MINUTES OF THE

SENATE Committee on Natural Resources

 

Seventy-second Session

March 10, 2003

 

 

The Senate Committee on Natural Resources was called to order by Chairman Dean A. Rhoads, at 1:30 p.m., on Monday, March 10, 2003, 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 Mike McGinness, Vice Chairman

Senator Raymond C. Shaffer

Senator Mark Amodei

Senator Bob Coffin

Senator Michael Schneider

Senator Maggie Carlton

 

STAFF MEMBERS PRESENT:

 

Fred Welden, Committee Policy Analyst

Gina Rasner, Committee Secretary

 

OTHERS PRESENT:

Richard Mirgon, Co-Chairman, State Emergency Response Commission, Department of Public Safety

Richard Brenner, Co-Chairman, State Emergency Response Commission, Department of Public Safety

Karen Kennard, Executive Director, State Emergency Response Commission, Department of Public Safety

Dan Musgrove, Lobbyist, Clark County

Ray Bacon, Lobbyist, Nevada Manufacturers Association

Terry Graves, Lobbyist, Pioneer Chlor Alkali

Ex-Senator Lawrence Jacobson, Lobbyist, Douglas County

Allen Biaggi, Administrator, Division of Environmental Protection, Department of Conservation and Natural Resources

Russell Fields, Lobbyist, Nevada Mining Association

 

Chairman Rhoads opened the hearing on Senate Bill (S.B.) 201.

 

SENATE BILL 201:  Eliminates limitation on amount of fees that State Emergency Response Commission may impose for certain services of Commission or activities relating to extremely hazardous materials. (BDR 40-1047)

 

Richard Mirgon, Co-Chairman, State Emergency Response Commission, (SERC), Department of Public Safety, explained that SERC is responsible to protect the community and provide public and first responders knowledge of facilities using hazardous chemicals within the community. Any type of funds received from fees or for the federal government goes for local, public safety entities, counties, and cities for additional training or buying equipment for responding to hazardous chemical accidents. The SERC reviews plans for local public safety, county, and city entities on their ability to respond to an emergency. The commission reviewed the cap issue which was set 10 years ago and put in Nevada Revised Statutes (NRS).  Mr. Mirgon said SERC is currently the only commission in the State, which has fees set in NRSbutnot in the Nevada Administrative Code (NAC), which causes inconsistency amongst fees being set in the State.   He said the intent of S.B. 201 is to move these statutes to NAC where SERC is required to hold hearings within the community for establishment of the fees.

 

 Senator Rhoads asked if the commission would recommend higher or lower fees. Mr. Mirgon said he would recommend higher fees. The fee structure is based upon the quantity stored in a facility. This structure encourages a facility to maintain lower quantities of hazardous materials being stored. The higher the quantities, the higher risk that facility becomes to the public and the first responders, therefore the fees increase. Chairman Rhoads asked if the fees go to the commission and if it is a self-funded organization. Mr. Mirgon replied the fees do go to the commission and some funding comes from the Highway Fund.

 

Richard Brenner, Co-Chairman, State Emergency Response Commission, Department of Public Safety, said SERC has industry as a partnership, which is responsible for getting equipment and additional training for first responders, especially in the frontier areas.

 

Senator McGinness asked who appointed the SERC commissioners. Mr. Brenner replied the Governor appoints the commissioners.

Karen Kennard, Executive Director, State Emergency Response Commission, Department of Public Safety, said the intent of S.B. 201 is to increase the fee cap, not the fees. Senator McGinness asked if SERC is responsible for making the decision to increase the fee cap. Ms. Kennard said currently the fee cap is set at $5000 per year from each facility. Based on the consumer price index SERC is requesting that the fee cap be increased to $7500 per year. Senator McGinness asked if a subsequent fee increase would have to be approved by the commission. Mr. Brenner replied if statutes were moved to NAC it would have to follow the guidelines of NAC.

 

Senator Coffin asked why SERC did not propose a fee cap of $7500 because as the statue is written, it leaves that fee open. Mr. Brenner said the intent is to become consistent with NRS. Senator Coffin asked if there is a reward system for facilities using hazardous chemicals which do comply with the law. Ms. Kennard said the State fire marshals office collects the fees for SERCand said there is no need for rewards. Mr. Brenner said SERC would suggest an alternative chemical to a facility using a hazardous chemical, which would allow the facility not to pay fees due to entering into a different category under State Emergency Response Association (SERA) code title 3 that rewards that decision.

