The subcommittee meeting of the Senate Committee on Natural Resources was called to order by Chairman Mike McGinness, at 3:10 p.m., on Monday, February 22, 1999, in Room 2144 of the Legislative Building, Carson City, Nevada. There was no Agenda. There was no Attendance Roster.

SUBCOMMITTEE MEMBERS PRESENT:

Senator Mike McGinness, Chairman

Senator Mark A. James

Senator Bob Coffin

STAFF MEMBERS PRESENT:

Fred Welden, Committee Policy Analyst

Scott Corbett, Committee Secretary

OTHERS PRESENT:

Chairman McGinness opened the subcommittee hearing on Senate Bill (S.B.) 108.

Senator James introduced an amendment (Exhibit A) to S.B. 108 and pointed out the amendment would remove the current drafted provisions and replace them with language from Nevada Revised Statutes (NRS) chapter 540. This language would require the state water plan to consider a balance in the area of interbasin transfers between competing interests.

Chairman McGinness asked for comments from interested parties.

R. Michael Turnipseed, State Engineer, Division of Water Resources, Department of Conservation and Natural Resources, spoke from a prepared handout (Exhibit B) and stated he preferred the language in Senator James’ proposed amendment over the original bill language. Mr. Turnipseed drew attention to the fact that the town of Searchlight and a number of mines in Nevada need to be added to his list of communities that get all or a portion of their water from a basin other than which they are situated. Mr. Turnipseed also expressed concern with Senator James’ amendment in regards to the wording pertaining to the adoption of an effective conservation plan for the importer of water from an interbasin transfer.

Senator James responded by saying the language pertaining to an effective conservation plan is to give some legislative guidance and not to restrict the state water engineer’s authority. Chairman McGinness added that some language could be changed to allow a more lenient conservation program for smaller communities that cannot implement a water conservation plan.

Mr. Turnipseed asserted he also has a problem with part of Senator James’ amendment referring to an interbasin transfer of water project being environmentally sound. Mr. Turnipseed stated, "I generally don’t consider myself to be the guardian of the environment. I am comfortable being the guardian of the state ground water and surface water . . . I am not a range manager or environmental scientist . . . ."

Chairman McGinness asked Mr. Turnipseed if the environmental impact portion of the bill could be defined further.

Mr. Turnipseed said he did not know if it could be defined further, and added he should not be held responsible for the environmental impact in the basin of destination.

Senator James pointed out it is not his intention to create an environmental impact statement (EIS) for every interbasin water transfer application. Senator James went on to explain the law now requires a determination to see if a project is detrimental to the public interest. Senator James clarified it is not his intention as the proposer of the amendment to require an EIS for the importer of water but to consider the environmental impact on the basin of origin.

Senator McGinness noted the language in section 3 regarding the 5-year hold on applications will not be included in this bill.

Senator Coffin asked if any of the pending applications would have to abide by the criteria outlined in S.B. 108, and Mr. Turnipseed commented the effective date for this bill is July 1, 1999. Senator McGinness remarked the bill cannot be made retroactive and should become effective, per the Legislative Counsel Bureau, on October 1, 1999.

Fred Welden, Committee Policy Analyst, Research Division, Legislative Counsel Bureau, called attention to the fact that the bill, ". . . would apply to any action that the state engineer takes after the time this bill is acted upon, rather than applying only to applications he receives after that date." Mr. Turnipseed agreed and said the attorney general has an opinion that is concurrent with Mr. Welden’s comment.

Julie A. Wilcox Slay, Lobbyist, Southern Nevada Water Authority (SNWA) agreed with the proposed amendment and added the SNWA is putting together a written policy for subordination and applications to rural county water issues.

Tim Crowley, Lobbyist, Nevada Mining Association, expressed concern with part of Senator James’ amendment referring to the need for a conservation plan.

Senator James commented that the language referring to a conservation plan will be changed to add "if applicable" and asked Mr. Crowley if this would address his concern. Mr. Crowley agreed with this language change.

Mike L. Baughman, Lobbyist, Humboldt River Basin Water Authority, went on record to support S.B. 108 and referred to a proposed amendment (Exhibit C) if the 5-year provision were lost in the bill. Mr. Baughman stated the Humboldt River Basin Water Authority is looking for a link between the environmental studies being used to delay action on an application and the information needed by the state water engineer to render a decision for that application. Mr. Baughman noted the statutes now interpret any study involving water could be used as a reason to delay action on an application and the state water engineer is authorized by statute to request these studies.

Mr. Turnipseed responded to Mr. Baughman’s comments by saying he agreed with his amendment and would like any changes to speed up the process, but he is not sure Mr. Baughman’s proposed amendment would do it.

Naomi Smith Duerr, State Water Planner, Division of Water Planning, Department of Conservation and Natural Resources, stated he supports Senator James’ proposed amendment and S.B. 108.

Senator James recommended that they amend and do pass S.B. 108 with his amendment including the language "if applicable" between "and" and "demonstrated."

With no further business before the subcommittee, the meeting was adjourned at 3:40 p.m.

RESPECTFULLY SUBMITTED:

Scott Corbett,

Committee Secretary

APPROVED BY:

Senator Mike McGinness, Chairman

DATE: