MINUTES OF THE meeting

of the

ASSEMBLY Committee on Natural Resources, Agriculture, and Mining

 

Seventy-First Session

March 12, 2001

 

 

The Committee on Natural Resources, Agriculture, and Miningwas called to order at 1:00 p.m., on Monday, March 12, 2001.  Chairman Marcia de Braga presided in Room 3161 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Agenda.  Exhibit B is the Guest List.  All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

 

 

COMMITTEE MEMBERS PRESENT:

 

Mrs.  Marcia de Braga, Chairman

Mr.    Douglas Bache

Mr.    David Brown

Mr.    John Carpenter

Mr.    Jerry Claborn

Mr.    David Humke

Mr.    John J. Lee

Mr.    John Marvel

Mr.    Harry Mortenson

Mr.    Roy Neighbors

 

COMMITTEE MEMBERS ABSENT:

 

Mr.    Tom Collins, Vice Chairman

Ms.   Genie Ohrenschall

 

GUEST LEGISLATORS PRESENT:

 

Assemblyman Greg Brower, District 37

 

STAFF MEMBERS PRESENT:

 

Linda Eissmann, Committee Policy Analyst

June Rigsby, Committee Secretary

 

OTHERS PRESENT:

 

Dean Heller, Secretary of State, Nevada

Jim Lawrence, EIP coordinator, Nevada Division of State Lands

Pam Wilcox, Nevada Division of State Lands

Susan Lindahl, Lincoln Park, Lake Tahoe

Pete Morros, Tahoe Property Owners Association

Dick Mieldazis, Supervisor, Nevada-Tahoe Conservation District

Tom Tornga, Lincoln Park, Lake Tahoe

Andy Chisari, Lincoln Park, Lake Tahoe

Juan Palma, Executive Director, Tahoe Regional Planning Agency

Steve Teshara, Lake Tahoe Gaming Alliance

Karel Malloy, League To Save Lake Tahoe

Dennis Machida, Executive Director, California-Tahoe Conservancy

Wayne Perock,, Nevada State Parks

Amir Soltani, Chief Hydraulic Engineer, Nevada Department of Transportation

Mary McEneny, Nevada-Tahoe Conservation District

Pam Drum, Public Affairs Officer, Tahoe Regional Planning Agency

 

 

After the roll call, Chairman de Braga called for a work session on A.B. 30. 

 

Assembly Bill 30:  Increases amount of insurance coverage required for license to apply pesticides by aircraft. (BDR 49-372)

 

Linda Eissmann, Committee Policy Analyst, distributed a handout (Exhibit C) and commenced discussion of A.B. 30.  It had been recommended by the Nevada Department of Agriculture that the bill be amended to include the elimination of the current maximum coverage of $200,000 for each applicant for a pest control license. The new bill would require coverage for aerial pesticide application of not less than $100,000 per person, $300,000 for each occurrence and $300,000 aggregate for bodily injury. Further, in the case of property damage, it would require not less than $100,000 for each occurrence and aggregate loss.

 

Ms. Eissmann’s research revealed there were only three carriers insuring aerial sprayers in Nevada. None offered coverage in the amount of $1 million. The maximum amount of coverage available was $250,000 for each person, $500,000 aggregate for each occurrence of bodily injury, and $250,000 for each occurrence of property damage. The premium for this level of coverage was estimated at $11,000 and available only to pilots who qualified.

 

Assemblyman Carpenter stated that the amount recommended by the Department of Agriculture would be appropriate. Specifically, he referred to the bulleted text on the top of page 1 of Exhibit C.

 

 

                        ASSEMBLYMAN CARPENTER MADE A MOTION TO AMEND A.B. 30.

 

                        ASSEMBLYMAN NEIGHBORS SECONDED THE MOTION.

 

                        THE MOTION CARRIED.

 

 

Chairman de Braga opened the hearings on the Lake Tahoe bills. Assemblyman Greg Brower, District 37, was the first witness to testify in support of the proposed legislation. 

 

 

Assembly Bill 177:  Authorizes issuance of general obligation bonds to carry out Environmental Improvement Program in Lake Tahoe Basin. (BDR S-701)

 

Assemblyman Brower explained that, as chairman of a recent legislative committee dealing with Lake Tahoe issues, he felt it was appropriate that he initiated discussion. In regard to A.B. 177, Assemblyman Brower described it as the latest bill to authorize bonding with respect to Nevada’s share of the environmental improvement programs at Lake Tahoe. In way of review, Assemblyman Brower explained that in 1999 A.B. 285 of the Seventieth Session was passed. It provided that general obligation bonds of up to $53.2 million be issued as approved by the legislature for environmental work (EIP) at Tahoe.

