Senate Natural Resources and Rural Affairs and House Environment Committee of Reference

ARIZONA STATE LEGISLATURE

SENATE NATURAL RESOURCES AND RURAL AFFAIRS AND HOUSE ENVIRONMENT COMMITTEE OF REFERENCE

SUNSET HEARING OF ARIZONA DEPARTMENT OF ENVIRONMENTAL QUALITY

Minutes of the Meeting

Wednesday, November 12, 2008

9:00 a.m., Senate Hearing Room 1

Members Present:

Senator Chuck Gray, CoChair	Representative Ray Barnes, CoChair
Senator Amanda Aguirre	Representative Martha Garcia
Senator Sylvia Allen Senator Robert Blendu	Representative Barbara McGuire Representative Michele Reagan
Members Absent: Senator Marsha Arzberger	Representative Bob Robson

Staff:

Jake Agron, Senate Assistant Research Analyst

Cochairman Gray called the meeting to order at 9:12 a.m. and attendance was noted.

OPENING REMARKS

Jake Agron, Senate Assistant Research Analyst, gave an overview and explained the charge of the Committee of Reference.

Senator Chuck Gray explained that the Committee would be doing an audit on the Arizona Department of Environmental Quality (ADEQ) in lieu of a report from the Auditor General.

Jake Agron answered questions posed by the Committee.

OVERVIEW OF THE DEPARTMENT

Steve Owens, Director, Arizona Department of Environmental Quality, gave testimony including an overview of the ADEQ, and the Western Climate Initiative. He submitted a handout containing letters of support for the continuation of ADEQ (Attachment A) and answered questions posed by the Committee.

Ed Fox, Vice President, Arizona Public Service (APS), gave testimony in support of the continuation of ADEQ and answered questions posed by the Committee.

Molly Greene, Salt River Project (SRP), gave testimony in support of the continuation of ADEQ.

Philip Dion, Tucson Electric Power, gave testimony in support of the continuation of ADEQ and answered questions posed by the Committee.

Todd Sanders, Greater Phoenix Chamber of Commerce, gave testimony in support of the continuation of ADEQ and answered questions posed by the Committee.

RECESS

Senator Gray recessed the meeting at 11:55 a.m.

RECONVENED

Senator Gray reconvened the meeting at 1:07 p.m.

OVERVIEW OF THE DEPARTMENT

Roger Ferland, Quarles and Brady LLP, gave a summary on the Western Climate Initiative and answered questions posed by the Committee.

Ken Behringer, Arizona Legislative Council, gave an overview of the Western Climate Initiative and answered questions posed by the Committee. He submitted a memo addressed to Senator Chuck Gray regarding the authorization of the Western Climate Initiative (Attachment B) and a memo addressed to Senator Thayer Verschoor regarding the Department of Environmental Quality Settlement Agreement (Attachment C).

PUBLIC TESTIMONY

Robert S. Lynch, Irrigation and Electrical Districts Association, gave public testimony.

OVERVIEW OF THE DEPARTMENT

Steve Owens discussed Supplemental Environmental Projects (SEP) with the Committee and answered questions posed by the Committee.

Patrick Cunningham, Deputy Director, ADEQ, answered questions posed by the Committee.

Jim Vieregg, Abrams Airborne Manufacturing, gave testimony in support of the continuation of ADEQ.

Harold Roberts, Denison Mines, gave testimony stating that he was disappointed in ADEQ for reasons of personal business dealings between the two entities and answered questions posed by the Committee.

Steve Owens answered questions posed by the Committee in regard to the business relationship between ADEQ and Denison Mines.

Joan Carter, Director of Water Quality, ADEQ, answered questions posed by the Committee.

There being no further business, the meeting was adjourned at 4:25 p.m.

Respectfully submitted,

Jeff Turner

Committee Secretary

(Audio recordings and attachments on file in the Secretary of Senate’s Office/Resource Center, Room 115).

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Senate NRRA and House Environment

Committee of Reference

November 12, 2008

Page 1

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