|
|
|
Senate
Environmental Resources & Energy Committee Reports Reports
provided by PA Legislative Services Senate Environmental Resources and Energy The Senate
Environmental Resources and Energy Committee met to consider extending
the deadline for consideration of a regulation. The
Committee unanimously approved a motion to extend the deadline to
consider regulation #7-405: Mercury Emission Reduction Requirements for
Electric Generating Units by two weeks to November 2nd. Chairman
Mary Jo White (R-Venango) noted IRRC is scheduled to consider the regulation
on November 16th. Senators
Stewart Greenleaf (R-Montgomery) and Andrew Dinniman
(D-Chester) each expressed support for the motion, remarking it is important
to preserve the integrity of the committee process. Kimberly
Hess, PLS SENATE ENVIRONMENTAL RESOURCES AND
ENERGY COMMITTEE Public hearing on hazardous Sites Cleanup Fund By Nate
Collins, PLS The Committee held a public
hearing on the Hazardous Sites Cleanup Fund. Members in attendance included:
Chairman Mary Jo White (R-Venango), Minority Chairman Raphael Musto (D-Luzerne) and Senator Andrew Dinniman
(D-Chester). Chairman White explained that the
purpose of the meeting is to review the status of the Hazardous Sites Cleanup
Fund (HSCF). She noted that "stopgap" funding will expire at the
end of June 2007, and she feels they should not wait until budget talks
commence to deal with this funding issue. She suggested that they need to
look at alternative funding sources. DEP Secretary Kathleen McGinty agreed with the Chairman that HSCF needs funding.
She thanked the Chairman for her leadership on this issue. The Secretary
began by outlining the importance of dedicated funding sources for HSCF. She
explained that the fund provides emergency funding for a variety of things
including chemical spills. The Fund also provides money for fighting tire
fires and providing clean drinking water when a water source is contaminated,
Secretary McGinty explained. She also told the
committee that HSCF helps the state meet its federal obligations with
Superfund and the Resource Conservation and Recovery Act. The Secretary then outlined the
events that led to HSCF's funding problems. She
explained that because of a General Fund budget deficit in 2002, the
automatic deposit from the Capital Stock and Franchise Tax into HSCF was shut
off. She added that when she took office in 2003, the money problems with the
Fund were brought to her attention. Secretary McGinty
offered that she instituted a number of changes to extend the life of the
money in the Fund. Those changes included: instituting a hiring freeze,
placing a halt on new projects, "reeling in" existing projects to a
minimum so they only protect public health, and stopping transfers out of
HSCF, she explained. She said a hiring freeze has led to a 24% reduction in
the number of employees since 1992. Secretary McGinty
then stated that Governor Rendell proposed a funding solution in Growing
Greener II with the imposition of a 15 cent per pound fee on toxic releases.
She added that the proposal also included taking $29 million "off the
top" from Growing Greener II bond money. She noted that the Legislature
would not support the toxic release fee so Growing Greener II provided $50
million over two years to HSCF, which expires next June. She then offered that long-term
dedicated funding for HSCF is important because the Fund relies on private
contractors waiting on standby to help in emergencies. She opined that it is
important to assure the contractors that the money is available. She also
stressed the need for dedicated funding because remediation activities often
expand beyond a single fiscal year. She reiterated earlier comments that HSCF
helps the state meet its federal obligations. She concluded her arguments for
dedicated funding by remarking that HSCF helps save lives. Chairman White asked if there is a
waiting list of projects. Secretary McGinty
answered yes, explaining that they are ranked based on the risk of public
danger. She said she could supply the committee with a list of projects.
Chairman White then disputed part of the Secretary's written testimony. She
said she does not remember a proposal to finance HSCF by redirecting money
from the state's Recycling Fund. Secretary McGinty
countered that the GreenPA proposal would have
redirected recycling funds. She commented that the Rendell administration did
not want to take funds from recycling because it provides 81,000 jobs and
puts $18 billion into Chairman White then argued that
money from a bond issue cannot be used for programs. She questioned how
Growing Greener II funds have legally been given to HSCF. Secretary McGinty said the money given to HSCF came from
redirecting the existing tipping fee. Chairman White said she wants
clarification on the law and on the monetary transfer. The Secretary assured
her she will find out about the money flow from Growing Greener II. Minority Chairman Musto asked how much HSCF money is used for brownfields remediation. Secretary McGinty
replied that it was $10 million a year but with Growing Greener II and the
economic stimulus program, the money for brownfields
remediation doesn't come from HSCF, but from the Business In Our Sites
program. Minority Chairman Musto asked about
existing brownfields projects. Secretary McGinty stated most, if not all, of the $300 million for
these projects is currently invested. She told him DCED can provide the
committee with details. Minority Chairman Musto
then inquired how many sites have been cleaned, to which Secretary McGinty replied about 2,200 sites in the past 11 years.
Minority Chairman Musto then asked how successful
the state is with cost recovery from responsible parties. Secretary McGinty stated $18 million has been recovered from
responsible parties at one site. She offered that it is important to note
that the money recovered is dedicated to cleanup at that specific site. Minority Chairman Musto then asked if HSCF money is used for grayfields cleanup. Secretary McGinty
answered yes. Minority Chairman Musto asked if the
money can be used to cleanup a site solely for economic development.
Secretary McGinty explained that federal abandoned
mine remediation funds cannot be used for economic development because they
must be used for public health. She noted that the federal government must
"sign off" on the state's abandoned mine
reclamation projects. She added that under Growing Greener II, $60 million
per year for six years has been designated for abandoned mine reclamation
projects. Minority Chairman Musto then inquired if
federal funds could be used for mine subsidence. Secretary McGinty replied that it depends on a number of factors.
She expressed her belief that the funds cannot be used at active mining sites
because federal money is dedicated for abandoned mining sites. Chairman White asked if the
Rendell administration can support the continued use of existing funds for
HSCF. Secretary McGinty stated she believes they
can but they have to look at other pieces of the entire "funding
pie." Chairman White asked if it is true that HSCF will be phased out if
there is no funding after June 2007. Secretary McGinty
replied that is the case. She noted that the fund supports approximately 240
jobs, workers who have the right to 30 days notice before their job is
terminated and they are able to take other positions within state government.
Chairman White asked if the Secretary sent out furlough notices to the
employees. Secretary McGinty said the notices have
not been sent out yet but she did send out a warning last year to let the
employees know that it is being considered. Chairman White asked if the
Secretary will send the notices out. Secretary McGinty
replied that the "wheels are starting to turn" and it may happen.
Chairman White expressed concern that this may be a scare tactic. The
Secretary assured her that this is not a scare tactic, adding that they are
beginning the furlough process. She said they are trying to find dedicated
funding beyond June 2007 but if that is not possible the notices will go out.
Chairman White then asked if the Secretary will ask for funding for HSCF when
she prepares next year's budget proposal. Secretary McGinty
responded that she has been talking to the Governor about it, and she wants
to find money that is not lapsing and is not dependent on annual transfers.
Chairman White argued that dedicated funding is not set in stone. She
questioned why the funding for HSCF must be from one source. Secretary McGinty replied that there must be funding source earmarked
for HSCF to properly fund long-term projects. Chairman White commented that
ultimately if the brownfields remediation works,
the number of projects will be reduced so annual dedicated funding is not
necessary. Secretary McGinty agreed but cautioned
that it is difficult to make a timeline of when projects will be completed.
Chairman White then asked if the federal government could be persuaded to let
the state clean up sites under its brownfields
program. Secretary McGinty said the state could do
it more efficiently than the federal government but only if a big pot of
money is included. Senator Dinniman
questioned if the administration has a source of funding it wants the General
Assembly to consider if the funding for HSCF is not going to come from the
regular budget process. Secretary McGinty replied
that she was told to reiterate the 15 cent per pound toxic release inventory
fee. She recommended that the General Assembly talk to the contractors who
work with the Department as to what they need to work with the state on
remediation projects. Senator Dinniman then
discussed hazardous waste collection points. He said they are very popular
and people line up at the sites to properly dispose of hazardous material.
Secretary McGinty replied that hazardous waste
collection is part of HSCF. She said this issue is very important because
hundreds of millions of cell phones and televisions containing hazardous
materials are thrown out each year. The
Senate Environmental Resources and Energy Committee met to consider House Bill 2042. HB 2042 Reichley
- (PN 3962) 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 states
that with respect to offenses of this section, it is the legislative purpose
to impose liability on corporations as set forth in 18 PA.C.S. Sec. 307
(relating to liability of organizations and certain related persons). (Prior
Printer Number: 2819) - The bill was unanimously reported as committed.
Chairman
Mary Jo White (R-Venango) explained that this bill was brought to her
attention by the Attorney General's Office. She explained that it increases
penalties for violations of the Clean Streams Law. Nate Collins, PLS The
Senate Environmental Resources and Energy Committee met to consider one bill.
