House State Affairs Minutes 2/6/2008 10:00 AM

2008 Legislative Session _ 2008

Committee: House State Affairs

Wednesday, February 06, 2008

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Brunner
P    Cutler
P    Deadrick
E    Dykstra, Vice-Chair
P    Faehn
P    Gillespie
P    Hargens
P    Krebs
P    Miles
P    Moore
P    Rave
E    Turbiville
P    Rhoden, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Representative Larry Rhoden, Chair.

MOTION:     TO APPROVE THE MINUTES OF MONDAY, FEBRUARY 4, 2008 10:00 AM SESSION

Moved by:    Brunner
Second by:    Faehn
Action:    Prevailed by voice vote.

MOTION:     TO APPROVE THE MINUTES OF MONDAY, FEBRUARY 4, 2008 5:20 PM SESSION

Moved by:    Brunner
Second by:    Deadrick

Action:    Prevailed by voice vote.

         HB 1320: provide tax incentives for certain wind energy facilities and energy transmission equipment.

Presented by:    Hunter Roberts, Department of Tourism and State Development
Proponents:    Representative Joel Dykstra
        Dustin Johnson, Public Utilities Commission
        Ed Anderson, Rural Electric Assn, SD
        Bob Miller, SD Electric Utilities

MOTION:     AMEND HB 1320

On page 2, line 6, of the printed bill, delete ", not".

On page 2, line 12, after "farm" insert "producing power for the first time on or after July 1, 2007,".

On page 2, line 21, after "farm" insert "producing power for the first time on or after July 1, 2007,".

On page 3, line 7, after "farm" insert "producing power for the first time on or after July 1, 2007,".

On page 3, line 9, delete "kilowatts" and insert "kilowatt hours".

On page 3, line 9, delete everything after "the" and insert "South Dakota electricity base rate of $0.0475 per kilowatt hour in 2008, with the electricity base rate of $0.0475 per kilowatt hour increasing by 2.5 percent on an annual basis thereafter, as".

On page 3, delete line 10.

On page 3, line 11, delete everything before "determined" .

On page 4, line 1, delete "ten" and insert "twenty".

On page 4, line 2, after "." insert "If the wind energy tax fund contains less than twenty percent of the gross receipts tax from section 4 of this Act, due to the transmission line rebate under section 7 of this Act, the secretary shall distribute the remainder of funds after the rebate to the county treasurer where the wind farm is located.".

On page 4, line 5, delete "between" and insert "among".

On page 4, line 11, after "lines" insert "wind farm collector systems or both".

On page 4, line 11, delete "new".

On page 4, line 15, after "lines" insert "and wind farm collector systems".

On page 4, line 18, after "." insert "The secretary shall determine when the wind farm is commercially operational.".

On page 4, line 20, after "." insert "The secretary may provide a tax credit, in lieu of full payment of the gross receipts tax, of up to eighty percent of the transmission rebate value that has been approved by the secretary.".

On page 5, after line 11, insert:

" Section 10. That chapter 10-46C be amended by adding thereto a NEW SECTION to read as follows:

Any project receiving a permit for the payment of the tax pursuant to chapter 10-46C is not eligible for the refund provided in chapter 10-45B.

Section 11. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as follows:

Any project receiving a permit for the refund of the tax pursuant to chapter 10-45B is not eligible for the permit provided in chapter 10-46C.".

Moved by:    Dykstra
Second by:    Faehn
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1320 AS AMENDED

Moved by:    Dykstra
Second by:    Deadrick
Action:    Prevailed by roll call vote. (13-0-0-0)

Voting Yes:    Brunner, Cutler, Deadrick, Dykstra, Faehn, Gillespie, Hargens, Krebs, Miles, Moore,

Rave, Turbiville, Rhoden

         HB 1184: create a renewable energy property tax incentive program.

