Print Friendly SENATE BILL NO. 1041 – Major energy facility siting
SENATE BILL NO. 1041
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S1041........by KELLY, LANGHORST, WERK, BILYEU, STENNETT, BURKETT, MALEPEAI
ENERGY FACILITY SITING - Adds to existing law relating to major energy
facility siting to create a State Energy Facility Planning Committee; to
provide membership; to provide for the state energy facility siting
management plan; to provide for permits and licenses; to provide for
expansion, enlargement or alteration of energy facilities; to provide for
review and siting licenses; and to provide for the creation of site review
01/19 Senate intro - 1st rdg - to printing
01/22 Rpt prt - to St Aff
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE SENATE
SENATE BILL NO. 1041
BY KELLY, LANGHORST, WERK, BILYEU, STENNETT, BURKETT, MALEPEAI
1 AN ACT
2 RELATING TO MAJOR ENERGY FACILITY SITING; AMENDING TITLE 39, IDAHO CODE, BY
3 THE ADDITION OF A NEW CHAPTER 68, TITLE 39, IDAHO CODE, TO PROVIDE A SHORT
4 TITLE, TO PROVIDE LEGISLATIVE INTENT, TO DEFINE TERMS, TO PROVIDE METHODS
5 OF ENERGY GENERATION, TO CREATE A STATE ENERGY FACILITY PLANNING COMMITTEE
6 AND TO PROVIDE MEMBERSHIP, TO PROVIDE FOR THE STATE ENERGY FACILITY SITING
7 MANAGEMENT PLAN, TO PROVIDE FOR A MORATORIUM ON PERMITTING, TO PROVIDE FOR
8 PERMITS AND LICENSES, TO PROVIDE FOR LICENSES AND THEIR ISSUANCE AFTER
9 ADOPTION OF THE ENERGY FACILITY SITING MANAGEMENT PLAN, TO PROVIDE FOR
10 EXPANSION, ENLARGEMENT OR ALTERATION OF ENERGY FACILITIES, TO PROVIDE FOR
11 REVIEW AND SITING LICENSES, TO PROVIDE A SITING LICENSE APPLICATION, FEES
12 AND RULES, TO PROVIDE FOR THE CREATION OF SITE REVIEW PANELS, MEMBERS,
13 MEETINGS AND PROCEDURES, TO PROVIDE FOR DUTIES OF THE DIRECTOR OF THE
14 DEPARTMENT OF ENVIRONMENTAL QUALITY UPON RECEIPT OF A SITING LICENSE
15 APPLICATION AND TO PROVIDE FOR A RECOMMENDATION, TO PROVIDE THAT INFORMA-
16 TION OBTAINED SHALL BE A PUBLIC RECORD AND TO PROVIDE A REMEDY FOR DEVALU-
17 ATION OF PROPERTY CAUSED BY AN APPROVED FACILITY; AND DECLARING AN EMER-
19 Be It Enacted by the Legislature of the State of Idaho:
20 SECTION 1. That Title 39, Idaho Code, be, and the same is hereby amended
21 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
22 ter 68, Title 39, Idaho Code, and to read as follows:
23 CHAPTER 68
24 MAJOR ENERGY FACILITY SITING
25 39-6801. SHORT TITLE. This chapter shall be known and may be cited as the
26 "Major Energy Facility Siting Act."
27 39-6802. LEGISLATIVE INTENT. (1) The legislature of the state of Idaho
28 recognizes that the selection of sites for the construction and operation of
29 major energy facilities will have a significant impact upon the health and
30 welfare of the population, the location and growth of industry and the use of
31 the natural resources of the state. Site selection is a matter of statewide
32 concern, and the provisions of this chapter are therefore enacted to provide
33 an effective method of establishing such sites.
34 (2) It is the policy of the state of Idaho to recognize the significant
35 impact of energy facilities, and to ensure through available and reasonable
36 methods, that the location and operation of such facilities will produce mini-
37 mal adverse effects on Idaho's citizens and the environment. It is the intent
38 to seek courses of action that will balance the demands for energy facility
39 location and operation in conjunction with the broad interests of the public.
40 (3) It is the intent of the legislature that the site license process not
41 duplicate or replace the existing local, state, and federal permitting proc-
1 esses. The site license is a preliminary, general review and prerequisite for
2 the permitting processes to proceed.
