Date: 12/20/2013

Final
SMART Act Presentation from DNR

COMMITTEE ON JOINT AGRICULTURE AND NATURAL RESOURCES

Votes: View--> Action Taken:
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09:06 AM -- SMART Act Presentation from DNR

Staff distributed Attachments A, B, C, D, and E (attached) to the committee members.

131220 AttachA.pdf131220 AttachA.pdf131220 AttachB.pdf131220 AttachB.pdf131220 AttachC.pdf131220 AttachC.pdf131220 AttachD.pdf131220 AttachD.pdf

Mike King, Director, Colorado Department of Natural Resources (DNR), talked about DNR's overall objectives and legislative agenda for the upcoming year. He explained that a primary focus of the upcoming year will be the creation of the Colorado Water Plan (CWP) and he discussed the expected time line for the drafting of the CWP. Director King discussed Colorado's projected water needs and the water gap. He talked about the role that the Interbasin Compact Committees (IBCC) and basin roundtables are playing in the creation of the plan and said that he expects that the CWP will be reevaluated and potentially revised about every five years as Colorado's water needs change over time. Director King discussed funding as it relates to forest health including the damaging wildfires of the past two years and funding needs related to mitigating the effects of wildfires. He talked about the budget challenges faced by the Division of Parks and Wildlife (CPW) and how the division plans to tackle those challenges. He discussed the development of natural resources, including oil and gas development, and how this development must be balanced with the protection of air, water, and other natural resources. Director King answered questions from the committee regarding DNR's role in mitigating the impacts of the September 2013 floods and how funding needs for flood mitigation efforts are being shared between federal and state agencies. Committee discussion ensued on this topic. The committee discussed writing a letter to Congress to ask for additional financial help for flood mitigation efforts. Director King answered questions from the committee regarding flood insurance. Committee discussion ensued regarding the Colorado Water Plan. Director King answered questions from the committee regarding the funds that are available for watershed protection.

09:33 AM

Director King discussed DNR's legislative agenda for the upcoming legislative session and answered questions from the committee regarding the resources conservation bill, aligning resources to protect streamflows, and the stocking of high mountain streams and fisheries.

09:39 AM

Bill Levine, Budget Director, DNR, described his professional background and summarized DNR's FY 2014-15 budget requests (Attachment E). He discussed the highest priority requests including new personnel for the Water Resources Division; additional legal services for enforcement within the Colorado Oil and Gas Conservation Commission (COGCC); and refinancing of the coal regulatory program in the Division of Reclamation, Mining, and Safety (DRMS). Mr. Levine answered questions from the committee regarding the DRMS budget request. Mr. Levine continued to discuss DNR's highest priority budget requests for FY 2014-15 including a line item reorganization within Colorado Parks & Wildlife Division (CPW) to more appropriately reflect the current structure of CPW; the funding of new vehicles and equipment for the Division of Water Resources; and adjustments to leased space within the Executive Director's Office. Director King answered questions from the committee regarding DNR's use of alternative fuel vehicles and severance tax revenue obtained from oil and gas development in Weld County.

131220 AttachE.pdf131220 AttachE.pdf

10:13 AM

Matt Lepore, Director, Colorado Oil and Gas Conservation Commission (COGCC), discussed the number of active wells in Colorado; oil and gas production rates in Colorado; the number of COGCC full-time employees (FTE); the number of approved drilling permits; the time spent on processing permits; the number of notices of alleged violations issued in FY 2012-13; the number of inspections completed in FY 2012-13; and the frequency at which wells are inspected. Director Lepore discussed the effects of the September 2013 flood on oil and gas development sites and answered questions from the committee regarding how many days notices of alleged violations take to resolve. He talked about the COGCC's desired outcomes for FY 2013-14, including the number of wells using closed-loops systems.

10:27 AM

Director Lepore answered questions from the committee regarding the purpose of and actions conducted during inspections of oil and gas development; the frequency of violations that are discovered in and around oil and gas wells after being recently inspected; and what is considered a high-risk oil and gas development site. Committee discussion ensued regarding pipeline regulation, pipeline safety, the Parachute Creek oil spill that occurred during the spring of 2013, and inspections of oil and gas development.

10:46 AM

At the request of Senator Schwartz, staff distributed a Power Point presentation from Legislative Council Staff that was shared with the interim Water Resources Review Committee in September 2013 on the outlook for severance tax revenue and water project development (Attachment F).

131220 AttachF.pdf131220 AttachF.pdf

10:47 AM

Director Lepore answered questions from the committee regarding the COGCC's budget requests for FY 2014-15, the coordination between federal agencies and the COGCC regarding inspections, and the number of citizen complaints. He summarized some of the changes made to COGCC rules in 2013 and discussed the COGCC's regulatory agenda for 2014. Director Lepore said that the COGCC plans to hold a discussion in late January 2014 on lessons learned from the September 2013 flood response. Director King answered questions from the committee regarding how the COGCC utilizes sage grouse maps and the importance of these maps. Director King answered questions from the committee regarding the role of the COGCC in the rule-making process for the new air quality rules.