 

Assemblyman Brower stated that A.B. 177 would allow for the next installment of the bonding amount to fund the next round of projects.

 

Pam Wilcox, Nevada Division of Lands, introduced Jim Lawrence, Tahoe EIP Coordinator. Mr. Lawrence presented a series of slides that displayed the effects of soil erosion, poor forest health, and urban runoff on Lake Tahoe. Immediate action was needed in order to arrest the loss of water clarity, estimated at one foot per year. 

 

Mr. Lawrence stated that the total of Nevada’s share of the EIP project was $82 million. California, the federal government, and Nevada had all honored their obligations in regard to funding. He described the current request as $16.2 million. The Lake Tahoe license plate program was cited as an additional source of revenue for the EIP program and was estimated at $1.5 million.

 

A review of EIP activity was presented by Mr. Lawrence.  Priorities were judged to be water quality, soil erosion, environment projects. and stream These projects received approximately 75 percent of the total funds. The Nevada Tahoe Resource Team, an inter-agency group, was introduced by Mr. Lawrence.  In addition to the resource team, all projects were coordinated with the state, the scientific community, and the federal government. 

 

Mr. Lawrence illustrated some of their accomplishments with a series of photographs. Stabilization of banks with walls, revegetation on slopes, and curb and gutter construction were highlighted as examples of remedial work. Stream restoration allowed running water to follow natural lines of flow away from the lake. 

 

Chairman de Braga asked how many projects were completed and if the funding had been adequate. Mr. Lawrence clarified that two of the projects had been completed, and five others were scheduled for completion later in 2001. The funding was described as adequate.

 

Mr. Lawrence continued with his presentation and displayed a series of before and after photographs of Hidden Beach. Where there had once been a maze of walking trails was now a well-defined, single trail. Using an ecosystem approach to the area, forest restoration work was also initiated. Revenues from the sale of firewood were rolled back into the funds for environmental projects.

 

In summary, Mr. Lawrence stated that the strategy for the next ten years had been mapped and would require collaboration with private property owners. The  specific request for the biennium was set at $16.2 million, with the largest portion earmarked for water quality improvement projects.

 

Assemblyman Neighbors requested clarification on the issue of forest health. Mr. Lawrence explained that the forest had been in a state of decline for some years, with the drought of the 1990’s described as a significant factor. He described a five-phase EIP program which included removal of the dead and dying trees, wildlife habitat improvements, archaeological survey work, road surveys, and timber stand inventories.

 

In response to Chairman de Braga, Mr. Lawrence explained that the rate of tree dying had slowed, but the multitudes of dead trees were still very visible. The marketing of the dead trees was described as being on a small scale. In addition to recycling chipped timber for revegetation projects, Mr. Lawrence stated that there was a possibility of working with the Department of Energy to investigate the market for bio-fuels.

 

Chairman de Braga asked if there were adequate roads for gaining access to the dying trees. Mr. Lawrence replied that there were several good access roads available to them. No new roads were anticipated, however, some helicopter work could be necessary in the back country.

 

Assemblyman Brower resumed testimony in support of A.B. 176.

 

 

Assembly Bill 176:  Revises provisions relating to carrying out certain programs in Lake Tahoe Basin. (BDR 26-700)

 

Assemblyman Brower described the purpose of A.B. 176 as targeting the issue of privately owned land adjoining the public lands covered by the EIP projects.  Under current statute, private land could not be the beneficiary of state grant money for environmental improvement programs. The Division of State Lands had the authority to issue grants to local governments, other state agencies, and nonprofit organizations. The proposed legislation would change NRS 321.5956 to allow grants to be used on private property

 

Pam Wilcox distributed a handout (Exhibit D) and resumed testimony in support of A.B. 176. In her view, it was essential to amend the statutes in order to have completion on EIP projects that involved privately held land. Examples of projects included water quality retrofits of local neighborhood streets and stream restoration projects that flow through both public and private property. The funds would only be used for the state’s share of qualified EIP projects. A 25 percent match would be requested of the applicant.

 

Chairman de Braga asked for clarification of the current process for handling private property. Ms. Wilcox stated that there was no process, and, to date, they had avoided environmental improvements on private land. It was expected that the process would be to approach the owners of private land, seek their agreement, and then assist them with the grant application. The private landowner had a choice of not participating, however, Ms. Wilcox stated that situation would be unlikely.  Assemblyman Brower interjected that most property owners had appeared to be more than willing to cooperate.

 

Assemblyman Mortenson asked if grants would be made to corporations. Ms. Wilcox stated that the major category of recipients would be homeowner associations, neighborhoods, and possibly general improvement districts. She speculated that a corporation would qualify. This issue arose in Douglas County, and it was the determination of the Attorney General that the proposed legislation was carefully crafted to meet the constitutional guidelines. She stated that it would be the counties, not the state, that would primarily grant the funds. Public money had to be spent on behalf of the public interest.

