Date: 05/01/2013

Final
BILL SUMMARY for SB13-203

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Votes: View--> Action Taken:
Adopt amendment L.004 (Attachment D). A substitute
Adopt amendment L.005 (Attachment B) severed secti
Adopt amendment L.005 (Attachment B) severed secti
Postpone Senate Bill 13-203 indefinitely. The moti
Pass Without Objection

PASS



11:31 AM -- Senate Bill 13-203

The committee was called to order. A quorum was present. Representative Coram presented Senate Bill 13-203, concerning limitations on the use of certain public land for automotive service stations in order to limit government competition. Committee members received a letter of support for the bill from Paul Brown, President of the Monument Oil Company (Attachment A). Representative Coram explained the effect of the bill. Representative Coram responded to questions regarding public entities that currently retail motor fuel, and the bill's impact on public-private partnerships in the state. Discussion ensued regarding a natural gas refueling station in Grand Junction constructed through a cooperative agreement between Monument Oil and the city.

13HseState0501AttachA.pdf13HseState0501AttachA.pdf

11:37 AM

The following persons testified regarding Senate Bill 13-203:

11:37 AM -- Mr. Andy Karsian, representing Colorado Counties, Inc, and Mr. Mark Radtke, representing the Colorado Municipal League, testified in opposition to the bill. Mr. Radtke discussed the impact of the bill on efforts to create public-private partnerships at the local level to install natural gas refueling stations. Mr. Karsian expressed support for public-private partnerships at the local level for refueling stations, and explained how they work. Mr. Karsian asserted that local governments do not want to enter the retail fuel market, but rather want to enter into agreements with private companies. Mr. Karsian discussed his organization's position on the bill if amendment L.005 (Attachment B) is adopted, and explained the effect of the amendment. Discussion ensued regarding the concept of "fair market value" and how it is determined, particularly in the motor fuels market.

13HseState0501AttachB.pdf13HseState0501AttachB.pdf

11:47 AM

Mr. Karsian responded to questions regarding the source of his organization's opposition to the bill, and the reason his organization would take a neutral position on the bill with the passage of amendment L.005. Mr. Radtke provided his opinion on amendment L.005. Mr Karsian responded to questions regarding the potential for counties to enter the motor fuel retail market.

11:55 AM -- Mr. Kurt Morrison, representing the Department of Transportation (CDOT), testified in opposition to Senate Bill 13-203. Mr. Morrison discussed current prohibitions against CDOT allowing motor vehicle refueling stations to operate on its highway rest areas, and discussed CDOT's desire to enter into public-private partnerships to do so in the future. Mr. Morrison responded to questions regarding CDOT's position on the bill if amendment L.005 were to pass, and the effect of the bill on nonprofit organizations with certain financial arrangements with the motor fuels industry.

12:00 PM -- Mr. Scott Paulson, representing Silco Oil, testified in support of the bill. Mr. Paulson discussed the reasons that prohibitions against using public lands for siting gas stations were enacted, and expressed opposition to competition between refueling stations sited on private property and operations sited on government property. Mr. Paulson responded to questions regarding his position on amendment L.005, and his position on public-private partnerships to operate natural gas refueling stations.

12:05 PM -- Mr. Dan Hodges, representing the Colorado Association of Municipal Utilities, testified in opposition to Senate Bill 13-203. Mr. Hodges expressed opposition to restrictions in the bill on local governments entering the natural gas refueling market, and restrictions on local public-private partnerships in the motor refueling market, since these restrictions impact utilities. Discussion ensued regarding home rule provisions in the State Constitution pertaining to public utilities, and the potential abridgement of these provisions by the bill. Mr. Hodges responded to questions regarding his position on amendment L.005. Representative Coram responded to questions regarding his impression of the constitutional objections raised by Mr. Hodges.

12:12 PM -- Mr. Eric Heil, representing the American Planning Association, testified in opposition to the bill. Mr. Heil suggested that the bill is unnecessary and places unnecessary restrictions on local governments. Mr. Heil discussed certain potentially ambiguous language in the bill. Mr. Heil provided his organization's position on the bill if amendment L.005 were to pass.

