MINUTES OF THE
SENATE Committee on Natural Resources
Seventy-second Session
April 16, 2003
The Senate Committee on Natural Resources was called to order by Chairman Dean A. Rhoads, at 1:42 p.m., on Wednesday, April 16, 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
GUEST LEGISLATORS PRESENT:
Senator Alice Costandina (Dina) Titus, Clark County Senatorial District No. 7
STAFF MEMBERS PRESENT:
Fred Welden, Committee Policy Analyst
Lynn Hendricks, Committee Secretary
OTHERS PRESENT:
Keku Kamalani, Intern to Senator Titus
Allen Biaggi, Administrator, Division of Environmental Protection, State Department of Conservation and Natural Resources
Terry Graves, Lobbyist, Basic Management Incorporated
Don Henderson, Acting Director, State Department of Agriculture
Margaret “Peggy” McKie, Agriculturist, State Department of Agriculture
Christopher J. Mason, Ph.D., Section Chief, Registration and Laboratory Services, State Department of Agriculture
Chairman Rhoads:
Bob Abbey, State Director of the Bureau of Land Management (BLM), recently forwarded a letter to me and asked that it be placed in the record for our committee. The letter clarifies for the record that the BLM testified in support of Senate Bill (S.B.) 76 in its original form, but they feel they cannot support the amended version that this committee adopted. Mr. Abbey further wanted to place on the record his view that the amended version of the bill may end up in litigation. So I will direct our secretary to place this letter in the record of information on S.B. 76 (Exhibit C).
SENATE BILL 76: Revises provisions governing acquisition of water rights on public grazing lands for purposes of watering livestock. (BDR 48-670)
Chairman Rhoads:
I will open the hearing on Assembly Bill (A.B.) 74.
ASSEMBLY BILL 74: Provides for revolving fund to finance remediation of brownfield sites. (BDR 40-518)
Senator Alice Costandina (Dina) Titus, Clark County Senatorial District No. 7:
Senate Bill No. 363 of the 70th Session established a brownfields program in Nevada. The bill provided protection from liability as an incentive to voluntarily clean up contaminated property. This program has been successful. This bill will allow Nevada to apply for federal funds to pay for such cleanup.
Keku Kamalani, Intern to Senator Titus:
Brownfields are abandoned or underused properties with real or perceived environmental contamination. I have a brief presentation of the history of brownfield issues (Exhibit D). This bill supplements the program established by S.B. No. 363 of the 70th Session by creating a revolving fund through which federal money can be distributed in the form of low-interest loans for cleanup.
Chairman Rhoads:
Where do the funds come from?
Allen Biaggi, Administrator, Division of Environmental Protection:
The grant program has been capitalized by the United States Environmental Protection Agency with an initial $2 million grant. The funds are provided as low-interest loans to interested communities. They are paid over 20- to 30‑year payments. Interest payments are then used as capitalization for additional grants. The program operation is similar to the State drinking water program revolving loan fund and the wastewater revolving loan program.
Chairman Rhoads:
The fiscal note says it will cost $19,000 for the first 2 years. Is this included in the Governor's budget or will it come from the General Fund?
Mr. Biaggi:
Neither. The money all comes from the federal grant, which is guaranteed yearly.
I will walk through the bill briefly. Sections 3 through 10 consist of definitions. Section 11 outlines the conditions under which the money can be loaned. Section 12 details the types of projects for which the money can be used. Section 13 specifies how much the State can pay for administration costs. Section 14 states the use of the money must be consistent with the Brownfields Restoration Act. The State determines which brownfields will receive the money. Section 15 defines ways in which the State can secure the money. Section 16 allows the agency to impose fees to pay for administration costs. Section 17 allows the agency to hire legal, fiscal, or engineering specialists as needed to carry out the provisions of the program. Section 18 allows the agency to set any regulations needed to carry out the program.
Chairman Rhoads:
What will the fees be?
Mr. Biaggi:
The fees have not yet been established. They may be based on the acreage.
Chairman Rhoads:
Will these funds be available for both public and private lands?
Mr. Biaggi:
Yes. Public, private, commercial, and governmental properties are all eligible. We have the federal funds in hand now and can begin this program as soon as the bill is passed. Any funds we do not hand out must be returned.
Chairman Rhoads:
How do communities apply for these funds?
Mr. Biaggi:
They submit an application to the Division of Environmental Protection. Some communities are already interested. Mineral County would like to turn a landfill into a golf course, and some mining sites near Ely are being evaluated.
