House Committee on Agriculture, Livestock, & Natural Resources (01/20/2009)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON AGRICULTURE, LIVESTOCK, & NATURAL RESOURCES

Date:	01/20/2009	ATTENDANCE

Time:	10:44 AM to 11:35 AM	Gardner C.	X
		Hullinghorst	X
Place:	HCR 0107	Labuda	X
		Looper	X
This Meeting was called to order by		McKinley	*
	Representative Curry	McNulty	X
		Pace	X
This Report was prepared by		Solano	X
	Lauren Ris	Sonnenberg	X
		Tipton	X
		Vigil	X
		Fischer	X
		Curry	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HJR09-1002 HB09-1067		Referred to the Committee of the Whole Amended, Referred to Finance

10:44 AM -- The committee was called to order by Representative Curry, Chair.

10:45 AM -- House Joint Resolution 09-1002

Representative Fischer, resolution sponsor, introduced House Joint Resolution 09-1002 concerning the project eligibility lists for the Drinking Water Revolving Fund and the Water Pollution Control Revolving Fund. He explained that statute requires the legislature to act on this resolution, and the Governor to sign the resolution, by April. Representative Fischer noted that the Drinking Water Revolving Fund and the Water Pollution Control Revolving Fund are jointly operated by the Water Resources and Power Development Authority, the Water Quality Control Division, the Colorado Department of Public Health and Environment, and the Division of Local Government. He explained that the joint resolution adds projects and modifies project descriptions from previously approved project lists and deletes projects that have already been completed. According to Representative Fischer, the drinking water portion of the resolution adds 27 projects, modifies 40 projects, and deletes 13 projects from the eligibility list. He said that upon passage of this resolution, the drinking water project eligibility list will contain 305 projects with an identified funding need of over $1.3 billion. The water pollution control portion of the resolution adds 22 projects, modifies 23 projects, and deletes 14 projects from the eligibility list. Representative Fischer said that 316 projects have been identified with funding need of $2.19 billion.

Representative Fischer also noted that he was at the State Affairs Committee meeting of the Colorado Water Congress this morning and that there was concern among some of the water providers and wastewater utilities that entities may not be eligible for federal economic stimulus money if they do not have a project on the list. Representative Fischer further noted that a motion was made at the Colorado Water Congress meeting to delay this hearing, which passed unanimously. However, given the time constraints, Representative Fischer said he decided to go ahead with the hearing as planned and that time remained in the process for people to voice their concerns and suggest changes to the list. Representative Fischer answered questions from the committee including whether the Governor's funding cuts would affect projects in this resolution and how quickly projects would be ready for implementation.

The following individuals testified on HJR 09-1002:

10:52 AM -- Dan Law, Colorado Water Resources and Power Development Authority, testified in favor of the bill. Mr. Law began by noting that the Colorado Water Congress State Affairs Committee voted unanimously in support of the resolution. He explained that after the resolution is passed and has been signed by the Governor, entities on the list can apply for loans. He indicated that as the bill is currently drafted, there will be $35 million available for drinking water projects and $48 million available for wastewater projects. He said that the Water Quality Control Division has been working to determine entities on the eligibility list that appear to have projects ready to be funded. Based on this effort, it appears that there are 50 entities with drinking water projects that are ready for funding, and 46 entities with wastewater projects that are ready for funding. Mr. Law clarified that projects on this list are for drinking water and wastewater treatment activities. He further explained that drinking water projects include work on drinking water treatment plants, pipelines, and pump stations, as well as other activities; and that wastewater projects include wastewater treatment plants, interceptors, sewers, and some nonpoint source activities.


BILL:	HJR09-1002
TIME:	10:59:12 AM
MOVED:	Fischer
MOTION:	Moved to refer House Joint Resolution 09-1002 to the Committee of the Whole. The motion passed on a 13-0 roll call vote.
SECONDED:	Solano
		VOTE
	Gardner C.	Yes
	Hullinghorst	Yes
	Labuda	Yes
	Looper	Yes
	McKinley	Yes
	McNulty	Yes
	Pace	Yes
	Solano	Yes
	Sonnenberg	Yes
	Tipton	Yes
	Vigil	Yes
	Fischer	Yes
	Curry	Yes

Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:00 AM -- House Bill 09-1067

Representative Pommer, prime sponsor, presented House Bill 09-1067 concerning the establishment of an incentive for the donation of water rights to the Colorado Water Conservation Board for use as instream flow rights. Representative Pommer explained that this bill will provide an incentive for water rights owners to donate water rights to preserve the flow in rivers and water levels in lakes so that they can be available for recreational and environmental uses. He explained that, in his view, the state's instream flow program has been very successful and that it was time to move the program forward. Representative Pommer took questions from the committee concerning water rights appraisals.

