MINUTES OF MEETING
ASSEMBLY COMMITTEE ON NATURAL RESOURCES, AGRICULTURE AND MINING
Sixty-seventh Session
March 3, 1993
The Assembly Committee on Natural Resources, Agriculture and Mining was called to order by Chairman Vivian L. Freeman at 1:15 p.m., March 3, 1993, in Room 321 of the Legislative Building, Carson City, Nevada. Exhibit A is the Meeting Agenda, Exhibit B is the Attendance Roster.
COMMITTEE MEMBERS PRESENT:
Mrs. Vivian L. Freeman, Chairman
Mr. John B. Regan, Vice Chairman
Mr. Douglas A. Bache
Mr. John C. Carpenter
Ms. Marcia de Braga
Mr. Peter G. Ernaut
Mr. James A. Gibbons
Mr. Roy Neighbors
Mr. Robert M. Sader
Mr. Michael A. Schneider
Ms. Stephanie Smith
COMMITTEE MEMBERS ABSENT:
None
GUEST LEGISLATORS PRESENT:
Senator Ernest Adler, Capital District
STAFF MEMBERS PRESENT:
Fred Welden, Chief Deputy Research Director
Denice Miller, Senior Research Analyst
Jeanne Botts, Program Analysts
OTHERS PRESENT:
Bill Langley, Division of Emergency Management; Anton Horner, Carsonite Int'l. Corp.; Donald Schmanski, Carsonite Int'l. Corp.; Randy Jackson, Nevada Public Service Commission; Beverly Crouse, Community Services; David Rowley, Clark County Health District; Carl Cahill, Washoe County Health District; John Madole, Association General Contractors; Frank Cassas, Reno and Silver State Disposal; Bob Andrews, State Emergency Response Commission.
The meeting was opened and roll call was taken.
Chairman Freeman opened the hearing on S.B. 97 and explained A.B. 320 of the Sixty-sixth session was a recycling bill which Senator Adler and she worked on throughout the Sixty-sixth session. She stated there had been changes in the bill since the last session and Senator Adler would comment on the changes and what had happened on the Senate side regarding S.B. 97.
SENATE BILL 97:
Makes various changes regarding regulation of and funding for management of solid waste.
Senator Adler, Capital Senatorial District, explained A.B. 320 of the Sixty-sixth session had a sunset clause on the funding mechanism within the bill which was a $1 tire fee to be transferred to the Department of Transportation and a new funding mechanism was to be developed for dealing with solid waste and recycling. He said S.B. 97 was a solid waste management bill which incorporated many of the aspects of recycling but also dealt with the larger problem of solid waste within the state. The sunset on the tire fee was eliminated and the fee would be used for solid waste management. Senator Adler said on October 9, 1993 Nevada must have a solid waste management plan in place approved by the Federal Government, and S.B. 97 would be the enabling legislation for the plan. If Nevada did not have an approved plan, federal jurisdiction would take place requiring all landfills to have a plastic liner, monitoring wells would have to be sunk, etc. If a bill such as S.B. 97 or similar legislation was not passed allowing alternative regulations, garbage bills would be raised from $8 to $15 per month in the Las Vegas area. Nevada would be allowed to have an alternative management plan because of being an arid state, and landfills have been separated from groundwater table by a considerable distance.
Senator Adler stated the Department of Environmental Protection, members of industry and others had worked on the bill extensively. Two components of S.B. 97 comprise the bill, Washoe County and Clark County would be allowed to manage their own solid waste plan in coordination with the state Department of Environmental Protection. The rural counties would have the state DEP as a lead agency to cooperate with and see the rural communities were in compliance. Senator Adler stated Senator Smith, Chairman of Senate Natural Resources, intended to submit a trailer bill to define recyclable items and raise the issues of fees for discussion in committee hearings. The Governor's signature would be needed by March 15th to negate the possibility of federal regulations overriding state regulations.
