MINUTES LOG January 17, 2018 Room 172, Capitol Building Helena, Montana

ENVIRONMENTAL QUALITY COUNCIL

PO BOX 201704 HELENA, MONTANA 59620-1704 (406) 444-3742

GOVERNOR STEVE BULLOCK HOUSE MEMBERS SENATE MEMBERS PUBLIC MEMBERS COUNCIL STAFF DESIGNATED REPRESENTATIVE BRADLEY MAXON HAMLETT--Vice CHAS VINCENT--Chair SCOTT ASPENLIEDER TREVOR GRAFF, Research Analyst PATRICK HOLMES WILLIS CURDY MIKE LANG JOHN C. BRENDEN JASON MOHR, Research Analyst JANET ELLIS MIKE PHILLIPS KYLIE PAUL HOPE STOCKWELL, Research Analyst STEVE GUNDERSON JP POMNICHOWSKI MATT VINCENT NADINE SPENCER, Secretary THERESA MANZELLA CARY SMITH ERIN BILLS, Legal Staff KERRY WHITE GENE VUCKOVICH JOE KOLMAN, Legislative

MINUTES LOG January 17, 2018 Room 172, Capitol Building Helena, Montana

Please note: This document is a Minutes Log and provides a notation of the time elapsed between the beginning of the meeting and the time at which the item was presented or discussed, a motion was made, or a vote was taken. The narrative presented here is provided only as a guide to the audio or video record of the meeting. The official discussion, motion, or vote is available on the audio or video archive of this meeting. The Legislature does not prepare a transcript of meeting activities. The time designation may be used to locate the referenced discussion on the audio or video recording of this meeting.

Access to an electronic copy of these minutes and the audio or video recording is provided from the Legislative Branch home page at http://leg.mt.gov. On the left-side menu of the home page, select Committees, then Interim. Once on the page for Interim Committees, scroll down to the appropriate committee. The written Minutes Log, along with the audio and video recordings, is listed by meeting date on the interim committee’s web page. Each of the Exhibits is linked and can be viewed by clicking on the Exhibit of interest. All Exhibits are public information and may be printed.

Please contact the Legislative Services Division at 406-444-3064 for more information.

COMMITTEE MEMBERS PRESENT

SEN. CHAS VINCENT, Chair REP. BRADLEY MAXON HAMLETT, Vice Chair

SEN. MIKE LANG SEN. MIKE PHILLIPS SEN. JP POMNICHOWSKI SEN. CARY SMITH SEN. GENE VUCKOVICH

REP. WILLIS CURDY REP. JANET ELLIS REP. STEVE GUNDERSON REP. THERESA MANZELLA REP. KERRY WHITE MR. SCOTT ASPENLIEDER MR. JOHN BRENDEN MS. KYLIE PAUL MR. PATRICK HOLMES

COMMITTEE MEMBERS EXCUSED

MR. MATT VINCENT

STAFF PRESENT

JOE KOLMAN, Legislative Environmental Analyst ERIN BILLS, Legal Staff NADINE SPENCER, Secretary

VISITORS' LIST (Attachment 1)

AGENDA (Attachment 2)

COMMITTEE ACTIONS The Environmental Quality Council (EQC): • Adopted the minutes log from September 27-28, 2017; • Voted to develop proposals for a committee bill on dog training in upland game bird areas.

CALL TO ORDER AND ROLL CALL 00:00:01 Sen. Vincent called the meeting to order at 9:31 a.m. The secretary called the roll. (Attachment 3) Mr. Vincent was excused and gave his proxy to Sen. Vuckovich. (Attachment 4)

ADMINISTRATIVE MATTERS 00:01:18 Joe Kolman, legislative environmental analyst, Legislative Services Division (LSD), said Hope Stockwell, research analyst, LSD, and Director Martha Williams, Department of Fish, Wildlife, and Parks (FWP) are unable to attend the meeting.

Budget Review 00:01:46 Mr. Kolman said there is $70,000 left in the budget.

Adoption of EQC Minutes, September 27-28, 2017

Motion/Vote 00:02:19 Sen. Vuckovich moved to adopt the minutes log from September 27-28, 2017. The motion carried unanimously by voice vote. Mr. Vincent voted yes by proxy.

-2- STATE PARKS PROGRAM EVALUATION 00:02:47 Sen. Vincent said the Council received information on state parks in their binders.

Introduction of New Parks Division Administrator 00:03:33 Paul Sihler, chief of staff, FWP, introduced Beth Shumate, administrator, Parks Division. He said Angie Grove, chair, State Parks and Recreation Board, is unable to attend the meeting. 00:04:47 Ms. Shumate introduced herself and discussed her plans for the Parks Division.

Funding Overview 00:07:25 Dustin Temple, chief of administration, FWP, provided an update and overview of the Parks Division. 00:07:56 Mr. Temple discussed the division's four funding sources. 00:10:59 Mr. Temple discussed the steps that are being taken to manage funding.

Committee questions and discussion 00:13:00 Rep. White asked Mr. Kolman about the agenda item on gas tax. 00:13:22 Rep. White asked Ms. Shumate about engaging with federal agencies on travel plans to provide connector trails and increase access to federally managed public lands. 00:16:29 Rep. White said increasing recreational access to trails throughout the state should be a high priority. 00:17:30 Mr. Brenden commented on Hell Creek State Park and said the park has been a problem for a long time and is one of the few recreation areas in eastern Montana. He commented on transparency problems and asked Ms. Shumate about development and funding for the park. 00:20:47 Sen. Lang asked Ms. Shumate if the U.S. Army Corp of Engineers and FWP have come together and are looking at the same timeframe to work with the concessionaire at Hell Creek State Park. 00:22:40 Rep. Manzella asked about the results of the legislative audit. Sen. Vincent said the Council will receive an update later in the meeting. 00:23:23 Rep. Hamlett asked Ms. Shumate about West Shore State Park and if she was aware that the EQC had requested a memorandum of understanding that FWP would not sell part of the park. Ms. Shumate redirected the question to Mr. Sihler. 00:25:55 Rep. Hamlett asked Mr. Sihler about the appraisal that FWP had done on the land and if the department will ever consider selling the park. 00:28:25 Rep. Hamlett asked Mr. Sihler about encumbrances on a deed when land is gifted to the department. 00:29:41 Rep. Hamlett asked Mr. Temple about funding and the amount of money received from motor vehicle registrations each year. 00:30:37 Rep. Hamlett asked Mr. Temple about the procedure for authorizing spending on maintenance. 00:32:52 Rep. Hamlett asked Mr. Temple about unspent funds and if a request was made to spend the funds. Mr. Temple said he did not know. 00:33:51 Rep. Hamlett asked Mr. Temple how to find out if a funding request was denied.

-3- 00:34:35 Rep. Hamlett asked Mr. Temple if an email would serve as a request. Mr. Temple said it would. 00:35:26 Rep. Hamlett asked Mr. Sihler about the settlement with the former parks division administrator and which division budget the settlement was paid from.

Fuel Tax Revenue Analysis 00:37:11 Mr. Kolman said the Council received a spreadsheet on fees and Parks Division funding (Exhibit 1) and discussed gas taxes.

Committee questions and discussion 00:51:48 Rep. White asked Mr. Kolman about the University of Montana BBER report and whether it was off-highway vehicle (OHV) or snowmobile fees that were unable to be tracked for non-residents. 00:52:47 Rep. White asked Mr. Kolman if the legislature ever considered the purchase of gas for off-highway use by non-residents and whether to include it in funding for the OHV program. Mr. Kolman said he will find out. 00:53:41 Sen. Lang asked Rep. White if a study was ever done on fuel octane level. 00:55:49 Sen. Vincent asked Mr. Kolman about the special revenue account for snowmobiles and OHV. 00:57:29 Rep. Ellis said the Montana Highway Patrol under the Department of Justice also gets a percentage of the gas tax. Mr. Kolman agreed and said the aeronautics fund gets a percentage as well. Sen. Vincent said the discussion is not about raising additional gas taxes, but on how the existing gas taxes are allocated. 00:58:03 Rep. White commented on increases to the gas tax made during the last legislative session and the need to look at contributions made by snowmobiles and OHV. He asked Mr. Kolman about the date for the new BBER study with the updated numbers. Mr. Kolman said it will be in July. 00:59:43 Sen. Vincent commented on overlap between the different accounts. 01:00:35 Rep. Hamlett asked Mr. Kolman about the legislation and if there are any encumbrances or restrictions on how the money can be spent once it is collected. 01:01:51 Rep. White asked Mr. Kolman about the statute and if funds can be used in areas that charge an admission fee.

Management Plans and Land Administration 01:03:02 Mr. Kolman discussed the Parks Division program evaluation addendum on land management plans. (Exhibit 2)

Committee questions and discussion 01:08:15 Rep. Hamlett asked Mr. Kolman for a synopsis of all the plans.

Review of fiscal notes from previous legislation re: Administration of Parks 01:08:33 Mr. Kolman said at the September EQC meeting Chairman Vincent asked for an overview of the fiscal notes pertaining to two bills during the last legislative session that sought to change administration of state parks. (Exhibit 3) He said Ms. Stockwell provided an annotated copy of the fiscal notes. (Exhibit 4)

-4- 01:10:59 Mr. Kolman said the Council also received information on Pittman-Robertson (Exhibit 5) and Dingell-Johnson funds. (Exhibit 6)

Committee questions and discussion 01:12:08 Mr. Brenden commented on the number of accounts within FWP and said he would like the department to provide information on funding and how it keeps track of the different accounts. Sen. Vincent said the Council can ask Director Williams to provide her perspective on how the department is handling different federal funding streams and how it tracks money. He said it can be included in next steps. 01:14:42 Rep. White said he would like information on the cost to administer special funds and how they are shared across the department. 01:15:31 Rep. Hamlett said he would like information on how much the federal government allows to administer the funds once they come into the state. 01:16:15 Mr. Kolman said he will provide the information. 01:16:35 Mr. Aspenlieder asked Mr. Kolman about the legislation that would have transferred state parks to the Department of Commerce and if Dingell-Johnson and Pittman-Robertson funding can be transferred out of FWP. 01:17:55 Mr. Aspenlieder asked Mr. Kolman about federal funding in states that administer parks outside of the fish and game division. 01:19:05 Mr. Aspenlieder asked Mr. Kolman how much money state parks would lose if it did not receive Dingell-Johnson and Pittman-Robertson funding.

Performance Audit Update 01:20:16 John Harrington, performance auditor, Legislative Audit Division, provided an update on the audit of Montana State Parks.

Committee questions and discussion 01:21:38 Mr. Brenden asked Mr. Harrington about a previous audit report and if they will look back to determine if the financial reporting is better. 01:22:49 Rep. Hamlett said he would like more information on deferred maintenance. 01:24:22 Sen. Vincent commented on the governor's Parks in Focus Commission that he will be serving on.

Public comment None

Next Steps for Program Evaluation 01:25:12 Sen. Vincent opened discussion on agenda items for the next meeting. 01:25:45 Sen. Lang requested that speakers provide a copy of their prepared written statements. Sen. Vincent agreed. 01:27:17 Rep. Curdy requested a work plan for the biennium and how state parks spent its money on capital projects last year and the expectations for this year. Sen. Vincent said it will probably be included in the request made by Rep. Hamlett regarding the management plans. 01:28:11 Mr. Brenden said that the $2 million spent at Hell Creek State Park was for the road going into the park.

-5- 01:28:34 Mr. Aspenlieder said an inventory and study was done on the condition of the parks and that he would like a copy of the state parks capital improvement plan if one has been adopted. Sen. Vincent agreed. 01:29:38 Rep. Ellis commented on the size of the conditions inventory. Sen. Vincent requested a copy of the electronic file if available.

SJ 5 STUDY: COAL TAX COLLECTION AND DISTRIBUTION 01:31:31 Sonja Nowakowski, director, LSD, gave a PowerPoint presentation on the SJ 5 study of coal and Montana fiscal impacts. (Exhibit 7) Ms. Nowakowski said the Council received an overview of Montana coal mines and coal-fired generation and a snapshot of tax contributions of coal. (Exhibit 8) 01:36:24 Ms. Nowakowski discussed the carbon tax that is being proposed in the state of Washington. 01:39:51 Ms. Nowakowski discussed economic impacts. 01:44:11 Ms. Nowakowski said the Council received information from the Legislative Fiscal Division on the coal severance tax trust fund. (Exhibit 9) 01:52:37 Ms. Nowakowski discussed Montana coal exports. (Exhibit 10)

Public comment 02:01:15 Sen. Duane Ankney, SD 20 02:08:07 Bridger Mahlum, Montana Chamber of Commerce 02:11:06 Elena Evans, executive director, Montana Association of Conservation Districts 02:12:31 Bob Story, Montana Taxpayers Association 02:14:15 Anne Hedges, Montana Environmental Information Center 02:21:05 Bud Clinch, executive director, Montana Coal Council 02:22:19 Todd O'Hair, senior director Government Affairs, Cloud Peak Energy 02:23:27 Rep. Jim Keane, HD 73 02:32:07 Matt Jones, state executive director, BNSF Railway

Committee questions and discussion 02:34:39 Mr. Brenden thanked the public for their comments and commented on the study. 02:37:40 Sen. Phillips asked Ms. Nowakowski about the impact on Colstrip Units 3 and 4 if SB 6203 passes in the state of Washington. He requested that staff keep the EQC updated on the legislation. 02:39:13 Sen. Phillips asked Sen. Ankney to look at SB 6203 and determine if it can be amended to benefit Montana. Sen. Ankney said he will. 02:41:39 Sen. Phillips commented on the SJ 5 study and asked Chairman Vincent to contact Attorney General Fox to provide an opinion on the interstate commerce clause and its relevance to SB 6203. Sen. Vincent said it can be discussed during next steps at the meeting tomorrow. 02:43:47 Rep. Curdy asked Ms. Nowakowski about her availability at the meeting tomorrow.

02:44:21 Recess for lunch at 12:16 p.m. 03:48:14 Reconvene at 1:20 p.m.

-6- WATER POLICY COMMITTEE UPDATE 03:48:30 Jason Mohr, research analyst, LSD, provided an update from the Water Policy Interim Committee meeting on January 8 and 9.

Public comment None

Committee questions and discussion 03:51:56 Sen. Pomnichowski asked Mr. Mohr if the WPIC discussed the effects of instream flows and hydro power on the Missouri River. 03:52:26 Rep. Curdy asked Mr. Mohr if the WPIC discussed the Skalkaho water swap.

ENERGY & TELECOMMUNICATIONS UPDATE 03:53:02 Trevor Graff, research analyst, LSD, gave an update from the Energy & Telecommunications Interim Committee meeting on January 16.

Public comment None

Committee questions and discussion 03:56:55 Sen. Pomnichowski asked Mr. Graff about the number of small water utilities in the state.

OVERVIEW OF FEDERAL GOVERNMENT AGENCY ACTIVITY 03:57:23 Mr. Kolman provided an introduction and said the U.S. Forest Service (USFS) will present information regarding current activities in the state.

