MINUTES OF THE

SENATE Committee on Natural Resources

 

Seventy-First Session

April 11, 2001

 

 

The Senate Committee on Natural Resourceswas called to order by Chairman Dean A. Rhoads, at 2:00 p.m., on Wednesday, April 11, 2001, 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

 

STAFF MEMBERS PRESENT:

 

Fred W. Welden, Committee Policy Analyst

Heather Miller, Committee Secretary

 

OTHERS PRESENT:

 

George Caan, Director, Colorado River Commission

Patricia Mulroy, Lobbyist, General Manager, Southern Nevada Water Authority, and Las Vegas Valley Water District

Charles K. Hauser, Lobbyist, Las Vegas Valley Water District, and Southern Nevada Water Authority

Timothy Hay, Chief Deputy Attorney General, Bureau of Consumer Protection, Office of the Attorney General

Shari Buck, Lobbyist, City of North Las Vegas

Kimberly J. McDonald, Lobbyist, City of North Las Vegas

Kurt R. Segler, Lobbyist, City of Henderson

Elizabeth Fretwell, Lobbyist, City of Las Vegas

 

 

Chairman Rhoads opened the hearing on Senate Bill (S.B.) 531.

 

SENATE BILL 531:  Revises provisions governing employees of Colorado River Commission. (BDR 48-354)

 

George Caan, Director, Colorado River Commission (CRC), testified in support of S.B. 531, explaining why the bill was important to the CRC.  He said S.B. 531 would exempt the CRC from the state personnel act, and instead have the CRC create a unique series of positions for the CRC only.  He said these positions would be governed by the CRC, and would also be subject to rules and regulations that would have to be adopted in public by the CRC.  He added these positions would allow the CRC to continue to provide flexibility in services it delivers.  He said S.B. 531 would provide an important component for the CRC’s existing employees.  Mr. Caan explained when the CRC approves a new position, it will be offered to the existing employee in that position within the CRC classified or unclassified service.  The employee must take it voluntarily or the employee remains in his/her existing position until that individual vacates the position, he said.  After this, he explained, the existing classified or unclassified position is abolished and the new position is implemented. 

 

Mr. Caan stated there are other reasons why S.B. 531 is needed, which were also articulated in a handout distributed to the committee (Exhibit C).  He said the CRC was responsible for protecting its water supply in Lake Mead with the help of the Southern Nevada Water Authority (SNWA).  He said the CRC was also responsible for ensuring the continued access to federal hydropower, and also for protecting the environment, which has been damaged as a result of the construction of the dams.  He said the CRC ensured reliable and affordable power supplies were available for the Southern Nevada water system. 

 

Chairman Rhoads asked Mr. Caan if the Governor’s office had taken a position on this issue.  Mr. Caan answered the Governor’s office had reviewed S.B. 531 prior to submittal and it agreed to its submittal to the Legislature. 

 

Senator Carlton asked Mr. Caan if the employees in question are in classified service now.  Mr. Caan replied the CRC had 32 approved positions, and 22 are in the classified service, 6 are in the unclassified service, and there are a number of vacancies.  Senator Carlton asked for clarification on what the positions are called if not considered classified or unclassified.  Mr. Caan said he called CRC unique positions, and added the CRC would adopt new regulations that govern the classifications, salary, and benefits, and so on for those positions.  Senator Carlton asked Mr. Caan how the current employees had reacted to this new structure.  Mr. Caan answered he had told them all their existing rights would be protected, and all are aware they can voluntarily leave their position, or stay in their current position until they leave on their own. 

 

Senator James asked Mr. Caan for an example of what S.B. 531 would allow the CRC to do once it was enacted.  Mr. Caan gave an example of a CRC high-voltage facility.  He said the board could then research and recruit directly to hire someone to operate this facility if S.B. 531 is passed.  At present, he explained, the CRC must go through a lengthy process to try and determine, within state parameters, what it takes to operate a high-voltage distribution system, even if the state has no experience doing so.  He said a more efficient method is needed to find and hire a qualified person.  Senator James asked Mr. Caan if there was a way the CRC could exempt itself from those kinds of rules, and then not require the sale exemption from Chapter 284 of the Nevada Revised Statutes (NRS).  Mr. Caan answered that S.B. 531 is limited to what he had described.  Senator James and Mr. Caan discussed the language regarding this issue. 

 

Chairman Rhoads closed the hearing on S.B. 531 and opened the work session on S.B. 211.

 

SENATE BILL 211:  Expands authority of Colorado River commission to provide electric services to political subdivisions. (BDR 58-633)

 

Patricia Mulroy, Lobbyist, General Manager, Southern Nevada Water Authority, and Las Vegas Valley Water District (LVVWD), testified in support of S.B. 211, stating this legislation has become very important to both the CRC and the SNWA.  She went into brief detail on why the SNWA needs to be closely involved with the CRC and its power supply.  She explained the CRC is one of the most reliable, inclusive companies with which the SNWA has worked.  Ms. Mulroy pointed out the Nevada Power Company curtailed the Las Vegas Valley Water District 22 times this summer.  She explained that meant when the SNWA pumps water during one of those times, the Nevada Power Company could charge them more money.  She said concerns were compounded when on June 28, 2000, the Nevada Power Company went into a yellow alert.  The company contacted the SNWA and told it to dump as much load as possible.  Ms. Mulroy explained if such a request had come at a time when there was a fire or another type of emergency, the SNWA would have been in trouble. 

 

Chairman Rhoads asked Ms. Mulroy what it meant to dump load.  Ms. Mulroy answered that meant they could not pump, and had to rely on things like gravity flow, reservoirs, and so on. 

 

Ms. Mulroy then provided some proposed amendments to S.B. 211 written by the SNWA for the committee’s consideration (Exhibit D). 

 

Charles K. Hauser, Lobbyist, Las Vegas Valley Water District and Southern Nevada Water Authority, testified on the specifics of these proposed amendments and how they would alter S.B. 211.  He explained the current paragraph (c) of subsection 1 of section 1 would be replaced with, “The Colorado River Commission may purchase distribution service and transmission service from a public utility pursuant to tariffs on file with the Public Utilities Commission of Nevada and the Federal Energy Regulatory Commission, respectively.  If no applicable tariff exists, such tariffs shall be filed with the appropriate regulatory body no later than September 1, 2001.” 

 

Timothy Hay, Chief Deputy Attorney General, Bureau of Consumer Protection, Office of the Attorney General, testified in support of S.B. 211, stating the original version of the bill is more supportable than the amended version from his perspective.  He said the power crisis had implications for the entire state.  Mr. Hay clarified he did not oppose the proposed amendments from the SNWA, but thought the original language was more agreeable. 

 

Chairman Rhoads asked Mr. Hay if he thought S.B. 211 could threaten the future of the Nevada Power Company.  Mr. Hay answered that was not likely. 

 

Shari Buck, Lobbyist, City of North Las Vegas, testified in favor of S.B. 211, stating it is important to have as many options as possible for the Las Vegas citizens and their energy needs.

 

Kimberly J, McDonald, Lobbyist, City of North Las Vegas, testified in support of S.B. 211, thanking the committee for allowing her to reiterate her position. 

 

Kurt R. Segler, Lobbyist, City of Henderson, testified in support of S.B. 211, stating he approved of both the original bill and the proposed amendments by the SNWA.

 

Elizabeth Fretwell, Lobbyist, City of Las Vegas, testified in support S.B 211, stating she also approved of the original draft and the amended version proposed by the SNWA. 

 

Chairman Rhoads adjourned the meeting at 2:47 p.m.

 

 

RESPECTFULLY SUBMITTED:

 

 

Heather Miller,

Committee Secretary

 

 

APPROVED BY:

 

 

 

                       

Senator Dean A. Rhoads, Chairman

 

 

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