 

Chairman de Braga asked Assemblyman Brower to introduce A.J.R. 4.

 

Assembly Joint Resolution 4:  Commends State of California and California Tahoe Conservancy for efforts pertaining to carrying out Environmental Improvement Program in Lake Tahoe Basin. (BDR R-702)

 

Assemblyman Brower described the purpose of A.J.R. 4 as a means to commend the efforts of the state of California in meeting its funding obligations for EIP work at Lake Tahoe. Since the inception of the TRPA in the 1960’s, there had been tremendous cooperation between Nevada and California. The goal of the TRPA was stated to be the preservation of the lake’s unique environmental and ecological values while providing for orderly growth in the Tahoe basin. California’s share of the EIP funding was $275 million and judged to be a critical success factor in the EIP work.

 

Chairman de Braga interjected that, for the record, Mr. Humke and Mr. Lee were present. Mr. Collins was noted as an excused absence. The Chairman recognized the presence of Dean Heller, Nevada Secretary of State.

 

Susan Lindahl, representing the Lincoln Park subdivision near Cave Rock, resumed testimony in support of the legislation. The Lincoln Park neighborhood had ongoing problems with water running downhill from Highway 50. Ms. Lindahl approached the Nevada-Tahoe Conservation District last year to appeal for funds for erosion control in the neighborhood. Because her request did not have a sponsor, her application was rejected. The County Commission declined to sponsor the project because three percent was not sufficient funding. Ms. Lindahl appealed to the committee for help in dealing with the water runoff problem.

 

Chairman de Braga asked if her intention was to have Lincoln Park added to the list of projects. Ms. Lindahl responded in the affirmative and stated that, if need be, her neighborhood would become a corporation in order to qualify.

 

In response to Assemblyman Claborn, Ms. Lindahl explained the streets in Lincoln Park were maintained by the homeowners, but they were open to public use.

 

Pete Morros, representing the Tahoe Property Owners Association, underscored the testimony given by the preceding witnesses. Mr. Morros emphasized that the private property owners were very willing to contribute their money to help arrest the decline in water clarity. He urged the committee’s approval of the bill.

 

Dick Mieldazis, representing the Nevada-Tahoe Conservation District and the Marla Bay General Improvement District, distributed a handout (Exhibit E) and resumed testimony in support of the Tahoe legislation. Mr. Mieldazis was happy to report that the Marla Bay Erosion Control Project was highly successful and completed on time and under budget. A tremendous volume of sediment was collected from five units with a total of 50,000 gallons of capacity. No general improvement district money was used.

 

Assemblyman Carpenter asked about the fire hazard posed by the high volume of dead trees in the forest. Mr. Mieldazis expressed his concern that there was great potential for a catastrophe in the residential areas of Incline Village and Logan Creek. Some neighborhoods had only one road in and out.

 

Assemblyman Neighbors inquired about the practice of tree spraying for eradication of beetles. Mr. Mieldazis reported that some homeowners had attempted to do preventative spraying, however the efforts were not successful.

 

Tom Tornga interjected with an offer to address that issue. As a property owner and resident of Lincoln Park, he reported that he originally had 80 trees on his land, but now there were fewer than 20 trees. By immediately harvesting the dead trees, Mr. Tornga concluded he had arrested the spread of the beetle infestation to the healthy timber.  He stated with regret that, if the U.S. Forest Service had harvested the dead trees sooner, more trees could have been saved from the beetles.

 

Chairman de Braga commented on the market for diseased timber and recalled that the lack of adequate roads was a major factor in the failure to harvest the trees sooner. Mr. Tornga stated that the beetles in the spring migrated very rapidly from tree to tree. Because of this movement, he resorted to spraying each year and had not lost any additional trees to disease. In response to Chairman de Braga, Mr. Tornga described the spraying as topical treatment on the outside of the tree.

 

Andy Chisari, representing the Lake Village Homeowners Association, reported on a neighborhood project that had begun three years ago. Mr. Chisari stated that his neighborhood was on a sloping hillside and responsible for a considerable amount of the runoff into Lake Tahoe. In 1998, the association was invited to attend workshops to prepare a proposal for grant money through the Nevada Bond Grant Act. As the first private applicant, they hired consultants for engineering surveys and the preparation of vegetation plans. Mr. Chisari stated that in 1999 they were approved for $650,000.

 

The status of the project was described as stalled because, upon contacting the county and the attorney general, they were informed that the project was not on solid legal ground. Mr. Chisari appealed to the committee to adopt the legislation so that the neighborhood could go forward as an example to other areas. Collaboration between private entities and public agencies was not a new concept and had the promise of benefiting all parties engaged in saving Lake Tahoe.

