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Minutes for HB2513 - Committee on Water and Environment
Short Title
Surface water protection fees.
Minutes Content for Tue, Jan 30, 2018
The Chair called the meeting to order at 9:00 a.m. and opened the hearing on HB2513 - Surface water protection fees.
Staff Nick Myers briefed the Committee on the bill (Attachment 1). He stated that the bill would impose a surface-water protection fee on surface water that is sold by public water systems as well as water used under industrial-use permits; the fee would be set at $.05 per 1000 gallons of water. The bill would also assess water assurance districts with a fee of $.002 per 1000 gallons of assurance water storage capacity in reservoirs.
In order to testify on the bill, the Chair relinquished his position. Ranking Minority Member Victors assumed the Chair and called on the first conferee, Tom Sloan, Representative of the 45th District. Representative Sloan testified in support of the bill (Attachment 2). He explained that the $8 million allocated for the Kansas Water Plan has been zeroed out or minimally supported for the last ten years; the bill is an attempt to provide alternate funding in order to prevent or minimize the next water crisis. He noted that the five-cent fee will only cost the average residential consumer about twenty-five cents per month. Responding to questions, he replied that benefits only go to those paying the fee and that, if the state were to purchase more storage capacity and needed bonds to make such a purchase, the fee could be used to make payments on the bonds. Using the funds generated by the fee to pay bonds would also provide a safeguard from possible predations from a future legislature.
Representative Sloan resumed his position as Chair and called on Tracy Streeter, representing the Kansas Water Authority (KWA); Mr.Streeter testified as an opponent to the bill (Attachment 3). He stated that the KWA consensus is to work toward full funding for the budgeted $8 million rather than work on peripheral funding sources.
Joseph Pajor, Department of Public Works and Utilities, City of Wichita, spoke in opposition to the bill (Attachment 4). He expressed concern that future legislatures could sweep the fee fund for other purposes, that Wichita rate payers will gain no benefit from the bill, and that the fee would result in drawing water from the Equus Aquifer rather than from surface water available in the Cheney Reservoir.
Brad Loveless, Executive Director, Environmental Services, Westar Energy, testified that were this fee to go into effect, Westar would pay triple what it is now paying for industrial water use; it would also increase electric rates for residential customers across Kansas (Attachment 5).
Erik Sartorius, representing the League of Kansas Municipalities, spoke in opposition to the bill (Attachment 6). He observed that water is not a priority with legislators, and, until it is, the bill faces an unlikely future. He recommended that the Committee follow the recommendations of the Blue Ribbon Water Funding Task Force and focus on fully funding the State Water Plan.
Darci Meese, Manager, Legal/Government Relations, WaterOne, likewise voiced opposition to the bill (Attachment 7). She said she agreed with other conferees' comments, especially emphasizing the recommendations of the Blue-Ribbon Task Force.
The Chair opened the floor to any further comments from the audience. Randy Stookey, representing Renew Kansas, testified in opposition to the bill (Attachment 12). He said that ethanol-processing plants currently pay three other water fees; another fee seems excessive.
The Chair noted four other written-only testimonies opposing the bill:
Braxton Copley, Deputy Director of Utilities, City of Topeka (Attachment 8);
David Dillner, City Manager, City of El Dorado (Attachment 9);
David Pope, Kansas Society of Professional Engineers (Attachment 10);
Kristi Brown, Senior Director of Government Affairs, Kansas Chamber of Commerce (Attachment 11).
Conferees responded to members' questions:
- The City of Wichita can allocate up to 90% from surface water and 10% from the aquifer.
- Addressing reservoir water issues must be a three-pronged approach--sedimentation, storage, and stream-bank stabilization; all three must be included, and, although it is difficult to give priority to one, she would recommend stream-bank stabilization as the most cost-effective. (Ms. Meese) Mr. Lovelace concurred.
Several members commented on the issues raised by the bill:
- The Blue-Ribbon Task Force recommends only one revenue stream, the State General Fund ($6 million) and the Economic Development Initiative Fund ($2 million). We should explore other avenues for revenue.
- It would help if all those who oppose the bill would unite to urge the legislature to fully fund the Water Plan.
- Until the state does its part to fund the Water Plan, there should be no effort to create new fees.
The meeting was adjourned at 9:56 a.m. The next meeting is scheduled for Thursday, February 2, 2018.