HB 1902 Rubley
- (PN 3513) Amends the Municipal Waste Planning, Recycling and Waste
Reduction Act removing the sunset date. Additionally, the legislation states
that performance grants for municipal recycling programs will not be awarded
unless it is demonstrated to the department's satisfaction that: (1) the
application is complete and accurate; (2) the materials were actually
marketed; (3) the materials have not been produced by a leaf or other
organics composting facility; and (4) mandated curbside municipalities
receiving more than $10,000 in funding have met certain performance
requirements. If a municipality does not satisfy the performance
requirements, the grant funds awarded to the municipality would be expended
by the municipality to satisfy the requirements. If the requirements are
satisfied by the municipality, the grant funds may be expended by the
municipality on any expense as determined by the municipality. (Prior Printer
Number: 2603, 2950) - The bill was unanimously reported as amended. A09355 by M. J. White, extends the sunset date to 2012.
The amendment was unanimously adopted. Kimberly
Hess, PLS SENATE ENVIRONMENTAL RESOURCES AND ENERGY COMMITTEE Public hearing on radiation levels at landfills By Nate Collins, PLS The Committee held a public hearing on radiation levels at landfills. Members in attendance included: Chairman Mary Jo White (R-Venango), Minority Chairman Raphael Musto (D-Luzerne) and Senator Edwin Erickson (R-Delaware). Note: Senators John Rafferty (R-Montgomery) and Bob Regola (R-Westmoreland) also attended the meeting. David Allard, Director of DEP's Bureau of Radiation Protection, stated the Bureau has "one of the most respected radiation control programs in the country." In addition, the Bureau: ·
Regulates and inspects some 11,000 registered x-ray facilities with
30,000 pieces of equipment ·
Licenses 250 high energy accelerators and 460 radioactive material
users ·
Oversees several very complex decommissioning projects, and ·
Certifies about 600 radon testers, mitigators
and laboratories. He then
discussed methods for detection of contaminated waste at landfills. He
commented that most radiation alarms that go off at landfills are the result
of patient-contaminated waste. Patients who are treated for various medical
problems with radioactive materials contaminate their household waste and it
goes into the landfill, he explained. Allard told the committee that Chairman White asked if there is a treatment for tritium. Allard told her there is no treatment, but instead it must be diluted. He added that it can be removed at very high concentrations, like in nuclear reactors. Chairman White asked if tritium has been found in groundwater. Allard replied yes, adding that the Department will require more groundwater testing around landfill sites. Chairman White asked if the primary pathway for humans to be exposed to tritium is through drinking water. Allard confirmed this. Senator Rafferty asked how a radiation alarm is triggered. Allard explained the trucks hauling waste drive through a detection system and when radioactive gamma rays interact with the system it sets off the alarm. The operator at the landfill then goes to the truck and uses a handheld device to determine what the radioactive material is, he stated. He added that occasionally the truck driver himself is contaminated. Senator Rafferty asked if any radioactive materials can slip into landfills undetected. Allard responded that tritium would not be detected because the gamma rays don't come out of the glass in the sign. He noted that when a sign is broken and the tritium is released, it can contaminate the landfill. Senator Rafferty asked what the "safe levels" are based on. Allard stated the standards are set on a factor of two, and based on an adult male. He noted that the drinking water standard is very low. Senator Rafferty questioned why the levels are based on adults, and if they would still be considered safe for a child. Allard said most materials are still safe for children at the base level, but it is different for iodine. Senator Rafferty asked what type of materials block gamma rays. Allard said anything can lessen the gamma rays. He added that the acceptable limits are very low to ensure the smallest amounts are detected. Senator Regola asked who checks the calibration of the detection devices and how often they are checked. Allard explained there is a requirement for a daily spot check and an annual calibration. He noted that the Department checks the devices. Senator Regola asked if DEP takes random samples at landfills, to which Allard answered no. Senator Regola asked how residents are informed if radiation at landfills reaches a harmful level. Allard explained the trucks go to a designated area in the facilities so he doesn't think that could ever happen. He added that the concentration of materials drops off fast as the area grows. Senator Regola stated there is a landfill in his district near a school, and he asked if the levels are safe for children. Allard answered yes. He added that there is not a huge health issue with tritium, but more of an environmental issue. He acknowledged there is concern about contamination of drinking water. Moving forward, landfills will be required to do quarterly monitoring of leachate, he explained. Diane D'Arrigo, Radioactive Waste Project Director for the
Nuclear Information and Resource Service stated that ionizing radiation is of
concern, even at so-called "legal" levels. She added that tritium