Presented by:    Representative Joel Dykstra

MOTION:     TO TABLE HB 1184

Moved by:    Dykstra
Second by:    Rave
Action:    Prevailed by roll call vote. (13-0-0-0)

Voting Yes:    Brunner, Cutler, Deadrick, Dykstra, Faehn, Gillespie, Hargens, Krebs, Miles, Moore, Rave, Turbiville, Rhoden

         HB 1286: provide for legislative redistricting by a bipartisan, nonlegislative commission.

Presented by:    Representative Bill Thompson
Proponents:    Susan Randall, League of Women Voters

MOTION:     DEFER HB 1286 TO THE 36^TH LEGISLATIVE DAY

Moved by:    Deadrick
Second by:    Rave
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DO PASS HB 1286

Moved by:    Hargens
Second by:    Miles
Action:    Failed by roll call vote. (4-9-0-0)

Voting Yes:    Gillespie, Hargens, Miles, Moore

Voting No:    Brunner, Cutler, Deadrick, Dykstra, Faehn, Krebs, Rave, Turbiville, Rhoden

MOTION:     DEFER HB 1286 TO THE 36^TH LEGISLATIVE DAY

Moved by:    Deadrick
Second by:    Rave
Action:    Prevailed by roll call vote. (9-4-0-0)

Voting Yes:    Brunner, Cutler, Deadrick, Dykstra, Faehn, Krebs, Rave, Turbiville, Rhoden

Voting No:    Gillespie, Hargens, Miles, Moore

         HB 1272: establish a state renewable energy standard.

Presented by:    Representative Marc Feinstein (Handout #1 and #2)
Proponents:    Silvia Christen, Dakota Rural Action
Opponents:    Ed Anderson, Rural Electric Assn, SD

MOTION:     AMEND HB 1272

On the printed bill, delete everything after the enacting clause and insert:

"
Section 1. That § 49-34A-94 be amended to read as follows:

49-34A-94. For the purposes of §§ 49-34A-94 to 49-34A-96, inclusive, renewable electricity and recycled energy include electricity generated from facilities using one or more of the following sources:

(1) Wind that uses wind as the source of energy to produce electricity;

(2) Solar that uses the sun as the source of energy to produce electricity;

(3) Hydroelectric that uses water as the source of energy to produce electricity;

(4) Hydrogen that is generated from one of the sources listed in this section;

(5) Biomass that uses agricultural crops and agricultural wastes and residues, wood and wood wastes and residues, animal and other degradable organic wastes, municipal solid waste, or landfill gas as the fuel to produce electricity;

(6) Geothermal that uses energy contained in heat that continuously flows outward from the earth as the source of energy to produce electricity; and

(7) Recycled energy systems that produce electricity from currently unused waste heat resulting from combustion or other processes and which do not use an additional combustion process. The term does not include any system whose primary purpose is the generation of electricity. "

Moved by:    Dykstra
Second by:    Rave
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1272 AS AMENDED

Moved by:    Dykstra
Second by:    Rave
Action:    Prevailed by roll call vote. (12-0-1-0)

Voting Yes:    Brunner, Cutler, Deadrick, Dykstra, Gillespie, Hargens, Krebs, Miles, Moore, Rave, Turbiville, Rhoden

Excused:    Faehn

MOTION:     AMEND TITLE OF HB 1272

On page 1, line 1, of the printed bill, delete everything after "to" and insert "revise the defined sources of renewable electricity and recycled energy.".

On page 1, delete line 2.

Moved by:    Deadrick
Second by:    Brunner
Action:    Prevailed by voice vote.

         HB 1319: make an appropriation for the purpose of making revolving loans to public entities for energy saving projects and to declare an emergency.

Presented by:    Jeff Bloomberg, Bureau of Administration (Handout #3)
Proponents:    Deanna Miller, Johnson Control, Sioux Falls
        Jim Hood, Middle Size School Organization
        Jason Dilges, Bureau of Finance and Management
        Steve Willard, SD Electric Utilities
        Bob Wilcox, SD Assoc. Of County Commissioners
        Larry Zikmund, Associated General Contractors - Building Chapter

MOTION:     AMEND HB 1319

On page 3 of the printed bill, delete lines 4 to 6, inclusive.

Moved by:    Rave
Second by:    Deadrick
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1319 AS AMENDED

Moved by:    Deadrick
Second by:    Krebs
Action:    Prevailed by roll call vote. (11-0-2-0)

Voting Yes:    Cutler, Deadrick, Dykstra, Gillespie, Hargens, Krebs, Miles, Moore, Rave, Turbiville, Rhoden

Excused:    Brunner, Faehn

MOTION:     AMEND TITLE OF HB 1319

On page 1, line 2, of the printed bill, delete "and to declare an emergency".

Moved by:    Deadrick
Second by:    Rave
Action:    Prevailed by voice vote.

         HB 1266: require standards for the exercise of delegated legislative authority.

Presented by:    Representative Roger Hunt
Opponents:    Marcia Hultman, Department of Labor
        James Marsh, Department of Labor

MOTION:     AMEND HB 1266

On page 1, line 9, of the printed bill, delete everything after "." .

On page 1, delete line 10.

Moved by:    Cutler
Second by:    Deadrick
Action:    Failed by roll call vote. (6-7-0-0)

Voting Yes:    Cutler, Gillespie, Hargens, Krebs, Moore, Turbiville

Voting No:    Brunner, Deadrick, Dykstra, Faehn, Miles, Rave, Rhoden

MOTION:     SUBSTITUTE MOTION DEFER HB 1266 TO THE 36^TH LEGISLATIVE DAY

Moved by:    Hargens
Second by:    Moore
Action:    Failed by roll call vote. (5-8-0-0)

Voting Yes:    Cutler, Gillespie, Hargens, Moore, Turbiville

Voting No:    Brunner, Deadrick, Dykstra, Faehn, Krebs, Miles, Rave, Rhoden

MOTION:     SUBSTITUTE MOTION AMEND HB 1266

On page 1, line 9, of the printed bill, delete ", unregulated, or undefined".

Moved by:    Cutler
Second by:    Hargens
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1266 AS AMENDED

Moved by:    Dykstra
Second by:    Rave
Action:    Prevailed by roll call vote. (11-2-0-0)

Voting Yes:    Brunner, Cutler, Deadrick, Dykstra, Faehn, Gillespie, Krebs, Miles, Rave, Turbiville, Rhoden

Voting No:    Hargens, Moore

         HJR 1004: To propose a constitutional amendment to provide for a maximum of forty legislative days each year.

Presented by:    Representative Larry Lucas

MOTION:     DO PASS HJR 1004

Moved by:    Dykstra
Second by:    Gillespie
Action:    Prevailed by roll call vote. (10-3-0-0)

Voting Yes:    Brunner, Deadrick, Dykstra, Faehn, Gillespie, Hargens, Miles, Rave, Turbiville, Rhoden

Voting No:    Cutler, Krebs, Moore

         HB 1231: increase the one-time payments made to school districts with growing enrollments.

Proponents:    Representative Roger Hunt
        Representative Hal Wick (Handout #4) amendment

MOTION:     DEFER HB 1231 TO THE 36^TH LEGISLATIVE DAY

Moved by:    Deadrick
Second by:    Rave
Action:    Prevailed by roll call vote. (10-3-0-0)

Voting Yes:    Brunner, Cutler, Deadrick, Dykstra, Gillespie, Hargens, Moore, Rave, Turbiville, Rhoden

Voting No:    Faehn, Krebs, Miles

MOTION:     ADJOURN

Moved by:    Turbiville
Second by:    Cutler
Action:    Prevailed by voice vote.

Joyce Panzer

____________________________

Committee Secretary

Larry Rhoden, Chair

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