03:57:48 Dave Schmid, deputy regional forester, Region 1, USFS, provided an update on the USFS northern region and discussed the 2017 fire season. 04:01:58 Mr. Schmid discussed work being done in areas that burned. 04:06:41 Mr. Schmid discussed the vegetation management program. 04:11:50 Mr. Schmid gave an update on projects in litigation. 04:12:58 Mr. Schmid discussed noxious weeds and invasive species.

Public comment None

Committee questions and discussion 04:14:15 Mr. Brenden asked Mr. Schmid about the number of lawsuits involving USFS timber projects. 04:14:55 Rep. White asked Mr. Schmid how the USFS is working with the National Environmental Policy Act (NEPA) process. Rep. White said ideas from the EQC could help the USFS expedite the process. 04:17:45 Rep. White asked Mr. Schmid about forest plans and revisions to existing forest plans. 04:20:41 Rep. Hamlett asked Mr. Schmid about the restoration process on USFS land in Montana during the last 10 years. 04:24:12 Rep. Hamlett asked Mr. Schmid about the potential for lawsuits because of poor air quality as a result of forest fires. 04:25:51 Rep. Curdy asked Mr. Schmid about the fire budget for prescribed burns.

-7- 04:27:22 Rep. Curdy said he is concerned that the USFS is not spending enough time promoting or working on prescribed fire programs. He asked Mr. Schmid what proportion of land treated each year is done by prescribed fire. Mr. Schmid said he will find out. 04:29:19 Rep. Curdy asked Mr. Schmid about burning permits for prescribed fires. 04:30:11 Sen. Vincent asked Mr. Schmid about different areas in the state and the conditions where prescribed burns are used. 04:31:17 Sen. Vincent asked Mr. Schmid about the total amount of USFS land that burned in Montana. 04:31:49 Sen. Vincent asked Mr. Schmid if the region is looking at changing its fire use strategy during red flag conditions. 04:34:48 Sen. Vincent commented on partnering with the state under the Good Neighbor Authority on Supplemental Project Agreements (SPA). 04:36:22 Sen. Vincent asked Mr. Schmid about the three forests zones or pods in Region 1 and if they will be one SPA. 04:36:49 Sen. Vincent asked Mr. Schmid about the Burned Area Emergency Response Program teams that took over scheduled restoration projects after the areas burned. 04:37:47 Sen. Vincent asked Mr. Schmid about timber sales. 04:40:04 Mr. Brenden asked about lawsuits brought against the federal government by environmental groups and if it would take congressional action to keep organizations from profiting. Sen. Vincent said it would and that the Council could send a letter with recommendations for streamlining NEPA. 04:43:04 Rep. Curdy asked Mr. Schmid about the effect of litigation costs on the budget and the number of personnel available to work on projects. 04:45:38 Mr. Holmes said when Governor Bullock served as chair of the Western Governors' Association he worked with the other governors to put forward a series of recommendations found in a one-year report of the National Forest and Rangeland Management Initiative. He said it could serve as a road map for the Council on comments it might want to make. 04:46:26 Sen. Vincent asked Mr. Holmes if the Governor's Office is planning on commenting. Mr. Holmes said yes and that the comments are in draft form. 04:47:14 Rep. Manzella asked Mr. Schmid about the account money is paid from as an award under the Equal Access to Justice Act. 04:48:21 Sen. Vincent said the Equal Access to Justice Act provides for payment from the Judgement Fund.

STUDY OF LABS AT MONTANA STATE UNIVERSITY 04:49:05 Shauna Albrecht. Legislative Fiscal Division, provided an update on the study and the meeting in October. 04:51:07 Rep. Hamlett commented on current issues in the state. 04:52:09 Rep. White said he is reaching out to agencies on funding sources and commented on the export market to China opened by U.S. Sen. Steve Daines.

Committee questions and discussion 04:54:06 Mr. Brenden commented on rural Montana subsidizing labs that also do work on urban issues. Rep. White agreed.

-8- Public comment 04:55:58 Nick Gevock, conservation director, Montana Wildlife Federation

CHRONIC WASTING DISEASE 04:57:03 Mr. Kolman introduced the speakers. 04:57:14 Ken McDonald, Wildlife Division administrator, FWP, provided a handout of frequently asked questions. (Exhibit 11) 04:58:06 Jennifer Ramsey, wildlife veterinarian, FWP, provided an update on chronic wasting disease,

Public comment 05:01:58 Marc Cooke, Wolves of the Rockies (Exhibit 12)

Committee questions and discussion None

FY 2017 STATE TRUST LANDS REPORT 05:07:58 Shawn Thomas, division administrator, Trust Lands Management Division, Department of Natural Resources and Conservation (DNRC), gave a PowerPoint presentation on the Trust Lands Management FY 2017 review (Exhibit 13) and provided a copy of the annual report. (Exhibit 14)

Public comment None

Committee questions and discussion 05:23:56 Mr. Brenden asked Mr. Thomas about the number of cabin leases sold. 05:26:39 Mr. Brenden asked Mr. Thomas about cabin site inventory and if prices are too high. 05:27:46 Mr. Brenden asked Mr. Thomas if the state can pay for the appraisal and the survey then charge the purchaser for the cost. 05:29:18 Sen. Vincent asked Mr. Thomas about the number of competitive bids the department has received for the cabin sites sold. 05:30:11 Rep. Curdy asked Mr. Thomas why the report shows that stumpage fee is dropping when the price of lumber is increasing. 05:32:16 Rep. Curdy asked Mr. Thomas about shortening contract length in order to be more responsive to the market. 05:33:31 Rep. White asked Mr. Thomas about the amount of timber sold and harvested during FY 2017. 05:35:00 Rep. White asked Mr. Thomas if the fiscal year runs from July 2016 to July 2017. 05:35:36 Rep. White asked Mr. Thomas about the number of acres and the amount made per acre for the 47 million board feet of timber that was harvested for $8.2 million. 05:37:11 Rep. White asked Mr. Thomas to provide information on how much was made on acres that were treated. Sen. Vincent asked for a regional comparison. 05:37:37 Sen. Vincent asked Mr. Thomas about the use of the forest improvement fees from 2013-2017. 05:38:53 Sen. Vincent asked about the log inscribed with "MT DNRC timber sales support education in Montana". Mr. Thomas provided information on the stencil.

-9- Public comment 05:40:27 Elsie Arntzen, superintendent, Office of Public Instruction

Committee questions and discussion continued 05:42:04 Sen. Pomnichowski asked Mr. Thomas about the amount of income from commercial leasing and meeting perpetuity standards. 05:45:35 Sen. Pomnichowski asked Mr. Thomas about the terms of cabin site leases and how often leases are renegotiated. She also asked about hydro leases. 05:49:46 Sen. Lang asked Mr. Thomas about the permanent fund balance.

AGENCY BUDGET UPDATES

Department of Natural Resources and Conservation 05:51:58 John Tubbs, director, DNRC, provided an update on agency budget reductions. 05:55:43 Sen. Vincent asked Mr. Tubbs about the amount of the reduction.

Department of Environmental Quality 05:56:02 Tom Livers, director, Department of Environmental Quality (DEQ), said the Council received information on the impact of fund transfers taken during the special session. (Exhibit 15) 06:01:11 Mr. Livers discussed the 10 percent budget cuts. 06:02:50 Mr. Livers discussed other potential impacts to the budget.

Public comment 06:05:36 Ann Root, Petroleum Tank Release Compensation Board, said the board is continuing to assess the effect of the loss of $1 million to its fund. She said information that the Council received indicates that it receives funding from $0.75 per gallon fee from fuel, but the correct amount is 3/4 of a cent.

