Committee Meeting Information

May 25, 2006

Wyoming Oil and Gas Conservation Commission Building

Casper, Wyoming

 

Committee Members Present

Senator Bill Hawks, Co-Chairman

Representative Thomas A. Lockhart, Co-Chairman

Senator Kit Jennings

Senator Charles Townsend

Senator Bill Vasey

Representative Bob Brechtel

Representative Floyd Esquibel

Representative Debbie Hammons

Representative Elaine Harvey

Representative Becket Hinckley

Representative Erin Mercer

 

Committee Members Absent

Senator Hank Coe

Representative Lorraine Quarberg

Representative Doug Samuelson

 

Legislative Service Office Staff

Maxine Weaver, Staff Attorney

 

Others Present at Meeting

Please refer to Appendix 1 to review the Committee Sign-in Sheet
for a list of other individuals who attended the meeting.

 

Call To Order

Co-Chairman Lockhart called the meeting to order at 8:00 a.m.  The following sections summarize the Committee proceedings by topic.  Please refer to Appendix 2 to review the Committee Meeting Agenda.

 

Review Incentives to Compete for New Power Plants and New Fuels Development

New Projects/New Technologies

Bryan Hassler, Executive Director of the Wyoming Pipeline Authority (WPA), updated the Committee on current prices, trends and proposed pipelines, including tying Opal into the Kinder Morgan line [Appendix 3].  Mr. Hassler informed the Committee he has been appointed by Governor Freudenthal to an interstate compact task force to further investigate the supply issues and said he would keep this Committee informed of the work from the task force.

 

Steve Waddington, Executive Director of the Wyoming Infrastructure Authority (WIA), discussed various proposals, partnerships, bonding capacities and advanced generation technology [Appendix 4].  He further stated the WIA will be seeking support for a western demonstration plant and provided a copy of Colorado legislation promoting an integrated gasification combined cycle generation facility [Appendix 5].

 

Marion Loomis, Executive Director of the Wyoming Mining Association, provided a summary on the coal plants in Wyoming [Appendices 6 and 7] and asked the Committee to expand the sales tax exemption, expand the bonding authority to power plants, provide incentives for coal to liquid plants, allow recovery costs for plants using new clean coal technologies, use business ready community grants to help infrastructure around new energy plants and train a workforce.

 

Rob Hurless, Energy and Telecommunications Policy Advisor for Governor Freudenthal and on the Wyoming Clean Coal Working Group, presented an update on generation facilities, enhanced oil recovery and sequestration.  He encouraged the Committee to look at the Integrated Resource Plan (IRP) process. 

 

Continuity of existing industrial facilities

Bruce Hinchey, President of the Petroleum Association of Wyoming, addressed issues regarding surface ownership, mineral ownership, federal decisions, permitting requirements, natural gas reserves and restrictions, refining capacity in Wyoming, challenges in the industry, sustainability, split estates and eminent domain [Appendix 8].

 

Rick Kaysen, President of Cheyenne Light, Fuel and Power, a subsidiary of Black Hills Corporation, provided historical and current information, including current capacity, at Wyoming power plants [Appendix 9]. 

 

Bill Stafford with Basin Electric, discussed the operations of the Laramie River Station, problems in getting coal delivered to the plant and water shortage problems the plant is encountering due to the drought. 

 

Bob Tarantola with PacifiCorp, testified regarding the coal fired power plants operated by PacifiCorp in Wyoming [Appendix 10] and issues facing the plants in upgrading or retrofitting existing plants to meet more stringent air-quality standards.  He recommended extending the sales and use tax exemption provided to renewable, coal gasification and coal liquefaction to pollution-control equipment and amending sales tax exemptions to include power plants as manufacturing facilities.

 

Fred Parady with OCI Wyoming, presented concerns regarding the soda ash industry to the Committee and discussed the need for workforce training and recruitment [Appendix 11]. 

 

Marion Loomis provided an overview of Wyoming's mining industry, including coal, uranium and gold [Appendix 12].

 

Tom Johnson, President of Big Horn Basin Ethanol, discussed the development of the ethanol plant in the Big Horn Basin, including preconstruction issues, employment, training and the impact on agriculture [Appendix 13].

 

Tom Thorson, President of Black Hills Bentonite, explained the current status of the bentonite industry and asked the Committee to see if anything can be done to expedite the permitting amendment process when expanding into areas next to existing permitted areas.

 

Workforce training and development; workforce housing infrastructure

Training/Education

Dr. James McBride, State Superintendent of Public Instruction, provided information on statewide vocational training and career training [Appendix 14].

 

Dr. Jim Rose, Executive Director of Wyoming Community College Commission, presented materials on activities the community colleges are conducting to meet specific skills and workforce development needs in Wyoming [Appendix 15].

 

Sandy Barton, Executive Director of the Fremont County Board Of Cooperative Education Services (BOCES), addressed existing and proposed training and education for Wyoming's workforce and discussed the proposed Job Corps. Center being developed for Riverton [Appendices 16 through 19].  Howard Johnson with Inberg-Miller Engineers, described the potential site for the jobs corps center. 

 

Senator Jennings moved to draft a letter in support of the Job Corps. Center.  Senator Vasey seconded the motion and the motion passed.

 

Workforce development

Mario Ibarra, Director of Student Services at WyoTech, explained the training facility and operations of WyoTech in Laramie, Wyoming, including tuition, economic impact to Laramie and the State, programs, length of studies, placement rates and challenges of the program.  Mr. Ibarra invited the Committee to visit the campus in Laramie [Appendix 20]. 