Terry Graves, Lobbyist, Landwell and Basic Management Incorporated (BMI):
We support this bill. I would like to thank Senator Titus for taking the lead on brownfield legislation. Basic Management Incorporated has a major brownfield site in Henderson. I would also like to express our support for A.B. 485, which also has to do with brownfields. My thanks also to Mr. Kamalani for his fine presentation.
ASSEMBLY BILL 485: Revises provisions relating to relief from liability for certain persons regarding certain real property at which hazardous substance has been or may have been released. (BDR 40-776)
Mr. Graves:
“In the case of BMI and Landwell, they are paying for their own cleanup. This bill would not be of benefit to them, for the record.”
Chairman Rhoads:
I will close the hearing on A.B. 74 and open the hearing on A.B. 75.
ASSEMBLY BILL 75 (1st Reprint): Revises provisions governing certification of organic agricultural products. (BDR 51-566)
Don Henderson, Acting Director, Department of Agriculture:
This bill updates the existing Nevada Organic Certification Program and brings us into compliance with federal regulations adopted in 2002. I have prepared an overview of the bill detailing its provisions (Exhibit E). I also have some information about our existing program (Exhibit F).
Chairman Rhoads:
The fiscal note says the program will cost $3495 per year for the first 2 years and will make money after that. Is that because of more people paying fees?
Mr. Henderson:
I have a projected fee schedule for the program (Exhibit G). I will research your question and get back to you.
Chairman Rhoads:
How do organic farmers deal with pests or disease, just disk the crop under?
Margaret “Peggy” McKie, Agriculturist, Department of Agriculture:
No. They try to manage their crops so insects do not become an issue. There are also materials available to them for pest management. These include some traditional pesticides acceptable for organic production.
Mr. Henderson:
It is also possible to certify meat as organic. We do not currently have the credentials to do this, so livestock producers wishing to have their product certified organic must currently go outside the State for this service. When this program is up and running, we will be able to do it here.
Chairman Rhoads:
I will close the hearing on A.B. 75 and open the hearing on A.B. 193.
ASSEMBLY BILL 193 (1st Reprint): Revises provisions governing commercial fertilizers and agricultural minerals. (BDR 51-567)
Christopher J. Mason, Ph.D., Section Chief, Registration and Laboratory Services, State Department of Agriculture:
I have prepared written testimony (Exhibit H). This bill would make four changes to fertilizer law in Nevada. First, it would allow the director of the department to track sales of fertilizers that can be used as explosives. After the events of September 11, 2001, we were asked for details of fertilizer sales but were only able to supply total tonnage sold. We added a provision to collect fees to cover costs. We do not think this will be needed, as we will probably add a rider to restricted use pesticide dealer and nursery licenses to fund this program.
Second, the bill would give the director control over contaminants in fertilizers. Fertilizers may be contaminated with heavy metals such as cadmium or dioxins that may end up in crops or groundwater. California, Washington, Oregon, Idaho, and Montana have adopted standards to prevent contaminants in fertilizers.
Third, the bill establishes a penalty for selling fertilizers before they have been registered. Since there is currently no penalty, we have no incentive to offer for prompt submission of the required documentation.
Fourth, the bill simplifies the process of registering a fertilizer or agricultural mineral for sale in Nevada. It eliminates the requirement for duplicate applications and deletes the requirement for a sample of the material, thus saving considerable money in shipping, storage, and disposal costs. We will still have the authority to sample and analyze fertilizer products as necessary.
Chairman Rhoads:
What is an agricultural mineral?
Dr. Mason:
Fertilizers are products containing nitrogen, phosphorus, or potassium 5 percent or above. Everything else, including liming materials, sulfur, iron, manganese, and other minor nutrients, are agricultural minerals.
Chairman Rhoads:
Can agricultural minerals be used as explosives?
Dr. Mason:
Not as far as I know, although sulfur is a component of gunpowder. The material used in the Oklahoma City bombing was made up of ammonium nitrate and diesel. Other fertilizers were used in the first World Trade Center bombing.
Chairman Rhoads:
I will close the hearing on A.B. 193. There being no further business, the meeting is adjourned at 2:23 p.m.
RESPECTFULLY SUBMITTED:
Lynn Hendricks,
Committee Secretary
APPROVED BY:
Senator Dean A. Rhoads, Chairman
DATE: