Date:	04/29/2015	ATTENDANCE
Time:	01:38 PM to 04:48 PM	Becker J.	*
		Buck	X
Place:	HCR 0112	Carver	X
		Coram	X
This Meeting was called to order by		Esgar	X
	Representative Tyler	Kraft-Tharp	*
		Melton	X
This Report was prepared by		Moreno	X
	Matt Kiszka	Neville P.	X
		Nordberg	*
		Winter	X
		Mitsch Bush	X
		Tyler	*
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB15-229 HB15-1363 HB15-1377 HB15-1381		Referred to Finance Postponed Indefinitely Witness Testimony and/or Committee Discussion Only Amended, Referred to the Committee of the Whole

BILL:	SB15-229
TIME:	01:44:38 PM
MOVED:	Mitsch Bush
MOTION:	Refer Senate Bill 15-229 to the Committee on Finance. The motion passed on a vote of 8-1, with 4 members excused.
SECONDED:	Buck
		VOTE
	Becker J.	Excused
	Buck	Yes
	Carver	Yes
	Coram	Yes
	Esgar	Excused
	Kraft-Tharp	Yes
	Melton	Yes
	Moreno	Yes
	Neville P.	No
	Nordberg	Yes
	Winter	Excused
	Mitsch Bush	Yes
	Tyler	Excused
YES: 8 NO: 1 EXC: 4 ABS: 0 FINAL ACTION: PASS

150429 AttachA.pdf

150429 AttachB.pdf

150429 AttachC.pdf

150429 AttachD.pdf

• identify the most vulnerable components of the state's lifeline infrastructure and potential mitigation measures for these components;

• estimate a range of costs and timeframe for implementing mitigation measures;

• examine the positive and negative effects of requiring utilities to incorporate mitigation measures into the construction or retrofitting of facilities, and the potential effect these requirements may have on the electric grid outside of the state; and

• propose funding sources, including sources of funding through federal agencies.

The report may be redacted or otherwise edited to omit secure information, but the PUC is encouraged to promote transparency as much as possible to enhance public awareness of the issues identified in the report. Unpublished drafts of the report and related data are exempt from disclosure under the Colorado Open Records Act, unless that information would be otherwise publicly available.

The PUC must accept gifts, grants, and donations from any public or private source for the purpose of funding its report, to be held within a separate account within the Fixed Utility Fund (FUF). If the amount of money required to fund the report has not been collected by September 1, 2015, the PUC must abandon the study and return any contributions. Any interest earned on the account must be transferred to the General Fund.

01:51 PM -- Dr. Vincent Pry, representing the EMP Task Force on National and Homeland Security, spoke in favor of the bill. Dr. Pry distributed a copy of his testimony (Attachment E) and said that manmade and natural EMP are a real threat to the electric infrastructure in Colorado, that the bill would be good for business, and that Colorado is well positioned to protect its people from these threats. Dr. Pry responded to questions on whether the state can maintain security regarding the vulnerabilities of the electrical grid under the requirements of the bill, how the bill relates to a 2014 FERC study of grid vulnerabilities, and nuclear EMP grid vulnerability.

150429 AttachE.pdf

02:10 PM -- John Kappenman, representing himself, and Andrea Boland and Thomas Popik, representing the Foundation for Resilient Societies, spoke in favor of the bill. The three witnesses submitted written copies of their testimony (Attachments, F, G, and H). They discussed grid vulnerabilities to EMP and solar flares, and FERC and NERC grid security standards. Ms. Boland discussed legislation she had introduced in the Maine legislature to address EMP and solar flare grid vulnerabilities. They responded to questions on relevant legislation passed in Maine, how an EMP event would affect coal plants, the regions of the U.S. that have a higher risk of solar flares, and why states need to pass legislation to deal with these issues. Representative Ginal and the witnesses responded to questions on the fiscal impact of the bill, and how the bill comports with the Colorado Open Records Act (CORA).

150429 AttachF.pdf150429 AttachG.pdf150429 AttachH.pdf

02:43 PM -- Jeani Frickey, representing Tri-State Generation and Transmission and Xcel Energy, spoke in opposition to the bill. Ms. Frickey said that there are greater threats and vulnerabilities to the electric grid than EMP and solar flare that need to be addressed more imminently. She responded to questions on whether Tri-State and Xcel Energy are opposed to a study of the issues as the bill requires, sources of funding for the study, and what utilities in Colorado already do to mitigate risks to grid stability.

02:52 PM -- Dan O'Connell, representing the Colorado Association of Commerce and Industry (CACI), spoke against the bill. Mr. O'Connell stated that Black Hills Energy, which is a member of CACI, also opposes the legislation. He said that EMP and solar flare threats to the electricity grid have been studied by numerous organizations, such as FERC, NERC, and the U.S. Department of Homeland Security, and do not need to be studied again in Colorado. He said that these issues need to be addressed and funded by the federal government, not the individual states.