12:14 PM -- Mr. Mark Larson, representing the Colorado Wyoming Petroleum Marketers Association, testified in support of the bill. Mr. Larson discussed efforts to overturn federal prohibitions against operating motor vehicle refueling stations on government-owned land, and property tax exemptions for private entities involved in public-private partnerships, which create a competitive disadvantage for stations sited on privately owned land. He discussed the potential impact of public-private motor vehicle refueling station partnerships on the refueling market, and provided his opinion of amendment L.005. Mr. Larson also discussed the future of the natural gas refueling market. Mr. Larson responded to questions regarding the fair market value standard in amendment L.005, and provisions in Senate Bill 13-203 that require cost determinations that are difficult to quantify. Mr. Larson responded to questions regarding the potential overturning of federal prohibitions against operating motor vehicle refueling stations on government-owned land.


12:29 PM

Discussion ensued regarding the potential for the bill to infringe on the powers of home-rule municipalities, and the definition of "highway" under the bill.

12:32 PM -- Mr. James Orsulak, representing Clean Energy, testified in support of the bill. Committee members received copies of a letter expressing support for the bill authored by Mr. Todd Campbell of Clean Energy (Attachment C). Mr. Orsulak explained how the bill would create a level playing field for compressed natural gas motor vehicle refueling, and discussed the bill's impact on public-private partnerships. Mr. Orsulak provided his opinion of the "fair market value" standard in amendment L.005. Mr. Orsulak responded to questions regarding the process by which the natural gas refueling facility was constructed in Grand Junction, and the potential for a competing facility to be constructed in Grand Junction. Mr. Orsulak responded to further questions regarding the impact of the bill on the construction of smaller natural gas refueling facilities, including facilities constructed through public-private partnerships. Mr. Orsulak responded to questions regarding the business arrangement between Grand Junction and the natural gas refueling station located there, and state government's involvement in Clean Energy's construction of natural gas refueling facilities.

13HseState0501AttachC.pdf13HseState0501AttachC.pdf

12:41 PM -- Mr. Greg Fulton, representing the Colorado Motor Carriers Association, testified in support of the bill. Mr. Fulton discussed the use of refueling stations from a consumer perspective, and liability for accidents and other mishaps at private-sector refueling stations. Mr. Fulton addressed the issue of private stations competing with stations constructed through public-private partnerships. Mr. Fulton responded to questions regarding the potential effect of the bill on the motor vehicle natural gas refueling market, and expressed his opinion on amendment L.005.


12:47 PM

Representative Scott explained the effect of amendment L.004 (Attachment D).

13HseState0501AttachD.pdf13HseState0501AttachD.pdf
BILL:SB13-203
TIME: 12:47:59 PM
MOVED:Scott
MOTION:Adopt amendment L.004 (Attachment D). A substitute motion to adopt amendment L.005 (Attachment B) was considered, and a subsequent substitute motion to postpone the bill indefinitely passed.
SECONDED:Humphrey
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Withdrawn


12:48 PM

Representative Ryden moved amendment L.005, and Representative Moreno severed the amendment between lines 9 and 10 on page 1. Representative Moreno explained his reasons for severing the amendment. Ms. Esther van Mourik, Legislative Legal Services, explained the effect of severing the amendment. Various committee members and Representative Coram discussed the merits of the two severed sections of amendment L.005. They also discussed the concept of "fair market value" in the context of the amendment.
BILL:SB13-203
TIME: 12:48:32 PM
MOVED:Moreno
MOTION:Adopt amendment L.005 (Attachment B) severed section #1, page 1, lines 1 through 9. The motion passed without objection.
SECONDED:Salazar
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:SB13-203
TIME: 12:48:07 PM
MOVED:Ryden
MOTION:Adopt amendment L.005 (Attachment B) severed section #2, page 1, lines 10 and 11. A substitute motion to postpone indefinitely Senate Bill 13-203 was passed.
SECONDED:Salazar
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Substitute Motion Passed


BILL:SB13-203
TIME: 12:57:37 PM
MOVED:Dore
MOTION:Postpone Senate Bill 13-203 indefinitely. The motion passed on a vote of 11-0.
SECONDED:Scott
VOTE
Dore
Yes
Foote
Yes
Humphrey
Yes
Labuda
Yes
Melton
Yes
Moreno
Yes
Nordberg
Yes
Scott
Yes
Williams
Yes
Salazar
Yes
Ryden
Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS