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 Unpublished drafts of the report and related data are exempt from disclosure under the Colorado Open Records Act, unless that information would be otherwise publicly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