more substantial changes included in SB 949. He concluded by urging consideration of both pieces of legislation to improve safety in Pennsylvania's mines.

 

Senator Musto expressed concern with the proposed Mine Safety Board's power to promulgate regulations. He asked if having three members on the board is sufficient. Sbaffoni replied the Department has a similar board related to diesel that only has two members and it works very well. He suggested that sometimes too many people can be a detriment. Senator Musto then expressed concern that the board's regulations would be exempted from the regulatory review process. Roberts said that suggestion was made because the Department could get them completed quicker without going through the regulatory process. Senator Musto explained there will be a problem getting that proposal through the Legislature. He then suggested that the mining industry could correct some problems without putting requirements into law, to which Roberts and Sbaffoni agreed.

 

Senator Logan expressed disbelief that mine owners are not responsible for the safety of their mines. Roberts replied that under current law, safety is the responsibility of certified mine officials and not mine owners. Senator Logan asked for an example of obsolete language that would be removed from law. Roberts stated language related to stabling horses in mines and the use of conveyor belts, both of which are not applicable anymore.

 

Senator Logan opined that of all the proposed changes, he believes the most important is that the owner or operator can be held responsible for the safety at the mine. Roberts agreed, adding that safety starts with the mine owner. Senator Logan then asked if miners are being properly trained. Sbaffoni replied that there is no training requirement in existing law. He offered that the Department envisioned the Mine Safety Board looking into that issue.

 

Senator Costa asked if mine operators can be cited for unsafe work conditions. Roberts said only the federal government can cite them. He added that the state can ensure the safety of its mines with the presence of DEP inspectors in the mines. Senator Costa asked if the legislation addresses notification requirements, and who is in charge of releasing information when there is a problem. Sbaffoni said they try to achieve a consensus between the mine operators, state officials and federal officials. He added that he hopes they never have to address that issue. He said the issue is not addressed in the bill because there are questions about whether the state or federal government is in charge. Senator Costa asked if miners can be tracked by a computer chip. Roberts explained that the problem is that radio signals don't transmit well in mines. Sbaffoni added that some tracking and communications devices are being tested in West Virginia mines.

 

Senator Stout asked if conflicts exist between the jurisdictions of state and federal mining inspectors. Sbaffoni replied that the federal government has a statute it must enforce and the state has its own statute. He added that mines must meet the most stringent requirements. Senator Stout inquired if DEP has enough money and staff to properly address mine safety. Roberts answered that they have enough staff but the problem lies with recruiting and retention of inspectors because the federal government and private companies recruit DEP's inspectors. Senator Stout urged the Department to tell the Legislature soon if it needs more funding so it can be put in the budget.

 

Senator Stout asked if the Department recommends designs and layouts for new mines. Roberts replied that after the Quecreek mine tragedy the Department changed its permitting process, and now the Department experts have to sign off on the safety of proposed mines.

 

Senator Fontana said this legislation is a "no-brainer," and he asked why anyone would not support it. Roberts replied that everyone agrees changes are necessary but "the devil is in the details". Sbaffoni added that SB 949 does not address a large number of safety issues. He explained that it is an attempt to make administrative changes to give the Department the ability to promulgate rules and improve mine safety.

 

Senator Musto asked if Pennsylvania should assume primacy over its mines. Roberts said that is not allowed under federal law, and to do so would require a change at the federal level. Senator Musto opined that primacy would solve a lot of problems.

 

Chairman Kasunic asked about different mine safety devices that are being tested. Sbaffoni replied there is currently a lot of testing of a variety of devices. He said mine operators, the federal government and the state are trying to identify which technologies will be the best in the future. He added that the Department will know more when the testing is completed. Chairman Kasunic said an accident could take place at any time, and he questioned whether the state can afford to keep waiting or if it should move forward on legislation to improve mine safety. Sbaffoni offered that West Virginia passed mine safety legislation in two days and it is now working on regulations. He noted that SB 1092 will give mine operators a year to implement changes. He suggested that the legislation will drive technology and he believes giving mine operators a year to study different safety products will be good.

 

Ed Roscioli, CEO of ChemBio Shelter, Inc., offered a presentation on his company's product, the Life Shelter. He explained that the product is a hermetically sealed, airtight shelter that creates oxygen through certain chemicals. He noted that the technology is currently used in submarines and by NASA. The Life Shelter becomes fully inflated in less than 60 seconds and is perfect for mine safety, he stated. He explained that the shelter maintains a life-sustaining environment, is flame retardant and allows a person to enter and exit without allowing toxins to enter. Roscioli said his company can produce 200 shelters per month. He suggested that there should be more than one shelter at each mine, adding that the containers can be skid-mounted so they can move with the miners. The capacity of the shelter is 18 workers and they can stay in the shelter for 96 hours or more, he told the committee. He added that the shelf life of a shelter is 20 years and the monitors should be checked every two years.

 

Chairman Kasunic said the testimony was very enlightening, and he called the Life Shelter "very impressive". He asked about the company's status in the Mine Safety and Health Administration (MSHA) regulatory process. Roscioli replied that MSHA has not addressed safety chambers yet, but he noted that his company is presenting to them later this month. He suggested that the shelters are much better than the self-sustained self rescue units. He offered that West Virginia is planning to move forward with these rescue chambers. Coal companies are very interested but they are waiting for the federal regulations, Roscioli said. Chairman Kasunic asked about the cost of the Life Shelter. Roscioli explained that the initial cost per unit is about $25,000 and then it costs about $250 hours per man day for the consumable items. Chairman Kasunic commented that the cost is reasonable.

 

Senator Stout, noting that each shelter has a capacity of 18 miners, asked if nine people would have double the amount of oxygen, to which Roscioli answered yes. Senator Stout asked if the company would be willing to allow DEP to test one of its units. Joe Sbaffoni replied that the Department has been a part of the testing in Pittsburgh, and they are ready to look at the shelter or any other equipment that may be placed in mines. Roscioli offered that they have a fully functional testing unit and they would be thrilled to allow the Department to test it. After some more discussion of specifics related to the Life Shelter, Senator Stout suggested that this technology deserves serious consideration.

 

 

 

3-16-06

 

HOUSE REPUBLICAN POLICY COMMITTEE

Public hearing on alternative energy

By Nate Collins, PLS

 

The committee held a public hearing on alternative energy. Members in attendance included Chairman Mario Civera (R-Delaware) and Representatives Scott Petri (R-Bucks), Steven Cappelli (R-Lycoming) and Kerry Benninghoff (R-Centre).

 

Chairman Civera stated the purpose of the hearing is for the committee to receive information about alternative fuels. He noted that fuel prices are very high and the state needs to look at alterative methods and fuels. He added that the committee may hold other hearings on this issue in other parts of the state.

 

Rep. Petri said the members of the committee learned a lot about energy during a meeting in September after Hurricane Katrina. He said he hopes the testifiers at this hearing can provide recommendations so the legislature can help expand the alterative energy industry.

 

Rosemary McAvoy, Executive Director of the Alternative Fuels/Renewable Energies Council, explained that her organization is trying to commercialize alternative fuels. She said the Council does business to business work, linking companies together to access alternative fuels. She noted that they assist companies in using waste products to make fuel. She gave the example of a company in Adams County that is making a fuel additive from soybean oil and selling it on the market. McAvoy also offered that the Council is working with companies in Lancaster County to create a commercial digester system. The lack of an infrastructure is a barrier to the commercialization of renewable fuels, she stated. She added that filling stations are needed to connect fuel distributors to the market. McAvoy offered the following recommendations to the committee:

·             Create a short, medium, and long-term energy strategy

·             Alternative fuel vehicles should be exempted from tolls

·             Alternative fuels should be tax-free

·             Offer grants for the creation of alternative fuel pumps

·             Replace old state vehicles with alternative fuel vehicles

·             Establish an alternative fuel corridor

·             Continue consumer outreach regarding alternative fuels

 

Chairman Civera asked how gas stations feel about building the infrastructure for alternative fuels. McAvoy replied the biggest resistance comes from mini-marts because of the investment required to put the pumps in. She added that there is concern the product won't sell. Chairman Civera agreed that infrastructure is necessary. He then asked how big oil companies have reacted to the request for alternative fuel infrastructure. McAvoy answered that they have done nothing to help or hurt the idea. She noted that alternative fuels will be a small amount of overall sales and oil companies follow the money. Chairman Civera inquired if biodiesel fuel requires a different engine. McAvoy said it runs in the same engine, and it immediately cuts sulfur emissions.

 

Rep. Petri asked about the benefit to school districts to use alternative fuels in school buses. McAvoy replied that buses will face mandates in 2007 from the EPA to cut emissions. She added that alternative fuels will protect children by keeping harmful emissions out of their lungs. She urged the representatives to talk to school districts about available grant money. Rep. Petri asked about the legislation that created the grant program. McAvoy explained that Act 178 of 2004 is a rebate program that "piggybacks" on the federal rebate program to bring alternative fuels to the market. Rep. Petri then asked what kind of rebate or incentive is necessary to make alternative fuels competitive. McAvoy said it is about five cents per gallon.

 

J. Michael Love, President and CEO of the Energy Association of PA, said the Alternative Energy Portfolio Standards (AEPS) legislation passed last year is the most wide-sweeping of its kind in the country. He expressed support for the broad definition of what qualifies as alternative energy. He noted that the legislation does not attempt to predict winners or losers as far as technology is concerned. Love then stated that as the premier user of energy in the state, government must become the leader in conservation and alternative energy. He suggested to the members that they ask each department during budget time how it is going to reduce its energy usage or increase its reliance on alternative energy. Merely mandating change will not ensure change, he commented. He concluded by stating it is highly unlikely that alternative energy generation will lead to relief for the state's poor, but major users such as government need to lead the drive to greater utilization of alternative energy generation.

 

Chairman Civera agreed that government must be the leader in alternative energy, and asked what is not being implemented in the AEPS legislation. Love replied that the PUC has a significant task to implement the Act and they have been doing a good job. He suggested that the problem is the focus to implement the Act while determining winners and losers and comparing the best and worst technologies. Chairman Civera asked if the PUC has the power to ask energy companies about their utilization of alternative energy. Love replied the price of natural gas increased across the country while there was no energy policy and we are relying on natural gas for electric generation. He stated the reliance on natural gas for electric generation is driving up the price. He added that alternative energy can get the country off its reliance on natural gas for generation. The country needs to diversify where it gets natural gas, he said, adding his support for drilling in Lake Erie.

 

Rep. Petri asked what is impeding drilling in Lake Erie. Love responded that senators from Michigan convinced the Senate to block the drilling in any of the Great Lakes. Rep. Petri, citing Love's recommendation to question various state departments about their energy policies, asked if the legislature should create a task force to monitor the departments. Love replied that he could get together with various stakeholders and provide the legislature with questions to ask.

 

Rep. Cappelli asked about energy generation benchmarks in the AEPS legislation. Love explained that the legislation requires that alternative sources represent 18% of electricity generation by 2025. He assured the committee that energy producers are committed to meeting the goals in the legislation. He then agreed with Rosemary McAvoy that infrastructure is necessary to promote alternative energy.

 

Steven Gabrielle, Business Development Manager for PPL Energy Services, said PPL has invested in a number of alternative and renewable energy projects. He noted that the projects have been supported by more than $20 million in grant money in addition to federal tax credits. Until the costs of renewable technologies come down the projects will require government support through long-term contracts, grants and tax credits, he stated. He added that long-term contracts with assured cost recovery to support the construction of new alternative energy products are necessary for the implementation of the AEPS legislation. Gabrielle said PPL is involved in wind power, solar, fuel cell and methane-to-electricity projects. In the future, PPL sees biomass as a low-cost alternative energy source, he noted. He then suggested that capital costs, state permitting and local siting issues need to be addressed through the expansion of state funding to spur the development of alternative energy projects.

 

Rep. Petri asked how PPL finds its projects, to which Gabrielle replied they develop relationships with customers. Rep. Petri asked if PPL's competitors are doing these projects as well. Gabrielle said PPL competes for these types of projects. Rep. Petri then inquired about the future of fuel cells in automobiles. Gabrielle explained that all of PPL's fuel cell projects are stationary but they work with some companies that deal with mobile sources. He said some cars can use fuel cells but producers want to see how they function in stationary sources first. Rep. Petri asked if the AEPS legislation has enhanced PPL's interest in Pennsylvania. Gabrielle replied yes, offering that it adds viability and visibility to various PPL projects. Rep. Petri asked what the legislature can do to support alternative energy. Gabrielle suggested the legislature should embrace the projects, and should consider projects that are being completed in other states.

 

Rep. Cappelli asked if nuclear generation is in PPL's future, and Gabrielle replied that he doesn't deal with nuclear energy so he couldn't comment.

 

Roger Clark, Manager for Technology and Policy with the Sustainable Energy Development Fund, said his organization was created by the PUC in 1998 to support renewable energy, energy efficiency and conservation. He said they offer performance-based grants with lending and investing. He then offered the following alternative energy recommendations:

·             Our country needs to admit the truth about global warming and the consequences of our energy choices.