3 39-6803. DEFINITIONS. As used in this chapter:
4 (1) "Committee" means the state energy facility planning committee cre-
5 ated in section 39-6805, Idaho Code.
6 (2) "Department" means the department of environmental quality.
7 (3) "Director" means the director of the department of environmental
9 (4) "Energy facility" or "facility" means any electrical generating
10 facility using any fuel, including nuclear materials, for generation or dis-
11 tribution of electricity by electric utilities.
12 (5) "Panel" means the site review panel created in section 39-6812, Idaho
14 (6) "Plan" means the state energy facility siting management plan pre-
15 pared under the provisions of section 39-6806, Idaho Code.
16 39-6804. METHODS OF ENERGY GENERATION. The department and the committee
17 in the conduct of their duties under the provisions of this chapter shall
18 assist in encouraging, developing and implementing methods of energy genera-
19 tion which are environmentally sound, maximize the utilization of valuable
20 resources and encourage conservation.
21 39-6805. STATE ENERGY FACILITY PLANNING COMMITTEE -- CREATION -- MEMBERS.
22 (1) The state energy facility planning committee is hereby created in the
23 department. The committee shall represent diverse geographical areas of the
24 state. No later than September 1, 2007, the governor shall, subject to the
25 advice and consent of the senate, appoint a committee consisting of the fol-
26 lowing representatives:
27 (a) Both members of the northwest power and conservation council repre-
28 senting Idaho pursuant to chapter 12, title 61, Idaho Code;
29 (b) One (1) representative of county government;
30 (c) One (1) representative of city government;
31 (d) One (1) member of an environmental group;
32 (e) The director of the department of health and welfare or his designee;
33 (f) The director of the department of commerce and labor or his designee;
34 (g) One (1) member of a conservation group;
35 (h) Two (2) members of the general public;
36 (i) The director of the department or his designee;
37 (j) The director of the department of water resources or his designee;
38 (k) One (1) licensed professional engineer;
39 (l) A faculty member of a university or college in this state who is well
40 versed in power generation, transmission or other environmental matters;
41 (m) The director of the Idaho transportation department or his designee;
42 (n) One (1) representative of the mining industry;
43 (o) One (1) representative of the forest products industry;
44 (p) One (1) representative of the agricultural industry; and
45 (q) The president of the public utilities commission.
46 (2) A vacancy occurring on the committee shall be filled in the same man-
47 ner as the original appointment.
48 (3) The chairman of the committee shall be elected by the members of the
49 committee and the chairman shall be a voting member of the committee.
50 (4) Members of the committee who are not state employees shall be enti-
51 tled to receive compensation as provided in section 59-509(b), Idaho Code.
52 (5) The committee by majority vote shall establish operating procedures.
1 The operating procedures shall be made available for public review.
2 (6) In the conduct of its business, the committee shall solicit the
3 advice of, and consult periodically with cities, counties and persons within
4 the state for the purpose of receiving information or advice that may be help-
5 ful in the preparation of the plan.
6 (7) Employees of the department of environmental quality, the public
7 utilities commission, the department of water resources and the transportation
8 department shall assist the committee on a priority basis.
9 (8) The committee shall disband after final approval of the plan by the
11 (9) Upon petition to the director and the director's recommendation to
12 the governor, the governor shall appoint a committee in the same manner as the
13 original committee to amend or revise the plan.
14 (10) The committee shall hold its first meeting as soon as practicable
15 after confirmation by the senate.
16 39-6806. STATE ENERGY FACILITY SITING MANAGEMENT PLAN -- PREPARATION --
17 INCLUSIONS -- STUDIES -- PUBLIC HEARINGS -- SUMMARY -- AMENDMENTS -- RECOMMEN-
18 DATION. (1) Not later than January 1, 2008, the committee shall prepare a
19 state energy facility siting management plan.
20 (2) The plan shall:
21 (a) Provide for a reasonable geographic distribution of energy facilities
22 to meet existing and probable future needs;
23 (b) Be based upon consideration of the location of transmission lines and
24 fuel sources, health and safety, the economics of transportation, and the
25 location and nature of existing energy facilities;
26 (c) Include technical criteria based upon the studies and information
27 gathered pursuant to this section; and
28 (d) Include necessary legislative, administrative and economic mecha-
29 nisms, and a timetable, to carry out the plan.