Committee questions and discussion 06:06:43 Rep. Ellis asked Mr. Tubbs about the transfer of $2.05 million from the Natural Resource Projects account and the projects that won't be done. 06:08:44 Sen. Vincent asked Mr. Tubbs about funding for projects in the future. 06:11:01 Rep. Curdy asked Sen. Vincent about questions regarding FEMA. Sen. Vincent said it can wait until tomorrow. Sen. Vincent said he wants to give more attention to the fire assessment fee discussion at the next meeting and thanked Mr. Tubbs for agreeing to participate.

06:12:23 Recess 06:27:42 Reconvene

AGENCY LITIGATION UPDATES 06:27:54 Mr. Kolman provided an overview of the agency litigation reports. (Exhibit 16)

Public comment None

-10- Committee questions and discussion 06:29:07 Rep. Ellis asked Mr. Kolman about the dates for the reports. 06:30:06 Rep. Curdy asked John North, chief legal counsel, DEQ, about Clark Fork Coalition, Missoula Valley Water Quality District, Missoula City/County Health Board and Confederated Salish and Kootenai Tribes v. DEQ.

STATUTORY ADMINISTRATIVE RULE REVIEW 06:32:05 Erin Bills, legal staff, LSD, provided an update on the administrative rule review. (Exhibit 17)

Public comment None

Committee questions and discussion None

DOG TRAINING IN UPLAND GAME BIRD AREAS 06:35:15 Ms. Bills said the Council received an overview and history of the statute on dog training in upland game bird areas. (Exhibit 18) She said that FWP issued a notice of decision not to adopt the rule as proposed.

06:40:55 Sen. Vincent said public comment will be limited to suggestions and comments on the existing statute and ways that it may be changed and not on the rule that was objected to and withdrawn. 06:41:52 Sen. Lang asked about a typographical error.

Public comment 06:42:34 Bill McKnight, Ronan 06:47:05 Pat Howe 06:48:38 Don Ramien, Mission Valley 06:50:35 Bob Myers, former chairman, Montana Brittany Club 06:53:53 Tana Kradolfer, Bozeman 06:57:50 Kerri Payne, Gallatin Gateway 07:00:45 Todd Breitenfeldt, Whitehall 07:02:16 John Robinson, Flathead Valley 07:04:19 Margo Ellis, Helena 07:07:14 Mr. Gevock

Committee questions and discussion 07:08:56 Mr. Brenden commented on the statute and the need for a committee bill. 07:11:00 Mr. Aspenlieder said he agrees and recommends striking the rule as it reads in the current legislation. 07:12:43 Rep. Ellis asked Mr. McKnight about seasonal restrictions for bird nesting. 07:14:37 Rep. Ellis asked Mr. McKnight about the training season for dogs. 07:15:45 Rep. Curdy asked Becky Dockter, chief legal counsel, FWP, if there are rules for dog training on game preserves. Ms. Dockter said she will find out. 07:16:51 Rep. Gunderson said he recommends drafting a committee bill striking line 87-4- 915 (5)(a)(ii). 07:17:34 Rep. White commented on other parts of the statute that should be changed.

-11- 07:20:09 Ms. Paul asked if training dogs on wild birds impacts opportunities for other people to hunt those birds. Mr. McKnight said no. 07:23:27 Ms. Paul said she has talked to bird hunters who say that large groups do have an impact. 07:24:23 Mr. Ramien said training retrievers is different than training other dogs because they do not release birds. 07:25:01 Sen. Smith moved that the EQC draft a committee bill and consider all of the statute. 07:26:11 Sen. Pomnichowski asked to pose a question to Mr. Myers. 07:26:45 Sen. Smith said a motion is on the table. Sen. Vincent said he will recognize a motion after committee questions. 07:26:56 Sen. Pomnichowski asked Mr. Myers if his organization has recommendations for dog trainers and dog owners regarding standards of practice. 07:28:04 Sen. Pomnichowski redirected her question to Mr. McKnight. 07:29:28 Sen. Pomnichowski commented on a committee bill. 07:31:23 Sen. Vincent commented on the statute and said he recommends doing a committee bill and to have staff draft different proposals.

Motion 07:33:16 Sen. Smith moved to have staff work with Council members on proposals for a committee bill for discussion at the next EQC meeting.

Discussion on the Motion 07:33:28 Rep. Ellis 07:33:52 Sen. Vincent 07:34:11 Mr. Kolman 07:34:52 Ms. Paul 07:35:21 Sen. Vincent

Vote 07:36:52 The motion carried unanimously by voice vote of those present and voting.

07:37:05 Sen. Pomnichowski asked for the motion to be restated. Sen. Vincent restated the motion.

SAGE GROUSE

Migratory Bird Treaty Act Wavier 07:37:32 Mr. Kolman provided information on the Migratory Bird Treaty Act Wavier. (Exhibit 19)

Habitat Quantification Tool Progress 07:40:08 Carolyn Sime, program manager, Sage Grouse Habitat Conservation Program, DNRC, gave an update on the progress to develop the Habitat Quantification Tool (HQT), discussed the computer model, and the potential for a request for proposal (RFP) to carry the HQT closer to implementation. (Exhibit 20)

Public comment None

-12- Committee questions and discussion 07:47:16 Mr. Aspenlieder asked Ms. Sime when the HQT will be done and about the schedule for implementation. 07:49:22 Mr. Aspenlieder commented on the amount of time it is taking to develop the HQT. 07:51:07 Sen. Brenden asked Ms. Sime about the state program if changes are made to the federal policy. 07:53:42 Rep. Hamlett commented on the importance of developing and completing a state plan. 07:56:38 Sen. Vincent said the Council can discuss direction on the topic at its meeting tomorrow. He thanked Ms. Sime.

PUBLIC COMMENT ON ANY MATTER NOT CONTAINED IN THIS AGENDA AND THAT IS WITHIN THE JURISDICTION OF THE EQC. None

07:57:20 With no further business before the Council, Sen. Vincent recessed the meeting at 5:29 p.m.

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-13- ENVIRONMENTAL QUALITY COUNCIL

PO BOX 201704 HELENA, MONTANA 59620-1704 (406) 444-3742

MINUTES LOG January 18, 2018 Room 172, Capitol Building Helena, Montana

Please contact the Legislative Services Division at 406-444-3064 for more information.

COMMITTEE MEMBERS PRESENT

SEN. CHAS VINCENT, Chair REP. BRADLEY MAXON HAMLETT, Vice Chair

SEN. MIKE LANG SEN. JP POMNICHOWSKI SEN. CARY SMITH SEN. GENE VUCKOVICH

REP. WILLIS CURDY REP. JANET ELLIS REP. STEVE GUNDERSON REP. THERESA MANZELLA REP. KERRY WHITE MR. SCOTT ASPENLIEDER MR. JOHN BRENDEN MS. KYLIE PAUL MR. MATT VINCENT MR. PATRICK HOLMES

COMMITTEE MEMBERS EXCUSED

SEN. MIKE PHILLIPS

STAFF PRESENT

JOE KOLMAN, Legislative Environmental Analyst ERIN BILLS, Legal Staff NADINE SPENCER, Secretary

VISITORS' LIST (Attachment 1)

AGENDA (Attachment 2)

COMMITTEE ACTIONS The Environmental Quality Council (EQC): • Voted to request that Speaker Knudsen or President Sales ask for an interpretation from Montana Attorney General Tim Fox pursuant to section 2-15-501(7) MCA, analyzing a legislative proposal in the state of Washington that proposes to tax carbon emissions generated in Montana and whether it conflicts with the Commerce Clause of the U.S. Constitution by discriminating against or imposing an excessive burden on out-of-state energy generation.

