Northern Counties Coordinating Board
September 3, 2015
MinnesotaDiscoveryCenter, Chisholm, Mn
Minutes
Call to Order: the meeting was called to order by Chairman Rich Sve at 9:35 a.m.
NCLUCB members present: Rich Sve, Todd Miller, Garry Gamble, Neil Peterson, Wayne Skoe, Tom Rukavina, Steve Raukar, Don Jensen, Ann Marcotte, Brian Napstad,.
Other participants: Brian Werner, Legislative Aide (Sen. Klobuchar); Ida Rukavina, Regional Outreach Director (Sen. Klobuchar); Lori Dowling-Hanson (MDNR); Bob Lessard (MDNR); John Chell, NCLUCB secretary.
Additions to the Agenda - none
Actions on the Minutes of August 6, 2015: motion to approve by Commissioner Gamble; second by Commissioner Napstad. Approved.
Financial Report:
General Fund Balance ( excluding August Expenditures)$ 132,151.13
Year to Date Revenues$ 17,000.00
Year to Date Expenditures ( excluding August Expenditures)$ 4,675.46
Fiscal Note: Secretary Chell explained that the end of month financial statement provided by NCLUCB fiscal agent St. LouisCounty is not released until a week after the end of the current month. On months where the NCLUCB meeting falls prior to the 7th day of the month, we will not have the current fiscal balance. October's financial report will also not contain the end of Sept. balances.
Accounts Payable: J. Chell Professional Services$ 1,126.35
Motion to approve the Financial Report: Commissioner Raukar, Seconded: Commissioner Jensen. Approved.
Senator Klobuchar's Representatives: Brian Werner, Ida Rukavina.
Chairman Sve introduced two members of Senator Klobuchar's staff for an open forum discussion with NCLUCB members. Brian Werner is a legislative aide in the Washington office of the senator, while Ida Rukavina is the Regional Outreach Director for Northern Minnesota. Among the issues discussed were:
BWCA. Commissioiner Rukavina opened the discussion by stating that there is enormous confusion regarding the Federal/State land exchange in the BWCA particularly around both School Trust lands and county lands in the wilderness area. There has been 50 years of controversy and 26 years of attempts to resolve the issue. Why does the Forest Service need an EIS to proceed with the agreed upon process? When the Federal lands outside the BWCA subject to the exchange become state land, many of the environmentalists are afraid that we will actually do what both Federal and State statutes mandate: actually manage these lands for revenue for the School Fund. Environmental groups now want to cash out Trust lands within the BWCA rather than the exchange process all parties have agreed to. The School Trust has received over a billion dollars from the revenues produced from managing designated land outside of the BWCA, 90% of which came from mining. The School Trust lands within the BWCA have produced nothing.
Commissioner Gamble: the strategy of the EIS is apparently to circumvent our ability to utilize these lands for timber, mining and other revenue producing activities. The 1964 Wilderness Act authorized the exchange of these lands and we should abide by the intent of that act. We should not sell that which is the birthright of our citizens.
Commissioner Sve: This process is about more than just the cashing out of state and local lands within the BWCA. A land for land exchange gives federal, state and local land managers the ability to be more flexible, the ability to consolidate blocks of land for more efficient management, and increase the long term revenue stream for the School Trust.
Commissioner Rukavina noted that a USFS representative stated that even though the 1964 law cites "land for land" exchanges, the Forest Service is not prevented from purchasing those state lands within the wilderness.
Commissioner Napstad asked why an EIS can be invoked for what is a purely administrative process? Since there is no specific project involved and no actual physical environmental impacts associated with this land transfer, how can you conduct and EIS? Commissioner Sve noted that when asked about this issue, the USFS representative stated that the basis for the EIS was a number of public comments received. Commissioner Gamble asked: " Does the Federal government have the authority to arbitrarily mandate an EIS?" Commissioner Jensen agreed with Napstad that without a project, how can you do an environmental analysis...this EIS will just be a collection of opinions based on fears and speculation.
Brian Werner said the buy-out portion of the program will use Lawcon funds from a federal grant program. The USFS has applied for a $15 million grant from this source.
Chairman Sve suggested that the three counties involved get together to discuss possible options to oppose the EIS.
Resilient Forests
Mr. Warner stated that Senator Klobuchar is tracking this legislation and is concerned that problems such as the western forest fires are preventing adequate funding for forest management in other parts of the country including Minnesota.
Commisioner Skoe stated that we need the Forest Service to pay more attention to commercial forest management. The Forest Service seems to tie up more forestland every year and that there appears to be more incentive within the USFS to lock up access and harvesting than to properly manage the forest resource.
Waters of the U.S.
Chairman Sve opened the discussion by noting that NCLUCB has written a letter of gratitude to Senator Klobuchar for her support and expressions of concern regarding the process by which these regulations were promulgated. He stated that the new rules are in effect as of August 28 and that a temporary injunction ruling on August 27 prevents the immediate implementation of the rule in 13 dominantly western states. Both NACO and AMC are working on further modifications to this rule and Congress is expected to pass legislation to make changes to the Waters of the U.S. regulations based on the need for greater clarity regarding definitions of waters affected, delineation process, and state/federal jurisdiction in enforcement.
Mr. Werner stated that work sessions on the rule are ongoing and that any consideration of a funding bill, pursuant to the Waters of the U.S. regulations, will include policy discussions.
Commissioner Napstad stated that whether it is the Long Eared Bat controversy or the Corps of Engineer's approach to navigable waters, it is the perception of local elected officials that the federal agencies are working against our efforts to develop our local economies. The national dialog on these regulations is disproportionately controlled by environmental groups. The 1000 page document covering this rule is tragically unclear and obscure. Commissioner Raukar agreed stating that representative government seems to be the victim of this process and as county commissioners, with responsibilities for infrastructure maintenance and development, these regulations are paralyzing us.
Commissioner Pavleck stated that KoochichingCounty is one of the country's largest repository of wetlands and there is no common sense in terms of regulations. Please let Senator Klobuchar know that we are frustrated by these regulations that fall disproportionately on poor, rural, water rich counties.
Commissioner Sve noted that after the final draft of the WOTUS rule was published, he participated in a national teleconference with EPA and Corps representatives. At one point the EPA official commented: " If we had this rule we wouldn't have lost the court case." Sve interpreted these remarks as a somewhat vindictive approach to rule making and cautioned that writing a new rule to address a court ruling, without fully considering the concerns regarding implementation, enforcement and economic impact, was bad policy.
Mr. Werner acknowledged NClUCB comments and assured the commissioners that he would report these concerns.
Payment in lieu of taxes (PILT)
Commissioner Sve noted, briefly, the frustration with federal PILT paymenets to the counties with federal land bases. The uncertainty of payment levels from year to year makes budget planning difficult for counties where PILT payments are a significant source of public revenues.
FEMA Flood Damage Payment Claw-back
Commissioner Miller addressed the issue of FEMA's de-obligation of monies, nation-wide generally, and in RoseauCounty particularly, for federal disaster declarations. The necessary scope of work has been completed with FEMA approval and the bills paid by RoseauCounty with the already obligated disaster funds for the projects. RoseauCounty is forced into an appeal process in an attempt to be reimbursed for these expenditures and is not getting any cooperation from FEMA. Miller stated that much of this issue is the result of personalities within the Corps of Engineers not issuing timely permits and/or failing to act at all. RoseauCounty has $2.8 million owed to it by FEMA. Mr. Werner stated that he would follow up with the Senator to assist the county in resolving this issue.
Fond Du Lac Class I air quality designation
Chairman Sve introduced this issue by stating that a delegation from affected counties, the Association of Minnesota Counties (AMC), and the St. Louis County Attorney's office met with tribal representatives in late August. It is now clear that the tribe will be actively pursuing this designation irrespective of our concerns or a clear view of the impact of the designation on the regional economy. The tribe believes that diminished air quality is having a detrimental affect on tribal lands and communities. They are apparently not willing to negotiate the designation process with other local governments or consider the concerns we expressed at the meeting. AMC will be meeting with the MPCA to discuss the process, gain a better understanding of the state/local government role in the proceedings and the regulatory consequences of a possible designation. Commissioner Marcotte asked for further clarification of the area affected by a designation and whether the ruling would focus on particulates or the full range of regulated emissions.
Commisioner Sve concluded by stating that his understanding is that if a complete application for the designation is filed federally and the procedural steps are followed, the actual designation is fairly straight forward. Any outside unit of government can only intervene, after the designation, through a dispute resolution process and/or court case. Sve asked the representatives for Sen. Klobuchar to stay current with this issue and ensure that the Senator is fully informed.
Clean Power and MPUC Externalities Report
Commissioner Napstad, as a member of the Minnesota Environmental Quality Board, outlined two significant issues presented at the MEQB meeting in August. The Clean Power Plant Rule promulgated by the Obama administration sets strict CO2 emission limits for the power generation industry and will be implemented and enforced by the MPCA. The national goal is to reduce CO2 emissions by 32% by 2030. The rule is obviously targeted at coal power generation and has had a favorable ruling by the Supreme Court.
The MPUC Externalities Report states that 'externalities', those theoretical but real costs imposed on the environment and society by electric power production, must be calculated and included in the cost of production. These external costs are estimated to range from $.50 to $4.00 per ton of incremental CO2 while other sources of power production (wind, solar, hydro) projected at much lower costs. This has an extremely important role in future MPUC deliberations regarding rate setting among the regulated utilities operating in Minnesota and throughout the nation. The comparative cost of coal generation will benegatively affected and the potential cost to the state and national economy is enormous. Ultimately, the MPUC will decide what externality cost will be assigned to each power source and will determine which source of power has the lowest total cost and set consumer rates accordingly.
Aside from the economic impact of externality inclusion in rate setting, which is truly significant, power companies are required to file a Integrated Resource Plan (IRP). The IRP is a 30 year plan which sets the path for future capital investments by the power companies and anticipates the rates consumers will pay. The Clean Power Initiative, coupled with the potential costs associated with inclusion of externality costs, has coal based power companies in Minnesota very concerned. How do they draft and submit an IRP that has any realistic projections, for which they will be held accountable, while waiting for the projected costs and anticipated emission regulations associated with these policy changes?
Commissioner Jensen noted that one of the Lake of the Woods County Commissioners is on a local power district board and has provided good information on the projected rise in costs to the local consumer. These policies will have a huge negative impact on our rural economy of farming and natural resource industries.
Mr. Werner responded that Minnesota has been on this regulatory path for many years. Minnesota, as a first step, should receive credit for the wind power investments made out of state. Those benefits should accrue to this state and Senator Klobuchar will work toward that goal.
Endangered Species
Commissioner Pavleck spoke to the affect of the Endangered Species Act on the rural economy. Stating that "People are fed up with these intrusive regulations." Citing both the federal wolf designation and the long eared bat controversy, he asked for some understanding among Washington regulators and law makers that further designations will devastate the local economy.
Brian Werner responded that Senator Klobuchar is 100% supportive of the house and senate legislation to de-list the wolf in several states including Minnesota.
Conclusion:
Chairman Sve summed up the meeting with a thank you to Brian and Ida noting that the central theme to this discussion is really the disproportionate influence of various interest groups in affecting federal agency actions. "As elected officials, we represent the voice and concerns of thousands of constituents, yet when we write our concerns to an agency, we are considered just one letter among hundreds they will review in their regulatory process. Whether it is a formally adopted resolution by our county board or a letter of concern on behalf of our constituents, we seem to have less influence than some group with a membership and a letterhead."
Brian Werner responded by stating that as the Senator's representatives, Ida and Brian will file extensive reports with their office, and will refer back to these comments as they prepare proposed position statements and background for Senator Klobuchar.Ida commented that local elected officials do have great influence on the work of the senator and that she will be available to discuss and communicate those comments to the senator on a regular basis. Both representatives thanked NLCUB members for their participation and their insight into local, state, and federal issues.
Meeting adjourned at 12:05 p.m.