30 (3) The committee may instruct the department of environmental quality,
31 the public utilities commission, the department of water resources and the
32 transportation department to complete studies as considered reasonably neces-
33 sary for the completion of the plan. The studies may include:
34 (a) An inventory and evaluation of the sources of fuel for power genera-
35 tion within this state or from other states, including the types and quan-
36 tities of the fuel;
37 (b) An inventory and evaluation of current energy generation and trans-
38 mission practices and costs, within this state;
39 (c) A projection or determination of future energy needs based on an
40 evaluation of existing capacities and capabilities, manufacturing activ-
41 ity, limitations and constraints, and projected economic and population
42 growth. Projection of needs shall consider the types and sizes of existing
43 generation facilities, general locations within the state, available con-
44 trol systems, and an identified need for additional facilities;
45 (d) An investigation and analysis of methods and incentives to encourage
46 interstate and international cooperation in the generation and transmis-
47 sion of energy;
48 (e) An investigation and analysis of methods, incentives or technologies
49 for energy conservation and renewable energy sources; and
50 (f) An investigation and analysis of alternate methods for energy genera-
52 (4) Upon completion of the plan, the committee shall publish a notice
53 after giving twenty (20) days' notice as provided in section 60-109, Idaho
54 Code, in a number of newspapers and shall issue a statewide news release
1 announcing the availability of the plan for inspection by interested persons.
2 The announcement shall indicate where and how the plan may be obtained or
3 reviewed and shall indicate that not less than three (3) public hearings shall
4 be conducted at varying locations in the state before formal adoption. The
5 first public hearing shall not be held until sixty (60) days have elapsed from
6 the date of the notice announcing the availability of the plan.
7 (5) After public hearings, the committee shall prepare a written summary
8 of the comments received, provide comments on the major concerns raised, make
9 amendments to the plan as necessary and shall formally adopt the plan.
10 39-6807. MORATORIUM ON PERMITTING. From the effective date of this act
11 until the plan is adopted by the committee, no local government or state
12 agency shall process or issue a permit for the construction, expansion,
13 enlargement or alteration of an energy facility.
14 39-6808. PERMITS AND LICENSES. After adoption of the plan by the commit-
15 tee, no person shall construct, expand, enlarge or alter an energy facility
16 without a siting license from the department. The owner or operator of the
17 facility or site, rather than the builder, shall be responsible for obtaining
18 the license.
19 39-6809. LICENSES -- ISSUANCE AFTER ADOPTION OF PLAN. After the plan has
20 been adopted by the committee, the director shall not issue a license under
21 the provisions of this chapter until the director has made a determination
22 that the action is consistent with the adopted plan. The director may exempt
23 classes or categories of energy facilities from complying with the adopted
24 plan if the exemption is in the public interest and consistent with state and
25 federal law. If the director exempts classes or categories of energy facili-
26 ties from complying with the plan, rules shall be promulgated in compliance
27 with chapter 52, title 67, Idaho Code, specifically indicating the exemption.
28 39-6810. EXPANSION, ENLARGEMENT OR ALTERATION OF ENERGY FACILITY --
29 REVIEW -- SITING LICENSES. (1) An energy facility in existence on the effec-
30 tive date of this act shall not require a review under the provisions of this
32 (2) The expansion, enlargement, or alteration of an energy facility in
33 existence on the effective date of this act constitutes a new proposal for
34 which a siting license is required.
35 39-6811. SITING LICENSE APPLICATION -- FEE -- RULES. (1) An application
36 for a siting license shall include:
37 (a) The name and residence of the applicant;
38 (b) Site information, plans, descriptions, specifications, and drawings
39 showing the design of the facility, or modification, the nature and amount
40 of emissions, including secondary emissions, and the manner in which it
41 will be operated and controlled;
42 (c) A schedule for construction of the facility or modification;
43 (d) A description of the system of continuous emission control proposed
44 for the new major facility;
45 (e) Certification that all other facilities, owned or operated by, or
46 under common ownership of, the proposed new facility or modification, are
47 in compliance with all local, state or federal requirements or are on a
48 schedule for compliance with such;
49 (f) An analysis of alternative sites, sizes, production processes and
50 environmental control techniques;
1 (g) Information showing that harm to scenic, historic, cultural or recre-
2 ational values is not substantial or can be mitigated;
3 (h) Information showing that the risk and impact of accident during
4 transport of fuel or waste to and from the facility is not substantial or
5 can be mitigated; and
6 (i) Information showing that the impact on local government is not
7 adverse regarding health, safety, cost and consistency with local planning
8 and existing development or can be mitigated.
9 (2) Within thirty (30) days after receipt of the application, the direc-
10 tor shall determine whether it is complete. If it is not complete, the direc-
11 tor shall notify the applicant and state the areas of deficiency.
12 (3) The application shall be accompanied by a siting license application
13 fee. The director shall establish by rule, the scale for determining the sit-
14 ing license application fee. The fee shall not exceed one hundred thousand
15 dollars ($100,000) and shall be based on the cost to the department of review-
16 ing the siting license application. The scale shall be based on characteris-
17 tics including the site size, projected volume, and characteristics surround-
18 ing the site. Fees received pursuant to this section may be expended by the
19 director to pay the actual, reasonable and necessary costs incurred by the
20 department in acting upon a siting license application. The director may pro-
21 mulgate rules in compliance with chapter 52, title 67, Idaho Code, in order
22 to implement and administer the provisions of this section.
23 39-6812. SITE REVIEW PANELS -- MEMBERS, CHAIRMAN, QUORUM, MEETINGS,
24 STAFF. (1) A site review panel shall be established to ensure public input in
25 the licensing process, to recommend to the director conditions which should be
26 included in a siting license and to recommend to the director whether a par-
27 ticular facility should or should not be constructed, expanded or enlarged.
28 (2) A panel shall consist of members to be appointed as follows:
29 (a) Three (3) members shall be the director of the department of envi-
30 ronmental quality or his designee, the president of the public utilities
31 commission or his designee and the director of the department of water
32 resources or his designee.
33 (b) One (1) member shall be a public member appointed by the governor.
34 The public member shall be an environmental professional, shall serve as
35 chairman of the panel and shall be a voting member. A member who is a pub-
36 lic member shall be appointed to serve on site review panels only until
37 the particular siting license application subject to their review is
38 approved, or until the application is rejected and is no longer subject to
39 their review.
40 (c) One (1) member shall be appointed by the city council of each city
41 located within a fifty (50) mile radius of the site where the energy
42 facility is proposed to be located. The members serving pursuant to this
43 subsection shall serve until the particular siting license application
44 subject to their review is approved, or until the application is rejected
45 and is no longer subject to their review.
46 (d) One (1) member shall be appointed by the board of county commission-
47 ers for each county located within a fifty (50) mile radius of the site
48 where the energy facility is proposed to be located. The members serving
49 pursuant to this subsection shall serve until the particular siting
50 license application subject to their review is approved, or until the
51 application is rejected and is no longer subject to their review.
52 (e) A person nominated to represent a city or county shall not have a
53 conflict of interest, as that term is defined in section 59-703, Idaho
54 Code, or derive any economic gain as that term is defined in section
1 59-703, Idaho Code, from the location or siting of the proposed energy
3 (3) A majority of the members of the panel shall constitute a quorum for
4 the transaction of business of the panel and the concurrence of a majority of
5 the members of the panel shall constitute a legal action of the panel, pro-
6 vided that no meeting of the panel shall occur unless there are at least as
7 many members present representing the city or cities and county or counties as
8 there are representing the state and the public as appointed pursuant to sub-
9 section (2) of this section. All meetings of the panel shall be conducted pur-
10 suant to the state open meeting law.
11 (4) The director shall make staff available to assist a panel in carrying
12 out its responsibilities.
13 (5) Members of the panel who are not state employees shall be entitled to
14 receive compensation as provided in section 59-509(b), Idaho Code.
15 39-6813. DUTIES OF DIRECTOR UPON RECEIPT OF A SITING LICENSE APPLICATION
16 -- RECOMMENDATION. (1) Upon receipt of a complete siting license application,
17 the director or an authorized representative of the director shall:
18 (a) Immediately notify the permanent panel members described in section
19 39-6812(2), Idaho Code, and the city council and board of county commis-
20 sioners of each city and county described in section 39-6812(2), Idaho
21 Code. The notice shall describe the procedure and the schedule based on
22 the complexity of the application by which the siting license may be
23 approved or denied.
24 (b) Immediately publish a notice that the application has been received,
25 as provided in section 60-109, Idaho Code, in a newspaper having major
26 circulation in the county and the immediate vicinity of the proposed
27 facility. The required published notice shall contain a map indicating the
28 location of the proposed facility and shall contain a description of the
29 proposed action and the location where the complete application package
30 may be reviewed and where copies may be obtained. The notice shall
31 describe the procedure by which the siting license may be granted.
32 (2) Upon notification by the director, the chairman shall immediately
33 notify the representatives of the state to the panel and the public members.
34 The chairman shall also notify the applicable county or counties and city or
35 cities for their appointment of members as provided in subsection (2)(c), (d)
36 and (e) of section 39-6812, Idaho Code. Within thirty (30) days after the
37 notification, the board of commissioners of the county or counties and the
38 city council(s) shall select the members to serve on the panel. The panel
39 shall be created at that time and notification of the creation of the panel
40 shall be made to the chairman.
41 (3) If no technical criteria are applicable, the director shall submit to
42 the panel a draft site license which includes conditions based on the informa-
43 tion submitted in the application. The director shall also recommend to the
44 panel that the license be issued or denied. The draft license submittal shall
45 be made within sixty-five (65) days after a complete application is received.
46 (4) If technical criteria as adopted in the plan are applicable, the
47 director shall determine if the proposed facility complies with the criteria.
48 Such determination shall be made within forty-five (45) days after a complete
49 application is received. If the technical criteria are not met, the director
50 shall deny the license and the panel shall be disbanded. If the technical cri-
51 teria are met, the director shall submit to the panel a draft site license
52 which includes conditions regarding the technical criteria to be met. These
53 conditions may be more stringent than those in the plan if warranted by infor-
54 mation provided in the application. The draft license may also include addi-
1 tional conditions based on the information submitted in the application
2 regarding the construction of the facility. The director shall also recommend
3 to the panel that the license be issued or denied. The denial or draft license
4 submittal shall be made within sixty-five (65) days after a complete applica-
5 tion is received. The director shall immediately notify the applicant and the
6 chairman of the panel of the denial or draft license submittal.
7 (5) Within ten (10) days after submittal of a draft license, the panel
8 shall meet to review and establish a timetable for the consideration of the
9 draft site license.
10 (6) The panel shall:
11 (a) Set a date and arrange for publication of notice of a public hearing
12 in a newspaper having major circulation in the vicinity of the proposed
13 site, at its first meeting. The public notice shall:
14 (i) Contain a map indicating the location of the proposed facility,
15 a description of the proposed action, and the location where the
16 application for a siting license may be reviewed and where copies may
17 be obtained;
18 (ii) Identify the time, place and location for the public hearing
19 held to receive public comment and input on the application for a
20 siting license;
21 (b) Publish the notice not less than thirty (30) days before the date of
22 the public hearing and the notice shall be, at a minimum, a twenty (20)
23 days' notice as provided in section 60-109, Idaho Code.
24 (7) Comment and input on the proposed facility may be presented orally or
25 in writing at the public hearing, and shall continue to be accepted in writing
26 by the panel for fifteen (15) days after the public hearing date.
27 (8) The panel's primary responsibility shall be to consider the concerns
28 and objections submitted by the public in relation to the contents of the site
29 license application. The panel shall facilitate efforts to provide that the
30 concerns and objections are mitigated by proposing additional conditions
31 regarding the construction of the facility. The panel may propose conditions
32 which integrate the provisions of the city or county ordinances, permits or
34 (9) Within ninety (90) days after creation, the panel shall recommend to
35 the director that the license be issued as proposed, issued with different or
36 additional conditions, or denied. The director shall make a final decision
37 within thirty (30) days after receipt of the panel's recommendation. If the
38 panel recommends different or additional conditions, a clear statement of the
39 need for the condition must be submitted to the director. If the panel recom-
40 mends denial, a clear statement of the reasons for the denial must be submit-
41 ted to the director.
