H.B. 157 Department of Natural Resources Amendments: transcript

Thank you Mr. Chair. And committee. Uh, this bill is basically, uh, has had a few iterations. As you can see, I'm beginning to be talking to the third sub. And, um, So, uh, this is the DNR cleanup bill. And that's the reason there's three subs is 'cause the time we got it ready. They, we had some changes. So I'm gonna go through some things here and I've gotta Helper here that's gonna, uh, clear up any lies that I tell you. So, um, so basically, um, what this bill does, it, it adds, uh, a groundwater, uh, or water resources seat to the USGS board, uh, adds language to allow, uh, the division of natural resources to fund ongoing litigation expenses Concerning the state's water interests. There's a $5 million for physical 2027. And this is mainly to, uh, litigate our Colorado River, uh, issues. It's really, really critical to our state. Uh, so, uh, there is also rulemaking authority can be, uh, enacted outside in an advisory board. Uh, the division of law enforcement work, period. It's, it's, uh, squares away and, and lines. DNR law enforcement, along with the rest of law enforcement in our state for 80 hours in a two week period, or 160 in a four week period, uh, allows electronic, uh, uh, uh, recording of records. They can be either in physical, uh, or electronic records. And those are always available to the public. Uh, it also on secondary water metering, it removes the $10 million cap on low interest loans. Uh, because since 2019 there's been a lot more than 10 million in in those. And so that kind of lines up 'cause we've actually approved more than $90 million in low interest loans, uh, mainly. And also that an additional 265 million in ARPA grants. So there's been a lot of secondary meters, uh, installed. Uh, so it also adds, uh, a member of the UGS board, uh, to include another member with, uh, knowledge about groundwater and water resources. Um, so, um, that repeals, uh, a section specifying sources for the watershed restoration. If IT initiative, this will improve the program's ability to leverage funds, funds from partner sources. And, uh, also there's an alternative energy development tax credit that, uh, which provides a post performance tax credit for companies constructing major energy facilities. The credit was partially removed last year due to its lack of use. However, the credit still exists as a shell and is recommended to be removed. So that's the bill.

Nathan Schach, deputy Director with the Department of Natural Resources. Just, uh, appreciate Representative Shipp and his willingness to work with us. We, we try to do, uh, review our, we ask our agencies to review code, um, every year and identify opportunities to streamline our processes and, and become better, uh, better stewards of, of the state's natural resources. And we appreciate his help this year. Thank you. Does that conclude your presentation? Yes, Mr. Chair. Okay.

Oh, I, I didn't push my button. No, it must be From before. I apologize.

Well, let me ask one question, Mr. Vice-Chair. The, the, um, I'm probably outta order, but I'm going to take executive privilege here. The fiscal note shows $5 million for, uh, water. Could that be possible? Litigation for water lawsuits?

Yes. Uh, Mr. Chair, that, uh, 5 million goes into DNR for water litigation, primarily the Colorado River, but it could be used for other litigation as well, if needed.

Oh, okay. Well, I didn't, no. Okay. Thank you Mr. Chair. I, I, I'd like, I think I need to motion for the third sub. Okay. I'd like to, um, make a motion that, that we move the third sub for house bill 1 57.

I'll waive. Alright. I'll place the motion that we adopt sub number three to HB 1 57.

Thank you. I'd like to make a motion that we move out, uh, third sub house bill 1 57 with a favorable recommendation.

It's a good bill. It's a good bill.

Thank you, Mr. Chair. Pleasure to be here with your committee today. Uh, this is basically the DNR annual cleanup bill. Uh, I'm gonna go through, uh, item by item as to what's changing. Uh, so this, uh, bill clarifies that rule making authority can be enacted outside of an advisory board. Uh, like, well, some divisions like the division, the DWR have a board that includes rule making authority. Other divisions like state parks and outdoor rec do not. Uh, and so this allows that it updates language, uh, right regarding the work period for DNR law enforcement so that it matches with all other law enforcement. Basically, an 80 hour or two in a two week period, or 160 in a four week period allows the state engineer to maintain its official records in either a physical or electronic format. Um, both physical and electronic maps and documents are public record, uh, adds some clarifying language for applications that require a mineral lease or royalty contract, and gives direction to the state engineer if the appli, if the applicant defaults. It adds language to allow DNR to fund ongoing litigation expenses. As we just talked about with Representative Chew Bill, we need to be prepared on litigation, and it allocates $5 million to the DNR, uh, that we're gonna need for, whether it's Colorado River Litigation or other water litigation as well. Uh, removes the $10 million cap on low interest loans for secondary water metering, uh, to align with the current program. And since 2019, we've actually spent, uh, over $90 million in, uh, low interest loans for secondary meter. And that's not including the 265 million that came through ARPA grants. So, uh, we're removing the cap there. Uh, we have added a groundwater or water resources seat on the UUGS board so that we have somebody that has, uh, expertise and groundwater. Uh, and by recommendation from appropriations, it repeals the section specifying funding sources for the watershed restoration initiative. This will improve the program's ability to leverage funds from partner uh, sources. And then lastly, it repeals the Alternative Energy Development Tax Credit Act enacted in 2012, which provided a post performance tax credit for companies constructing major energy facilities. This credit was partially removed last year and HB 2 64 due to its lack of use. However, the credit still exists as a shell and is recommended for removal. So, Mr. Chair, that's basically what it does. I don't know if my co-presenter has anything to add to that and I'll turn some time to him. Great, Mr. Chair. Thank you.

Nathan Schach, deputy Director Department of Natural Resources, just want to publicly express appreciation to Representative Shipp for, for running this cleanup. Bills are, uh, sometimes challenging, uh, due to the number of technical, uh, changes and things that, that come of those, but we're appreciative to him and just to acknowledge, we ask each of our agencies to do this on an annual basis to review code so that we can be as efficient, uh, as possible in how we we represent the public. So appreciate your, your support. Great End with that. We're open to any questions. Perfect.

Thank you Chair. Uh, thank you. Sponsor. Representative Shipp is there, you, you mentioned the rule making authority granted herein, right? Is there, uh, coordination, reporting the legislature when those rules are made? Well, as, as if I claim Mr. Chair, uh, all I know okay. Is the fact that we are allowing other divisions to have rule making authority, uh, DNR, similar to the DWR as rule making authority when it comes to our legislation that we, uh, pass, uh, then we turn over the rulemaking authority to those departments.

And so this allows like state parks and, and outdoor rec to do, uh, rulemaking. So Thank you. We have several layers of, uh, checks and balances in that, that space. Certainly there's the annual approval of all the rules and, but sometimes there's a, there's a specific, uh, when we legislate specific and ask for rules, ask for the rep the report to come back. But I guess we're not asking for any specific, Uh, Implementation of a rule based on the legislation. It's given the authority to do that.

Is that correct? At this Point? That's correct. Exactly.

I have to also yes, emphasize that, that, uh, it's not just carte blanche, uh, approval that there is a, a layer requirements and, um, transparency on those rules as well. So thank you for that. Clarifying that. Okay.

Thank you. Uh, Mr. Chairman, I would make a motion that we pass out, uh, third substitute house bill 1 57 with favorable recommendation.

I'll waive, I'll waive. Waive waive, Senator.

Thank you Chair and committee. Okay.

Third substitute house bill 1 57. Department of Natural Resources Amendments by Representative Shipp. This bill was sort of natural resources, agriculture and environment with a vote of 9 0 5.

Yeah. Thank you Mr. Speaker Pro Tem. This is the Department of Natural Resources cleanup. Bill, basically, and I want to go through and tell you briefly what's being changed. Uh, probably the most important part is this Bill allocates. There's a $5 million note on it, which is there for, uh, water litigation. Uh, we have some issues, colleagues going on with the Colorado, Colorado River Compact. This has given DNR the money that's probably gonna be needed for, uh, litigation there and maybe other water issues that they're dealing with. Uh, also it, uh, clarifies rulemaking authority can be enacted outside of an advisory board. Uh, uh, like for the state parks and outdoor recreation, uh, law enforcement. Uh, it updates the language regarding, uh, the work period for, uh, DNR law enforcement. Uh, that matches up with the rest of, uh, our law enforcement folks where they have an 80 hour, 80 hours in a two week period, or 160, uh, in a four week period allows the state engineer to maintain records both electronically and in physical form. Uh, and they're, uh, always available, uh, for public, uh, use. Uh, it removes the $10 million cap on low interest loans for secondary water metering. Uh, since 2019, the state has actually, uh, paid out considerably more than 10 million. They've actually paid out more than $90 million for low interest rate loans for water metering. In addition, there's been 265 million that's been paid through ARPA funds as well. Uh, it, uh, changes the UGS board makeup slightly. It adds, uh, one member that's knowledgeable about groundwater and water resources, uh, and also clarifies that groundwater and surface water studies are conducted at the request of a state or local agency with UGS. So with that, Mr. Speak, Mr. Speaker ProAm, I'm open to any questions.

I think we're good. This we, we had a good committee discussion on this and we adopted a committee and I think we're we're good. So, uh, Mr. President pro Tem? Yes. This is, uh, the annual cleanup bill for the Department of Natural Resources. I'd be glad to answer any questions.

I'll waive summation. Move it be Read this bill be read for the third time.

Senator Vickers Baldy Aye. Lewin Aye. Bramer Aye. Thus comore. Ms. Camilla Fillmore Aye. Grover Aye. Harper Aye. Hankins Aye. Ipson Aye. Johnson Aye. Juab Aye. McKay, Mikel. Aye. Milner Musselman Owens Mitch pitch Aye. Plum Rebi Sandal Stevenson Stratton Vickers Weiler Aye. Wilson Aye. Winterton Aye. President Adams Aye.

Third subject to house Bill 1 57. Having received 22 yay votes, zero na votes, seven being absent will be read for a third time.

Motion to table on third motions to table on third, third subject to house Bill 1 57 for fiscal impact.

Motion to encircle. Um, first substitute 3 24. Motion is to encircle house bill. No, this is, sorry. Senate bill. Mr. President Pro. Yes. Senate Bill 3 24. Outcome based investment grant. Pilot program Motion is on circle house Bill 3 24. Outcome based. And this is on second, correct?