 

Chris Corlis, Director of Rocky Mountain Oil and Gas Training Center, testified as to the training program in Casper, Wyoming, including certification, drug testing, site plan and operations.  [Appendix 21]. 

 

Kathy Emmons, Director of the Department of Workforce Services (DWS), explained the impact of the DWS program, including reduction in workforce turnover rates, job retention, wage progression, benefit of job seekers and assistance given to disabled workers [Appendices 22 through 26].  She discussed some barriers including, sheer numbers of people, training capacities, childcare, infrastructure and housing.

 

Kevin Drumm, President of Sheridan Community College, testified regarding the intent to make a formal community college request for a technical training center in Gillette and listed some potential programs being considered at the training center.  

 

Workforce housing infrastructure

Rick Tempest, discussed workforce housing issues in Wyoming and urged the Committee to sponsor a bill similar to 2005 HB 128.

 

George Axlund, Executive Director of the Wyoming Community Development Authority (WCDA), presented information regarding growth of employment, real earnings, WCDA loans, housing price index and funding level [Appendices 27 and 28].

 

Randall Dancliff with Fannie Mae Statewide Advisory Committee, explained how Fannie Mae deals with workforce housing and affordable housing issues, how incomes and housing prices have changed and urged the Committee to deal with the infrastructure issue in Wyoming.

 

George Parks, Executive Director with the Wyoming Association of Municipalities, suggested a working group would be helpful in working on this workforce infrastructure issue.

 

Pat Robbins, Director of the Sweetwater Economic Development Association, addressed how business recruitment to the state is difficult because of the housing issue and urged the Committee to consider high density housing to accommodate growth and to encourage builders to build in small communities. 

 

Bob Snowden with the Wyoming Association of Realtors, discussed house buying trends and needs in certain communities [Appendices 29 and 30].

 

Co-chairman Hawks moved to draft a bill for consideration at the next meeting.  Representative Becket seconded the motion.  Co-chairman Lockhart suggested using 2005 HB 128 as a start, to add from the ideas from this discussion, to consider using a working group, to work on rules and to address the constitutional issue.  Following this discussion, the motion passed.

Integrated Resource Plans (IRPs)

Steve Furtney, Chairman of the Wyoming Public Service Commission (PSC), explained the steps Wyoming has been taking to address concerns with integrated resource plans and presented a draft bill [Appendix 31].  Mr. Furtney invited the Committee to attend the western conference of public service commissions in Jackson, Wyoming in June, 2006. 

 

Bob Tarantola and Greg Duvall with PacifiCorp, testified PacifiCorp has been involved in resource planning for over 20 years and discussed various goals, components, standards and guidelines for integrated resource plans [Appendix 32].

 

Dean Crist, Vice President of Regulation with MidAmerican Energy Company, presented information to the Committee regarding the Iowa regulatory process [Appendix 33].

 

Co-chairman Hawks moved to draft a bill for consideration at the next meeting.  Senator Vasey seconded the motion and the motion passed.

 

Department of Environmental Quality LUST

John Corra, Director, Wyoming Department of Environmental Quality and LeRoy Feusner, Solid and Hazardous Waste Administrator presented information regarding DEQ's storage tank program and discussed some options to speed up the tank clean-up program [Appendices 34 through 38]. 

 

Co-chairman Hawks moved to draft a bill for consideration at the next meeting, which would include page 2, paragraphs 2, 3 and 4 of the White Paper [Appendix 35] and exclude paragraph 1.  Representative Hammons seconded the motion.  Following discussion, the motion passed.

 

Industrial Siting Act

Director Corra, and Tom Schroeder Program Principal in the Industrial Siting Division, discussed the Industrial Siting Act, potential energy generation facilities and potential impacts to communities.  [Appendices 39 and 40].  Representative Hastert presented information to the Committee and asked for an interim study [Appendix 41].

 

Co-chairman Hawks asked LSO staff to provide information to the Committee for the next meeting what was done in the budget session and what is being done to help small cities and towns without expertise get a fair hearing before the State Loan and Investment Board.

 

Reports, updates and public comment

A list of reports due to the Committee was provided [Appendix 42].  Co-chairman Lockhart discussed the importance of full Committee review of Committee reports.  It is the Legislature's and Management Council's expectation that the Committee provide the legislative "check and balance" compliance by reporting entities.

 

Report #233, Wyoming Partnership Challenge Loan Program from the Wyoming Business Council had been submitted to the Committee [Appendices 43 and 44] and Report #41, Voluntary Environmental Audits from the Department of Environmental Quality had been submitted to the Committee [Appendix 45].

 

Senator Jennings gave an update on the Coalbed Methane Water Task Force and will continue to report to the Committee.

 

Co-chairman Hawks suggested to ask Management Council to include an executive summary in the report requirements.  Co-chairman Lockhart will carry that suggestion to Management Council.

 

Lisa Skiles Parady, Director for Community Development for Rock Springs and Lorie Latta, Assistant to the Town of Pinedale spoke about impacts to their communities and the need for affordable housing.

 

Ann MacKinnon spoke in favor of updating the Industrial Siting Act [Appendix 46].

 

Co-Chairman Lockhart handed out a letter from Representative Gerald Gay [Appendix 47].

 

Meeting Adjournment

There being no further business, Co-Chairman Lockhart adjourned the meeting at 5:15 p.m.

 

Respectfully submitted,

 

 

 

Representative Thomas A. Lockhart, Co-Chairman

 


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