CALL TO ORDER AND ROLL CALL 00:00:01 Sen. Vincent called the meeting to order at 8:01 a.m. The secretary noted the roll. (Attachment 3) Sen. Phillips was excused.

FISH AND WILDLIFE LICENSING & FUNDING REVIEW (87-1-629, MCA) 00:01:51 Dustin Temple, chief of administration, Department of Fish, Wildlife, and Parks (FWP), presented information on FWP's funding model and changes to the hunting and fishing license structure as a result of HB 140 (2015). (Exhibit 1) He also provided a copy of his presentation notes from yesterday and today. (Exhibit 2) 00:06:59 Mr. Temple said the Council received information on FWP's Financial Review Advisory Council. (Exhibit 3)

Public comment 00:14:16 Nick Gevock, conservation director, Montana Wildlife Federation, provided information on legislation regarding chronic wasting disease. (Exhibit 4)

-2- Committee questions and discussion 00:15:03 Rep. White asked Mr. Gevock about a statement he made in the Billings Gazette supporting cow only elk hunting in districts significantly over objective. 00:16:03 Rep. White asked Mr. Holmes about the governor's response to a statement made by Dan Vermillion, chair, Fish and Wildlife Commission, about cow only elk hunting. 00:19:26 Rep. White said that FWP would lose significant funding from nonresident elk licenses if it allowed cow only elk hunting. 00:20:45 Sen. Lang asked Mr. Temple about resource implications related to budget reductions to the fisheries program and said the hatchery at Fort Peck could take on some of the resource management. 00:22:24 Sen. Lang asked Mr. Temple about infrastructure needs for administrative facilities. 00:23:16 Sen. Lang asked Mr. Temple about federal funding for law enforcement. 00:24:25 Mr. Aspenlieder asked Mr. Temple if the FWP and the Department of Natural Resources and Conservation (DNRC) have considered sharing resources in order to keep stream gauges active. 00:25:14 Rep. Hamlett asked Mr. Temple what the department is doing to educate and promote youth hunting and fishing. 00:26:43 Rep. Hamlett asked Mr. Temple about taking game wardens away from their traditional duties during hunting season to take biological samples at check stations and its relationship to federal funding.

AQUATIC INVASIVE SPECIES PROGRAM EVALUATION

Lessons Learned/Plans for the 2018 Inspection Season 00:28:11 Thomas Woolf, FWP, discussed the Aquatic Invasive Species (AIS) Program and the 2017 season. 00:31:01 Mr. Woolf discussed plans for an educational campaign and rapid response guidelines when mussels are detected. 00:32:28 Mr. Woolf discussed the lessons learned in 2017 and plans to make the program more efficient and effective.

Invasive Species Council Update 00:37:37 Bryce Christiaens, Weed District coordinator, Missoula County and chair, Montana Invasive Species Council, gave an update on projects the council is working on. (Exhibit 5) 00:41:18 Mr. Christiaens discussed council subcommittees. 00:43:10 Mr. Christiaens discussed other invasive species that could become an issue in the future.

Funding Mechanisms and What Other States are Doing 00:44:29 Joe Kolman, environmental analyst, Legislative Services Division (LSD), discussed AIS funding. (Exhibit 6) 00:46:56 Mr. Kolman said Council members received a map of watercraft inspection and decontamination stations. (Exhibit 7) 00:48:13 Mr. Kolman discussed a comparison of funding for state AIS programs. (Exhibit 8)

-3- 00:49:33 Mr. Kolman discussed other funding mechanisms considered, but that did not pass during the 2017 Legislative Session. (Exhibit 9)

Public comment 00:51:31 David Hoffman, NorthWestern Energy 00:54:07 Doug Hardy, Montana Electric Cooperatives' Association 00:59:33 Mike Bias, executive director, Fishing Outfitters Association of Montana 01:02:45 Nate Hall, Clark Fork License manager, Avista (Exhibit 10)

The EQC also received written public comment. (Exhibit 11)

Committee questions and discussion 01:10:18 Mr. Aspenlieder asked Mr. Woolf about the introduction of AIS and if it came mainly from recreational use on the waterways. 01:11:04 Mr. Aspenlieder asked Mr. Woolf if there have been any cases involving the introduction of AIS from industrial or agricultural use. 01:11:44 Mr. Aspenlieder asked Mr. Woolf about the introduction of AIS from stationary infrastructure like hydropower facilities. 01:12:33 Mr. Aspenlieder said the AIS issue was created by recreationists and the recreational community should pay for the cost of funding and money should not be taken from the general fund. 01:15:30 Mr. Brenden asked Mr. Woolf about checking for AIS on float planes coming into Montana from out-of-state. 01:16:38 Mr. Brenden asked Mr. Woolf about having AIS information available at the lakes where gas can be purchased for float planes. 01:17:30 Mr. Brenden asked Mr. Woolf about the detection of mussels in Tiber and Canyon Ferry Reservoirs. 01:19:58 Mr. Brenden said AIS will affect everyone in Montana and it will need a combination of funding sources. 01:21:42 Rep. Ellis asked Mr. Woolf about statistics on how often people drive by watercraft inspection stations. Mr. Woolf said he will provide information on the number of citations that were issued. 01:22:31 Rep. Ellis asked Mr. Woolf about the budget and whether it is adequate. 01:23:47 Rep. Ellis asked Sen. Vincent about the legislation that put the funding in place. 01:25:24 Rep. Ellis asked staff about providing a matrix of different fees and the amount of money it would bring in and what other states have done. Sen. Vincent said information was put together on cost analysis when the legislation was being considered and can be provided to the Council. 01:26:55 Rep. Ellis asked Sen. Vincent if it could include an analysis on how to implement the program and what other states have done. 01:27:55 Sen. Lang asked staff about the correct version of the watercraft inspection station map. 01:28:30 Sen. Lang asked Mr. Woolf about the department's highest priority. 01:29:01 Sen. Lang asked Mr. Woolf about the location of inspection stations in eastern Montana. 01:32:26 Sen. Lang asked Mr. Woolf about the cost and the type of advertising that is being considered.

-4- 01:34:05 Sen. Lang asked Mr. Woolf about fighting fires and problems with aircraft using water and moving it to another location. 01:35:05 Rep. Curdy asked Mr. Woolf about working with the Federal Aviation Administration and the aeronautics divisions in other states regarding amphibian aircraft. He said there will be a fly-in during June in Missoula and asked if the department has any plans to provide information on why aircraft coming into Montana should be cleaned, dried, and drained. 01:37:39 Rep. Curdy said the department can also provide information at the fly-in in Oshkosh, Wisconsin. 01:38:03 Rep. Curdy said all natural resource agencies have had a protocol for aircraft buckets used to transport water for fires since the early 2000's. 01:38:37 Mr. Holmes asked staff if the U.S. Bureau of Reclamation made any contributions to support funding for AIS programs in other states. Mr. Kolman said he will find out. Mr. Holmes commented on obtaining support for funding from the bureau. 01:40:44 Rep. Manzella asked Mr. Woolf about firefighting equipment brought into the state by the federal government and if he feels their best practices are adequate to keep AIS out of the state. 01:42:11 Sen. Smith asked Mr. Woolf about the threat of AIS from barges. Mr. Woolf said he is not aware of any barge traffic coming into Montana on the Missouri River. Mr. Brenden said they would not be able to move through the dams. 01:44:30 Rep. Hamlett asked Mr. Woolf how mussels were established in the U.S. 01:45:27 Rep. Hamlett asked Mr. Woolf how long mussel larvae can live outside a body of water. 01:45:53 Rep. Hamlett asked Mr. Woolf about wet gear from a contaminated water body and if it could be a vector for transporting mussel larvae. 01:46:31 Rep. Hamlett asked Mr. Woolf about the penalties for not stopping at a watercraft inspection station. 01:47:38 Rep. Hamlett asked Mr. Woolf if Montana could pass legislation that would allow contaminated property to be confiscated if someone intentionally evaded a check station. 01:48:10 Rep. Hamlett commented on the effect of mussels and increasing the penalties for people who bring contaminated property into the state. 01:50:00 Rep. White asked Mr. Bias about inspecting fishing gear that clients bring in from out-of-state. 01:52:10 Rep. Ellis asked Mr. Woolf if fishing gear on a boat is checked at the inspection stations. 01:52:59 Sen. Vincent asked Mr. Woolf about working with other agencies and finding efficiencies to help reduce costs. 01:55:33 Sen. Vincent asked Mr. Woolf about the fine and the number of citations that were issued in 2017 for failure to stop at inspection stations. 01:56:06 Sen. Vincent asked Mr. Woolf about permanent traffic signs for inspection stations.

Next Steps for Study 01:56:43 Sen. Vincent commented on SB 363 (2017) and the need for legislation to create permanent funding.

-5- 02:00:27 Rep. Curdy asked staff to provide information on whether the state can implement a hydroelectric fee on federally owned dams. Sen. Vincent said the state cannot tax another federal entity. 02:01:11 Sen. Lang asked staff about tracking the number of motorized and non- motorized watercraft in the state and about the cost for implementing a tax on users. 02:02:26 Rep. Ellis commented on implementing a fee for watercraft and getting information on how much money it would bring in. 02:03:12 Sen. Vincent commented on revenue sources to fund the program. 02:05:05 Sen. Lang commented on the hydroelectric facility fees and on getting stakeholder input. 02:06:29 Sen. Vincent asked the Council about requests for additional information for next steps. 02:07:17 Rep. White asked Sen. Vincent about appointing a subcommittee to engage stakeholders. 02:08:26 Sen. Vincent said he will work with staff on compiling information for the next meeting.

02:09:29 Recess 02:29:31 Reconvene

FIRE-RELATED STUDY TOPICS

Comparison of Fire Funding in Other States 02:29:59 Mr. Kolman discussed funding for wildfire suppression and protection. He provided information on the DNRC, Forestry Division, Fire and Aviation Management Program (Exhibit 12) and provided a map showing the administrative boundaries of the DNRC Forestry and Trust Lands Management Divisions. (Exhibit 13) 02:32:27 Mr. Kolman said fire protection is largely funded by landowner fees for land that is classified as forest. (Exhibit 14) 02:33:43 Mr. Kolman said the Council received a map showing land that is currently assessed (Exhibit 15) and said land must also be in a wildland protection district. 02:35:13 Mr. Kolman discussed the summary of the University of Idaho report State Funding for Wildfire Suppression in the Western U.S. (Exhibit 16)

Public comment 02:39:41 Julia Altemus, Montana Wood Products Association

The EQC also received written public comment. (Exhibit 17)

Committee questions and discussion 02:40:46 Rep. White asked Sue Clark, acting division administrator, Forestry Division, DNRC, about landowner fees related to federal land.

-6- 02:43:26 Rep. Ellis said landowners in the western part of the state are assessed a fire protection fee, but landowners in the eastern part of the state are not. She asked if any studies have been done regarding the areas in the state that burn. Sen. Vincent commented on doing a study. 02:46:03 Sen. Vincent asked John Tubbs, director, DNRC, to give an overview of some of the years where most of the fire preparedness money assessed in the west was spent in the east. 02:51:07 Mr. Brenden asked Mr. Tubbs about liability for a fire that starts on federal land and moves onto private land or state trust lands. Mr. Tubbs commented on the liability for fire suppression costs. Mr. Tubbs redirected the question to Mike DeGrosky, chief, Fire and Aviation Management Bureau, Forestry Division, DNRC, regarding the loss of assets. 02:53:27 Sen. Vincent asked Mr. DeGrosky to address the different ways to assess who is responsible after a fire. 02:55:09 Mr. Brenden said he is concerned about liability. 02:55:54 Mr. Brenden commented on fires put out by farmers and ranchers at no charge. 02:56:31 Sen. Vincent asked Mr. DeGrosky about cost sharing for fire suppression. Mr. DeGrosky redirected the question to Ms. Clark. 03:00:38 Sen. Vincent asked Ms. Clark about cost savings and effectiveness of initial attack if there was a fire protection fee for the entire state. 03:02:15 Sen. Vincent asked Mr. Tubbs about cost savings of a state-wide assessment fee and the ability for the state to respond to a fire through initial attack. 03:05:43 Mr. Tubbs commented on cost sharing. 03:08:22 Sen. Vincent asked Mr. Tubbs about cost share agreements with the federal government. 03:11:48 Sen. Vincent asked Mr. Tubbs about fire suppression and fire assessment fees. 03:13:32 Rep. Curdy asked Mr. DeGrosky about the current number for volunteer firefighters in eastern Montana and the DNRC's pre-suppression model for the next 10 years and what the DNRC will need to meet its needs. 03:18:30 Rep. Curdy asked Mr. DeGrosky about help from the state for counties to fund and staff fire protection programs in the future. 03:20:42 Rep. Manzella asked Mr. Tubbs about the federal statute that prohibits the state from using its helicopters to fight fires on federal land and if the DNRC has done a cost assessment associated with having state helicopters grounded. 03:28:29 Rep. Manzella asked Mr. Tubbs about case law regarding liability for backfires that are set on federal land that destroy private property. 03:31:30 Rep. Ellis asked about the district fire protection assessments. Sen. Vincent said he recommends asking the DNRC to provide information on available options. Mr. Tubbs said he will work with staff on information for the next meeting and recommended that the EQC members log onto the cadastral system for information about land parcels. 03:34:18 Rep. Ellis asked about including information on where fire assessments and fire districts are currently in the state. Sen. Vincent said he recommends including information on a history of the assessments. 03:35:37 Mr. Tubbs said the legislation proposed during the special session was for a statewide assessment. 03:36:02 Mr. Brenden commented on fighting fires in different areas of the state. Sen. Vincent said it needs to be considered.

-7- 03:38:22 Rep. Hamlett commented on liability and on fire assessment fees. 03:41:39 Sen. Lang said he agreed with the comments made by Rep. Hamlett and Mr. Brenden. 03:42:04 Sen. Lang asked Mr. Tubbs about statistics regarding population density and man-made fires. 03:44:28 Sen. Lang asked Mr. Tubbs to provide statistics on human caused fires and natural caused fires. 03:45:03 Sen. Lang commented on the different federal and state agencies in eastern Montana that are in charge of fighting fires. 03:45:41 Sen. Vincent asked the Council about other information to consider for the next meeting. 03:46:04 Rep. Hamlett said he recommends obtaining statistics on the number of houses outside of city limits compared to10 years ago.

03:46:43 Recess for lunch at 11:48 a.m. 04:45:57 Reconvene at 12:47 p.m.

NATURAL HERITAGE PROGRAM FUNDING 04:46:14 Sen. Vincent said the Council received information on the Montana Natural Heritage Program (NHP) funding. (Exhibit 18)

04:46:37 Jennie Stapp, state librarian, gave a PowerPoint presentation and provided information on funding. (Exhibit 19)

05:00:40 Bryce Maxell, program coordinator, NHP, discussed supplemental core funding and staffing.

05:06:45 Ms. Stapp discussed future funding.

Public comment 05:09:06 Ms. Altemus said the Montana Wood Products Association supports the program.

Committee questions and discussion 05:10:03 Sen. Vincent asked Ms. Stapp about pass through contracts and requested information on current use of the service by private entities. 05:13:06 Rep. White said the request is for a list of the agencies that use the service and how much they use it, and also information on the private entities that benefit from the service, in order to expand the pass through funding source. 05:13:32 Rep. Hamlett commented on the amount of information available through the NHP compared to the amount of funding being requested. 05:14:57 Sen. Pomnichowski asked Ms. Stapp about differentiating between users of the database. Sen. Vincent said it may be helpful to determine if it is a state agency or someone else. 05:16:53 Sen. Lang asked about tracking user information and requiring an account for access to the information. Ms. Stapp said a login is required for sensitive information, but they are prevented by law from disclosing information about users.

-8- UPDATE ON WILLOW CREEK DAM TRANSFER The following board members presented information on behalf of the Willow Creek Water Users Association (WCWUA): 05:19:29 Mark Cooper, president, provided information on the transfer of the Willow Creek Dam from the DNRC to the WCWUA and said the WCWUA filed a petition in District Court to appoint a mediator that the DNRC has appealed to the Montana Supreme Court. 05:21:26 Bill Buttelman, director, discussed concerns about public access. 05:23:05 Brian Dyk provided information on the articles of incorporation and the first water marketing agreement. 05:26:18 Mike Elmose, director, discussed future development. 05:27:19 Robert Sitz discussed reacquisition of the dam by the DNRC. 05:29:27 Colleen Coyle, attorney, provided information on the transfer of the dam and the request made by the WCWUA for the appointment of a water mediator to assist in negotiations with the DNRC. 05:35:24 Sarah Bond discussed the need for a mediator.

05:36:55 John Tubbs, director, DNRC, provided background information on the Willow Creek water project. He discussed the partnership between the DNRC and the WCWUA and interest by the WCWUA to acquire the dam and break the public/private partnership and the legislation that was passed to attempt to transfer the Willow Creek water project.

Public comment 05:51:09 Debby Barrett, rancher, former state legislator, and sponsor of SB 221 (2015) 05:57:06 Katie Cooper, WCWUA

Committee questions and discussion 05:59:57 Sen. Vincent asked Ms. Coyle about SB 221 and what "without regard to other laws" means in Section 85-1-211(5)(a) and the need for an environmental assessment. 06:04:22 Sen. Vincent asked Mr. Tubbs about the statute and the environmental assessment that was done to dispose of state property. 06:06:09 Mr. Aspenlieder asked Mr. Tubbs about language in the agreement stating it was never intended for the project to be transferred to the users. 06:10:20 Mr. Aspenlieder asked Mr. Tubbs about funding for the project. 06:11:51 Mr. Aspenlieder asked Mr. Tubbs about the transfer of other water projects in the state. 06:17:00 Mr. Aspenlieder asked Mr. Tubbs about the reacquisition clause for non compliance with dam safety rules. 06:20:36 Mr. Aspenlieder commented on the benefit of private irrigation companies owning and operating dams. 06:25:07 Rep. Hamlett asked Mr. Sitz if the WCWUA did an assessment of the cost to repair the spillway. 06:27:12 Rep. Hamlett asked Bill Schenk, attorney, FWP, if the department would be satisfied if an agreement maintained access for boats. 06:31:50 Rep. Hamlett asked Ms. Barrett if she feels that the legislative intent of SB 221 is being followed.

-9- 06:32:30 Mr. Brenden said at the time the dams and projects were built it was for irrigation and safety, not for recreation. He commented on working out an agreement for the transfer. 06:36:36 Mr. Brenden asked about the number of people that use Willow Creek Dam for recreation. Mr. Schenk said he will find out. 06:39:33 Sen. Lang asked Mr. Sitz about the private land where the dam was built. Mr. Sitz redirected the question to Mr. Buttelman. 06:42:24 Sen. Lang asked Mr. Buttelman about the number of surface acres under the reservoir. 06:42:53 Rep. White disclosed that he owns water on one of the dams. 06:43:17 Rep. White asked Mr. Tubbs about the supreme court appeal and the value of a bringing a third party in to resolve the issue. 06:46:36 Sen. Vincent asked Mr. Tubbs if the water users participated in the environmental assessment and if they provided information on the engineering analysis. 06:50:21 Sen. Vincent asked Mr. Tubbs about the cost of the survey. 06:51:18 Sen. Vuckovich commented on the legal process.

06:52:06 Recess 07:02:26 Reconvene

COMPLIANCE AND ENFORCEMENT REPORTS 07:02:37 Sen. Vincent said the Council received copies of the compliance and performance reports and said agency representatives are available for questions. (Exhibit 20) 07:02:58 Mr. Kolman provided a history on why the EQC is receiving the reports.

Committee questions and discussion 07:04:09 Rep. Curdy asked Chad Anderson, Enforcement Program manager, Department of Environmental Quality (DEQ), about a pattern of noncompliance with companies. 07:07:13 Rep. Curdy asked Mr. Anderson about involvement by the Board of Oil and Gas Conservation on noncompliance. 07:07:57 Rep. Ellis asked Mr. Anderson about DEQ's reporting format. 07:11:12 Rep. Gunderson asked Mr. Tubbs about the number of non-compliance issues in 2015 and 2016 that are still outstanding with the Board of Oil and Gas Conservation. Mr. Tubbs said he will find out.

Public comment None

ELIMINATION OF ELK AS BRUCELLOSIS VECTOR 07:12:36 Quentin Kujala, Wildlife Management Section chief, FWP, presented information on the steps necessary to eliminate the role of elk in brucellosis transmission to livestock.

Public comment 07:14:38 Mr. Gevock 07:16:21 Jay Bodner, Montana Stockgrowers Association

-10- Committee questions and discussion None

GRIZZLY BEARS 07:18:44 Mr. Kolman said at the last EQC meeting Sen. Phillips requested that FWP provide information on the options for managing the state's increasing grizzly bear population and on how Section 4(d) of the Endangered Species Act could be amended to allow the state more management options.

07:19:35 Mr. Schenk, FWP, provided an update on the delisting of grizzly bears in Montana. He said FWP is helping to complete the process of writing the conservation strategy for the northern continental divide so it can get a delisting rule in place and focus on a statewide management plan.

Public comment None

Committee questions and discussion 07:25:54 Rep. White asked Mr. Schenk how FWP's grizzly bear conservation strategy relates to the federal plan. 07:27:30 Rep. White asked Mr. Schenk if FWP is basing its plan on the U.S. Fish and Wildlife Service (USFWS) plan that is in need of revision or if it is putting things into its plan that would update the USFWS plan. Mr. Schenk redirected the question to Ken McDonald, Wildlife Division administrator, FWP. 07:33:37 Rep. White asked Mr. McDonald about the state and federal plans. 07:35:42 Rep. White asked Mr. McDonald about FWP's conservation strategy. 07:36:32 Sen. Lang asked Mr. McDonald how the statewide management plan relates to grizzly bears in eastern Montana. 07:39:23 Sen. Lang asked Mr. McDonald about rules regarding human conflict with grizzly bears if they are delisted. 07:41:30 Sen. Vincent asked Mr. McDonald about the Cabinet-Yaak ecosystem. 07:43:10 Sen. Vincent asked Mr. McDonald about designating the state as a political boundary and using the political boundary as a distinct population segment (DPS). 07:44:36 Sen. Vincent redirected his question to Mr. Schenk. 07:46:31 Rep. Gunderson asked Mr. Schenk about the number of DPS in the conservation plan. 07:48:29 Rep. Gunderson asked Mr. Schenk about the state-based conservation plan after delisting and when the state can have one statewide DPS. 07:51:23 Rep. Gunderson asked Mr. Schenk about the number of DPS in the lynx delisting. Mr. Schenk redirected the question to Mr. McDonald.

07:52:25 Mr. Aspenlieder left the meeting and gave his proxy to Sen. Lang. (Attachment 4)

07:53:22 Rep. Gunderson asked Mr. McDonald about the statewide management program after delisting lynx. 07:54:58 Rep. Gunderson asked Mr. McDonald about one statewide DPS after federal delisting. 07:56:39 Sen. Vincent commented on state management of grizzly bears.

-11- 07:57:50 Rep. White asked Sen. Vincent about working with other states. 07:59:46 Rep. Hamlett asked Mr. McDonald about relocating captured bears and if FWP is under the criteria of the USFWS. 08:00:58 Rep. Hamlett asked Mr. McDonald if bears can be relocated to areas in Montana where they don't currently exist.

REVIEW PROPOSED TOPICS FOR NEXT EQC MEETING

Discussion on Next Steps for State Parks Program Evaluation 08:02:47 Sen. Vincent opened discussion on next steps for state parks and off-road tax percentages. 08:03:23 Rep. Curdy 08:03:40 Sen. Vincent 08:04:22 Rep. Ellis 08:04:51 Rep. White 08:05:35 Sen. Vincent

Discussion on Public Lands Access and Conservation Easements 08:06:22 Mr. Brenden said he recommends an agenda item on public land access issues and discussed the article by Terry Anderson that was published in the Billings Gazette. (Exhibit 21) 08:09:08 Sen. Vincent 08:09:32 Mr. McDonald 08:09:50 Mr. Brenden 08:09:57 Sen. Vincent 08:10:18 Mr. Brenden 08:11:39 Sen. Vincent 08:12:05 Rep. Curdy

08:12:40 Rep. Ellis asked Sen. Vincent to review his list of topics.

Discussion on Next Steps for SJ 5 Study of Coal 08:12:54 Sen. Vincent said a letter was drafted asking for an opinion from Montana Attorney General Tim Fox regarding the constitutionality of the carbon tax legislation proposed in the state of Washington. (Exhibit 22) He asked staff to keep the Council updated.

Discussion on Next Steps for MSU Lab Study and Chronic Wasting Disease 08:14:20 Sen. Vincent 08:14:54 Rep. White 08:15:52 Sen. Vincent 08:16:16 Rep. White 08:16:42 Sen. Vincent 08:16:47 Mr. McDoanld 08:16:59 Sen. Vincent 08:17:03 Mr. McDonald 08:17:10 Rep. White 08:17:23 Sen. Vincent

-12- 08:17:27 Rep. White 08:18:29 Rep. Hamlett 08:19:16 Sen. Vincent 08:19:33 Rep. White 08:19:44 Sen. Vincent discussed writing a letter to the U.S. Department of Agriculture and sending a copy to Montana's congressional delegation asking for help in addressing capacity issues with state labs in the context of the new trade agreement with China on cattle, chronic wasting disease, and brucellosis. 08:20:23 Mr. Kolman 08:20:37 Rep. White 08:20:45 Mr. Brenden 08:21:20 Sen. Vincent 08:21:36 Rep. Ellis 08:22:06 Sen. Vincent 08:22:14 Sen. Lang 08:22:44 Sen. Vincent

Discussion on Next Steps for Dog Training in Upland Game Bird Nesting Areas 08:23:01 Sen. Vincent

Discussion on Next Steps for Sage Grouse 08:23:17 Sen. Vincent 08:23:32 Sen. Lang 08:24:04 Mr. Kolman 08:24:22 Mr. McDonald 08:25:04 Sen. Lang 08:25:11 Mr. McDonald 08:25:43 Sen. Lang 08:25:50 Mr. McDonald 08:26:09 Sen. Lang 08:26:46 Mr. McDonald 08:27:43 Sen. Lang 08:27:49 Mr. Kolman

08:27:58 Mr. Brenden left the meeting.

Discussion on Next Steps for Fire Related Topics 08:28:22 Sen. Vincent

Discussion on Next Steps for Natural Heritage funding 08:28:39 Sen. Vincent

Discussion on Letter to Attorney General Fox Regarding the Commerce Clause 08:28:49 Sen. Vincent 08:29:03 Sen. Pomnichowski 08:29:18 Mr. Kolman 08:29:25 Sen. Pomnichowski 08:30:02 Mr. Kolman

-13- 08:30:41 Sen. Pomnichowski 08:33:08 Sen. Vincent

08:33:39 Sen. Pomnichowski asked Sen. Vincent about the agenda item proposed by Mr. Brenden on public land access and conservation easements.

08:34:18 Rep. Ellis continued the discussion on the letter to Attorney General Fox. 08:35:05 Sen. Vincent 08:35:21 Rep. Ellis 08:35:36 Sen. Vincent

Discussion on Next Steps on Public Land Access and Conservation Easements 08:36:05 Ms. Paul 08:36:46 Sen. Vincent 08:37:03 Sen. Lang 08:38:11 Sen. Vincent 08:38:49 Sen. Lang 08:38:54 Sen. Vincent 08:39:08 Sen. Pomnichowski 08:39:54 Mr. Kolman said he will provide an overview on conservation easements. 08:40:10 Rep. White 08:40:49 Sen. Vincent said staff can provide information on mineral rights and surface rights before the meeting. 08:41:12 Sen. Lang asked about data for AIS. 08:41:34 Sen. Vincent 08:41:41 Rep. Gunderson asked about receiving information on the new rules for oil field waste. 08:42:08 Mr. Kolman

08:43:03 Sen. Vincent asked for a motion on the letter to Attorney General Fox including the additions made by Sen. Pomnichowski. 08:43:16 Mr. Kolman restated the motion.

Motion 08:44:10 Sen. Lang moved to make a request to Speaker Knudsen and President Sales to ask for the opinion from the attorney general on questions related to carbon tax legislation proposed in the state of Washington regarding interstate commerce and discrimination against or the imposition of an excessive burden on out-of- state energy generation. If the request is made and fulfilled, the EQC would reserve options for further actions.

Discussion on the Motion 08:44:14 Sen. Pomnichowski 08:44:54 Erin Bills, legal staff, LSD 08:45:11 Sen. Vincent

-14- Vote 08:45:37 The motion carried unanimously by voice vote. Mr. Aspenlieder voted aye by proxy. Mr. Brenden and Sen. Phillips were excused.

08:46:09 Rep. White said he gave staff his options for changes to the statute on dog training in upland game bird areas for a committee bill. 08:46:44 Rep. Curdy asked staff about an update on bison in Yellowstone National Park from Superintendent Wenk.

08:47:44 Sen. Pomnichowski asked about reviewing the letters drafted on the MSU labs. 08:48:00 Mr. Kolman 08:48:33 Sen. Vincent 08:48:38 Mr. Kolman 08:48:44 Sen. Vincent 08:48:47 Rep. White 08:49:23 Sen. Vincent

PUBLIC COMMENT ON ANY MATTER NOT CONTAINED IN THIS AGENDA AND THAT IS WITHIN THE JURISDICTION OF THE EQC 08:49:40 Bethany Cotton, Wildlife Program director, WildEarth Guardians, and environmental attorney, commented on distinct population segments for grizzly bears, the recovery plan process, and Section 4(d) of the Endangered Species Act. 08:56:04 Mr. Kolman said the Council received public comment from Lloyd Cooper on metals in the atmosphere. (Exhibit 23)

OTHER BUSINESS None

ADJOURN 08:56:50 With no further business before the Council, Sen. Vincent adjourned the meeting at 4:58 p.m.

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-15-