Senate Committee on Agriculture, Natural Resources, & Energy (04/09/2015)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON AGRICULTURE, NATURAL RESOURCES, & ENERGY

Date:	04/09/2015	ATTENDANCE

Time:	01:32 PM to 05:13 PM	Baumgardner	X
		Cooke	X
Place:	RM 271	Donovan	*
		Garcia	X
This Meeting was called to order by		Hodge	X
	Senator Sonnenberg	Jones	*
		Scott	*
This Report was prepared by		Roberts	X
	David Beaujon	Sonnenberg	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Conf 15-State Fair Authority Board Of Commissioners Conf 15-Energy Research Authority - Colorado Conf 15-Water Quality Control Commission SB15-258 SB15-252 SB15-206		Refer to the Full Senate Refer to the Full Senate Refer to the Full Senate Amended, Referred to Appropriations Referred to the Committee of the Whole Amended, Referred to Finance

01:34 PM -- Confirmation of State Fair Authority Board Of Commissioners

Chris Wiseman, Director, Colorado State Fair, introduced the Governor's appointment to the Colorado State Fair Authority Board of Commissioners and discussed the role of the board.

01:35 PM

Ronald Jay Teck of Grand Junction, appointed for a term expiring November 1, 2018, and as a Republican from the Third Congressional District who resides on the western slope of the state, discussed his experience and interest in serving on the Colorado State Fair Authority Board of Commissioners (Attachment A).

150409 AttachA.pdf


BILL:	Conf 15-State Fair Authority Board Of Commissioners
TIME:	01:36:33 PM
MOVED:	Roberts
MOTION:	Refer the appointment of Ronald Jay Teck to the State Fair Authority Board of Commissioners to the full Senate with a favorable recommendation and a recommendation that it be placed on the consent calendar. The motion passed on a vote of 8-0.
SECONDED:
		VOTE
	Baumgardner	Yes
	Cooke	Yes
	Donovan	Yes
	Garcia	Yes
	Hodge	Yes
	Jones	Yes
	Scott	Excused
	Roberts	Yes
	Sonnenberg	Yes

Final YES: 8 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:37 PM -- Confirmation of Colorado Energy Research Authority

David Hiller, Director, Colorado Renewable Energy Collaboratory, introduced the Governor's appointment to the Colorado Energy Research Authority and discussed the role of the authority.

01:41 PM

Michelle Hadwiger of Denver, appointed for a term expiring July 1, 2018, described her experience and interest in serving on the Colorado Energy Research Authority (Attachment B).

150409 AttachB.pdf


BILL:	Conf 15-Energy Research Authority - Colorado
TIME:	01:43:55 PM
MOVED:	Roberts
MOTION:	Refer the appointment of Michelle Hadwiger to the Colorado Energy Research Authority to the full Senate with a favorable recommendation and a recommendation that it be placed on the consent calendar. The motion passed on a vote of 9-0.
SECONDED:
		VOTE
	Baumgardner	Yes
	Cooke	Yes
	Donovan	Yes
	Garcia	Yes
	Hodge	Yes
	Jones	Yes
	Scott	Yes
	Roberts	Yes
	Sonnenberg	Yes

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

01:44 PM -- Confirmation of Water Quality Control Commission, Water Quality Control Commission

Mary Beth Fabisiak of Lakewood, reappointed for a term expiring February 15, 2018, discussed her experience and interest in serving another term on the Water Quality Control Commission (Attachment C).

150409 AttachC.pdf

01:46 PM

Jon Slutsky of Wellington, reappointed for a term expiring February 15, 2018, discussed his experience and interest in serving another term on the Water Quality Control Commission (Attachment C).

01:47 PM

Richard Clark Hum of Nathrop, appointed for a term expiring February 15, 2018, discussed his experience and interest in serving on the Water Quality Control Commission (Attachment C).

01:49 PM

The appointees responded to questions from the committee about the role of science in determining water quality regulations, ways to mitigate the impact of regulations on small communities, the role of cost-benefit analysis in setting regulations, and other issues.


BILL:	Conf 15-Water Quality Control Commission, Water Quality Control Commission
TIME:	01:59:50 PM
MOVED:	Roberts
MOTION:	Refer the appointment of Richard Clark Hum, Mary Beth Fabisiak, and Jon Slutsky to the Water Quality Control Commission to the full Senate with a favorable recommendation and a recommendation that it be placed on the consent calendar. The motion passed on a vote of 9-0.
SECONDED:
		VOTE
	Baumgardner	Yes
	Cooke	Yes
	Donovan	Yes
	Garcia	Yes
	Hodge	Yes
	Jones	Yes
	Scott	Yes
	Roberts	Yes
	Sonnenberg	Yes

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

02:00 PM

The committee recessed.

02:04 PM -- SB 15-258

The committee returned from recess. Senator Cooke and Senator Sonnenberg, co-sponsors, described the provisions of Senate Bill 15-258 concerning the coordinated review of the CO2 emission reduction measures. Under federal law, the Air Quality Control Commission (AQCC) under the Colorado Department of Public Health and Environment (CDPHE) is expected to approve and submit a state implementation plan for the reduction of carbon emissions from electric utilities to the U.S. Environmental Protection Agency (EPA) for certification that the state plan meets federal performance standards under the Clean Air Act.

The bill prohibits the AQCC from submitting a state implementation plan for the reduction of carbon emissions from electric utilities to the EPA until the Public Utilities Commission (PUC) conducts a proceeding to review the plan based on criteria outlined in the bill and issues a formal decision; the PUC and the CDPHE issue a joint assessment report of the plan within 15 days of the decision; and the General Assembly votes to approve the plan through joint resolution. If necessary, the AQCC may submit one revised version of the state plan to the PUC and the General Assembly. Under the bill, a subsequent judicial review of the plan is not precluded.

Once legislative approval is given, the AQCC may submit the plan to the EPA. If the plan is approved by the EPA, the AQCC must resubmit the plan to the General Assembly for final approval by joint resolution. If the plan is disapproved by the EPA and a federal plan is put in place instead, the AQCC must submit the federal plan to the PUC to determine whether further consideration of the plan is necessary. The CDPHE may not implement or enforce the final approved state or federal plan until the final federal emissions regulations are adopted. The process outlined in the bill will also apply to any regional plan the state participates in pursuant to the federal Clean Air Act or federal emissions regulations.

02:10 PM

Senator Hodge distributed Amendment L.001 (Attachment D)

150409 AttachD.pdf

02:10 PM

Senator Jones distributed Amendment L.002 (Attachment E) and Amendment L.004 (Attachment F).

150409 AttachE.pdf

150409 AttachF.pdf

The following persons testified on the bill:

02:11 PM -- Erin Overturf, Western Resource Advocates, spoke in opposition to the bill and discussed the risk of carbon emissions. She also responded to questions from the committee about the authority of AQCC to regulate carbon emissions.

02:19 PM -- Anna Gioventto, Advanced Energy Economy, spoke in opposition to the bill and discussed state and federal regulation of air pollution.

02:22 PM -- Martha Rudolph, Director of Environmental Programs for CDPHE, discussed the role of the Air Pollution Control Division in the regulation of carbon emission and the process to implement CO2 emission regulations. She explained how stakeholders will be able to participate in this process and responded to questions from the committee about the EPA's deadlines to develop state regulations, the CDPHE's stakeholder process in the development of state implementation plans, and other issues.

02:51 PM -- Dave Lock, Tri-State Generation and Transmission Association, spoke in support of the bill and expressed concerning about the impact of the proposed CO2 regulation on electric generators. He also discussed state and federal regulation of air pollution.

02:55 PM -- Bill Ray, Colorado Consumer Coalition, spoke in support of the bill and expressed concern about the impact of the proposed CO2 regulation on electric rates.

02:58 PM -- Mark Valentine, Colorado Consumer Coalition, Climax Molybdenum Company, spoke in support of the bill and discussed the PUC rulemaking process.

03:04 PM -- Misrain Cordero, Colorado Competitive Counsel, spoke in support of the bill and expressed concern about the impact of the proposed CO2 regulation on consumers and businesses.