·             We need to make energy systems more secure by decentralizing the system and not building them in one location (like the Gulf of Mexico).

·             Energy efficiency and conservation should be the number one alternative energy source.

·             We need to tell the truth about energy prices and costs. Pennsylvania needs an economic model that identifies and quantifies the cost of various energy resources and choices.

·             We need to be smart about how we subsidize alternative energy projects. Grants should decline over time and there should be a move toward private financing.

·             There is no silver bullet to solve the nation's energy challenges.

 

Clark concluded by offering various recommendations to promote wind power and solar energy.

Chairman Civera asked what other states have done regarding global warming that Pennsylvania has not. Clark noted that Pennsylvania has not signed the Regional Greenhouse Gas Emissions agreement that numerous states have joined. Chairman Civera then asked about the viability of wind farms. Clark said utilities must be willing to purchase the power, and he noted that PECO is taking the lead. He added that there is a PECO Wind product that about 45,000 people are buying, and he suggested that the AEPS will increase participation. He also stated that wind energy is a little more expensive to buy in Pennsylvania than in some other states because of siting issues.

 

Gary Swan, Director of Governmental Affairs and Communications for the Pennsylvania Farm Bureau, commented that renewable energy is an essential need and potential opportunity for agriculture in this state. He said rising energy costs threaten the survival of many farms. He then offered that Pennsylvania agriculture is uniquely positioned to substantially contribute to energy solutions through ethanol, biodiesel, methane from the manure digesters and the placement wind turbines. There is overwhelming public support for public policies and investments that will support the development of alternative energy sources, he stated. He concluded by a saying the Farm Bureau welcomes the opportunity to help develop and advance initiatives.

 

David Fink, Vice President of GREEN LLC, testified on behalf of the Pennsylvania Farm Bureau. He commented that value added grain processing is sustainable, and he explained that three co-products are produced from a bushel of corn through a dry mill. He stated that the U.S. cannot sustain itself on imported oil, and that if Pennsylvania could produce liquid fuel all of the money would go back into the communities. Agriculture, which is the largest industry in the state, is being challenged by the high cost of energy, he said. He told the committee that markets must be expanded for agricultural renewable fuels to keep the agriculture community strong. Fink then discussed ethanol, offering that it adds 30 cents to the value of a bushel of corn. He explained that ethanol is a nontoxic, water-soluble component of gasoline that can be used to replace the oxygenate MTBE. Ethanol adds oxygen to gasoline, helping it burn more completely and significantly reducing tailpipe emissions, he stated. He commented that E85 is a blend of 85% ethanol and 15% ordinary unleaded gasoline that has become a rapidly growing alternative fuel since the increase of gas prices. He noted the lack of E85 fueling stations in Pennsylvania.

 

Chairman Civera asked if ethanol is being used anywhere in Pennsylvania. Fink replied that it is being used in the western part of the state. He added that there are no E85 facilities in Pennsylvania.

 

Rep. Petri asked if ethanol goes to a refinery. Fink explained it is like a huge brewery and the alcohol is extracted. Swan added that there are no plants in Pennsylvania but some are being considered. Rep. Petri asked why Pennsylvania is not investing in this technology. Fink said it is evolving but there are a lot of myths about it. He added that there is not a significant investment in ethanol. Swan added that siting of plants is an issue, noting that they require a lot of energy to operate. Rep. Petri asked if the ethanol plants can be located near oil refineries. Swan said they looked in the Philadelphia area but could not find a site that was suitable. Rep. Petri asked if oil companies support ethanol production. Fink said they are becoming receptive, adding that there are some joint projects in other states. Rep. Petri commented that he does not understand why Pennsylvania is so far behind on this issue. He then asked how many ethanol plants Pennsylvania could support. Swan suggested 12. Rep. Petri concluded by asking what the legislature can do in the short-term to promote ethanol. Fink replied that the legislature needs to be engaged in the process of building ethanol plants in Pennsylvania.

 

Rep. Benninghoff remarked that he does not believe Americans will break old habits, including switching from SUVs to fuel-efficient cars. He then asked if technology is available to use this type of energy for its own production. Fink replied that it is being done in the Midwest with both ethanol and biodiesel. Rep. Benninghoff inquired if recycled tires can be used as fuel for power plants. Swan said they have looked into that issue and it is very expensive, but he expressed optimism that it may happen in the future.