42 (10) The director shall issue a siting license if the director determines
44 (a) The technical criteria are met;
45 (b) The harm to scenic, historic, cultural or recreational values is not
46 substantial or can be mitigated by appropriate license conditions;
47 (c) The risk and impact of accident during transportation of fuels and
48 waste to and from the site are not substantial or can be mitigated with
49 appropriate license conditions;
50 (d) The impact on local government is not adverse regarding health,
51 safety, cost and consistency with local planning and existing development
52 or can be mitigated with appropriate license conditions; and
53 (e) No other major concerns have been raised by the panel regarding pub-
54 lic health or the environment which cannot be mitigated by special license
1 (11) An applicant denied a siting license pursuant to this chapter or any
2 person aggrieved by a decision of the director pursuant to this chapter may
3 within twenty-eight (28) days, after all remedies have been exhausted under
4 the provisions of this chapter, seek judicial review under the procedures pro-
5 vided in chapter 52, title 67, Idaho Code.
6 39-6814. INFORMATION OBTAINED -- PUBLIC RECORD. (1) Except as provided in
7 subsection (2) of this section, information obtained by the department under
8 the provisions of this chapter shall be deemed to be a public record.
9 (2) A person regulated under the provisions of this chapter may designate
10 a record, site license application, other information, or a portion of a
11 record, site license application, or other information furnished to or
12 obtained by the department or its agents, as being only for the use of the
13 department and the panel. The material shall then be subject to disclosure
14 according to chapter 3, title 9, Idaho Code.
15 39-6815. REMEDY FOR DEVALUATION OF PROPERTY CAUSED BY APPROVED FACILITY.
16 (1) Before construction of an energy facility, but in no case later than nine
17 (9) months after approval of a site license for an energy facility, any owner
18 or user of real property adversely affected by approval may bring an action in
19 a district court of competent jurisdiction against the owner of the proposed
20 facility. If the court determines that the planned construction and operation
21 of the energy facility will result in the devaluation of the plaintiff's prop-
22 erty or will otherwise interfere with the plaintiff's rights in the property,
23 it shall order the owner to compensate the plaintiff in an amount equal to the
24 value of the plaintiff's loss.
25 (2) The remedy provided in subsection (1) of this section shall be in
26 addition to other remedies provided by law for owners or users aggrieved by
27 the proposed construction and operation of an energy facility.
28 (3) Nothing in this chapter shall prevent an owner or user of property
29 aggrieved by the construction and operation of a facility from seeking damages
30 that result from a subsequent modification of the design or operation of a
31 facility but such damages are limited to the incremental damage that results
32 from the modification. Any action for such damages under this section shall be
33 brought within nine (9) months after the siting license for modification of
34 the design or operation of the facility is approved.
35 (4) For the purpose of assessing damages, the value of the rights
36 affected is fixed at the date the siting license is approved and the actual
37 value of the right at that date is the basis for the determination of the
38 amount of damage suffered, and no improvements to the property subsequent to
39 the date of approval of the plans shall be included in the assessment of dam-
40 ages. Similarly, for any subsequent modification of a facility, value is fixed
41 at the date of approval of the siting license.
42 (5) The owner or operator of a proposed facility may, at any time before
43 an award of damages, abandon the construction or operation of the facility or
44 any modification and cause the action to be dismissed. As a condition of dis-
45 missal, however, the owner or operator shall compensate the plaintiff for any
46 actual damage sustained as a result of construction or operation of the facil-
47 ity before abandonment, together with court costs and a reasonable attorney's
49 (6) Nothing in this chapter shall prevent a court from enjoining any
50 activity at an energy facility that is outside of, or not in compliance with,
51 the terms and conditions of an approved permit issued pursuant to local, state
52 or federal law.
1 SECTION 2. An emergency existing therefor, which emergency is hereby
2 declared to exist, this act shall be in full force and effect on and after its
3 passage and approval.
STATEMENT OF PURPOSE
The purpose of this legislation is to codify a statewide process
for the selection of sites for the construction and operation of
large electric generation facilities.
None. Costs of implementation of the statutory provisions will be
covered by a fee from facility operators.
Name: Sen. Kate Kelly Sen. Clint Stennett
Sen. David Langhorst Sen. Mike Burkett
Sen. Elliot Werk Sen. Edgar Malepeai
Sen. Diane Bilyeu Rep. Wendy Jaquet
STATEMENT OF PURPOSE/FISCAL NOTE S 1041