House Committee on Health, Insurance & Environment (05/07/2013)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON HEALTH, INSURANCE & ENVIRONMENT

Date:	05/07/2013	ATTENDANCE

Time:	10:42 AM to 11:53 AM	Conti	X
		Fields	X
Place:	HCR 0107	Ginal	X
		Humphrey	X
This Meeting was called to order by		Joshi	X
	Representative McCann	Primavera	X
		Stephens	X
This Report was prepared by		Swalm	X
	Amanda King	Young	X
		Schafer	X
		McCann	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB13-284		Postponed Indefinitely

10:43 AM -- Senate Bill 13-284

Representative Hullinghorst presented Senate Bill 13-284 concerning streamlining the environmental permitting of oil and gas development that meets enhanced environmental protection standards. The bill establishes an expedited permit review process for air emissions produced by certain oil and gas operators subject to regulation by the Department of Public Health and Environment. The department is also authorized to establish an expedited review process for water discharges by oil and gas operators. An operator is not eligible for expedited permit review if the subject facility is out of compliance with state or federal pollution control standards.

An eligible oil and gas operator must certify that it will adhere to enhanced pollution control standards. The Department of Public Health and Environment may consult with the Colorado Oil and Gas Conservation Commission in the Department of Natural Resources to develop enhanced pollution control standards.

Representative Hullinghorst responded to questions about the timeframes allowed under the bill for the permit review process, possible amendments, what constitutes as an oil and gas facility, and the impact of not enacting the bill. Amendments L.005, L.006, and L.007 (Attachments A through C) were distributed.

130507 AttachA.pdf

130507 AttachB.pdf

130507 AttachC.pdf

10:48 AM -- Garry Kaufman, Department of Public Health and Environment, testified in support of the bill. He discussed the oil and gas industry in Colorado, the impact of those operations on air quality, and the administrative permitting workload of the department due to the increased oil and gas activities in the state. He responded to questions about the air quality and water quality permitting process. Representative McCann discussed the permit review timeframes. The committee continued to discuss the permitting process and inspections for the oil and gas facilities with Mr. Kaufman. He responded to questions about recently enacted Environmental Protection Agency rules, the enhanced standards referenced in the bill, and the coordination of inspections between the Department of Public Health and Environment and the Colorado Oil and Gas Conservation Commission. Mr. Kaufman responded to questions about the differences between the general permitting process and the individual permitting process; how Colorado's air quality regulations compare to the Environmental Protection Agency's regulations; and the department's involvement in the drafting of the bill.

11:17 AM -- Jim Cole, Colorado Oil and Gas Association, testified in support of the bill. He discussed the oil and gas industry's involvement with the Department of Public Health and Environment regarding air quality issues and the permitting process. Mr. Cole responded to questions about potential amendments and whether he was involved in the drafting of the bill.

11:25 AM -- Stan Dempsey, Colorado Petroleum Association, testified in a neutral capacity. He discussed the need for all stakeholders to be involved in the drafting of the bill; the applicability limitations of the bill due to the exceptions outlined it; potential rule-making that may occur later this year related to the oil and gas industry; and the additional FTE's in the bill. He stated his organization's position may change if potential amendments are adopted. Mr. Dempsey responded to questions about his organization's position on the bill and the implementation of certain Environmental Protection Agency rules.

11:37 AM -- Becky Long, Conservation Colorado, testified in a neutral capacity. She discussed questions her organization has about whether the bill interacts with existing processes, the use of the term "enhanced" in the bill, and the exceptions outlined in the bill. She discussed the need for a robust stakeholder process concerning the issues addressed by the bill. Ms. Long responded to questions about her organization's concerns about the bill, potential amendments, and her organization's position on the bill.

11:45 AM

Representative Hullinghorst commented on bill and discussed amendments L.005, L.006, and L.007. She recommended postponing the bill indefinitely based on the testimony and the need for a more involved stakeholder process. Representative McCann commented about the testimony on the bill.


BILL:	SB13-284
TIME:	11:52:20 AM
MOVED:	McCann
MOTION:	Postpone Senate Bill 13-284 indefinitely. The motion passed on a vote of 11-0.
SECONDED:	Schafer
		VOTE
	Conti	Yes
	Fields	Yes
	Ginal	Yes
	Humphrey	Yes
	Joshi	Yes
	Primavera	Yes
	Stephens	Yes
	Swalm	Yes
	Young	Yes
	Schafer	Yes
	McCann	Yes

Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:53 AM

The committee adjourned.