Senate Committee on Local Government and Energy (03/03/2009)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON LOCAL GOVERNMENT AND ENERGY

Date:	03/03/2009	ATTENDANCE

Time:	02:02 PM to 02:35 PM	Cadman	*
		Hodge	X
Place:	SCR 353	Kester	E
		Lundberg	X
This Meeting was called to order by		Newell	X
	Senator Schwartz	Foster	*
		Schwartz	X
This Report was prepared by
	David Beaujon
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB09-177 SB09-229		Referred to the Committee of the Whole Postponed Indefinitely

02:02 PM -- Senate Bill 09-177

Senator Schwartz, sponsor, described the provisions of the SB 09-177, as introduced, that specifies that for purposes of property taxation, solar energy generation facilities where (1) energy production begins on or after January 1, 2009, and (2) generation capacity is more than 2 megawatts, be valued using the income approach. This means that the actual value will be based on the projected gross revenue of such facilities. Under current law, assessors are allowed to use either the cost approach, the market approach, or the income approach, and traditionally have used the cost approach (Attachment A).

The following persons testified on the bill:

02:06 PM -- JoAnn Groff, Property Tax Administrator, Colorado Department of Local Affairs, described the provisions of SB 06-1275 that requires the State Property Tax Administrator to use the income approach in determining the actual value of wind energy property.

02:10 PM -- Mike Spearman, Saguache County Commissioner, spoke in support of the bill. He also described the start up costs for solar energy generation facilities and the effect of the bill on property tax revenue generated over the life of a project under the proposed process and the traditional method of evaluation.

02:14 PM -- Rick Gilliam, Sun Edison, spoke in support of the bill. He also described his company's 8.2 megawatt solar generation facility in the San Luis Valley in south cental Colorado.


BILL:	SB09-177
TIME:	02:19:54 PM
MOVED:	Schwartz
MOTION:	Moved to refer SB 09-177 to the Committee of the Whole, without amendment, and with a recommendation that it be added to the Consent Calendar. The motion passed on a vote of 6 to 0.
SECONDED:
		VOTE
	Cadman	Yes
	Hodge	Yes
	Kester	Excused
	Lundberg	Yes
	Newell	Yes
	Foster	Yes
	Schwartz	Yes

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

02:21 PM -- Senate Bill 09-229

Senator Isgar, sponsor, described the provisions of Senate Bill 09-229, as introduced bill, that requires the Colorado Oil and Gas Conservation Commission (COGCC) to obtain consent from a surface owner or the surface owner's appointed tenant prior to imposing any conditions for wildlife resource protection pursuant to the "Wildlife Habitat Stewardship Act of 2007." It also requires the COGCC to use off-site mitigation measures if the surface owner or tenant withholds such consent. The final rules to implement the Colorado Habitat Stewardship Act of 2007 were adopted by the COGCC on December 11, 2008. The rules will be reviewed by the General Assembly during the 2009 legislative session. Unless otherwise specified, these rules are effective on April 1, 2009, for operations on private land, and May 1, 2009, for operations on federal land. Senator Isgar also described the need to protect property interests and wildlife on agricultural and ranch land and expressed concern about the impact of the COGCC rules on the property interests of landowners. He also described opposition to the bill and requested that it be postponed indefinitely.

There was no testimony on the bill.


BILL:	SB09-221
TIME:	02:32:17 PM
MOVED:	Hodge
MOTION:	Moved to postponed indefinitely SB 09-229. The motion passed on a vote of 5-1.
SECONDED:
		VOTE
	Cadman	Yes
	Hodge	Yes
	Kester	Excused
	Lundberg	No
	Newell	Yes
	Foster	Yes
	Schwartz	Yes

Final YES: 5 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:35 PM

The meeting adjourned.