 

Senator Carlton asked if the intent of S.B. 201 would allow a facility to store as much hazardous materials as wanted, if a facility is willing to pay for it. Mr. Brenner replied there is no restriction on storage or usage of hazardous materials in a facility, if that facility is willing to pay the fee. Mr. Brenner said when a facility stores hazardous materials the State uses uniform fire codes pertaining to local jurisdiction.

 

Dan Musgrove, Lobbyist, Clark County, said it is important to encourage facilities to store less hazardous materials in order to be a low risk in regards to fires or spills. Senator Carlton said S.B. 201 would allow facilities to store larger quantities of hazardous materials due to no cap on the amount stored. Mr. Musgrove said there was not a statute on limitation of quantities that could be stored in a facility, but it is hoped S.B. 201 will be a disincentive due to no limitation on cap fees. Senator Carlton said she would like to see storage caps applied to quantities of hazardous materials that a facility would be allowed to store. She said the people on the commission board were also the people involved in the hazardous materials industry which made this issue confusing. Chairman Rhoads asked if there was a statute in place currently regarding limitation of amounts stored. Mr. Mirgon said the federal government has a reportable quantity. The system is structured  so that if there is any amount above the limit, then a facility must pay fees up to the cap amount. A facility would not be responsible to report extremely dangerous hazardous materials if the amount stored was a lesser amount of the limit.

 

Ray Bacon, Lobbyist, Nevada Manufacturers Association, said the greater risk of hazardous materials is transporting it. Federal law will not impose fees to transportation of hazardous materials. Mr. Bacon said the way S.B 201 is written, it will remove the fee structure, leaving it vacant, meaning there will be no caps or fees. He said the fee structure should be implemented until a new statute is in place. The results of opened fees could risk loss of jobs in remote locations such as Cyanco located in Winnemucca and the Coastal Chemical plants located in Battle Mountain. Nevada would be the only State that would not have capped fees.

 

Terry Graves, Lobbyist, Pioneer Chlor Alkali, said the fee structure would allocate funds for emergency response efforts, and not as a revenue device. There should be some justification of how those funds are used.

 

Ex-Senator Lawrence Jacobson, Lobbyist, Douglas County, said laws and regulations dealing with hazardous materials must be in effect. Hazardous materials fees should be used as appropriated.

 

Chairman Rhoads closed the hearing on S.B. 201 and opened the hearing on Assembly Bill (A.B.) 129.

 

ASSEMBLY BILL 129:  Makes various changes concerning money deposited in certain accounts and funds for use by State Department of Conservation and Natural Resources. (BDR 40 519)

 

Allen Biaggi, Administrator, Division of Environmental Protection, State Department of Conservation and Natural Resources, gave a brief written overview of A.B. 129 (Exhibit C). Chairman Rhoads asked Mr. Biaggi how the interest accrued from various previous accounts was used. Mr. Biaggi said funds were used in hazardous waste management, chemical accident prevention, air quality, and mining. Chairman Rhoads asked Mr. Biaggi if these departments were lacking in funds, and if these departments would be manageable. Mr. Biaggi replied they would not be manageable. The reason for A.B. 129 modifies existing statutory language to allow interest earned in various accounts of the division to be paid back into those accounts. Prior to 2001 funds were allocated to those programs. In 2001, there was a reinterpretation by the treasurer’s office, which meant losing those funds. Mr. Biaggi said A.B. 129 would revert funds to the proper accounts. Senator Carlton asked Mr. Biaggi where the allocation of funds went during the reinterpretation. Mr. Biaggi replied he did not know.

 

Russell Fields, Lobbyist, President Nevada Mining Association, testified with written testimony in support of A.B. 129 (Exhibit D).

 

 

There being no further business, Chairman Rhoads adjourned the meeting at 2:15 p.m.

 

RESPECTFULLY SUBMITTED:

 

 

                                                           

Gina Rasner,

Committee Secretary

 

 

APPROVED BY:

 

 

 

                                                                                         

Senator Dean A. Rhoads, Chairman

 

 

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