MINUTES OF THE SENATE COMMITTEE ON NATURAL RESOURCES Sixty-eighth Session April 5, 1995 The Senate Committee on Natural Resources was called to order by Chairman Dean A. Rhoads, at 1:30 p.m., on Wednesday, April 5, 1995, in Room 224 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Senator Dean A. Rhoads, Chairman Senator Lawrence E. Jacobsen, Vice Chairman Senator Mark A. James Senator Mike McGinness Senator Ernest E. Adler Senator John B. (Jack) Regan Senator O. C. Lee GUEST LEGISLATORS PRESENT: Assemblyman Lynn C. Hettrick, Assembly District 39 STAFF MEMBERS PRESENT: Fred Welden, Chief Deputy Research Analyst, Legislative Counsel Bureau Billie Brinkman, Committee Secretary OTHERS PRESENT: Pamela B. Wilcox, Administrator & State Land Registrar, Division of State Lands James Nakada, Supervisor, Nevada Tahoe Conservation District Roderick G. Mier, Chief Administrative Officer, Tahoe Resource Conservation District, Nevada-Tahoe Conservation District Pamela Drum, Environmental Information Coordinator, Tahoe Regional Planning Agency Steve Teshara, Executive Director, Lake Tahoe Gaming Alliance Chairman Rhoads opened the hearing on Bill Draft Request (BDR) 51-1120. BILL DRAFT REQUEST 51-1120: Provides for regulation of persons who service weighing and measuring devices. SENATOR MCGINNESS MOVED FOR A COMMITTEE INTRODUCTION OF BDR 51-1120. SENATOR REGAN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS ADLER AND JAMES WERE ABSENT FOR THE VOTE.) ***** Chairman Rhoads opened the hearing on all the bills to be heard: Assembly Bill (A.B.) 11; Assembly Joint Resolution (A.J.R.) 1; Assembly Joint Resolution (A.J.R.) 2; Assembly Joint Resolution (A.J.R.) 3; Assembly Joint Resolution (A.J.R.) 4; Assembly Joint Resolution (A.J.R.) 5; Assembly Joint Resolution (A.J.R.) 6; and Assembly Joint Resolution (A.J.R.) 7. ASSEMBLY BILL 11: Requires administrator of division of state lands of state department of conservation and natural resources to offer for sale certain rights to develop real property in Lake Tahoe Basin. ASSEMBLY JOINT RESOLUTION 1: Urges Congress to expedite ratification of amendments to Tahoe Regional Planning compact made by State of California and adopted by Nevada Legislature. ASSEMBLY JOINT RESOLUTION 2: Urges Tahoe Regional Planning Agency to continue to simplify its operations and procedures and to encourage cooperation between persons interested in protecting environment of Lake Tahoe Basin. ASSEMBLY JOINT RESOLUTION 3: Urges Tahoe Regional Planning Agency to rank environmental threshold carrying capacities for Lake Tahoe Basin in their order of priority. ASSEMBLY JOINT RESOLUTION 4: Urges Tahoe Regional Planning Agency to assist in coordinating analysis of resources within Lake Tahoe Basin which are potentially finite in nature and to continue to review status of environmental threshold carrying capacities for Lake Tahoe Basin. ASSEMBLY JOINT RESOLUTION 5: Urges Tahoe Regional Planning Agency to continue to carry out its current plans and to expand further its efforts to emphasize implementation of those plans and other plans and projects which enhance environmental quality of Lake Tahoe Basin. ASSEMBLY JOINT RESOLUTION 6: Supports efforts of Tahoe Truckee Regional Economic Coalition to promote strong economy and enhance quality of life in Lake Tahoe Basin. ASSEMBLY JOINT RESOLUTION 7: Expresses support of Nevada Legislature for mission of Tahoe Basin Forest Health Consensus Group and urges congress and certain federal and state agencies to provide emergency assistance in accomplishment of that mission. Assemblyman Lynn C. Hettrick, Assembly District 39, testified by giving a brief overview in support of all the bills. Assemblyman Hettrick asserted that the bills were pretty straightforward and that they would likely pass without opposition. He followed his remarks with a letter from the League to Save Lake Tahoe (Exhibit C), which related to their support of these bills as well. Pamela B. Wilcox, Administrator & State Land Registrar, Division of State Lands, addressed A.B. 11. Ms. Wilcox explained that this was one of the bills that came as the result of the Tahoe Regional Planning Association (TRPA) oversight committee. In order to explain this bill, Ms. Wilcox referred to a bill that was passed last session, Nevada Revised Statutes (NRS) chapter 355. Accordingly, she informed the committee that that statute authorized the Division of State Lands to start a new program of acquiring property interests in the Tahoe Basin. Ms. Wilcox commented further, that the TRPA under certain circumstances can charge property owners a fee for excess coverage or mitigation fees. The TRPA collects the mitigation fees and passes them onto the state lands. The Division of State Lands then buys property and retires the coverage on that property in order to mitigate the excess coverage that the property owners have paid for. Ms. Wilcox further explained that A.B. 11 will address the issue of making development rights available to the public. That is, when the Division of State Lands buys the property through this mitigation program, they are then required to retire that coverage, which will in turn open the way for the public to purchase the development rights from the state lands. Chairman Rhoads asked, "How do you make it available to the public? Do you publish it?" Ms. Wilcox responded that they sell it the same way they sell all the trust land, competitively, at an auction or through sealed bids. She also made it clear that their agency gets an appraisal done on the property and follows the guidelines already established in the purchasing of state lands. Senator McGinness asked, "Where does that money go? Does it go to the General Fund?" Ms. Wilcox replied that the money they made in selling property goes back into their program and not into the General Fund. Chairman Rhoads then asked if Ms. Wilcox had any other comments on the other bills. Ms. Wilcox said, "We are certainly in favor of them all. [However,] there are only two that affect us directly. One is on the Forest Health Consensus, A.J.R.7 and [the other is] A.J.R. 3 which speaks to inter-agencies' cooperation. These are things everyone should be doing [and steps] that we have always been doing...[in order] to protect the basin." Chairman Rhoads then asked Ms. Wilcox if these types of resolutions from the Nevada State Legislature provide her agency with some guidance. Ms. Wilcox concurred that the resolutions would help her agency prioritize the various procedures and programs to protect the Tahoe Basin. Senator Regan asked Ms. Wilcox what the normal waiting period for a development permit would be at the lake. Ms. Wilcox explained that she would rather have the TRPA answer that and then stated, "that they are not in the development business at Lake Tahoe. Instead, they are in the business of retiring property... The TRPA only allows so many [permits] each year, because the allocations are in such short supply." Chairman Rhoads asked if there was anyone else that wanted to address A.B. 11. James Nakada, Supervisor, Nevada Tahoe Conservation District, informed the committee that he administers many of the programs that involve soil erosion, efforts to retain the clarity of the lake. Mr. Nakada was in favor of A.B. 11 as it provides the mechanism which will help them to receive some funds for their operations. He explained that the state of Nevada passed the statutes to create their agency, but did not provide the funds to operate with. Mr. Nakada said his agency has received aid from local governments and entities such as the TRPA and the forestry service, and have joined forces with California. Indeed, Mr. Nakada declared, that their Nevada offices are physically located in California, where they share personnel, rent, and other expenses. He reiterated that this bill would help the Nevada Tahoe Conservation District get the funding to operate in an efficient manner. Therefore, Mr. Nakada said, they are in favor of A.B. 11 and the other bills being heard today. Roderick G. Mier, Chief Administrative Officer, Tahoe Resource Conservation District, Nevada-Tahoe Conservation District, said that he could only echo Mr. Nakada's remarks and that he, too, is in support of A.B. 11 and all the other bills on the agenda. Chairman Rhoads asked Mr. Mier, "Is there any estimation as to how much money [the bill] would raise per year on this issue?" Mr. Mier declared that he did not have any idea. He suggested that the chairman refer that question to Ms. Wilcox. The chairman inquired of Ms. Wilcox if the sum of money that would be available would be in the range of $1,000-$10,000. Ms. Wilcox said, "We are holding $900,000 in TRPA mitigation fund money, [which] was collected over a number of years. That money was not transmitted to us until this program was set up this last session. I don't really know how much money is going to be available on a continuing basis, year to year..." Chairman Rhoads closed the hearing on A.B. 11 and opened the hearing on the A.J.R.'s with the aid of Fred Welden, Chief Deputy Research Analyst, Legislative Counsel Bureau. Mr. Welden was asked to give the information on the bills that the committee