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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-first Legislature – First Regular Session
AND NATURAL RESOURCES
Minutes of Meeting
House Hearing Room 4 -- 2:00 p.m.
Chairman Pratt called the meeting to order at 2:26 p.m. and attendance was noted by the secretary.
|
Mr. Hale |
Mr. Saldate |
Ms. Fann, Vice-Chairman |
|
Mr. Orr |
Mr. Shope |
Mr. Pratt, Chairman |
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Ms. Peshlakai |
Mr. Thorpe |
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None |
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|
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HB2115 – HELD |
HB2584 – DISCUSSED AND HELD |
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HB2181 – DPA S/E (8-0-0-0) |
HB2594 – DP (8-0-0-0) |
|
HB2296 – DP (8-0-0-0) |
HCM2003 – HELD AT SPONSOR'S REQUEST |
CONSIDERATION OF BILLS
HB2115 - technical correction; delegation agreements; emergency - HELD
Chairman Pratt announced that HB2115 will be held.
HCM2003 - copper mining; support - HELD AT SPONSOR'S REQUEST
Chairman Pratt announced that, at the sponsor's request, HCM2003 will be held.
HB2181 - technical correction; highway user revenues - DO PASS AMENDED S/E
S/E: state parks department; continuation
Vice-Chairman Fann moved that HB2181 do pass.
Nicole Ealy, Majority Intern, explained that the proposed strike-everything amendment to HB2181 continues the Arizona State Parks Board for ten years (Attachment 1).
Vice-Chairman Fann moved that the Fann 21-line strike-everything amendment to HB2181 dated 02/07/2013 (Attachment 2) be adopted.
Vice-Chairman Fann, sponsor, deferred to Bryan Martyn to discuss the legislation.
Vice-Chairman Fann announced the names of those who signed up in support of HB2181 but did not speak:
Peter Bengtson, representing self
Nick Simonetta, Government Affairs Consultant, Arizona Off-Highway Vehicle Coalition
Sandy Bahr, Conservation Director, Sierra Club - Grand Canyon Chapter
Simone Westbrook-Hall, Associate Director of State Government Affairs, Nature Conservancy
Eric Emmert, Arizona Association for Economic Development
Cristie Statler, Executive Director, Arizona State Parks Foundation
Bryan Martyn, Director, Arizona State Parks, testified as neutral on the legislation. He stressed the significance of the ten-year continuation.
Question was called on the motion that the Fann 21-line strike-everything amendment to HB2181 dated 02/07/2013 (Attachment 2) be adopted. The motion carried.
Vice-Chairman Fann moved that HB2181 as amended do pass. The motion carried by a roll call vote of 8-0-0-0 (Attachment 3).
HB2296 - underground storage tank program - DO PASS
Vice-Chairman Fann moved that HB2296 do pass.
Gina Kash, House Majority Research Analyst, explained that HB2296 makes changes to the Underground Storage Tank Program (Attachment 4).
Henry Darwin, Director, Arizona Department of Environmental Quality (ADEQ), registered as neutral on HB2296. He explained that the Legislature phased out the state assurance fund (SAF) for underground storage tanks in 2004, which had provided reimbursement for an owner operator who repaired and cleaned up tank leaks. Subsequent to 2004, the Legislature established the regulated substance fund (RSF) to receive and administer the previously-SAF monies. Mr. Darwin stated that federal and state law requires owner operators to obtain insurance for cleanup. He added that ADEQ is not convinced that private insurance is unavailable or that the state should be providing this insurance coverage.
Discussion ensued. In response to questions, Mr. Darwin stated that there is no average cost to clean up one tank because the extent of the release and the contamination of surrounding soil and groundwater determine that; costs can run from the thousands into the millions. Mr. Darwin stated that there are 408 "orphan" tanks and that most tanks are now made of fiberglass which may be affected by today's ethanol blend of gasoline.
Tom Dorn, Arizona Petroleum Marketers Association, testified in favor of HB2296. He explained that three criteria must be met for claims to the new RSF:
· only responsible owner operators may apply
· applicants must have a financial mechanism in place for payment
· applicants must first pay a ten percent deductible
He reminded the Members that gas stations are often the large businesses in rural Arizona and small towns.