Mr. Verne Rosse, Division of Environmental Protection, went briefly through S.B. 97 for the benefit of committee members. He said the health districts, industries of Clark and Washoe Counties involved in disposing of solid waste, and the Senate Committee and others worked diligently on furthering S.B. 97. The bill would provide Nevada with the authority to regulate solid waste in an efficient manner and meet Federal Environmental Protection guidelines.
Mr. Sader asked what provision of S.B. 97 needed to be passed to comply with federal requirement on or before the 15th of March. Mr. Rosse said two issues, one on funding with the sunset of A.B. 320 of the Sixty-sixth session in Sections 27 and 28 and Section 13. The rest of the bill would be required to obtain EPA approval of Nevada's program. Mr. Sader asked if all sections were needed, Mr. Rosse said yes.
Mr. Carpenter asked if the plan would be in effect by October. Mr. Rosse pointed out the application would be in by April 1st if S.B. 97 was passed by March 15th. October 9, 1993 federal rules would go into effect if Nevada did not have an approved program. Mr. Carpenter commented fines came out of the pocket of the taxpayer and wanted to know if the fines were in federal legislation. Mr. Rosse stated authority was needed to be sure compliance would be achieved. There was not a specified amount in federal law for fines in regard to solid waste enforcement. Senator Adler advised Mr. Carpenter they needed the large amount as the abuser could be from Los Angeles, not from the rural communities of Nevada. Mr. Rosse explained to fine local government would be difficult as the community would need the money to come into compliance. Mr. Rosse promised to work with the rurals to get them into compliance.
Mr. Bache asked why the $1 tire fee was being changed from the account for recycling to the account for solid waste management. Senator Adler explained under A.B. 320 of the Sixty-sixth session there was a division of money, special grants for rural counties to do recycling programs, grants to the Office of Community Services and to DEP. The monies used for the grants and future money would go to an account to manage solid waste. Recycling would be a component of solid waste management. Recycling would still take place but as a part of a larger program instead of an isolated program.
Mr. Regan reiterated Mr. Carpenter's concerns and asked if everything depended on the state signing law by the 15th of March, would the rurals have a reasonable period of time to write a program. Mr. Rosse pointed out a schedule would be made for the rurals to put their plans together. Mr. Regan asked for a reasonable amount of time for the rurals to write their plan and Mr. Rosse agreed. DEP would be negotiating each one independently.
Mr. Gibbons asked what amount of money was in the account for recycling at this time. Mr. Rosse felt there would not be much in the account as it was collected monthly and drawn down each month. Rural grants were given out recently which would have drawn the account down further. Mr. Gibbons asked if programs would be impacted by the fee going to solid waste rather than recycling. Mr. Rosse said no, none which were not taken care of within S.B. 97. Mr. Gibbons asked if there was not a program for solid waste management in Nevada. Mr. Rosse said yes but suggested there were no resources and not adequate authority for permitting or enforcement which would be required under federal law.
Ms. Janice Wright, Department of Taxation, apologized for lack of information to the Senate Committee. March 15th would not be enough time to orderly transfer accounts from one agency to another. A personal computer and software would be needed in the current fiscal year at a cost of $4,000. The second provision concerned the lack of language for penalty and interest and administrative audit functions along with a due date. The appropriation originally discussed was for .05 percent which would generate less than $5,000. She said in the current fiscal year the Department of Taxation anticipated requiring $4,000 for the personal computer and software and for the next fiscal year a tax examiner position would be required along with $1,600 for postage, printing, operating expense, $1,980 for equipment and $27,000 for programming the collection into one form. Ms. Wright said for fiscal 1994 the estimate would be $62,660. The data processing would be a one time cost and the next year the cost would only be $33,680. Ms. Wright said after a meeting with Lew Dodgion, Jim Hawke and Mr. Rosse the goal would be not to amend S.B. 97. The Department of Taxation would be willing to work with the agencies in interlocal agreements so the language would not have to be amended. A trailer bill could be used as the mechanism to incorporate the penalty and interest provision, the due date and other fiscal impacts. The Department of Taxation would work with the existing language if the committee so desired, said Ms. Wright.
Senator Adler felt a trailer bill would take care of the provisions. Ms. Jeanne Botts, Fiscal Analysis Division of the Legislative Counsel Bureau, said the fiscal staff were advised when the bill came to the Assembly, S.B. 97 would be rereferred to Ways and Means. The bill had a fiscal note and would affect the budgets of three state agencies differently than what was be in the Governor's recommended budget. In view of the revised fiscal note from the Department of Taxation, Ways and Means would like to look at the issue. The straight percentage would not accommodate the needs from year to year as proposed by the Department of Taxation. Senator Adler asked how it would be accomplished by March 15th. Ms. Botts said Mark Stevens, Fiscal Analysts for Assembly Ways and Means, had talked to the Committee Chairman and assumed an amendment might be needed unless Ways and Means would agree it could be handled through a trailer bill.
Chairman Freeman emphasized to those with concerns regarding S.B. 97 there would be trailer bills to take care of concerns. A five minute recess was called by the Chairman.
Ms. Freeman called the meeting back to order and asked Senator Adler and Mr. Morros to reside at the witness table. Senator Adler talked with the Department of Taxation and they agreed to let the Department of Environmental Protection collect the fee until a bill could be processed to set up a formal system for Taxation to collect the fee. Mr. Pete Morros, Director of Conservation and Natural Resources, stated his division would continue on with the collections until trailer legislation or mechanisms were in place to satisfy the Department of Taxation. He stressed how critically important it was to pass S.B. 97, submit application to the Federal EPA and put regulations in place before the October date.
Mr. Carpenter asked Mr. Morros what his role was. He explained the Environmental Commission functions in the capacity of a review body when related to penalties and enforcement actions. The Director (Mr. Morros) would delegate the responsibility for the program to the Division of Environmental Protection which would be responsible for the day to day administration of the program. An enforcement action could be appealed to the Environmental Commission for appeal and for relief.
Mr. Gibbons questioned Section 22, Subsection 2, and asked Mr. Morros what it would entail and how would it be employed. Mr. Morros asked Mr. Rosse to respond and he said it allowed the department to apply for grants from the federal government for funds to implement the program if available. He suggested monies would not be available at this time. The section referred to also authorized the department to make revisions of the state program to get additional approvals if EPA changed its program. Mr. Gibbons asked if it would allow a penalty for noncompliance if the federal regulation were more restrictive than Nevada's program. Mr. Rosse indicated they could not be more restrictive than the act would allow. Mr. Morros also said regulations could not be changed without going before the Environmental Commission for a change.
Mr. Anton Horner, Carsonite International, spoke from Exhibit C. He recommended the fees now collected from tires be used for actual projects requiring recycled material and not for general administration.
Mr. Donald Schmanski, President, Carsonite International Corporation, spoke from Exhibit D. Mr. Schmanski did not agree with Senator Adler's remarks regarding the increase of garbage fees if the tire fee was not used for solid waste.
Chairman Freeman thanked Mr. Schmanski and Mr. Horner for their remarks. She said at another meeting it would be prudent to have Jim Hawke, Community Services explain what had occurred the last two years in regard to developing markets for recyclable materials, and what had been accomplished with the fund. Mrs. Freeman had been assured money would still be available for Community Services for education, market development, etc. as written in S.B. 97. The federal laws and regulations had forced this law and she had not given up on recycling. Mr. Schmanski did not feel recycling was an issue of education but an issue of application. Mrs. Freeman suggested people needed to be educated or they would not recycle. Mr. Schmanski made the point children could collect and separate all post-consumer scrap but unless application was found for the scrap, all the education would not do any good. Mrs. Freeman did not disagree with Mr. Schmanski.