02:56 PM -- Randall White, representing Jaxon Engineering and Maintenance, spoke in favor of the bill. Mr. White distributed a copy of his written testimony (Attachment I) and information on why grid resilience is necessary (Attachment J). He discussed how grid vulnerability issues can be addressed in Colorado.

150429 AttachI.pdf150429 AttachJ.pdf

03:03 PM -- James Terbush, representing El Paso County Public Health, spoke in favor of the bill. He distributed a copy of his written testimony to the committee (Attachment K), and discussed the need for resilient hospitals in Colorado.

150429 AttachK.pdf

03:08 PM -- William Kaewert, representing himself, spoke in favor of the bill. He distributed a copy of his written testimony to the committee (Attachment L).

150429 AttachL.pdf

03:14 PM -- Nikolas Huebler, representing himself, spoke in favor of the bill. He discussed the lack of action from the electric industry in addressing EMP risks and mitigation strategies toward grid vulnerability. He said that the bill will help address the societal risks posed by EMP.

03:16 PM -- Gene Camp, representing the PUC, came to the table for questions. He said that the PUC had not taken a position on the bill, and responded to questions on whether the PUC has examined the grid vulnerabilities posed by EMP and solar flares.

03:19 PM

Representative Ginal responded to questions on the cost of the study as provided in the fiscal note for the bill versus an estimate provided by DORA.

BILL:	HB15-1363
TIME:	03:21:01 PM
MOVED:	Tyler
MOTION:	Adopt amendment L.003 (Attachment A). The motion passed without objection.
SECONDED:	Melton
		VOTE
	Becker J.
	Buck
	Carver
	Coram
	Esgar
	Kraft-Tharp
	Melton
	Moreno
	Neville P.
	Nordberg
	Winter
	Mitsch Bush
	Tyler
Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

03:21 PM

Representative Ginal discussed how the bill would comply with CORA. Duane Gall, Office of Legislative Legal Services, came to the table to discuss how the bill, as amended, would comply with CORA. He said that the bill would exempt the PUC's report from certain disclosure requirements of CORA. Committee discussion ensued.

03:31 PM

Erin Reynolds, Legislative Council Staff, came to the table for questions on the fiscal note for the bill. She discussed the estimated cost of the bill in comparison with preliminary cost estimates for the study that had been provided by DORA. She said that a lot of research and quantitative analysis on grid vulnerabilities from EMP and solar flares has already been completed by various entities, which would augment some of the costs associated with the study required by the bill. She responded to questions on whether the PUC has already studied these issues.

03:37 PM

Representative Ginal discussed the need in Colorado for a study into grid vulnerabilities to EMP and solar flares. She said the bill would give the state an idea of electrical grid requirements for increased stability and security.





03:40 PM

The committee discussed the merits of the bill.

BILL:	HB15-1363
TIME:	03:42:06 PM
MOVED:	Melton
MOTION:	Refer House Bill 15-1363, as amended, to the Committee on Finance. The motion failed on a vote of 6-7.
SECONDED:	Moreno
		VOTE
	Becker J.	No
	Buck	No
	Carver	No
	Coram	No
	Esgar	Yes
	Kraft-Tharp	Yes
	Melton	Yes
	Moreno	Yes
	Neville P.	No
	Nordberg	No
	Winter	Yes
	Mitsch Bush	No
	Tyler	Yes
Final YES: 6 NO: 7 EXC: 0 ABS: 0 FINAL ACTION: FAIL

BILL:	HB15-1363
TIME:	03:43:39 PM
MOVED:	Coram
MOTION:	Postpone House Bill 15-1363 indefinitely. The motion passed on a vote of 12-1.
SECONDED:	Neville P.
		VOTE
	Becker J.	Yes
	Buck	Yes
	Carver	Yes
	Coram	Yes
	Esgar	Yes
	Kraft-Tharp	Yes
	Melton	No
	Moreno	Yes
	Neville P.	Yes
	Nordberg	Yes
	Winter	Yes
	Mitsch Bush	Yes
	Tyler	Yes
Final YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:47 PM -- HB 15-1377

The committee took a brief recess.

03:55 PM

Representatives Moreno and J. Becker, co-prime sponsors, came to the table to present to the committee on House Bill 15-1377. Current law allows for the operation of shared, renewable energy generation facilities using solar technologies, also known as community solar gardens (CSGs). Output from CSGs counts against an investor-owned utility's distributed generation requirement under Colorado's renewable energy standard. This bill expands upon this concept by allowing for shared generation facilities using other renewable energy technologies, including small wind, small hydroelectric, geothermal, and biomass. The bill specifies that neither the owners of nor the subscribers to this type of shared generation facility are subject to regulation by the PUC.

The bill allows such generation to count against the retail distributed generation requirements of a cooperative electric association (CEA). The bill requires that subscribers of the shared facilities must be members of the CEA in whose service territory the facility is located, and the renewable energy credits must be allocated to a physical address within that service territory.

03:58 PM -- Chris Votoupal, representing the Colorado Cleantech Industries Association and Distributed Wind Energy Association (DWEA), and Charles Newcomb, representing DWEA and Endurance Windpower, spoke in favor of the bill. Mr. Votoupal said the bill would help rural Colorado and give CEAs more options for accessing renewable energy and achieve retail distributed generation credit under renewable energy standard (RES) requirements. Mr. Newcomb said the bill would be of great benefit to distributed wind energy.

04:04 PM -- Geoff Hier, representing the Colorado Rural Electric Association spoke in favor of the bill. Mr. Hier said the bill will assist cooperatives in achieving more distributed generation in rural Colorado and will help CEAs comply with the RES.

04:07 PM -- Becky Long, representing Conservation Colorado, spoke neutrally on the bill. Ms. Long said that Conservation Colorado is in support of renewable gardens and would like to see the bill amended to make them accessible for low-income individuals and rural communities.

04:12 PM

The bill was laid over until April 30, 2015 for action only.

04:13 PM -- HB 15-1381

Representatives Esgar and Winter, co-prime sponsors, came to the table to present on House Bill 15-1381. The bill continues the Office of the Consumer Counsel (OCC) in the Department of Regulatory Agencies (DORA) for 11 years until September 1, 2026. The OCC was established in 1984 to advocate for the public interest and the specific interests of residential, small business, and agricultural consumers in electric, gas, and telephone rate and rulemaking cases before the Public Utilities Commission (PUC), federal regulatory agencies, and in the courts. The OCC may also appeal any PUC decision to the Colorado courts. The OCC is a Type 1 agency in DORA, cash-funded through the Fixed Utility Fund (FUF). The Attorney General is charged with advising the OCC in all legal matters and providing representation in proceedings in which the OCC participates.


Representative Winter said the OCC is very important for the energy consumers of Colorado, and that for every $1 spent on the OCC, it has saved consumers $30. She noted that the PUC will be reviewing the results of telecom deregulation in 2018, so it is important that certain telecom services, such as 911, remain under the purview of the OCC. She noted that when the PUC makes decisions related to such services, the OCC should be at the table.

Amendment L.001 (Attachment M) was distributed to the committee.

150429 AttachM.pdf

04:19 PM -- Cindy Schonhaut, representing the OCC, spoke in favor of the bill. Ms. Schonhaut provided the committee with a history and overview of the OCC and the Utilities Consumers' Board (UCB), and said that the OCC is the sole voice for the consumer when a utility wishes to raise its rates in Colorado. She responded to questions on whether the OCC has a vote that can influence PUC regulation of utilities, and how the OCC saves money for consumers.

04:24 PM -- Peter Kirchof, representing the Colorado Telecommunications Association (CTA), spoke in opposition to the bill. He said that the CTA is in opposition to the bill as long as it requires oversight of telephone utilities. He responded to questions on telecom deregulation and OCC oversight of telecom utilities.

04:31 PM -- Katie Dahl, representing Colorado Common Cause, spoke in favor of the bill. Ms. Dahl said that the OCC provides expert representation for consumers in front of the PUC. She spoke to industry representatives within the PUC versus consumer representation, and the need for a consumer advocate.

04:34 PM -- Ed Shackleford, representing the Colorado Senior Lobby, spoke in favor of the bill.

04:36 PM -- Bill Levis, representing the American Association of Retired Persons (AARP), spoke in favor of the bill. Mr. Levis discussed the importance of the OCC in providing representation for the consumer in PUC cases. He said it is not true that telecoms have been totally deregulated and that there are still important services that are regulated by the PUC. He said that it is important that the OCC continue to have oversight of these telecoms services. He responded to questions on whether AARP membership had lost landlines in recent years.


04:42 PM

Representative Winter explained that Amendment L.001 includes the extension of the UCB in the bill alongside the OCC.

BILL:	HB15-1381
TIME:	04:44:08 PM
MOVED:	Esgar
MOTION:	Adopt amendment L.001 (Attachment M). The motion passed without objection.
SECONDED:	Winter
		VOTE
	Becker J.
	Buck
	Carver
	Coram
	Esgar
	Kraft-Tharp
	Melton
	Moreno
	Neville P.
	Nordberg
	Winter
	Mitsch Bush
	Tyler
Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

04:42 PM

Representatives Esgar and Winter made their closing comments on the bill, noting how continuing the OCC will ensure that consumers have representation within the PUC.

BILL:	HB15-1381
TIME:	04:45:01 PM
MOVED:	Esgar
MOTION:	Refer House Bill 15-1381, as amended, to the Committee of the Whole. The motion passed on a vote of 7-6.
SECONDED:	Winter
		VOTE
	Becker J.	No
	Buck	No
	Carver	No
	Coram	No
	Esgar	Yes
	Kraft-Tharp	Yes
	Melton	Yes
	Moreno	Yes
	Neville P.	No
	Nordberg	No
	Winter	Yes
	Mitsch Bush	Yes
	Tyler	Yes
Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS

04:47 PM

The committee adjourned.