House Committee on Agriculture, Livestock, & Natural Resources (02/20/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON AGRICULTURE, LIVESTOCK, & NATURAL RESOURCES

Date:	02/20/2012	ATTENDANCE

Time:	01:33 PM to 08:49 PM	Brown	*
		Coram	X
Place:	HCR 0107	Fischer	X
		Jones	X
This Meeting was called to order by		Looper	X
	Representative Sonnenberg	McKinley	X
		Ryden	X
This Report was prepared by		Scott	X
	Lauren Ris	Vaad	X
		Vigil	X
		Wilson	X
		Baumgardner	X
		Sonnenberg	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB12-1264 HB12-1167 HB12-1278 HB12-1161		Postponed Indefinitely Witness Testimony and/or Committee Discussion Only Amended, Referred to Appropriations Witness Testimony and/or Committee Discussion Only

01:34 PM -- House Bill 12-1264

Representative Solano, bill sponsor, presented House Bill 12-1264, which promotes interconnection for distributed generation (DG) in two ways. First, the bill directs the Colorado Public Utilities Commission to adopt new rules for interconnection between customer generators and utilities based on standards developed by the Interstate Renewable Energy Council. Second, the bill creates a task force to study DG interconnection issues. She distributed an amendment (Attachment A) that she said she had been working on, but asked that the committee postpone the bill indefinitely.


BILL:	HB12-1264
TIME:	01:38:05 PM
MOVED:	Sonnenberg
MOTION:	Moved to postpone House Bill 12-1264 indefinitely at the request of the sponsor. The motion passed on a vote of 13-0.
SECONDED:	Coram
		VOTE
	Brown	Yes
	Coram	Yes
	Fischer	Yes
	Jones	Yes
	Looper	Yes
	McKinley	Yes
	Ryden	Yes
	Scott	Yes
	Vaad	Yes
	Vigil	Yes
	Wilson	Yes
	Baumgardner	Yes
	Sonnenberg	Yes

YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:41 PM -- House Bill 12-1167

Representative Fischer, bill sponsor, presented House Bill 12-1167. The bill modifies the collection of special fuel taxes by the Department of Revenue and makes changes to the regulation of fuel products by the Division of Oil and Public Safety in the Department of Labor and Employment.

The following individuals testified on the bill:

01:50 PM -- Mark Hennessy, Xcel Energy, spoke in opposition to the bill and answered questions from the committee concerning the location of natural gas fueling stations around the state.

01:56 PM -- Robert Yuhnke, Southwest Energy Efficiency Project, spoke in opposition to Section 17 of the bill, which would require a homeowner to install a metering device. He answered questions from the committee.

02:17 PM -- Kirk Swallow, Swallow Oil Company, spoke in support of the bill and spoke about his experiences in opening a compressed natural gas charging station.

02:28 PM -- J. Alexandar, Mansfield Oil Company, spoke in support of the bill and answered questions from the committee about how to calculate taxes on the variety of transportation fuels available.

02:44 PM -- Matt Most, Encana, spoke in support of the bill and discussed the requirements of Encana to tax fuels.

02:49 PM -- Dan Genovese, Chesapeake Energy, spoke in support of the bill if amended.

02:53 PM -- Greg Fulton, Colorado Motor Carriers, spoke in support of the bill and discussed the number of alternative fuel vehicles on the road and incentives needed for funding infrastructure. Mr. Fulton answered questions from the committee.

02:59 PM -- Tony Milo, Colorado Contractors Association, spoke in support of the bill and discussed the highway and bridges infrastructure repair needs in the state.

03:01 PM -- Grier Bailey, Wyoming Petroleum Marketers Association, answered questions from the committee concerning federal excises taxes on fuels.

The testimony phase was closed and the bill was laid over until Wednesday, February 22.

The committee recessed.

03:16 PM

The committee came back to order.

03:16 PM -- House Bill 12-1278

Representative Fischer, bill sponsor, presented House Bill 12-1278, that requires the Colorado Water Conservation Board (CWCB) and the State Engineer in the Division of Water Resources, Department of Natural Resources, to conduct a comprehensive study of the interaction between the South Platte alluvial aquifer and surface streams. The results of the study must be reported to the General Assembly by June 1, 2013. Section 3 of the bill authorizes the State Engineer to approve temporary substitute water supply plans in the South Platte River Basin that do not require the replacement of all out-of-priority depletions if he determines that such plans are needed to address damage caused by groundwater levels. The plans may only be approved if they will not cause injury to vested water rights, decreed conditional water rights, or impair compliance with any interstate compact. The State Engineer may also allow a water user to engage in out-of-priority well pumping without requiring the water user to fully replace depletions in order to reduce damage from groundwater levels. Additionally, the State Engineer is required to request that the water judge for Water Court Division 1 reconsider augmentation plans based on information obtained from the study. Representative Fischer answered questions from the committee.

The following individuals testified on the bill:

03:26 PM -- Jim Yahn, North Sterling Irrigation District and Prewitt Reservoir, spoke in opposition to the bill and discussed the legislative declaration. He also discussed some of the groundwater issues on his farm. Mr. Yahn answered questions from the committee.

03:57 PM -- Gene Manuello, Cattlemans Association and the Lower South Platte Water Conservancy District, spoke in opposition to the bill and discussed how his ditch would be damaged if out-of-priority depletions were not covered by augmentation plans. Mr. Manuello answered questions from the committee.

04:13 PM -- Doug Kemper, Colorado Water Congress, spoke in opposition to the bill and provided Attachment B, which explains what augmentation plans are. Mr. Kemper answered questions from the committee.

04:34 PM -- John Hendrick, Centennial Water and Sanitation District, spoke in opposition to the bill and advocated for removing Section 3 of the bill.

04:38 PM -- Bob Longenbaugh, representing himself, spoke in support of the bill and distributed Attachment C. He responded to questions from the committee regarding plants along the South Platte river that are consuming water and test wells.

04:59 PM -- Raegan Waskon, Colorado Water Institute, spoke in support of the bill and stated that good science and sound data are necessary to manage water supplies. He stated that the South Platte is a complicated basin that is continually in flux. He stated that local issues must be understood in order to craft solutions that do not cause other issues. He discussed issues with high ground water tables in the Arkansas River Basin.

05:06 PM -- Charles Sylvester, Land and Water USA, spoke in support of the bill, distributed Attachment D, and discussed the harm caused by flooding in the South Platte Basin. Mr. Sylvester answered questions from the committee concerning the history of water surplus in the basin.

05:16 PM -- John Meininger, representing himself, spoke in support of the bill and spoke about the authority of the State Engineer regarding the administration of the South Platte River. Mr. Meininger answered questions from the committee.

05:29 PM -- Harry Strohauer, Strohauer Farms, Inc., spoke in support of the bill and discussed crop damage as a result of the high water table near the town of Gilcrest.

05:41 PM -- Dave Petrocco, Petrocoo Farms, spoke in support of the bill but asked that Section 3 be modified. He discussed the impact of high groundwater and his desire to put it to beneficial use.

05:47 PM -- Dave Eckhardt, Colorado Corn Growers Association, spoke in support of the bill.

05:50 PM -- Larry and Mary Starck, representing themselves, spoke in support of the bill and discussed the saturation of their land and how this poses a difficulty for their cattle operation.

05:54 PM -- Bob Winter, representing himself, spoke in support of the bill, and distributed Attachments (E, F, and G).

06:01 PM -- Gene Kammerzell, Weld County Farm Bureau, spoke in support of the bill and discussed how the high groundwater level is affecting his farm. He distributed his written testimony as Attachment H.

06:06 PM -- Roni Sylvester, Land and Water USA, spoke in support of the bill and distributed her testimony as Attachment I.

06:09 PM -- Bill Jerke, representing himself, spoke in support of the bill and discussed his farm in La Salle. Mr. Jerke answered questions from the committee.

06:17 PM -- Nicholas Colglazier, Colorado Farm Bureau, spoke in support of the bill, and discussed the need for more information about how groundwater and surface streams interact.

06:20 PM -- Mike Shimmin, Bijou Irrigation Company, spoke in opposition to the bill, and discussed the legislative declaration and some factual inaccuracies he believes are in the bill. Mr. Shimmin answered questions from the committee.

06:26 PM -- Dan Brown, Lower Lathan Reservoir Company, spoke in opposition to the bill.

06:30 PM -- Kevin Rein, Division of Water Resources, spoke about a groundwater study the division is working on in the Sterling area and making updates to the South Platte Decision Support System. Mr. Rein answered questions from the committee concerning the Sterling area study.

06:32 PM -- Jennifer Gimbel, Colorado Water Conservation Board (CWCB), spoke about $600,000 that is in this year's annual CWCB Projects Bill for the groundwater study in the Sterling area. Ms. Gimbel answered questions from the committee.

06:50 PM

The committee recessed.

07:01 PM

The committee came back to order.


BILL:	HB12-1278
TIME:	07:01:22 PM
MOVED:	Fischer
MOTION:	Moved amendment L.001 (Attachment J). The motion passed without objection.
SECONDED:	Brown
		VOTE
	Brown
	Coram
	Fischer
	Jones
	Looper
	McKinley
	Ryden
	Scott
	Vaad
	Vigil
	Wilson
	Baumgardner
	Sonnenberg

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1278
TIME:	07:03:00 PM
MOVED:	Fischer
MOTION:	Moved to refer House Bill 12-1278, as amended, to the Committee on Appropriations.. The motion passed on a vote of 9-3.
SECONDED:	Wilson
		VOTE
	Brown	Yes
	Coram	Yes
	Fischer	Yes
	Jones	Yes
	Looper	No
	McKinley	Yes
	Ryden	Yes
	Scott	No
	Vaad	Yes
	Vigil	Yes
	Wilson	Yes
	Baumgardner	No
	Sonnenberg	Excused

Final YES: 9 NO: 3 EXC: 1 ABS: 0 FINAL ACTION: PASS

07:05 PM

The committee recessed.

07:24 PM

The committee came back to order.

07:25 PM -- House Bill 12-1161

Representative Looper, bill sponsor, presented House Bill 12-1161, this bill prohibits the Water Quality Control Commission (WQCC) from adopting a water quality standard for nitrogen, phosphorus, or related parameters (nutrients) until the proposed standard is approved by the General Assembly in a bill. The Nutrients Scientific Advisory Board (NSAB) is created, consisting of nine members appointed by the leadership of the General Assembly, all credentialed experts in pollutant effects on human or environmental systems, with at least one member from each water division in the state. By October 1, 2012, the NSAB must hold a public hearing on nutrient standards proposed by the Water Quality Control Division (WQCD) in the Colorado Department of Public Health and Environment (CDPHE). The NSAB must deliver a report to the WQCC and General Assembly by February 1, 2013. She distributed Attachments K and L.

The following individuals testified on the bill:

07:31 PM -- Doug Kemper, Colorado Water Congress, spoke in support of the bill and explained the involvement of Colorado Water Congress in the nutrient water quality issue.

07:32 PM -- Jon Hendrick, Centennial Water and Sanitation District, spoke in support of the bill and discussed some of the flaws he believes were used in the data analysis to develop the Water Quality Control Division's proposed nutrient regulations. Mr. Hendrick answered questions from the committee.

07:43 PM -- Jim Heckman, Lower Fountain Metro, spoke in support of the bill and answered questions from the committee.

07:50 PM -- Jim Kendrick, Monument Sanitation District, spoke in support of the bill and discussed the proposed nutrient regulations and the need for an independent scientific review.

07:56 PM -- Dianna Orf, Associated Governments of Northwest Colorado, spoke in support of the bill and explained that rural areas are concerned about the proposed nutrient regulations.

07:57 PM -- Barbara Biggs, Metro Wastewater, spoke in opposition to the bill and explained how total inorganic nitrogen would be regulated under the proposed regulations. Ms. Biggs answered questions from the committee concerning the adequacy of the General Assembly to consider a bill on the proposed nutrient standard as required in the bill.

08:22 PM -- Becky Long, Colorado Environmental Coalition, spoke in opposition to the bill explained that Eva Henry, City of Thornton, Faith Winter, City of Westminster, and Dominick Moreno could not stay but wished to express their opposition and need for certainty in the regulatory environment. She also discussed the some of the changes that have been recently made to the proposed regulations.

08:28 PM -- Steve Gunderson, Water Quality Control Division, spoke in opposition to the bill and spoke about public involvement in the division's rule making process. He also discussed a cost-benefit study that was done in conjunction with the Colorado Water and Power Development Authority. He explained how the division's proposed nutrient standards have been narrowed from the original proposed rules. Mr. Gunderson answered questions from the committee.

08:47 PM

The bill was laid over until Monday, February 27.

08:49 PM

The committee adjourned.