(radioactive hydrogen) is also of concern. Chairman White, noting that D'Arrigo said it should not be the responsibility of landfills to check for radioactive waste, asked whose responsibility it should be. D'Arrigo replied it is the responsibility of the licensee to control the refuse they dispose of. Chairman White asked if radioactive materials are disposed of in municipal solid waste landfills. D'Arrigo stated she believes they are. She noted that there are case by case approvals for the release of the radioactive materials in landfills around the country. Senator Rafferty asked if there is a difference in safe levels between adults and children. D'Arrigo answered that there are no safe amounts, but it is a greater risk to children because their cells are dividing more quickly, their immune systems may not be as strong and their bodies are smaller. Senator Regola asked if property values will drop in areas near landfills with contamination. D'Arrigo replied that the potential is there. Senator Regola stated that in November 2005 a bid was rescinded at a landfill in his district to accept low-level radiation contaminated ash. He asked at what level this is a health risk. D'Arrigo commented that she believes she knows the landfill he is referring to, and if so it has a level of plutonium. There is no safe level of plutonium and it would be a violation if the material went to the landfill and not a regulated site, she concluded. Tim O'Donnell,
President and Bill Belanger, a consultant for the Pennsylvania
Waste Industries Association were the last to testify. O'Donnell said the
waste industry takes very seriously its responsibility to dispose of
municipal waste in an efficient, economical and safe manner. He explained
that the state amended the solid waste regulations in December 2000,
requiring municipal waste landfills to develop approved radiation monitoring
plans that include established procedures and the installation of equipment
to detect and safely manage radioactive materials that might be present in
the waste stream. O'Donnell assured the committee that the industry follows
these procedures and interacts with DEP in a cooperative manner. Belanger
noted that DEP recently studied Chairman White asked if the Legislature can ban tritium EXIT signs. Belanger said yes, noting that plug-in EXIT signs could be used if building owners are willing to run the wire. He added that batteries can be included with the signs as a backup if the power goes out. Senator
Rafferty asked how many landfills are in Minority Chairman Musto noted that D'Arrigo testified there needs to better enforcement of the law and he inquired if there is a problem with DEP. Belanger stated he is not aware of any problems with the Department. Minority Chairman Musto asked where the failures occur that allow contamination. Belanger said there is an institutional failure, adding that building owners may not be aware of tritium EXIT signs and they just dispose of them in the trash. Errors happen and users of EXIT signs need to know that they need special handling, he stated. Minority Chairman Musto asked if there could be a disposal requirement before a demolition permit is issued. Belanger replied that is certainly a possibility.
The SENATE ENVIRONMENTAL RESOURCES AND ENERGY COMMITTEE met to consider HB 1195 Yudichak - (PN 1401), which 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 amended by A08530 (M. J. White), which expands the eligibility of storage tank cleanup with an additional $500,000 per occurrence. It also limits the total of all awards to no more than $3.5 million. Senator James Rhoades (R-Schuylkill) inquired as to how much the Underground Storage Tank Pollution Prevention Program would cost. Chairman Mary Jo White (R-Venango) indicated that there is a $3.5 million cap on the program. Senator Rhoades then asked Chairman White if she knew how many projects this program would affect. Chairman White acknowledged that she did not know at the present time. The Senate Appropriations Committee will propose an amendment to address this issue, Minority Chairman Raphael Musto (D-Luzerne) added. The
Senate Environmental Resources and Energy Committee met to consider
Senate Resolution 259 and held a public hearing on mercury emission
reduction. Members
in attendance included Chairman Mary Jo White (R-Venango), Minority Chairman
Raphael Musto (D-Luzerne) and Senators Barry Stout
(D-Washington), John Pippy (R-Allegheny), Edwin
Erickson (R-Delaware), Anthony Williams (D- Philadelphia) and Don White
(R-Indiana). SR
259 Musto - (PN 1732) Resolution designating
the week of May 7 through 13, 2006, as "Drinking Water Week" in Chairman
Mary Jo White (R-Venango) said a lot of misinformation has been disseminated about
mercury. She noted there are differing opinions on how to reduce mercury
emissions, and offered that the committee wants to discuss all opinions and
proposals related to mercury emission reduction. DEP Secretary Kathleen McGinty said the Rendell administration is developing
a state-specific rule for regulating mercury emissions from new and existing
coal-fired power plants in · Preserves market share for
bituminous coal by presuming compliance for electric generating units that
burn 100% bituminous with advanced air control technologies · Enables utilities to meet the
state-specific standards without forcing them to use technology beyond what
is used to meet other new federal air quality requirements. Mercury-specific
controls are not mandated. · Achieves at least 90% mercury reduction by
2015. · Requires all facilities to meet a mercury
emissions cap and prohibits system-wide and interstate mercury emissions
trading that would create toxic "hot spots." Lastly,
Secretary McGinty said the Pennsylvania Coal
Association (PCA) and United Mine Workers of America (UMWA) are arguing in
federal court that CAMR will adversely affect bituminous coal and mine
workers. She added that Governor Rendell feels strongly that the EPA rule
adversely affects Chairman
White said the PCA and the UMWA support legislation, SB 1201, which would
institute CAMR. She added that the organizations feel DEP's proposed rule is
an incentive for companies to switch to another form of coal. Secretary McGinty disagreed, adding that the mercury content in
coal found in southwestern Chairman
White expressed her belief that a large amount of mercury in Minority
Chairman Musto asked when the federal rule will be
in the effect. Secretary McGinty replied that it is
a final rule, but it is being challenged in court. She added that Minority
Chairman Musto inquired if the DEP rule will define
"hot spot". The Secretary replied she does not believe so. He then
asked if hot spots have been found in Chairman
White asked if the DEP rule would eliminate mercury advisories in Chairman
White commented that waste coal plants cannot support the DEP proposal
because they can't market credits. Secretary McGinty
argued that they should look at the federal rule because requirements are
most stringent for waste coal plants. Chairman White then said a disagreement
exists about the costs of DEP's proposal, and asked about technology used to
reduce mercury emissions. Secretary McGinty stated
the proposal is based 100% on cleaners and scrubbers required under the Clean
Air Interstate Rule (CAIR). She added that DEP will not require
mercury-specific technology. Senator
Stout offered that he has a waste coal plant in his district, and he thought
they were less polluting. Secretary McGinty
clarified that waste coal produces clean electricity but the federal rule
"turns that on its head". She suggested that power plants can use
western coal instead of eastern coal and they can meet federal requirements
without doing anything else. She added that this will dramatically hurt waste
coal. This is unprecedented in the Clean Air Act, she commented, adding that
she is never seen different standards for different feedstocks.
Senator Stout asked how a switch to sub-bituminous coal would hurt bituminous
coal companies. Secretary McGinty replied that the
PCA and UMWA argued in a court case that it would cost tens of thousands of
jobs in the eastern part of the country. Chairman
White interjected that she is not sure the PCA and the UMWA would support
DEP's rule just because they have concerns with the federal proposal.
Secretary McGinty remarked that they should not
support a rule with which they have problems, and added that they should be
working through the Senator
Erickson asked if the state-specific rule is based on a risk assessment rule.
Secretary McGinty answered no, adding that it is
based on a health-based assessment and a technology-based assessment. Senator
Erickson said he would like to see risk-based data. Robert Wayland from the EPA Office
of Air Quality Planning and Standards said the agency is concerned about
mercury emissions. He noted that oxidized mercury is water- soluble and when
it gets in bodies of water it affects fish and other animals. He said most
people get their exposure to mercury from eating fish. Noting that mercury
occurs naturally in the earth, Wayland stated the agency is attempting to
deal with man-made mercury. He added that the Senator
Don White asked if Wayland believes EPA's reconsideration of the rule will
address waste coal. Wayland said yes, adding that he cannot discuss the
details of the reconsideration. Minority
Chairman Musto noted that Secretary McGinty testified that states are implementing
state-specific plans. He asked how this would affect CAMR. Wayland said the
EPA is looking closely at states that are considering not joining the credit
trading program. He offered that about a half-dozen states may not be in the
trading program, which won't affect it. He added that the agency is moving
forward on its rule with or without all of the states. Minority Chairman Musto remarked that he hopes the EPA gives states'
concerns some consideration. Senator
Williams asked for more information about states deciding not to opt in to
the federal program. Wayland explained that states have the freedom to
implement their own rule as long as it is at least as stringent as federal
requirements. He added that the agency must approve all state- specific
plans. Senator Williams asked how the plan would be affected if a number of
eastern states don't implement the federal rule. Wayland replied that cannot
be assessed at this time because of a lack of information. Senator Williams
commented that this makes him suspicious when the agency says it does not
know information about states that may opt-out. Chairman White interjected
that if a state doesn't have coal-fired power plants and chooses to opt-out
it won't make a difference, to which Wayland agreed. Chairman
White then noted that Secretary McGinty testified
that technology is available to reduce mercury. Wayland acknowledged that
some technologies have been around for several years but mercury-specific
control technology is not readily available. Chairman White commented that
Secretary McGinty is against the federal "cap
and trade" program because she believes it creates hot spots. She asked
Wayland if he agrees with the theory of hot spots. Wayland replied that EPA
did not see any hot spots when it implemented its sulfur and nitrogen trading
programs. He added that the agency did not find hot spots attributed to power
plants with its modeling data. If hot spots are discovered, the EPA will
address them, he concluded. Douglas Biden, President of the Electric
Power Generation Association (EPGA), emphasized that EPGA's
members support the approach to reduce mercury emissions from power plants in
SB 1201 because it will not only reduce mercury emissions from Pennsylvania
power plants by 86%, but also gives power plants an incentive to overcomply. He said CAIR and CAMR "work in tandem to
achieve emission reductions more cost-effectively than in the past".
