MINUTES OF MEETING
ASSEMBLY COMMITTEE ON NATURAL RESOURCES, AGRICULTURE AND MINING
Sixty-seventh Session
March 15, 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 15, 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:
Joseph E. Dini, Jr., Assembly District 38
STAFF MEMBERS PRESENT:
Fred Welden, Chief Deputy Research Director
Denice Miller, Senior Research Analyst
OTHERS PRESENT:
David Rowles, Clark County Health District; Jack Greco, Nevada Gas Retailers; Laura Hicks, Sierra Chemical Company; Bill Goddard, Nevada Highway Patrol; Danny Thompson, AFL-CIO; Verne Rosse, Nevada Division of Environmental Protection; David Going, Director, DEISH; Larry Hawke, Nevada Mining Association; Randy Jackson, Public Service Commission; Ray Bacon, Nevada Manufacturers; John Bokich, Nevada Mining Association; Jolaine Johnson, Nevada Environmental Protection; Larry Farr, City of Reno Fire Department; Perry Comeaux, Department of Taxation; Ray Blehm, State Fire Marshal; Doug Busselman, Nevada Farm Bureau; Dan Hetrick, Hetrick Bros. Farms; Alan List, List Cattle Company; Allen Brinkerhoff, Brinkerhoff Ranch Inc.; Joseph Guild, Santa Fe Pacific Minerals and Nevada Cattlemen's Association.
The meeting was called to order by Chairman Freeman.
A memorandum from Fred Welden, Chief Deputy Research Director, regarding the tour of FMC Paradise Peak Gold Mine on April 2, 1993, was discussed by Ms. Freeman and she urged the committee to notify the secretary either way of attending.
Ms. Denice Miller, Senior Research Analyst, presented a review of Assembly Bills 116, 117, and 123, and Assembly Concurrent Resolution No. 6 resulting from recommendations of the A.C.R. 79 subcommittee of the Sixty-sixth Session, (Exhibit C).
ASSEMBLY BILL 116:
Requires department of taxation to collect certain fees related to hazardous materials.
Mr. Verne Rosse, Nevada Division of Environmental Protection, proposed amendments to A.B. 116 particularly to Section 1 and Section 5, (Exhibit D).
Mr. Perry Comeaux, Executive Director, Department of Taxation spoke in opposition to A.B. 116. He noted the Department of Taxation had attended several meetings regarding the consolidation of reporting and fees which were addressed in A.B. 116. The Department of Taxation had not felt they should be the collection agency as the fees and reporting payments were tied to the regulations EPA and the Fire Marshal would provide. Mr. Comeaux felt the consolidation of reporting and fee payments should be within the agencies involved. He understood the consolidation had taken place under the State Fire Marshal and was working well. The only benefit of being under the Department of Taxation would be the internal controls for collection of fees. Mr. Comeaux advised the committee to leave the collection of reports and fees under the State Fire Marshal and include them in a study required by A.B. 153. A.B. 153 basically would require agencies of the state and local governments who collect taxes, fees and/or reports from persons engaged in business to coordinate the collection of information in as few separate reports as possible. Mrs. Freeman asked what committee would be addressing A.B. 153. She was told Government Affairs had been given the bill.
Mr. Ray Blehm, State Fire Marshal, agreed with Mr. Comeaux's assessment of A.B. 116. Mr. Sader asked Mr. Blehm if his interest would be to not process A.B. 116 and include it in A.B. 153. Mr. Blehm said Mr. Sader's remarks were generally correct and he was not in opposition to continuing to look at consolidating fees and reports. Mr. Sader asked if the consolidation of fees and reports from three agencies were taking place in the Fire Marshal's office. Mr. Blehm agreed. Mr. Sader questioned why the interim study committee felt consolidating with taxation was important. Mr. Blehm said he felt the committee had looked at a larger overview of consolidation of fees and reports where business could pay and report at one time.
Mr. Bob Andrews, Executive Director, State Emergency Response Commission, chaired the sub-subcommittee to research the consolidation of fees and reporting. Private industry testified many fees were overlapping and paid at different times of year which had caused inconvenience and expense. The committee did not know any agency had the capability to consolidate fees and reports except the Department of Taxation. In order to consolidate some of the similar areas, Ray Blehm, State Fire Marshal and his staff helped by coordinating the SERC fee mandated under SARA Title III, the Fire Marshal's permit, and the information required for fee collection by NDEP under S.B. 641. He stated the three way consolidation was in the third year and he would like to look at it for another two years. Mr. Sader continued to ask why the interim committee proposed taxation take the fees when consolidation had already taken place. Mr. Andrews replied at the time they did not know if the Fire Marshal's office would be willing to continue on a permanent basis. Mr. Sader asked after consolidation with the Fire Marshal's office why A.B. 116 was not pulled. He felt the bill still had merit and personally felt A.B. 153 might be the appropriate course.
Mrs. Freeman asked the interested parties to suggest if A.B. 116 might not be better served under A.B. 153. She asked Mr. Rosse if the amendments to A.B. 116 from DEP would be important changes even though the bill might not be under the Taxation Department. Mr. Rosse indicated the amendments were cleanup language.
Mr. Regan asked Mr. Blehm if fees paid to his office were reinvested or in a non-interest bearing account and where did the funds go when received by the Fire Marshal's office. Mr. Blehm replied the funds go to the State Treasurer's office. Mr. Regan would also like to see section 1, subsection 2, amended to eliminate the word "prorated."
The hearing was closed on A.B. 116 and Mrs. Freeman asked the agencies involved to get together and decide what they would like done with the bill.
ASSEMBLY BILL 117:
Provides for coordination of regulatory activities relating to hazardous materials.
Mr. Verne Rosse, Division of Environmental Protection, said A.B. 117 had to do with SERC to ensure the responsibilities of SERC did not impact the DEP regulatory activities in managing hazardous waste and underground storage tanks. The amendments were proposed in Exhibit E.
Mr. Fred Welden said in section l "......consistent to statutory requirements;" would be questioned by the bill drafters. Mr. Rosse explained SERC was not mandated to regulate environmental issues and would not want to see "SERC's involvement in DEP's business."
Mr. Carpenter asked Mr. Rosse why the necessity of A.B. 117. Mr. Rosse said A.B. 117 dealt with A.B. 116 and A.B. 153 in coordinating regulatory application to the management of hazardous materials statewide. The state environmental commission regulatory activities dealt principally with waste and the regulation of underground tanks which would be a small part of the environment of hazardous materials. Mr. Carpenter stated under the language proposed SERC would be responsible for the adoption of regulations related to hazardous materials and asked if this would interfere with DEP's area. Mr. Rosse said DEP would only be interested in the hazardous waste regulatory program of 46 to 50 facilities under the Chemical Catastrophic Program and the underground storage tank program which deals with 3,000 facilities.
Mrs. Freeman closed the hearing on A.B. 117.
ASSEMBLY BILL 123:
Provides for issuance of permits for transportation of radioactive waste by Nevada highway patrol division of department of motor vehicles and public safety with approval of public service commission of Nevada.
Mr. Bill Goddard of the Nevada Highway Patrol stated the NHP and Public Safety supports A.B. 123. The PSC had identified 11 carriers who carry radioactive waste and of the ll, 7 have been licensed. The NHP would flag carriers not licensed until approved by the PSC.
Mr. Randy Jackson, Manager, Public Service Commission, Transportation Division, supported passage of A.B. 123. In section 12, lines 19 and 20 the NHP and PSC had not been able to identify any rule, regulation or law which currently required an interstate motor carrier to register with the PSC.
Mr. Sader asked for an explanation regarding PSC having jurisdiction over interstate carriers. Mr. Jackson clarified his statement and said PSC did not require interstate carriers to register. He stated the PSC did not require hazardous waste transporters to register with the PSC as the highway patrol has a program to register and license those carriers. Mr. Sader asked if a language change in section 12 would be necessary. Mr. Jackson said lines 19 and 20 of section 12 should be deleted.
Mr. Daryl Capurro, Managing Director, Nevada Motor Transport Association, noted many states required registration of the interstate authority issued by the ICC with each state they operate in. Nevada has not had the requirement for about six years, therefore the language in section 12, lines 19 and 20 would not be necessary.
Mr. Regan noted the term hazardous waste has been used throughout the bill and asked if the bill drafter should be alerted to using the term hazardous material and not hazardous waste. Mr. Blehm was asked if he wished the terms changed. He stated hazardous materials would be the all-encompassing term, hazardous waste normally referred to spent radioactive material and material dumped on the ground, picked up, and transported. Mr. Welden would check the terms used in the bill and come back to the committee with a recommendation.
ASSEMBLY CONCURRENT RESOLUTION 6:
Directs Legislative Commission to study feasibility and desirability of creating Department of Public Safety.
Mrs. Freeman called for proponents or opponents of A.C.R. 6 to testify. No one came forward to speak on the bill so the hearing was closed.
Mrs. Freeman called a short recess.
ASSEMBLY BILL 189:
Exempts from regulation certain uses of hazardous substances.
Assemblyman John Carpenter, Assembly District 33, spoke in favor of A.B. 189. He said A.B. 189 would exempt agriculture and mining from the Chemical Catastrophe Prevention Act or S.B. 641 of the Sixty-sixth Session. He said mining had been regulated by OSHA and the Clean Air Act and agriculture had not been a problem. Agriculture used anhydrous ammonia as a fertilizer seasonally. Mr. Carpenter felt S.B. 641 of the Sixty-sixth Session was a duplication of regulations. The fees and reporting were a burden to the mining companies who have been heavily regulated. Nevada statutes duplicated what OSHA has been regulating.
Mr. Joseph E. Dini, Jr., Assembly District 38 cosponsored A.B. 189 with Mr. Carpenter. His district was dependent on agriculture and was recognized as the garlic capital of Nevada in Mason Valley and Smith Valley. The over-regulation of chemicals used for fertilizer had hampered ranchers. Ranchers have been regulated in disposing of water off of their fields which have been fertilized. Mr. Dini supported the mining section of A.B. 189 and noted the cost was significant for mines and agriculture. Mr. Dini felt over-regulation and red tape throughout the United States had discouraged individuals from going into business.
Ms. Smith understood the intent of the bill, but was concerned over pesticides or other materials being deregulated. Mr. Dini related the intent of the bill was the use of fertilizer for agriculture and certain chemicals for mining. Mr. Dini said pesticides were heavily regulated and would not be affected by A.B. 189.
Mrs. Freeman asked about S.B. 641 of the Sixty-sixth Session and wanted to know if agriculture and mining were discussed. Mr. Dini said an attempt had been made to amend the exemption in the law and the vote was lost.
Mr. Larry Hawke, Legislature Affairs Director, Nevada Mining Association, supported A.B. 189 and introduced the Association's Chairman on Environment, John Bokich, also the Manager of Environmental Resources for Independence Mining Company. He stated mining was not trying to avoid any measures which were protective to the public or mining employees. The duplication of fees and the additional regulatory burdens have been unnecessary. DEP has worked closely with the mines, but must abide by the statutes. Mr. Bokich recounted the many regulations required to protect the public, employees, wildlife and birds from hazardous materials. He explained the rural nature of mining, and outside of the employees there would be little risk to the general population. The Mine Safety and Health Administration (MSHA) administered the federal laws pertaining to mine employee safety under Title XXX of Federal Regulations Chapter I. Mr. Bokich spoke of the many laws under which the mines must operate. He asked for relief from additional reporting and fee requirement by passing A.B. 189.
Ms. Smith asked about regulations and questioned if mining had tried to do away with out-of-state regulations. She felt the bill was confusing and asked what control the mining and agriculture groups would want to be exempt from. Mr. Bokich stated to be exempt from NRS 459.3814 through 3874 plus the industry did not want to do additional reporting and pay the fees associated with those permits. Mr. Hawke discussed the types of reports and duplications the mining industry incurred. Ms. Smith asked about the manufacturers of chemicals and suggested A.B. 189 would be for users of the chemicals, not the manufacturers.
Mr. Bache asked if there were chemicals under S.B. 641 of the Sixty-sixth Session which were not covered anywhere else and Mr. Bokich replied no. If A.B. 189 was passed how would it affect the safety of the mine operation asked Mr. Bache. It was concluded there would not be a change of safety in the operation of the mines.
Mr. Doug Busselman, Executive Vice President for Nevada Farm Bureau strongly supported passage of A.B. 189 and spoke from prepared testimony (Exhibit F).
Mr. Daniel Hetrick, Hetrick Bros., Inc., Orovada, Nevada, spoke for passage of A.B. 189 from prepared testimony (Exhibit G).
Mrs. Freeman asked Mr. Hetrick about the $3,100 fee paid. Mr. Hetrick replied the $3,100 was the basic fee and one would also pay on unit of volume above the minimum level.
Mr. Alan List, Lovelock farmer for twenty years spoke in favor of A.B. 189. Mr. List testified from prepared testimony (Exhibit H). Mr. List answered Ms. Smith's question regarding pesticides and insecticides and noted they were highly regulated
under federal regulations. Ms. Smith stated it might be appropriate to list the chemicals which needed to be exempt instead of a blanket coverage.
Mr. Joe Guild, representing the Nevada Cattlemen's Association and Santa Fe Pacific Minerals Company, supported A.B. 189. Mr. Guild also represented RayRock Mines for Gaylyn Spriggs who was unable to attend the hearing. Mr. Guild indicated the purpose of A.B. 189 was not to avoid regulation but to avoid duplication of already existing regulation. The laws regulating the mining industry and agriculture were very rigid and had saved many lives, stated Mr. Guild. S.B. 641 of the Sixty-sixth Session was passed to take care of the problems created by the PepCon incident in Henderson, Nevada. The proponents of the bill attempted to help agriculture's concerns, but failed. A.B. 189 was necessary to correct inequities in agriculture and mining.
Mr. Allen Brinkerhoff of the Brinkerhoff Ranch, Inc., Lovelock, Nevada, spoke from written testimony, (Exhibit I), in support of A.B. 189.
Mrs. Freeman asked for those who were opponents of A.B. 189 to testify.
Mr. Danny Thompson, Nevada State AFL-CIO, spoke in opposition to A.B. 189. Mr. Thompson as a native of Henderson, Nevada, and President of the Steel Worker's Union who represented PepCon, and a pipefitter and welder felt he could speak with authority regarding the incident at PepCon. He talked of the many regulations required by the federal and state governments and noted PepCon had adopted and implemented those regulations. Mr. Thompson discussed the problem of an increased amount of inventory on hand at PepCon due to a returned batch from Morton Thiokol. PepCon had had an exemplary safety record, but had a fire, and because of the large amount of inventory on hand greater problems evolved. Mr. Thompson used the example to illustrate the reasoning for the inventory issue in S.B. 641 of the Sixty-sixth Session. He also reasoned if agriculture and mining were exempt from S.B. 641 of the Sixty-sixth Session the cost would go up to monitor the program. Mr. Thompson gave an example of a gas leakage at Pioneer in Henderson and discussed the use of anhydrous ammonia also used for agriculture as a fertilizer.
Mr. Ray Bacon, Executive Director, Nevada Manufacturers Association, spoke in opposition to A.B. 189. Mr. Bacon spoke from prepared testimony (Exhibit J). Mr. Carpenter and Mr. Bacon discussed the new regulations and the duplication of regulations.
Mr. Ray Blehm, State Fire Marshal stated he was an opponent of A.B. 189. He did not argue with what the proponents of A.B. 189 had discussed. The terms Mr. Blehm was concerned with would be the extent of the language on page 1, lines 6 and 7. He would like to see the language narrowed to exactly what the proponents testified to.
Mr. Sader asked Mr. Bacon about the duplication of state and federal laws. He inquired about repealing S.B. 641 of the Sixty-sixth session if the duplication did exist. Mr. Bacon felt he was not an expert on the laws and would not care to be either a proponent or an opponent of repealing S.B. 641 of the Sixty-sixth Session.
Ms. Jolaine Johnson, Chief, Bureau of Chemical Hazards Management, Nevada Division of Environmental Protection, provided a brief overview of the requirements of the Chemical Catastrophe Prevention Act, and then on behalf of NDEP presented recommendations regarding A.B. 189 (Exhibit K).
Mrs. Freeman asked about the State Environmental Commission adopting regulations and how it would adapt to the Governor's reorganization plan. Ms. Johnson understood the State Environmental Commission would stay as a commission over the environmental regulations which have been adopted.
Mr. Ernaut asked Ms. Johnson what regulatory agency presently handled S.B. 641 of the Sixty-sixth Session. Ms. Johnson replied Nevada Department of Environmental Protection regulated the statute presently. Mr. Ernaut voiced his concern regarding over-regulation forcing the mining industry out of the United States. Ms. Johnson agreed with the mining industry regarding duplication of laws and encouraged the committee members to review her report on the Implementation of The Chemical Catastrophe Prevention Act. Ms. Johnson said in her opinion S.B. 641 of the Sixty-sixth Session established many requirements which were identical to two other federal laws which have been written in a different way, and it required two different documents to address the hazard for two different laws. The second point she made was if the committee proceeded with A.B. 189 to consider the NDEP recommendations.
Mr. Sader asked if state statute did duplicate two federal statutes and did NDEP recommend a portion of S.B. 641 of the Sixty-sixth Session be repealed. Ms. Johnson recommended the details on how to do hazardous assessment for all of the facilities be pulled out of the statute and provide a general authority to adopt regulations for a chemical hazard prevention program with more flexibility to coordinate two federal programs into one for the facilities to comply. Mr. Sader asked if the recommendation would give NDEP enabling legislation to regulate under the two federal programs. Ms. Johnson replied DEP did not want authority to run the OSHA program but did want authority to regulate the Clean Air Act requirements and work and coordinate with OSHA or DEISH. Ms. Sader asked if the two agencies would still be involved in regulating similar laws, and Ms. Johnson agreed. Mr. Sader asked if Ms. Johnson had made specific recommendations in her report and if she had requested a bill draft. She had made specific recommendations but had not requested a bill draft.
Mr. Carpenter asked why the state needed regulations when duplication took place at the federal level and why the need for two regulations and two agencies doing the same thing.
Mrs. Freeman asked Ms. Johnson to bring her report back on Monday the 22nd of March and encouraged the committee to review the report and come back with recommendations for agreement.
Mr. Richard Phillips of the Nevada Nile Ranch, Inc. asked his letter of support of A.B. 189 be included in the record (Exhibit L).
There being no further business to come before committee, the meeting was adjourned at 3:45 p.m.
RESPECTFULLY SUBMITTED:
PAT MENATH
Committee Secretary
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Assembly Committee on Natural Resources, Agriculture and Mining
March 15, 1993
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