The following individuals testified on the bill

11:03 AM -- Harris Sherman, Director of the Department of Natural Resources, began by saying that the Department and the Colorado Water Conservation Board strongly support the bill. He briefly outlined the history and success of the Instream Flow Program. He explained that there are two ways to expand the Instream Flow Program: through appropriations filings for junior water rights or leasing water, or through water rights donations. He said that while the program has received a few donations, they have not seen this program take off. As a result, they are trying to find new ways to make the donations program work. He emphasized that there are checks on how this program would be administrated, explaining that there is a cap on the amount of tax credits that could be allocated in any one year. In down economic times the tax credit would not be utilized.

11:06 AM -- Linda Bassi, representing the Department's Instream Flow Program and the Colorado Water Conservation Board staff, talked about how the Colorado Water Conservation Board evaluates water rights donations to the instream flow program. She explained that the Board has a rigorous review process in place that is governed by the Instream Flow Program rules. She noted that the Colorado Water Conservation Board has to consider a variety of factors including the extent to which the donation will benefit the natural environment and the Instream Flow Program. This bill would add the water rights appraisal and the tax credit to that list of factors the Board considers when evaluating a donation. Ms. Bassi and Mr. Sherman took questions from the committee regarding how water right use would be enforced, how monitoring instream flow rights are conducted, if there is a history of instream flow donations being turned down, what the process is for donating water rights, and if the definition of "water right" is changed in the bill. Representative Pommer explained that the definition in the bill matches the definition already in statute. In response to a question about whether the Board could sell water rights that had been donated, Ms. Bassi emphasized that the Board would only accept water rights if the Board saw a use for the right and that the Board's intent would not be to sell that right, though neither she nor Mr. Sherman were sure whether that was prohibited by law.

11:17 AM -- Becky Long, Colorado Environmental Coalition, testified in favor of the bill. She commented that the bill would provide a benefit to the economy in addition to intstream flows. She explained that Colorado's tourism industry and local communities would stand to benefit economically from an increase in stream flow. She also testified that the bill would provide an additional financial incentive for farmers and ranchers to stay on their land. She closed by saying that she was asked to express support for the bill on behalf of Trout Unlimited and that the bill was supported by a variety of other environmental groups.

11:19 AM -- Amy Beatie, Colorado Water Trust, testified in support of the bill. She described a water rights donation program that is run by her organization. She testified that this bill will allow water rights holders an additional way to use water within their portfolios and to keep water in local communities. She answered questions from the committee concerning the quantity of water donated through the Colorado Water Trust's program. Ms. Beatie emphasized that it is not the quantity of the donation, but the impact the donation has on the instream flow which is dependant on the flow of the water segment.

11:24 AM -- Dan Grossman, Rocky Mountain Regional Director for the Environmental Defense Fund, explained the role of his organization and testified in favor of the bill. He testified that the environmental externality is often left out through Colorado's prior appropriation process. He emphasized that he is particularly in favor of the incentive approach for addressing an environmental issue. He said that in working on the bill with Representative Pommer, his organization wanted to make sure the incentive was accountable by working through the Colorado Water Conservation Board's existing program. Mr. Grossman answered questions from the committee about the impact to the state budget and the cap and trigger for the tax credit.

11:29 AM

Representative Curry asked whether the Colorado Water Conservation Board voted to support the bill. Mr. Sherman said that the board has not voted on this bill yet but will be meeting next week and taking action on the bill at that meeting.
.
11:30 AM

In response to a question from Representative Curry, Becky Brooks, Colorado Water Congress, testified that the Colorado Water Congress discussed this issue but decided not to take a position on the bill.


BILL:	HB09-1067
TIME:	11:31:51 AM
MOVED:	Fischer
MOTION:	Moved a conceptual amendment: Page 3 line 25 change "paragraphs 6i" to "paragraphs 6m" to anticipate an upcoming change to the board's rules, and on page 4, line 5, strike "OFFERED" and substitute "ACCEPTED". The motion passed without objection.
SECONDED:	Labuda
		VOTE
	Gardner C.
	Hullinghorst
	Labuda
	Looper
	McKinley
	McNulty
	Pace
	Solano
	Sonnenberg
	Tipton
	Vigil
	Fischer
	Curry

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1067
TIME:	11:34:17 AM
MOVED:	McNulty
MOTION:	Moved to refer House Bill 09-1067, as amended, to the Finance Committee. The motion passed 11-2 on a roll call vote.
SECONDED:	Fischer
		VOTE
	Gardner C.	Yes
	Hullinghorst	Yes
	Labuda	Yes
	Looper	Yes
	McKinley	No
	McNulty	Yes
	Pace	Yes
	Solano	Yes
	Sonnenberg	No
	Tipton	Yes
	Vigil	Yes
	Fischer	Yes
	Curry	Yes

Final YES: 11 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:35 AM

The committee adjourned.