Date: 02/23/2009

Final
BILL SUMMARY for SB09-220

SENATE COMMITTEE ON STATE, VETERANS & MILITARY AFFAIRS

Votes: View--> Action Taken:
Moved that Senate Bill 09-220 be postponed indefin
Moved that Senate Bill 09-220 be referred to the C		PASS
FAIL

01:33 PM

Senator Williams, Chair, called the meeting to order.

01:33 PM -- Senate Bill 09-220

Senator Lundberg, prime sponsor, commented on Senate Bill 09-220, concerning a limited exemption from the state severance tax for production from a primary commercial oil shale facility. He said that Senate Bill 09-220 will encourage the oil shale industry in Colorado. He commented on the energy needs of the nation and the point at which worldwide oil production will peak. He commented on the potential for development of oil shale in Colorado, and said that the state has hundreds of billions of barrels of potential oil reserves. He said that Colorado has several times the energy reserves of Saudi Arabia. He noted that Senate Bill 09-220 has the potential to create a tremendous number of jobs in Colorado and that the creation of these jobs should be encouraged. He said that there is no downside to Senate Bill 09-220, and he commented on processes for the recovery of oil from oil shale. He said that current state tax incentives are insufficient to create jobs in this industry.

The following persons commented testified in regard to Senate Bill 09-220:

01:57 PM -- Heidi Van Huysen, representing the Department of Natural Resources, opposed Senate Bill 09-220, and noted that the state has incentives in place for the development of oil shale. She said that the state and the federal governments have provided incentives to reduce the costs of companies seeking to develop oil shale in Colorado.

02:03 PM -- Rich McClintock, representing the Sonoran Institute, opposed Senate Bill 09-220. He said that one to three barrels of water are needed for every barrel of oil that is produced from shale. He said that the Colorado River is already over-prescribed and that there are questions regarding the source from which water permitting future oil shale production will originate. He commented on the future water needs of the state given anticipated levels of population growth. He said that there are many uncertainties regarding the development of oil shale reserves, including the amount of water required for production and the impact of such development on communities.
BILL:SB09-220
TIME: 02:25:19 PM
MOVED:Schultheis
MOTION:Moved that Senate Bill 09-220 be referred to the Committee on Finance. The motion failed on a 2-3-0 roll call vote.
SECONDED:
VOTE
Boyd
No
Cadman
Yes
Schultheis
Yes
Bacon
No
Williams
No
Not Final YES: 2 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: FAIL
BILL:SB09-220
TIME: 02:27:31 PM
MOVED:Bacon
MOTION:Moved that Senate Bill 09-220 be postponed indefinitely. The motion passed on a 3-2-0 roll call vote.
SECONDED:
VOTE
Boyd
Yes
Cadman
No
Schultheis
No
Bacon
Yes
Williams
Yes
Final YES: 3 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS