The Senate Committee on Natural Resources was called to order by Chairman Dean A. Rhoads, at 01:45 p.m., on Wednesday, February 10, 1999, in Room 2144 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

COMMITTEE MEMBERS PRESENT:

Senator Dean A. Rhoads, Chairman

Senator Lawrence E. Jacobsen, Vice Chairman

Senator Mike McGinness

Senator Mark A. James

Senator Raymond C. Shaffer

Senator Bob Coffin

Senator Maggie Carlton

GUEST LEGISLATORS PRESENT:

Assemblyman P.M. "Roy" Neighbors, Esmeralda, Lincoln, Mineral and Nye counties Assembly District No. 35

STAFF MEMBERS PRESENT:

Fred Welden, Committee Policy Analyst

Scott Corbett, Committee Secretary

OTHERS PRESENT:

Chairman Rhoads opened the hearing by asking for committee introduction on Bill Draft Request (BDR) 40-746.

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Chairman Rhoads opened the hearing on Senate Joint Resolution (S.J.R.) 3.

Jolaine Johnson, Chief, Bureau of Air Quality, Division of Environmental Protection, State Department of Conservation and Natural Resources, provided her testimony on regional haze from a prepared handout (Exhibit C). Ms. Johnson explained the Clean Air Act (CAA) imposed regional haze restrictions to protect and restore natural visibility conditions in all designated Class I areas. The U.S. Environmental Protection Agency (EPA) classifies these areas as international parks, national parks exceeding 6,000 acres, national wilderness areas exceeding 5,000 acres or a national memorial park exceeding 5,000 acres, which were in existence on or before August 7, 1977. The Jarbidge Wilderness area is the only Class I area in Nevada.

Ms. Johnson said the CAA required the EPA to adopt reasonable regulations in regards to states restoring visibility in their Class I areas, and in 1997 they proposed amendments to these regulations to address the regional haze requirements. These requirements propose that each state will need to improve the visibility in their Class I area by 1.0 deciview every 10 years. A deciview being a metric that the EPA established to measure visibility improvement. Ms. Johnson went on to say that these visibility improvements in Class I areas in the West are far more expensive than in the East and will take $2.1 billion of the estimated $2.7 billion it would cost annually to implement a 1.0 deciview improvement in the West. Ms. Johnson added that the EPA has not addressed who will have to pay for these improvements and the states will have to find the funding for these visibility problems.

Senator James asked if the cost is so much greater in the West due to more Class I areas or if it is just dirtier in the West. Ms. Johnson responded by saying the air in the West is actually cleaner than in the East. Ms. Johnson added that the increased cost of cleaning the air in the West is due to the difficulty of showing an improvement in existing clean air compared to the relatively easy 1.0 deciview improvement in the East.

Chairman Rhoads asked Ms. Johnson if she knows if the Nevada congressional delegation has been following this and if ex-Governor Bob Miller was aware of this problem. Ms. Johnson responded by saying that she did not know what our congressional delegation has done and Governor Miller was very involved while the present Governor Kenny Guinn has just been briefed on this problem.

Ms. Johnson said they recommend the EPA reconsider reasonable requirements and distinguish the differences between the East and the West. Chairman Rhoads asked Ms. Johnson if she had received any response back from the EPA in regards to any suggestions to this problem. Ms. Johnson said that she had not received any response nor does she usually get any response from a federal agency, and she concluded her testimony by saying S.J.R. 3 is accurate but needs to contain stronger language.

Susan Miller, Lobbyist, Sierra Pacific Power Company, also speaking on behalf of Nevada Power Company and Frank J. Luchetti, stated support for S.J.R. 3.

Robert S. Hadfield, Lobbyist, Nevada Association of Counties (NACO), stated NACO is in support of S.J.R. 3 and would like to see stronger language added to the resolution. Mr. Hadfield explained that Nevada is part of what is called a clean-air corridor that spans from Canada to Arizona and the EPA plans on keeping this corridor clean in order to wash dirty air from other parts of the country and Mexico. Mr. Hadfield pointed out the EPA is essentially asking us not to develop and stay pristine so our clean air can wash out dirty air from other areas that are developed.

Ray E. Bacon, Lobbyist, Nevada Manufacturers Association spoke from prepared comments (Exhibit D) in favor of S.J.R. 3. Mr. Bacon continued by saying the regulations the EPA are trying to enforce are essentially not realistic because it would restrict Nevada from new economic growth as well as reducing existing pollution controls to unattainable levels. Mr. Bacon added, when power companies are deregulated and power plants are sold these regulations will probably close many plants because of the expensive retrofitting that would be necessary for them to meet the new CAA regulations.

Chairman Rhoads asked if other western states are having the same problems. Mr. Hadfield said that Wyoming, Oregon, Washington, Idaho and parts of Montana are all going to be affected. Mr. Bacon added the resolution should also state that Congress should request the EPA reevaluate these regulations. Chairman Rhoads agreed with adding the new wording and said he would personally contact U.S. Senator Harry Reid’s Office.

Doug Busselman, Lobbyist, Nevada Farm Bureau, outlined the stance from the Nevada Farm Bureau’s 1999 Policies booklet (Exhibit E). Mr. Busselman also strongly urged the committee to use stronger language in the resolution as well as use the provisions of congressional oversight to encourage the Nevada congressional delegation.

Chairman Rhoads responded by saying the committee should send a letter to U.S. Senator Reid requesting a 60-day action on these resolutions.

Stephanie D. Licht, Lobbyist, Elko County Commissioners, and Spring Creek Association stated for the record support of S.J.R 3.

Joseph L. Johnson, Lobbyist, Sierra Club, spoke from prepared comments (Exhibit F) against S.J.R. 3. Mr. Johnson referred to Nevada Revised Statutes (NRS) 445B.100 and 445B.115 in his testimony as grounds for giving his proposed amendments to be added to S.J.R. 3.

Senator James asked Mr. Johnson if he agrees with the part of S.J.R. 3 that will impose a greater burden on western states than eastern states in achieving the 1.0 deciview improvement within a decade. Mr. Johnson responded by saying the Sierra Club’s policy is to support air quality within these designated areas and the requirements are open for debate. Senator James asked Mr. Johnson if the Sierra Club was in support of Nevada being a clean-air corridor and Nevada holding the burden of cleaning the air from other areas. Mr. Johnson responded by saying the Sierra Club has internal disagreement on this issue.

Senator James went on record to say:

Senator Coffin asked if the state could rebut on the NRSs that Mr. Johnson referred to in his testimony.

Ms. Johnson responded by saying the State Environmental Commission has adopted a visibility standard statewide. This standard states that visibility cannot be reduced to less than 30 miles. Ms. Johnson continued that as long as she has been with her agency there has never been a complaint nor has she taken enforcement action towards this standard.

Senator Coffin asked if enforcement is being delegated to the local governments. Ms. Johnson responded by saying that legislation establishes the county health authorities as having jurisdiction over air-quality issues. Senator Coffin continued by asking if the state agency can resume its supremacy if it feels the local government is not doing its job. Ms. Johnson clarified that the State Environmental Commission has the legislative power to withdraw the local authority.

Chairman Rhoads closed the hearing on S.J.R. 3, and opened the hearing on Senate Bill (S.B.) 108.

Steve Bradhurst, Planning Consultant, Nye, Lincoln and White Pine counties stated the counties he is representing are in support of S.B. 108.

Rey Flake, County Commissioner, Lincoln County, strongly recommended that S.B. 108 be passed.

Richard L. Carver, Chairman, Board of Commissioners, Nye County, pointed out that Nye County voted unanimously to support S.B. 108.

Senator Coffin questioned the threat of future litigation if this bill is passed, and if the rural counties and individuals have the means to pursue a lawsuit. Mr. Bradhurst replied that there is no alternative because the rural counties need water to look to the future for land-use plans. Mr. Carver added the rural counties cannot afford not to pass this bill because everything that happens in rural counties is dependent on water.

Assemblyman R.M. "Roy" Neighbors, Esmeralda, Lincoln, Mineral and Nye counties Assembly District No. 35, testified that rural Nevada will only have a future with water and stated support of S.B. 108.

Joseph Johnson, Lobbyist, Sierra Club, went on record to say they support S.B. 108.

Senator James expressed concern with the subsection 3 language that makes an exception to the prior appropriation doctrine. R. Michael Turnipseed, State Engineer, Division of Water Resources, Department of Natural Resources, pointed out the biggest problem that he has with S.B. 108 is the 5-year provision. Mr. Turnipseed explained that he now has 3200 backlogged applications, 1700 of which are protested and the time-constraint provision would allow speculators to become first in line for water use. Chairman Rhoads asked Mr. Turnipseed to clarify. Mr. Turnipseed responded by saying if an individual had an application in the backlog that expired after the 5 years, he then would have to approve a new application or one that came in after the original from another individual.

Senator James called attention to the fact that Nevada has been built on interbasin transfers for development and the basis for the prior appropriation doctrine is to move water. The Senator went on to say, "… interbasin transfers are fundamental to the prior appropriation doctrine, this here would virtually overrule the prior appropriation doctrine in Nevada".

Naomi Smith Duerr, State Water Planner, Division of Water Planning, Department of Conservation and Natural Resources, clarified where her department stands on interbasin transfers from an excerpt of the state water plan (Exhibit G). Ms. Duerr continued by saying the state water plan does support the concept of S.B. 108.

Chris D. Weiss, Lobbyist, Southern Nevada Water Authority, testifying on behalf of the Colorado River Commission at the request of George Caan, Director of the Colorado River Commission, read a prepared statement (Exhibit H) against S.B. 108.

Julie A. Wilcox Slay, Lobbyist, Southern Nevada Water Authority, and Las Vegas Valley Water District, expressed concern with prohibiting or restricting interbasin transfers because of the impact it would have on southern Nevada’s position on the Colorado River. Ms. Wilcox remarked, "The current water law as it exists does have the flexibility and the framework and the authorities to allow the state engineer to do all of the things he needs to do . . . ."

Chairman Rhoads referred S.B. 108 to a subcommittee with Senator McGinness as chairman and Senators James and Coffin as members.

There being no further business before the committee, the meeting was adjourned at 3:35 p.m.

RESPECTFULLY SUBMITTED:

Scott Corbett,

Committee Secretary

APPROVED BY:

Senator Dean A. Rhoads, Chairman

DATE: