Saturday, January 30, 2010

Whose rule is it?

On Thursday the House Energy Environment and Technology Committee took care of some housekeeping, complements of the Department of Environmental Quality. The DEQ presented a number of updates to Idaho Code that were overlooked when the department was split off from the Idaho Department of Health and Welfare in 2000, including a change to Idaho Code that requires environmental protection rules to go to the H&W for approval instead of the DEQ. Currently, the departments are compensating for this by allowing the DEQ to review them for consistency with Idaho Rules before review by the legislature.

Debate continues on car emissions, this time over rules

On Tuesday, the Senate Health & Welfare Committee approved rules on minimum standards for auto emissions in the state of Idaho. The original legislation was based on recommendations made by the Treasure Valley Air Quality Council in early 2007. One of the recommendations was to expand the Ada County emissions testing program to include Canyon County which has always been a hot-button issue and based on the testimony during the hearing on the proposed new rules remains so.

Always a contentious issue, the legislation was revised several times before finally being passed by the legislature and signed into law by Governor Otter on April 1, 2008.

Idaho Department of Environment Quality (IDEQ) conducted a negotiated rulemaking and almost two years after the bill became law, those rules were presented to the Senate committee.
After the presentation of the rule by Martin Bauer from IDEQ and a few questions by legislators, those attending who wished to do so were given the opportunity to testimony for or against the rules.

Essentially the same cast of characters that had supported and opposed the bill expressed opposition or support of the proposed rules. Chairman Lodge reminded those opposing the bill that since the legislation had already been debated and passed and signed by the governor, testimony should be limited to commenting on the rule rather than debating the legislation over again.

Those opposing the bill claim that there is no need for Canyon County to have to comply with a testing program, that the facts do not support IDEQ’s contention that the Treasure Valley is close to becoming a non-attainment area which would impact economic expansion and limit road building.

Supporters maintain that the Treasurer Valley is very close to being declared a non-attainment area because of ozone levels now. Having this program is place will help to lower ozone levels and also buy us time if EPA decides to require lower limits on ozone. With this program in place, we might be able to convince EPA not to take over regulation of air quality in the Treasure Valley. These rules are much less onerous that whatever EPA would be likely to propose.

There were enough aye votes by committee members to counter some no votes by Canyon County legislators and the rules were approved.

IJOBS package includes bill focused on expediting renewable energy projects

Idaho House and Senate Democrats introduced a package of bills Wednesday that its sponsors say are aimed at stimulating Idaho business and generating job growth. The Grow Green Idaho Jobs Act would expedite the permitting process for renewable energy projects. Another bill would establish a Jobs Council within the Governor’s Office charged with providing recommendations to increase jobs in Idaho. A third senate bill would direct the Departments of Commerce and Labor to provide market data to Idaho small businesses to help them compete in the market place and create jobs. All three senate bills were introduced and printed last week, and are waiting for a hearing. The remaining bills, set to be introduced in House Committees this week, focus on stimulating Idaho business growth and expansion, through small business incubators, tax credits on venture capital investments in Idaho business, and tax credits for businesses that create and fill higher paying jobs with benefits.

Sponsors have christened this the Idaho Jobs and Opportunity Blueprint (IJOBs), that they say borrows from programs that have been successful in other states.

Friday, January 22, 2010

Legislation Addresses Regulations on the Timber Industry

The House Resources and Conservation Committee focused its attention this week on the timber industry, moving several pieces of draft legislation forward to print, including a revision to the Timber Supply Stabilization Act.

Idaho was the first state to mandate in-state processing for logs harvested from state forests, a decision that was ruled unconstitutional by the US Supreme Court in 1984, in that it interfered with interstate commerce. In 1989 this act reestablished Idaho’s in-state processing requirements for almost all state timber, offering almost all state timber each year to qualified bidders (whom it defined as Idaho processors almost exclusively). This legislation would repeal the qualified bidder status.

But, Representative Eskridge asked, what of Idaho mills that have been shut down due to lack of timber supply? Do we really have the excess lumber to open the bidding process to processors outside of Idaho? And, asked Representative Barrett, what does the timber industry think of this legislation?

Ultimately, the bill was sent to print, which will give other interested parties an opportunity to comment on these issues.

Under the heading of “opportunity for increased revenue” came an RS concerning fees for permits for navigational encroachments (such as single and multi-family docs). Current Idaho code caps fees at $250, while the estimated cost to process such permits is more. The permit program takes in more than $600,000 per year, at a net loss of more than $160,000 per year. The bill, which would double current fee, was sent to print.

Are the Feds Living Up to their Responsibilities Under ESA?

On Wednesday, committee members heard a report on endangered species in Idaho by a panel headed up by Nate Fisher, Idaho Office of Species Conservation. Fisher voiced the Governor’s frustration that while Idaho citizens have been willing to roll up their sleeves and work to save species, the Federal government has failed to live up to the provisions of the Endangered Species Act and to its commitments to Idaho citizens. We need to be concerned about what is in the best interests of Idaho.

Slick spot peppergrass is found in two counties in Idaho. Fisher outlined the history of the process starting in 2003 with the use of Candidate Conservation Agreements (CCA) which were meant to protect the plant so that listing would not be needed. The use of CCAs was so successful that USFWS withdrew the proposal to list slick spot peppergrass in 2004 which lead to additional lawsuits. The Obama administration has repudiated the agreements and proposed listing-invalidating the collaboration which led to CCAs. That’s why the governor has proposed filing a lawsuit to protect a state’s right to develop CCAs. If the feds can unilaterally say no after having agreed, this is a disincentive to citizens working with the feds to protect candidate species.

Fisher says the same scenario exists with sage grouse. Idaho has 13 local working groups involved in sage grouse restoration. In 2005, a sage grouse listing was not warranted. In 2010, a judge has remanded the issue back to the USFWS which could continue its stance that a listing is not warranted, determine that sage grouse not be listed because of its low priority, list it in its full range across 11 western states or list it in certain parts of the range. Whatever decision is made, there will be more lawsuits and less incentive to work with the Federal government on solutions that benefit the species.

Critical habitat for bull trout is again an issue with a 2010 proposal to declare 22,000 miles of streams and 533,000 acres of lakes and reservoirs as critical habitat after a decision to declare a smaller amount of critical habitat was remanded to the agency for another review and public input process. Almost half the stream miles and lake and reservoir acres are in Idaho alone.
The process to delist wolves started in 2005 and has been interrupted several times by lawsuits. In 2009, the wolf was delisted in Idaho and Montana. Hunting seasons were set despite a pending lawsuit to list the wolves as endangered. The oral arguments will take place in February, 2010. Idaho’s hunting season is still open in some areas until March 31.
Clive Strong of the Attorney General’s office also reported on the status of salmon litigation which has been on for over a decade. The Obama administration has made some changes to the 2008 biological opinion—adding an adaptive management contingent and triggers that would require a study of dam breaching. Congress would, however, still have to vote to breach any of the four Lower Snake River dams because they were authorized by Congress in the first place. A decision on the lawsuit in Judge Redden’s court could come this spring or summer.

Is State Funding for CAMP in Jeopardy?

Both Senate and House committees dealing with natural resources committees met this week.

At the Senate Resources and Environment committee meeting, Director Hal Anderson of the Idaho Department of Water Resources and his board were on hand to follow up on an interim committee request to review how budget cutbacks were going to affect the department – specifically progress on the Eastern Snake River Plain Comprehensive Aquifer Management Plan or CAMP.

Anderson noted that the department is leaving some staff positions vacant and laying off other staff, leaving them with a skeleton crew, and a longer wait for processing water rights requests. Also of concern is financing for irrigation system improvements. Stimulus funds can provide a 50% funding, but the credit market is so tight right now, so applicants are finding that financing the remainder is difficult.

Senator Coiner noted his concern with the way department procedures are written and the resulting potential injury to junior water rights holders. He noted that throughout the tenure of multiple department directors he has asked for a review of these procedures, specifically with regard to the water bank: a system which works well, except in the case of private leases, says Senator Coiner.

“I think that the person who leases the water bears the brunt of the lack of water (as opposed to the entity that holds the water right) until the water bank fills.” He said.

Senator Bracket raised the specter of State funding for the CAMP. How important, in the face of the current budget crisis, is it that the State follows through on its $1 million funding for CAMP this year?

Anderson noted that other funding mechanisms are being explored, but that “the discussions we’ve had with the water users and the State’s commitment to this funding go hand-in-hand …. Without state funding these discussions would fall apart.”

Anderson added further that the CAMP funding provides a necessary bridge to carry the project forward to a time when fees and other funding sources can be realized.

Chairman Schroeder brought up the subject of incidental recharge of the aquifer. The IDWR board wants to encourage the healthy consumption of water that includes incidental recharge. There is the question, however, of incentivizing incidental recharge. Should someone who is already allowing for incidental recharge be compensated, or just those who must transition to a system of surface water?

Members of the board acknowledged they don’t have a solution to this problem, but are confident one will be presented.

Monday, January 11, 2010

Governor Otter's State of the State Address 2010

In his State of the State Address today, Governor Butch Otter gave nods to innovation, dug his heels in about federal intervention and, of course, gave a preview of what look to be dire budget cuts for the year to come.

To begin with, Governor Otter outlined what he calls the "basic tenants of the role of government" …

- “Number one, we must not raise taxes. It is not our place to impose an additional economic burden on the people of Idaho who already are struggling, or to put a damper our economic recovery.
- “Number two, we must continue to maintain some level of cash reserve against the prospect of our economic recovery taking longer and being less robust than we hope. . . Prudence demands that we act with caution.
- “Number three, we must do whatever we can to protect the educational opportunities and safeguard the potential of the next generation of Idahoans – our children and grandchildren. And as our recovery advances, one of our first priorities for new dollars should be our public schools and higher education.
- “Number four, we must do whatever we can to protect the health, safety and well‐being of our citizens – especially the neediest and most vulnerable among us.
- “And number five, we must do whatever we can to avoid any duplication of effort or any waste of the taxpayers’ hard‐earned dollars.”