11:01 AM

Bob Broscheid, Director, Colorado Parks & Wildlife (CPW), introduced himself to the committee and described his professional background. Director Broscheid talked about the importance of stabilizing the financial situation within CPW, improving customer service including retention of current customers and attraction of new customers, providing a quality recreational experience, and supporting and facilitating the protection of natural habitats. He highlighted some of the programs and financial input measures that are outlined in the Performance Plan (Attachment A) including the number of annual and daily park passes that have been sold over time and the number of hunting licenses that have been sold. Director Broscheid discussed some of the output measures outlined in the Performance Plan (Attachment A) including the number of camping passes issued, hunting licenses issued, and fishing licenses issued. He answered questions from the committee regarding how CPW plans to attract new hunters in Colorado and the potential for creating reward programs to encourage parents to introduce their children to the sport. Director King answered questions from the committee regarding feedback received about the landowner preference program. Director Broscheid answered questions from the committee regarding the total impact of recreation on the state of Colorado and the urban fishing program in Arizona.

11:24 AM

Steve Cassin, Chief Financial Officer, CPW, answered questions from the committee regarding the need to balance the budget of CPW. Committee discussion ensued regarding CPWs "Fishing for Fun" and "First Shot" programs. Director Broscheid discussed the percentage of students entering hunter education classes and receiving hunter education cards. He talked about the challenges faced by the CPW when long-time hunters stop renewing their hunting licenses and answered questions from the committee regarding the reduction of budgets and inspections in aquatic nuisance species (ANS) programs. Committee discussion ensued on ANS programs. Director Broscheid discussed some of the outcome measures outlined in the Performance Plan (Attachment A), the Wildlife and Habitat Conservation Program input measures, and the role that CPW plays in the protection of animals on the Federal Endangered Species list and their habitats. He discussed CPW's regulatory agenda for the upcoming year.


11:59 AM

Dick Wolfe, Director, Division of Water Resources (DWR), discussed the organization of the DWR and the importance of the dams in the management of Colorado's water. He talked about the various aspects of water administration, the distribution of water to water rights holders, the destruction of stream gauges as result of the September 2013 flood, activities of the DWR's public safety program during the flood, and the permitting of water wells and oil and gas wells. Director Wolfe discussed rules and regulation changes that are anticipated for the coming year and answered questions from the committee regarding the status of the compact negotiation of the Republican river. Director Wolfe and Director Levine answered questions from the committee regarding hydroelectric power and Bill A which was recommended by the interim Water Resources Review Committee and concerns the establishment of incentives for the development of hydroelectric energy systems. Director Wolfe answered questions from the committee regarding the federal funding of snotels that measure precipitation in Colorado.

12:17 PM

Tom Browning, Deputy Director, Integrated Resources, Colorado Water Conservation Board (CWCB), described the mission of the CWCB and discussed CWCB's efforts to mitigate the effects of the September 2013 flood. Mr. Browning talked about grants and total dollar values for the Water Supply Reserve Fund. Tim Feehan, Deputy Director, Resource Management, CWCB, discussed the CWCB's Water Project Loan Program including the number of new loans and the total dollar value for new water project loans. Mr. Feehan answered questions from the committee regarding alternative agricultural transfer methods that are outlined in the projects bill. Mr. Browning discussed leveraging of watershed protection funding and the stream task force and answered questions from the committee regarding requirements for early warning systems in flood areas

12:34 PM

Bill Ryan, Director, State Land Board (SLB), explained the mission and activities of the SLB. He outlined the key initiatives, inputs, and outputs of the SLB. Director Ryan talked about some of the outcomes achieved in 2013 including non-recurring revenues, and answered questions from the committee regarding how much revenue the SLB receives from oil and gas development in Weld County. He continued to answer questions from the committee regarding the value of leases that are tied to lands being developed for minerals, the SLB's plan to increase recurring revenues, and the process and frequency involved in the review of the SLB's metrics.

12:50 PM

Lorette Pineda, Director, Division of Reclamation, Mining, and Safety (DRMS), discussed changes outlined in the regulatory agenda, the DRMS coal program, the DRMS mineral program and the compliance record of the coal mine reclamation program. Director Pineda said that there was a 16 percent reduction in coal production during 2013 and discussed the DRMS's legislative agenda including reinstating a special classification for smaller operators mining on 5 acres or less. Director Pineda updated the committee regarding recent changes in statute affecting uranium mining and discussed the abandoned mine program that does reclamation of legacy mine sites.

01:00 PM

Senator Schwartz discussed Attachment F. Director King discussed the funding received by DNR from severance taxes and the importance of and complications involved with this revenue stream.

01:05 PM

Representative Fischer reminded the committee that legislative liaisons to the departments needed to be designated. The following legislators volunteered to be considered: Senator Schwartz, Representative Scott, Representative Lebsock, Senator Harvey, Representative Saine, Representative Buck, and Representative Becker. Senator Schwartz said she and Representative Fischer would choose the liaisons.

01:06 PM

Senator Schwartz opened the public testimony phase. There was no testimony.

01:07 PM

The committee adjourned.