 

In response to Assemblyman Carpenter, Mr. Chisari reiterated that the specific amount of money was $650,000, of which 30 percent would be matching funds from the homeowners association.

 

Assemblyman Neighbors asked for clarification on the responsibility of overseeing the spending of public funds. Mr. Chisari assured the committee that the need for oversight would be minimal. The release of funds would be preceded by an inspection of the site at each stage. The project had been well designed and included five settling ponds, slope restoration plans, and re-vegetation projects. Mr. Chisari expressed his frustration with the county and felt the county had exaggerated the complexity of the project.

 

Mr. Chisari concluded his testimony with his observations of tree removal work. He stated the core of the problem was road access between private land and Forest Service land.  

 

Juan Palma, Executive Director of the Tahoe Regional Planning Agency, opened his testimony with acknowledgement of his director, Secretary of State Dean Heller and Pam Drum, Public Affairs Officer for the TRPA. In regard to A.B 177, Mr. Palma stated his support of the legislation and commended the efforts of Pam Wilcox and the Nevada Division of State Lands.

 

On the subject of A.B. 176, Mr. Palma explained that this legislation would allow restoration work to be completed across property boundaries regardless of ownership. In terms of A.J.R. 4, Mr. Palma offered an unqualified endorsement of the work of Mr. Dennis Machida and the California-Tahoe Conservancy Agency.  In conclusion, Mr. Palma encouraged the passage of all three bills.

 

Assemblyman Neighbors assumed chairmanship of the committee and announced that some members had to leave for other meetings. With the departure of committee members, the committee quorum was lost, and the meeting was designated as a subcommittee.

 

Steve Teshara, representing the Lake Tahoe Gaming Alliance, and Karel Malloy, representing the League to Save Lake Tahoe, approached the witness table. Mr. Teshara briefly stated that, on behalf of their organizations, they supported both bills and the resolution under discussion.

 

Pam Wilcox, Administrator of State Lands, introduced Dennis Machida, Executive Officer of the California-Tahoe Conservancy. Ms. Wilcox commended the outstanding cooperation and tireless efforts of Mr. Machida and his organization.

 

Mr. Machida reflected on the value of partnerships between the two states and the successful working relationship among various agencies. He underscored the accomplishments of TRPA, private sectors, Nevada, and California and urged the committee to adopt the legislation.

 

Wayne Perock, Administrator of the Nevada State Parks Division and designee to the TRPA, echoed the testimony of all witnesses and urged passage of the proposed legislation. Progress was already evident at Lake Tahoe, and A.B.  77, A.B. 176, and A.J.R. 4 would ensure continuity of valuable work.

 

 

Amir Soltani, Chief Hydraulic Engineer with the Nevada Department of Transportation, testified in support of A. B. 177. Mr. Soltani stated his agency had been working closely with Nevada State Lands, Nevada State Parks, and other governmental agencies to arrest the discharge of pollutants from roadways into Lake Tahoe.  Four years ago, NDOT initiated their Environmental Improvement Program in the Tahoe basin. To date, projects costing more than $8 million had been implemented. With the passage of A.B. 177, this valuable work would continue without interruption.

 

Mary McEneny, a member of the Nevada-Tahoe Conservation District and a resident of Crystal Bay, acknowledged the high levels of cooperation and knowledge of recent years. Progress was clearly evident, however Ms. McEneny stated it would only continue with the passage of the legislation.

 

Assemblyman Marvel requested clarification on the type of bonds that were issued and if they were exempt from the two percent limitation. Pam Wilcox replied in the affirmative and explained that the bonds were natural resource bonds and exempt from indebtedness. These bonds were part of the Governor’s ten-year indebtedness package.

 

Assemblyman Brower offered closing comments on behalf of the bills and acknowledgement of the quality of the testimony presented during the hearing.  Assemblyman Marvel voiced some concern over California’s past failures to honor financial obligations.  Assemblyman Brower expressed his confidence in the state of California and stated that Nevada was modeling the appropriate behavior for helping Tahoe through legislative processes.

 

Assemblyman Marvel concurred that Nevada had always honored their financial promises and, in doing so, set a good example for others. Assemblyman Brower added that the federal government had come forward in recent years with support as well.

 

With no further questions, Assemblyman Neighbors closed the hearing on A.B. 176, A.B. 177, and A.J.R. 4. The meeting was adjourned at 2:45 p.m. 

 

 

RESPECTFULLY SUBMITTED:

 

 

                               

June Rigsby

Committee Secretary

 

 

APPROVED BY:

 

 

                                                                                         

Assemblywoman Marcia de Braga, Chairman

 

 

 

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