would be hearing in this meeting. Mr. Welden said: What I will do basically, if there aren't questions, is just hit each one of these to highlight the objective of each one and then you can go from there with the testimony. A.J.R. 1 urges Congress to ratify the amendments to the bi-state compact that the states of California and Nevada both approved in 1987. As Speaker Hettrick indicated, the major changes in those amendments are to the Nevada structure and the Nevada delegation on that board. It would provide one appointee of the Assembly and one appointee of the Senate. Chairman Rhoads asked, "Isn't there a bill in the Assembly that causes these [board members] to be elected?" Mr. Welden concurred that there is one in the Assembly Committee on Government Affairs that was heard which would provide all elected members. Chairman Rhoads then asked, "What year was the TRPA formed? Was that 1979? Or 1981?" Mr. Welden said, "It was actually formed in 1969. There were major amendments in 1980 with a special session." Mr. Welden continued to explain the objectives of the resolutions. The next four resolutions all deal with the TRPA and provide direction in areas of interest for the activities. In A.J.R. 2 the TRPA continues to simplify its operations and procedures and to work more into a cooperative program with the other agencies within the basin. That has been a general direction for the last several years. This would continue to urge them to simplify... A.J.R. 5 urges the agency to continue to carry out its current policy and to get more into the implementation ball game rather than emphasizing more planning and more planning... A.J.R. 6 supports the Tahoe-Truckee Regional Economic Coalition which is a group of agencies and private people who have been working to try to keep the economy sound in the basin, while also protecting the environment... A.J.R. 7 supports the Tahoe Basin Forest Health Consensus Group. It is another group of multiple public and private entities that are working together to try to address: 1) The dead and dying trees due to the beetle infestation and 2) The forest fire hazards up there that are based on the way the forest has been managed in the past... A.J.R. 3 and A.J.R. 4 deal with some of the technical planning aspects in the basin. In the basin, the bi-state contract requires the agency to establish what are called `environmental threshhold' carrying capacities. They are general standards which are goals to be met, and then the regional plan is designed to achieve those goals... The agency is urged to look at some finite resources in the basin; specifically, the amount of water and sewer capacity... The agency itself does not regulate either one of these, this would urge them to work with the people who do... Mr. Welden concluded his testimony by stating there have been five hearings on these types of matters and he believed the people in the audience could go into more detail when they address the committee. Senator Jacobsen asked to give some more information on A.J.R. 1. The senator developed a letter regarding the compact and hand carried it to the four-member congressional delegation (Exhibit D). Further, Senator Jacobsen called attention to the fact that there have been resolutions of this type every session which have been assigned and then re-assigned to a subcommittee, where they would be terminated in the subcommittee constitution. The senator stressed that there is more of an urgency to ratify the compact during this session and there appears to be a possibility of doing so. Pam Drum, Environmental Information Coordinator, Tahoe Regional Planning Agency, said that her agency looks forward to an ongoing and more steady-type of legislative representation on the TRPA governing board which would result from congressional approval of A.J.R. 1. Ms. Drum explained that A.J.R. 2 urges the TRPA to continue on the track that they have started on, that is to "simplify and streamline" their operations. She then responded to Senator Regan's earlier question with regard to the permit process. Ms. Drum in essence said that they are able to get a permit out in 3-4 weeks; for more complex projects it will take longer, and the season is another factor in issuing the permits. Ms. Drum noted that they are signing agreements with the local governments, especially on the California side, so that eventually, the TRPA would get out of the business of reviewing residential applications. Senator James asked, "Why are you wanting to get out of the business of reviewing residential applications at the TRPA?" Ms. Drum said that the TRPA has evaluated the residential impact on the environment and has been working with local building departments. The local departments will essentially issue a permit on behalf of TRPA. The personnel in those building departments will be trained by TRPA with respect to all the TRPA ordinances. Senator James further questioned Ms. Drum, "Then, you continue to look at the development of the basin in an overall way, which includes the evaluation of whether we need any more residential development?" Ms. Drum concurred that this is so and furthermore she explained that the TRPA has been urged for years to take more of a regional approach to what they do. However, she said they do need to "keep a handle" on the accumulative impact of all the residential developments, as that is TRPA's responsibility. Ms. Drum mentioned again the other resolutions which would help the TRPA do less planning and more implementation of plans and projects in the basin. She stressed that protecting Lake Tahoe is the most important thing to do for the various economic reasons which include gaming, skiing, and other activities around and on the lake. There was general discussion with regard to watershed and the mortality of the timber in the basin. Chairman Rhoads asked if the TRPA would be allowing any logging to discard the dead trees in the forest, to which Ms. Drum affirmed that this is indeed in their plans. She explained that part of the high mortality of the trees is a result of not enough diversity in trees and the fact that they are so close together, which makes them susceptible to drought and disease. The TRPA allows forest management and timber harvesting already. Senator Jacobsen made the comment that during the oversight committee meetings they had some pictures and he encouraged the committee to take a helicopter flight over the Lake Tahoe Basin, to give them an insight into how the logging has proceeded and so forth. Ms. Drum agreed to provide the committee with photographs, escort them on a tour of the basin and give any other visual aids that would show them the mortality of the timber in the basin and other environmental impacts. Senator Adler and Ms. Drum continued to discuss the problems of logging the dead trees. They both reiterated the need to continue the logging but with great care and with the permits either from the forestry services or the TRPA who can then monitor the environmental and economic impact. Steve Teshara, Executive Director, Lake Tahoe Gaming Alliance, said they support all resolutions that are before the committee. Mr. Teshara asserted that the most recent oversight committee seemed to be the most efficient. It appeared that there was a clear desire among the group to bring a consensus forward; so that when the package was brought to the Legislature it had a lot of public input and testimony. Mr. Teshara reiterated comments similar to those of the other witnesses with regard to planning, implementation, forest health, and so forth. He said he was encouraged that there is more and more the aura of cooperation around the basin. Mr. Teshara then gave to the committee a handout referring to the economic conference from the Tahoe Truckee Regional Economic Coalition (Exhibit E). He testified they are seeking through various entities "ways to improve the economy, environment and quality of life through specific action plans." Mr. Welden informed the committee that there were two elements of this package that are not in this committee that will be going to the Senate Finance Committee. He said, "The one is a proposal for a $20 million bond to do erosion control projects and would be before the public statewide, that is part of the implementation aspect of it. The other is a special appropriation that would help to fund the partnership approach that has been discussed here." Chairman Rhoads closed the hearings on A.J.R. 1 through A.J.R. 7. SENATOR REGAN MOVED TO DO PASS A.J.R. 1, A.J.R. 2, A.J.R 3, A.J.R. 4, A.J.R. 5, A.J.R. 6, AND A.J.R. 7. SENATOR LEE SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** SENATOR MCGINNESS MOVED TO DO PASS A.B. 11. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Chairman Rhoads added that he had received two letters (Exhibit F and Exhibit G) from Noel E. Manoukian, who supports A.J.R. 6 and A.J.R. 3. He has requested that the letters be included for the record. Chairman Rhoads adjourned the meeting at 2:50 p.m. RESPECTFULLY SUBMITTED: Kathy E. Cole, Committee Secretary APPROVED BY: Senator Dean A. Rhoads, Chairman DATE: Senate Committee on Natural Resources April 5, 1995 Page