Mr. Regan wanted to qualify Senator Adler's statement in regard to S.B. 97 being signed by the Governor on a certain date. The federal regulations which would be demanded of Nevada, an unfunded mandate, would cost Nevada residents multi-millions of dollars. He suggested if all the landfills had to be covered with plastic liners it would bankrupt the state, and this concern would be the factor in raising garbage collection fees. Mr. Regan told Mr. Schmanski the chairman had promised trailer bills but time constraints from the federal government had made it imperative S.B. 97 be passed and signed at this time.
Senator Adler made it clear to Mr. Schmanski he would not have taken his own language out of A.B. 320 of the Sixty-sixth session, it was not his preference, but the fiscal impacts from the federal government were overwhelming. Senator Adler drafted the language for use of tires and bid procedure in A.B. 320 of the Sixty-sixth session.
Mr. Garth Dull, Director, Department of Transportation, gave examples of what the Department of Transportation had accomplished with money from the recycling bill. He said this past year a crumb rubber project near Hawthorne had been used requiring approximately 43,000 shredded tires. An experiment using a tremendous amount of ground rubber would be used for a new sound wall on the Sahara Avenue interchange on I-15 in Las Vegas. The Department of Transportation has had very little money for experimental projects which encompassed recycling. The approximate $1 million a year would allow the department to continue with projects and perfect recycling methods which would be beneficial in the future.
David Rowles, Clark County Health Department and Carl Cahill, Washoe County Health Department, appeared in support of the amendments and first reprint of S.B. 97. Mr. Cahill said hard work had been done to accomplish putting S.B. 97 together to protect the residents of Washoe and Clark County from increased rates for garbage disposal.
Mr. John Madole, Northern Nevada General Contractors, said because of the time constraints the association would not oppose S.B. 97, but would testify when the trailer bill came before the committee and would request funds for Nevada Department of Transportation.
Ms. Helen Foley was asked to present testimony on behalf of the Automotive Recyclers/Dismantlers of Nevada and the Southern Nevada Recycling Association (Exhibit E). The associations would like to play an active role in any trailer bills proposed.
Ms. Jean Botts, Fiscal Analyst, said they had met with representatives of Ways and Means and Mr. Sader, and the recommendation would be to pass S.B. 97 out as written. There would be two trailer bills, one dealing with fiscal impacts and the other dealing with issues concerning the bill. Mrs. Freeman asked if the bill would be passed unamended or would it have to go to Ways and Means. Ms. Botts said it was the wish of Ways and Means to rerefer S.B. 97 to Ways and Means. On March 15th, if S.B. 97 were passed it would charge the Taxation Department to collect monies but would only authorized retaining .05 percent. A trailer bill would take care of Taxations concerns. Janice Wright, Department of Taxation met with DEP who would continue to collect fees from S.B. 97 until the beginning of the fiscal year at which time it would be incorporated into the taxation department. She said the Department of Taxation would help with language for the trailer bill which would adequately fund the department. Mrs. Freeman felt S.B. 97 would not have to go to Ways and Means at this time and could be taken care of with a trailer bill. Ms. Botts said the vice-chairman of Ways and Means had indicated S.B. 97 should be rereferred to Ways and Means.
ASSEMBLYMAN CARPENTER MOVED TO DO PASS S.B. 97.
ASSEMBLYMAN SCHNEIDER SECONDED THE MOTION.
Assemblyman Gibbons said "I will support the motion, however with a caveat and a regret we have to pass this out of this committee without the appropriate procedure of sending a bill which is going to have a significant fiscal impact on this state to a committee which is designed by this body to hear it. I think that's inappropriate but under the circumstances I will support the motion." Chairman Freeman said, "We all agree with you Mr. Gibbons." "If we don't make this a practice and a policy of sending bills out of the house without appropriate hearings on them", stated Mr. Gibbons. Chairman Freeman agreed.
THE MOTION PASSED UNANIMOUSLY BY ALL THOSE PRESENT.
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Ms. Denice Miller, Senior Research Analyst, reviewed the three bills to come before the committee today from Assembly Concurrent Resolution 79 of the Sixty-sixth Session (Exhibit F).
ASSEMBLY BILL 107:
Makes appropriation to state fire marshal division for establishment of toll-free telephone line to provide information on regulations related to hazardous materials.
Mr. Ray Blehm, Nevada State Fire Marshal, felt it would ease the ability of people who have questions about hazardous materials regulations, training, etc. to obtain information. Mr. Blehm supported A.B. 107 and informed the committee it would probably not be a general fund appropriation but would come out of a reserve fund from his department.
ASSEMBLYMAN SMITH MOVED TO DO PASS AND REREFER A.B. 107.
ASSEMBLYMAN BACHE SECONDED THE MOTION.
THE MOTION CARRIED BY ALL THOSE PRESENT. (ASSEMBLYMAN ERNAUT WAS ABSENT AT THE TIME OF THE VOTE.)
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ASSEMBLY BILL 108:
Requires state agencies to develop and update plan for emergency management.
Mr. Bill Langley, Division of Emergency Management, spoke in favor of A.B. 108 from prepared testimony (Exhibit G).
ASSEMBLYMAN NEIGHBORS MOVED TO DO PASS AND REREFER A.B. 108.
ASSEMBLYMAN BACHE SECONDED THE MOTION.
THE MOTION CARRIED. ASSEMBLYMAN CARPENTER VOTED NO. (ASSEMBLYMEN SADER AND ERNAUT WERE ABSENT AT THE TIME OF THE VOTE.)
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ASSEMBLY BILL 110:
Creates committee to study designation of safe areas for transporters of hazardous materials.
Mr. Gibbons asked Ms. Miller about the makeup of the committee. The committee would be designating or recommending sites which apparently would be funded by the Department of Transportation for construction of the sites. Ms. Miller stated the Department of Transportation would not be required to fund the sites and A.B. 110 did not address the actual funding or creation of the sites. In section 6, page 2 of A.B. 110 it said the $75,000 would be to study the designation of the safe areas for transporters of hazardous materials. Mr. Gibbons asked if there was discussion on the makeup of the committee. The membership was exactly as it appeared in the Henderson Commission Report recommendation except one member would represent the trucking industry in Nevada, answered Ms. Miller.
Mr. Bob Andrews, Executive Director of the State Emergency Response Commission testified in support of A.B. 110. He submitted a proposed amendment (Exhibit H), to facilitate coordination of the studies and avoid some duplication. The commission members and most of the local Emergency Planning Committees were involved in the A.C.R. 79 of the Sixty-sixth Session study. Mr. Andrews supported the bill as written but felt the amendment might clean the bill up and coordinate the bill. He explained the reference in Section 6, page 2 of A.B. 110 to an appropriation of $75,000 to his recollection was not discussed. He recommended Assemblyman Dini be contacted regarding the need for the $75,000. Mr. Andrews said he would hate to see the bill not be passed due to tight funding when it was felt the study could be done without the funds.
Mrs. Freeman asked Mr. Andrews if he would prefer the committee to hold A.B. 110 at this time instead of referring it to Ways and Means as it stands. Mr. Andrews would like to have Speaker Dini contacted before A.B. 110 was voted on.
Mr. Bache asked why in the proposed amendment the Governor was taken out of appointing the committee. Mr. Andrews said it was suggested language and the Governor appoints the State Emergency Commission. The intent was to add SERC and the Local Emergency Planning Committee to the study.
Mr. Terry Page, Director Regulatory Operations for the Nevada Public Service Commission, urged passage of A.B. 110.
The hearing was closed on A.B. 110.
Chairman Freeman noted one of the mines would be willing to take the committee on a tour and asked anyone interested to let her know.
There being no further business to come before committee, the meeting was adjourned at 3:15 p.m.
RESPECTFULLY SUBMITTED:
PAT MENATH
Committee Secretary
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Assembly Committee on Natural Resources, Agriculture and Mining
March 3, 1993
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