* * *

Transportation infrastructure was the Governor's bully pulpit last year, and from his remarks today, it looks to continue to be on the legislative docket for 2010 …

“Transportation remains a very important priority for my administration – as I know it does for you. Our economic well‐being as individuals and as a state will remain in jeopardy without safe and efficient corridors of commerce. That’s why Lieutenant Governor Little is leading my Transportation Task Force – with the help of legislators and private citizens – to carefully study and consider the long‐term needs that still must be addressed once our economy turns around.”

* * *

Legislative pundits, and anyone who's been keeping up with current events, have been predicting dire budget cuts this year. The Governor’s speech contained few specifics:

“... My recommendations are based on zero revenue growth in Fiscal Year 2011. That threshold agreement on a starting point for our budget work was reached over four months of unprecedented discussions with legislative leaders.

"It reflects the relationship between economic recovery and revenue recovery, as well as our
continuing commitment to being frugal stewards of the people’s money.

“As a result, my budget eliminates more than 400 positions throughout State government –
including about 375 that now are vacant – and consolidates some agency operations.
And finally, I’m proposing that for the balance of Fiscal Year 2010 we hold back an additional $40 million from all State agencies and operations – including public schools.

“That is among the toughest recommendations I make today. But the fact is that while other Executive Branch agencies have cut their spending by $499 million as a result of holdbacks over the past two budget years, we have used almost $318 million from reserve accounts and federal stimulus funds during that same period to reduce the impact on public schools. . . Now legislative leadership and I are in agreement that public schools must participate in this new
effort to respond to sharp revenue reductions by paring an additional 1.6 percent from our spending for the remainder of Fiscal Year 2010. Our proposal would look to local school districts for their specific ideas on how to best achieve the savings, including their discretionary use of local reserve accounts and – in extreme cases – advances future State funding.

“To that end, I am recommending that we continue to carefully use our “rainy day” funds to
address some of our most immediate and pressing needs. Specifically, I’m recommending that we use almost $241 million from our reserve accounts – including the non‐endowed portion of the Millennium Fund – to address projected revenue shortfalls in the balance of Fiscal Year 2010 and in Fiscal Year 2011. That includes the $49 million that I asked you in late September to draw from the Public Education Stabilization Fund to cover the public schools portion of the tiered holdback I ordered at that time.”

Members of the press, including bloggers Betsy Russell from the Spokesman Review and Nathanial Hoffman of the Boise Weekly reported on a press briefing of the Governor’s full budget, including cuts to Idaho Public Television, the Department of Parks and Recreation and various smaller agencies.

From Russell’s Blog, Eye on Boise from Spokesman.com: “The twenty-five existing jobs at the state Department of Parks & Recreation would be eliminated as the department is abolished and combined with the state Department of Lands; however, Otter’s budget allows for keeping the Parks Department in place if non-general funds can be identified to operate it. His budget also calls for a four-year phase-out of state general funds for Idaho Public Television and six smaller agencies, including the Human Rights Commission, the Hispanic Commission, and the Digital Learning Academy. The agencies wouldn’t be eliminated; instead, they’d operate with other funds.”

* * *

Governor Otter put forth several potential measures to mediate the budget cuts:

“I am proposing that we continue preparing for tomorrow’s work force by:
- Providing funds to handle the tremendous enrollment growth at the College of Western Idaho,
- Fully funding our commitments to cooperative medical education programs,
- Continuing to invest in the ground‐breaking work being done at the Center for Advanced Energy Studies in Idaho Falls,
- And by providing $1 million in Opportunity Scholarships to help our deserving students stay here at home to continue their education.”

And …

“We need our Idaho young people to stay here on the land. . . That’s why I’m proposing that we invest $1 million to continue implementing the Comprehensive Aquifer Management Plan that’s showing such great promise in protecting and preserving our precious water resources.

* * *

With regard to protecting Idaho’s natural resources, the Governor gave a nod to ongoing battles with the federal government:
“I also want to congratulate Nate Fisher at the Office of Species Conservation, other State agencies, local units of government and especially the landowners who worked so well together to protect and preserve the southern Idaho desert plant known as slick spot peppergrass.
“Unfortunately, the federal government in its infinite wisdom concluded that local folks weren’t up to that task, so it imposed Endangered Species Act protections.
“Yes, the feds are casting aside the collective judgment of the people born to this land and who care most about it in favor of bureaucratic nonsense and an invitation to endless court battles.”

And ….

“I also am continuing my fight to keep the feds from using Idaho as a dumping ground for its
elemental mercury. We have worked too hard protecting the Snake River Plain Aquifer and building a strong and collaborative relationship with our partners at the Idaho National Laboratory to allow it all to be put at risk by a misguided federal decision.

“I will not allow Idaho to become the nation’s dumping ground for its elemental mercury!

“There is a similar policy‐making sleight‐of‐hand going on with the federal administration’s efforts to foist the cost of a budget‐breaking entitlement program onto our backs. The so‐called health care “reform” bills being promoted by the President’s party in Congress could add as much as half a billion dollars to Medicaid costs in Idaho."