CAIR requires a 70% reduction in sulfur dioxide emissions, and more than 60%
reduction in nitrogen oxide emissions, he noted. He added that because Minority
Chairman Musto asked how many states are in the PJM
market and how many are considering state-specific mercury rules. Biden said
there are 14 states in PJM, and a few states considering it. He added that
EPGA opposes a state-specific rule because it will hurt Chairman
White asked about the real cost to power plants to comply with CAMR. Biden
stated there is an assertion that power plants will overcomply
with mercury requirements, but EPGA does not know what it will cost because
they don't know what investments will be made. He offered that power plants
cannot meet CAIR requirements without substantial investments that will have
co-benefits related to mercury emissions. Chairman White said it seems DEP is
concerned about a small percentage of mercury reduction that won't be met
through the co-benefits of CAIR. Biden responded that he is not sure where
DEP's estimate of 90% mercury emission reduction comes from, and he expressed
his belief that if states adopt their own rules power plants will go out of
business. Chairman White asked about technology for reducing mercury
emissions. Biden said the mercury-specific technology does not currently
exist. Senator
Stout inquired about the impact if energy generators switch from bituminous
to sub-bituminous coal. Biden said he believes much of Senator
Don White asked what a state-specific plan would do to Senator
Williams stated he is sensitive to the issue of competitiveness and he
understands that costs are high to add scrubbers, but we are talking about
protecting people's lives. Biden responded that everything he has read on the
subject indicates that exposure comes from consumption of fish. He suggested
that most people eat mostly ocean fish, and not freshwater fish, so exposure
to mercury is not high. He remarked that it is inaccurate to say CAMR will
kill babies. Nathan Wilcox from PennEnvironment testified that given the public health
and environmental threats posed by mercury pollution from Pennsylvania's
coal-fired power plants, "the Bush administration's weakening of the
Clean Air Act's federal mercury pollution reduction requirements, and the
availability of mercury pollution control technologies, PennEnvironment
supports a state-level mercury rule requiring 90 percent mercury reductions
from the state's coal- fired power plants". He added that PennEnvironment is supportive of DEP's state-level
proposal to cut mercury pollution from Chairman
White noted that PennEnvironment put out a press
release saying the Legislature has no right in this process, and she asked
for clarification. Wilcox replied his organization feels the DEP rules
process is the most open to allow public input. Chairman White argued that
there are serious policy issues the Legislature should be able to discuss.
Chairman White then stated that this is a nationwide issue, adding that Minority
Chairman Musto inquired if hot spots will be
created if states don't make state-specific rules. Wilcox answered yes,
adding that if Chairman
White cited a study that found sources of mercury cannot be proven because
wind moves it around. Wilcox disagreed, arguing that there are studies
showing areas with high mercury concentration. Senator
Williams commented that Wilcox's testimony bashes the Bush administration but
he never explains PennEnvironment's point of view.
Wilcox replied that his organization is against CAMR because it is a rollback
of the Clean Air Act. Senator Williams expressed displeasure with the fact
that Wilcox accused the legislature of "derailing" something. He
suggested that PennEnvironment should work with the
legislature and not berate the members because "we are trying to make
the best rule for Melody Zullinger, Executive
Director of the Pennsylvania Federation of Sportsmen's Clubs (PFSC), said her organization has been concerned about mercury
contamination in Minority
Chairman Musto inquired if Sportsmen's Clubs in other
states are lobbying on this issue because work needs to be done to reduce
mercury emissions in other states as well. Zullinger replied that her
organization is only concerned about Chairman
White questioned PFSC's concern that a trading program won't produce emission
reductions. Zullinger stated that they want assurances there will be
reductions from power plants. Chairman White noted that the EPA stated
mercury-specific technology is not available. Zullinger agreed that specific
technology is not available but existing scrubbers provide mercury reduction.
Chairman White stated using scrubbers should guarantee a reduction. Zullinger
replied that a reduction is projected but not guaranteed. Chairman White said
the large power plants are going to install the required technology so the
small plants are the ones PFSC is concerned about. She remarked that shutting
down smaller plants will cause problems with Senator
Williams remarked that the outdoors are a strength for Pennsylvania, and the
state needs to reduce mercury emissions but must be careful in how it
achieves that goal. He expressed support for a credit trading system, opining
that it can lead to major emissions reductions. Chairman
White concluded the meeting by noting that the committee will hold another
hearing on this issue next Tuesday, May 2 at 9:00 a.m. in Room 8E-B, East
Wing. Nate
Collins, PLS 4-5-06 Impact Gasoline Additives Have on Fuel Supplies & the Environment The
Senate Environmental Resources and Energy Committee held a public
hearing 4-5-06 on the impact
gasoline additives have on fuel supplies and the environment. Members
in attendance included Chair Mary Jo White (R-Venango), Minority Chair
Raphael Musto (D-Luzerne) and Senators Edwin
Erickson (R-Delaware), John Pippy (R-Allegheny),
Barry Stout (D-Washington) and Anthony Williams (D-Philadelphia). Daniel Desmond, DEP Deputy Secretary of the
Office of Energy and Technology Deployment, explained that Methyl tertiary
butyl ether (MTBE) is a synthetic, organic ether used as an octane enhancer
as a replacement for lead. The 1990 federal Clean Air Act Amendments created
the federal Reformulated Gasoline (RFG) program to improve air quality in the
nation's worst ozone non- attainment areas, he stated. He noted that the RFG
program requires specially formulated gasoline blends that provide reductions
of ozone- forming pollution. RFG has reduced toxic pollution from gasoline by
one- third and its use has lowered cancer risks and respiratory effects to
people exposed to vehicle pollution, he indicated. Desmond then offered that
there have been several incidents of drinking water and groundwater
contamination and high remediation costs, which has led to 25 states enacting
MTBE bans. He cited a U.S. Department of the Interior survey which found that
11% of over 350 "ambient" groundwater samples contained trace
levels of MTBE. He then stated that the Federal Energy Policy Act of 2005
(EPACT 05) removed the oxygen content requirement for reformulated gasoline
(RFG) and mandates a Renewable Fuels Standard including ethanol. He explained
that federal law requires that gasoline used by motorists nationwide has
lower volatility in the summer than in the winter, adding that the winter to
summer RFG transition for 2006 may be different than in past years because of
the repeal of the oxygenate requirement, the federal renewable fuels standard
and perceptions of adverse liability due to the continued use of MTBE. With
the voluntary removal of MTBE from RFG, refiners believe ethanol is the best
alternative to replace the lost fuel and octane, he suggested. Desmond then
offered that ethanol from corn will increase octane in gasoline and reduce
greenhouse gases by 10-20% and ethanol from cellulose could cut greenhouse
gases by 90%. He added that ethanol is less hazardous and easier to remediate
than MTBE in the event of a spill. As far as energy balance, he said,
according to the U.S. Department of Energy, for every one unit of energy
available at the fuel pump, 1.23 units of fossil energy are used to produce
gasoline, 0.74 of fossil energy are used to produce corn-based ethanol, and
only 0.2 units of fossil energy are used to produce cellulosic
ethanol. He acknowledged that some air quality concerns exist related to
ethanol. He told the committee it appears Chair
White asked about the cost of MTBE spills versus normal gas spills. Desmond
said he doesn't have that information but he will check if it is available.
He added that not all spills are the same as some evaporate and others are
difficult to remove from groundwater. Chair White expressed concern about gas
shortages and cost spikes, and asked if the market should determine the
conversion to ethanol. Desmond replied that the observable marketplace (gas
stations) appears to be fine with the conversion but there is concern about
the costs of non-observable aspects, including commodity traders. He
suggested that cost increases will be less attributable to ethanol as
compared to commodities speculators. Chair White commented that it is hard
for the state to control the cost of gas, to which Desmond agreed. Chair
White then stated Minority
Chair Musto asked if DEP is assisting retailers in
their efforts to get ready to receive ethanol. Tom Fidler,
Deputy Secretary of Air, Recycling and Radiation Protection, replied that the
department has not done formal outreach to tank owners or terminal operators.
He added that it seems information is being shared across the industry, and
it seems the market is taking care of it. Minority Chair Musto
expressed concern about the cost to retailers. Fidler
said DEP will attempt to determine if information is being shared and, if
not, the department will consider providing information to retailers.
Minority Chair Musto asked how long it would take
for an ethanol plant to be up and running in Senator
Pippy asked if the department is looking at early
detection of storage tank leaks. Fidler said yes,
adding that safeguards are in place, including regular monitoring. He said
more can always be done but the program in place works. Chair
White asked about the effect of an ethanol spill. Fidler
replied that ethanol is similar to MTBE in the fact that they
"like" water. He added that ethanol goes deeper in the groundwater
system so it is difficult to remove. Chair White then expressed concern about
ethanol spills. Senator
Stout asked how much it will cost the industry to prepare to distribute
gasoline with ethanol. Desmond answered that the department does not have
that information, but will poll the industry to try to find out. Senator
Stout inquired about the cost to build an ethanol plant. Desmond said a plant
costs between $30 and $70 million. Senator Stout then asked where the
feedstock comes from to create the ethanol. Desmond explained that if cereal
grain is being used it comes from both in and out of the state, and if it is
cellulose it can be a variety of forms of waste products. He offered that Senator
Williams asked if the industry is prepared to handle the new technology.
Desmond replied that the department is gathering information on readiness and
has found that most in the industry are ready. Rolf Hanson, Executive Director of Associated
Petroleum Industries of Pennsylvania (APIP), noted that the Energy Policy Act
of 2005 eliminates the reformulated gasoline (RFG) oxygen requirement and
stated the industry has long supported its elimination. However, he added,
this is a major fuel change that presents significant challenges to fuel
providers. He indicated that ethanol requires special handling in
transporting the substance to consumers. Because ethanol is highly
water-soluble, and water and water vapor are present in storage tanks and
petroleum pipelines, ethanol must be transported separately from gasoline, he
explained. Hanson told the committee that over 99% of the ethanol produced in
the Senator
Williams asked about the difference in cost between ethanol and MTBE. Hanson
said based on prices last Friday, ethanol cost 25.8 cents more per gallon.
The increased price is because demand outpaces supply, he explained. Senator
Williams asked if the price will ever be equal, to which Hanson said it will
eventually come down. Senator Williams then expressed concern that the use of
corn to make ethanol can drive up the cost of food. Hanson stated his
association has not studied that issue, but he offered that in states with
increased ethanol use livestock owners have seen increased costs for feed. Senator
Stout asked how much a gallon of gas will increase as a result of the
switchover to ethanol. Hanson replied that his organization does not predict
prices. He reiterated that as of last Friday, ethanol cost almost 26 cents
more per gallon. Senator Stout asked how much it will cost to meet
requirements at refineries and distribution terminals. Hanson stated it
depends on the size of the refinery or distribution terminal. He said he has
received an estimate from one operator that it will cost $30 million for 13
distribution terminals. Senator Stout inquired about different fuel sources
that can be used to make ethanol. Hanson replied that a move needs to be made
away from corn to other products including waste. Senator Stout asked if
Hanson supports creating a reserve of ethanol. Hanson replied that it may be
a good thing to look into. Chair
White expressed concern about supply disruptions. She then asked about
environmental benefits of ethanol. Hanson replied that it helps reduce carbon
monoxide but it increases volatile organic compounds (VOCs).
Chair White commented that there is no definitive information on the
environmental benefits of ethanol. Senator
Pippy then asked about ethanol's affect on cars
because of its corrosiveness. Hanson stated 97% of cars can handle a 10%
blend of ethanol. He added that classic cars are exempted from this
requirement in most states banning MTBE. Joseph Lee, Vice President of the Lyondell
Chemical Company, said his company is a major merchant supplier of MTBE and
an ethanol-based product called ETBE. He offered that because of its
excellent blending properties, MTBE has the ability to extend gasoline
supplies by allowing other components to be blended into gasoline. He then
argued against a · Congress did not ban MTBE in
the newly adopted federal energy bill · Ban bills reduce critical
supplies of gasoline when it is needed most |