John Kennedy, Arizona Petroleum Marketers Association, explained his support for HB2296. He informed the Members that many insurance companies available to owner operators do not have good financial ratings and that a major company withdrew from the market recently. Mr. Kennedy confirmed that there is a potential issue with degradation of the resins in the fiberglass storage tanks.
Jon Trejo, Arizona Petroleum
Marketers Association, appeared in support of HB2296. He addressed Mr.
Saldate's question about using modern technology to detect tank releases,
explaining that 0.2 gallon per hour is a small release amount but accumulates
over time to
100 gallons per month, however the release is not detectable.
Vice-Chairman Fann announced the names of those who signed up as neutral on HB2296 but did not speak:
Jim Buster, Legislative Liaison, Arizona Department of Environmental Quality
Vice-Chairman Fann announced the names of those who signed up in support of HB2296 but did not speak:
Bill Champlin, Arizona Petroleum Marketers Association
Lyn White, Manager, Government Relations, Arizona Mining Association
Bas Aja, Arizona Cattlemen's Association
Heather Bernacki Wilkey, Arizona Petroleum Marketers Association
Eric Savage, Arizona Petroleum Marketers Association
Susie Stevens, Western States Petroleum Association
Sally Voyles, Arizona Petroleum Marketers Association
Terry Trendler, Arizona Petroleum Marketers Association
Robert Kec, Arizona Petroleum Marketers Association
Question was called on the motion that HB2296 do pass. The motion carried by a roll call vote of 8-0-0-0 (Attachment 5).
HB2594 - local transportation assistance fund; restoration - DO PASS
Vice-Chairman Fann moved that HB2594 do pass.
Gina Kash, House Majority Research Analyst, explained that HB2594 re-establishes the County Assistance Fund, the Local Transportation Assistance Fund, the Local Transportation Assistance Fund for Mass Transit and the Arizona State Parks Board Heritage Fund (Attachment 6).
Mr. Orr, sponsor, explained that HB2594 addresses a fairness issue for counties other than Maricopa and Pima as well as priorities in investments, particularly in light of the statements from the Director of the State Parks regarding moving to a business-based model. HB2594 will help to restore dollars from legislative sweeps.
William Schwind, Community Services Director, Arizona Parks and Recreation Association, appeared in support of HB2594 and stated that the Heritage Fund, managed by the State Parks, is a business model that should be looked at in today's economy and has grassroots support.
Janice Miano, Arizona Heritage Alliance, expressed her support for the legislation and distributed information with facts and figures (Attachment 7) for the Members' review. She stressed that this bill will restore the Heritage Fund.
Sandy Bahr, Conservation Director, Sierra Club - Grand Canyon Chapter, stated her support for the Heritage Fund which helps every district in the state, not just in Maricopa County.
Robert Jackson, Mayor, City of Casa Grande, appeared to support HB2594, stating that the Local Transportation Assistance Fund has been used for street maintenance purposes. He expressed his enthusiasm for the Heritage Fund as well, which provides an opportunity to address quality of life issues for his community.
Thomas Hulen, representing self, expressed his support for HB2594 which will redistribute funds to rural areas.
Serena Unrein, Interim Executive Director, Arizona Public Interest Research Group, told of her group's support for HB2594 which will protect consumers. She reminded Members that Local Transportation Assistance Fund dollars intended for local government were swept by the Legislature in Arizona's worst budget years; this legislation will replace those funds and improve the quality of life for Arizona's consumers.
Vice-Chairman Fann announced the names of those who signed up in support of HB2594 but did not speak:
Diane Joens, City of Cottonwood
Becky Hill, Arizona Transit Association
Peter Bengtson, representing self
Marcus Osborn, Public Affairs Specialist, Town of Queen Creek
William Thornton, Arizona Heritage Alliance
Jennifer Martin, Arizona Heritage Alliance
Jim McPherson, President, Arizona Preservation Foundation
Todd Madeksza, Director of Legislative Affairs, County Supervisors Association
Gilbert Lopez, City of Coolidge
Rene Guillen, Legislative Associate, League of Arizona Cities and Towns
Heather Bernacki Wilkey, Director, Government Affairs, Yuma County
Amanda Rusing, Government Affairs Associate, Yuma County
Brent Stoddard, Director of Intergovernmental Programs, City of Glendale
Matthew Busby, Assistant to the City Manager, City of Apache Junction
Greg Ferguson, Yuma County Board of Supervisors
Ruth Osuna, City Manager, City of Eloy
Kevin Adam, Rural Transportation Advocacy Council
Amanda McGennis, Vice President, Arizona Chapter, Associated General Contractors
Question was called on the motion that HB2594 do pass. The motion carried by a roll call vote of 8-0-0-0 (Attachment 8).
HB2584 - renewable energy and conservation districts - DISCUSSED AND HELD
Chairman Pratt announced that HB2584 will have an informational hearing only; no vote will be taken.
Aaron Wonders, House Majority Assistant Research Analyst, explained that HB2584 establishes renewable energy improvement districts (Attachment 9).
Representative Andrew Sherwood, sponsor, explained that the intention of this bill is to create a financing mechanism between cities, real property owners, and their lenders. It will add value to both rural and urban communities and create jobs. He added that this bill is for commercial properties, not residential, that will reduce utility overhead substantially. There is no impact to the general fund.
Mr. Orr, sponsor, stressed that this is a bipartisan effort and that he and Representative Sherwood have met with industry representatives in stakeholders meetings.
Michael Neary, Executive Director, Arizona Solar Energy Industries Association, appeared in support of HB2584 which will keep energy dollars in the state. He stated that currently billions of dollars go out of state: for every dollar that goes out, only $0.32 benefits Arizona. If that dollar is spent in Arizona, the state receives benefits of $1.60. HB2584 will provide an opportunity for banks to write more loans and do more business.
Scott Young, Principal, SKY Construction and Engineering, explained his support for HB2584 which will allow private investment in real property and drive the economy by creating jobs and increasing property value which will increase tax revenues.
Lee Feliciano, Kyocera Solar, stated his support for the legislation which will enable small business owners to use their property as capital because most solar projects are financed. It will also address the current issue that only the largest customers are able to secure financing.
Sheridan Bailey, President, Ironco Enterprises, appeared in support of HB2584 which provides an economic opportunity to his construction company of installing solar systems.
Shields Fair, representing self, expressed his support for HB2584, stating that it is a very good bill and that he has four clients who can take advantage of the program right now (Attachment 10).
Jay Kaprosy, Senior Government Relations Advisor, Arizona Bankers Association, explained his opposition to HB2584. He described bankers' concerns with the structure of the taxing districts which will allow commercial parcels to opt in; no residential parcel can opt in. He stated that he has no concern about solar projects per se, but spoke to the problem of the superior lien status required of solar projects.
Mr. Shope announced the names of those who signed up in support of HB2584 but did not speak:
Lucy Mason, former Representative, representing self
Ronald Roedel, representing self
Peter Bengtson, representing self
Amanda Ormond, Interwest Energy Alliance
Sandy Bahr, Conservation Director, Sierra Club - Grand Canyon Chapter
Mark Holohan, Wilson Electric
Doug Cole, Tucson Mayor Jonathan Rothschild
Dana Paschke, Solar Energy Industries Association
Dale Wiebusch, League of Arizona Cities and Towns
Joni Bosh, representing self
Nancy LaPlaca, representing self
Doug Bland, Executive Director, Arizona Interfaith Power NS Light
James Candland, Ameresco
Warde Nichols, Ameresco
Jennifer Martin, Arizona Interfaith Power & Light
Mr. Shope announced the names of those who signed up in opposition to HB2584 but did not speak:
Spencer Kamps, Home Builders Association of Central Arizona
Wendy Briggs, Arizona Bankers Association
Todd Landfried, Southwest Policy Advisors, expressed his support for HB2584. He stated that 31 banks in other states participate in this type of program (Attachment 11, page 3). He stressed that delaying this bill will result in an October 1, 2014 start date that will delay 50,000 related construction jobs. He also stressed the importance of the lender consent clause.
In answer to Mr. Saldate's question, Mr. Landfried explained that the commercial focus will allow residential, but only multi-tenant properties with more than five units.
Without objection, the meeting adjourned at 3:56 p.m.
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Jane Dooley, Committee Secretary
March 8, 2013
(Original minutes, attachments and audio on file in the Office of the Chief Clerk; video archives available at http://www.azleg.gov)
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COMMITTEE ON ENERGY, ENVIRONMENT
AND NATURAL RESOURCES
2
February 18, 2013
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