MINUTES OF THE

NATURAL RESOURCES APPROPRIATIONS SUBCOMMITTEE

Tuesday, July 9, 2002 - 9:00 a.m. - Room 305 State Capitol



Members Present:

Rep. Michael R. Styler, House Chair

Sen. Ron Allen

Sen. Bill Wright

Rep. Craig W. Buttars

Rep. Carl W. Duckworth

Rep. Ben Ferry

Rep. Fred J. Fife, III

Rep. James R. Gowans

Rep. Bradley T. Johnson

Rep. Brent D. Parker

Rep. Darin G. Peterson

Members Absent:

Sen. Parley Hellewell, Senate Chair



Staff Present:

Mr. Steve Allred, Fiscal Analyst

Ms. Jennifer Markham, Legislative Secretary

1. Committee Business



Chair Styler called the meeting to order at 9:45 a.m.



MOTION: Rep. Gowans moved to approved the minutes of the February 26 and June 26, 2002 meetings. The motion passed unanimously.



Chair Styler summarized the Governor's proposal to divert sales taxes from water development to the General Fund. He stated that the $2.3 million reduction would affect the Water Resources Conservation and Development Fund, the Waste Water Loan Program, and the Drinking Water Loan Program.



Mr. Larry Anderson, Director, Division of Water Resources, stated that money had been committed to the Piute Dam and Reservoir for the first phase of upgrades. He stated that no other commitments had been made and the Division could live with the cuts. He described future projects. Mr. Anderson summarized the loan programs and repayments. He responded to questions regarding the possibility of private financing of water development.



Mr. Warren Peterson, Chair, Water Resources Board, described the process of decisions. He emphasized that the Water Resources Board was addressing only the highest priority items this year and that the Board sets interest rates based on the ability to pay.



Mr. Bob Morgan, Executive Director, Department of Natural Resources, confirmed discussions between the Department of Natural Resources and the Governor's Office.



Mr. Ron Thompson, Washington County Conservancy District, emphasized the positive economic impact generated from the use of reservoirs like Quail Creek.



Mr. Cary Peterson, Commissioner, Department of Agriculture and Food, provided a history of water development in the state.



Mr. Allred discussed the changes to the Department of Natural Resources and the Department of Agriculture and Food's budgets recommended at the last meeting and distributed a handout, "Majority Party Agreement Balanced Budget - FY 2003."





Commissioner Peterson emphasized the need for one FTE and requested flexibility to move between the line items.



Committee agreed to give Mr. Allred the authority to make adjustments in the Appropriation Act.



2. Adjourn



MOTION: Rep. Buttars moved to adjourn the meeting at 10:53 a.m. The motion passed unanimously with Sen. Allen absent for the vote.