03:06 PM -- Dan O'Connell, Colorado Association of Commerce and Industry, spoke in support of the bill and expressed concern about the impact of the proposed CO2 regulation on electric rates and consumers and businesses. He also responded to questions from the committee about the economic benefits of energy conservation.

03:16 PM -- Jenny Kraska, Colorado Catholic Conference, spoke in support of the bill and expressed concern about the impact of the proposed CO2 regulation on electric rates and low income rate payers.

03:19 PM -- Mark Ourada, American Coalition for Clean Coal Electricity, spoke in support of the bill and distributed handouts on the Clean Power Plan basics (Attachment G) and the impact of the EPA's carbon proposal on Colorado (Attachment H). He also expressed concern about the impact of the proposed CO2 regulation on consumers and businesses and identified legislation in other states that address the EPA's proposed CO2 regulations.

150409 AttachG.pdf

150409 AttachH.pdf

03:30 PM -- William Yeateman, Competitive Enterprise Institute, spoke in support of the bill and responded to testimony against the bill.

03:35 PM -- Sharon C. Garcia, representing herself, spoke in support of the bill and expressed concern about the impact of the proposed CO2 regulation on electric rates and low income rate payers.

03:39 PM -- Michael Sandoval, Independence Institute, spoke in support of the bill and expressed concern about the impact of the proposed CO2 regulation on consumers and businesses. He also explained that the proposed CO2 emission regulations are not authorized by federal or state law.

03:44 PM -- Mike Nasi, Jackson Walker, LLP, spoke in support of the bill and expressed concern about the authority of the CDPHE to implement the federal CO2 regulation.. He compared the proposed regulation with other air pollution control regulations and responded to questions from the committee about the bill and the proposed CO2 regulations. He also responded to prior testimony against the bill and distributed a copy of his testimony (Attachment I).

150409 AttachI.pdf

03:55 PM -- Geoffrey Hier, Colorado Rural Electric Association, spoke in support of the bill and responded to questions from the committee about the PUC's charge under the bill.

03:59 PM -- Dianna Orf, Colorado Mining Association, Associated Government of Northwest Colorado, spoke in support of the bill and expressed concern about the impact of the proposed CO2 regulation on consumers and businesses. She also expressed concern about the authority of the AQCC to implement the federal CO2 regulation.

04:03 PM

The chair closed testimony on the bill and Senator Cooke and Senator Sonnenberg closed their remarks on the bill. Senator Cooke also distributed a letter of support from Christian Reece, Executive Director of Club 20, a letter of support from Catherine J. Shull, Executive Director of Progressive 15, and the State of Colorado's comments on Docket ID No. EPA-HQ OAR 2013-0602 (Attachment J).

150409 AttachJ.pdf


BILL:	SB15-258
TIME:	04:15:01 PM
MOVED:	Hodge
MOTION:	Adopt amendment L.001. The motion passed without objection.
SECONDED:
		VOTE
	Baumgardner
	Cooke
	Donovan
	Garcia
	Hodge
	Jones
	Scott
	Roberts
	Sonnenberg
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB15-258
TIME:	04:15:28 PM
MOVED:	Jones
MOTION:	Adopt amendment L.004. The motion failed on a vote of 2-7.
SECONDED:
		VOTE
	Baumgardner	No
	Cooke	No
	Donovan	No
	Garcia	No
	Hodge	Yes
	Jones	Yes
	Scott	No
	Roberts	No
	Sonnenberg	No
YES: 2 NO: 7 EXC: 0 ABS: 0 FINAL ACTION: FAIL

04:21 PM

The committee made closing comments on the bill.


BILL:	SB15-258
TIME:	04:25:24 PM
MOVED:
MOTION:	Refer Senate Bill 15-258, as amended, to the Committee on Appropriations. The motion passed on a vote of 7-2.
SECONDED:
		VOTE
	Baumgardner	Yes
	Cooke	Yes
	Donovan	No
	Garcia	Yes
	Hodge	Yes
	Jones	No
	Scott	Yes
	Roberts	Yes
	Sonnenberg	Yes

Final YES: 7 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

04:26 PM

The committee recessed.

04:28 PM -- SB 15-252

Senator Johnston, sponsor, described the provisions of Senate Bill 15-252 concerning energy loans for school energy audits. Under current law, the Renewable Energy and Energy Efficiency for Schools (REEES) Loan program provides loans to school districts to help them pay for technical assistance, equipment, or the installation costs associated with renewable energy and energy efficiency projects. This bill expands the authorized uses of this funding to include covering the costs of an energy audit for the purpose of establishing the expected energy savings from the project.

There was no testimony on the bill:


BILL:	SB15-252
TIME:	04:32:25 PM
MOVED:	Roberts
MOTION:	Refer Senate Bill 15-252 to the Committee of the Whole. The motion passed on a vote of 6-1.
SECONDED:
		VOTE
	Baumgardner	No
	Cooke	Yes
	Donovan	Yes
	Garcia	Yes
	Hodge	Yes
	Jones	Excused
	Scott	Excused
	Roberts	Yes
	Sonnenberg	Yes

Final YES: 6 NO: 1 EXC: 2 ABS: 0 FINAL ACTION: PASS

04:33 PM -- SB 15-206

Senator Roberts and Senator Hodge, co-sponsors, described the provisions of Senate Bill 15-206 concerning the implementation of the conservation easement audit recommendations. They also distributed Amendment L. 001 (Attachment K) that amends the bill's title and a letter of support for the bill from Steve Whinnery (Attachment L). This bill makes two changes to the gross conservation easement income tax credit beginning in tax year 2015. First, credit awarded for the first $100,000 of a donated conservation easement is increased to 75 percent of the easement's fair market value, up from 50 percent in current law. Second, the maximum credit that may be awarded to a donor for a single donation is increased to $1,500,000 from the $375,000 cap in current law. The bill does not affect the annual cap on the total amount of credit that may be awarded to taxpayers participating in the gross conservation easement income tax credit program, set at $45 million beginning in tax year 2014.

150409 AttachK.pdf

150409 AttachL.pdf

The following persons testified on the bill:

04:39 PM -- Gaspar Perricone, Department of Natural Resources, spoke in support of the bill.

04:40 PM -- Chris West, Colorado Cattlemens' Association Agricultural Land Trust, spoke in support of the bill.

04:44 PM -- Kevin Shea, representing himself, spoke in support of the bill.

04:46 PM -- Steve Wooten, Colorado Cattlemens' Association Agricultural Land Trust, spoke in support of the bill.

04:52 PM -- Kent Holsinger, representing himself, spoke in support of the bill and described a conservation easement on his family's ranch that is held by the Colorado Cattlemens' Association Agricultural Land Trust.

04:53 PM -- Kevin and Sandi Tureck, representing themselves, spoke in support of the bill and discussed the benefits of conservation easements to family farms and ranches.

04:58 PM -- Stacy McPhail, Gunnison Ranchland Conservation Legacy, spoke in support of the bill and summarized the provisions of the letter of support for the bill from Steve Whinnery.

05:00 PM -- Nick Colglazier, Colorado Farm Bureau, spoke in support of the bill.

05:03 PM

The chair closed testimony on the bill and Senator Roberts and Senator Hodge closed their remarks on the bill. Senator Roberts also distributed a handout that identifies conservation easements in Colorado (Attachment M).

150409 AttachM.pdf


BILL:	SB15-206
TIME:	05:08:01 PM
MOVED:	Roberts
MOTION:	Adopt amendment L.001. The motion passed without objection.
SECONDED:
		VOTE
	Baumgardner
	Cooke
	Donovan
	Garcia
	Hodge
	Jones
	Scott
	Roberts
	Sonnenberg

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

05:11 PM

The committee recessed.

05:11 PM

The committee returned from recess.


BILL:	SB15-206
TIME:	05:12:02 PM
MOVED:	Roberts
MOTION:	Refer Senate Bill 15-206, as amended, to the Committee on Finance. The motion passed on a vote of 9-0.
SECONDED:
		VOTE
	Baumgardner	Yes
	Cooke	Yes
	Donovan	Yes
	Garcia	Yes
	Hodge	Yes
	Jones	Yes
	Scott	Yes
	Roberts	Yes
	Sonnenberg	Yes

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

05:13 PM

The committee adjourned.