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F I S C A L I M P A C T R E P O R T



SPONSOR: Garcia, M.P. DATE TYPED: 02/19/99 HB 218/aHENRC
SHORT TITLE: On-site Electric Generation SB
ANALYST: Valenzuela

APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ 80.0 Non-recurring General Fund

(Parenthesis ( ) Indicate Revenue Decreases)



Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION



LFC Files

Energy, Minerals and Natural Resources Department: Energy Conservation and Management Division



SUMMARY



Synopsis of HENRC Amendment



The House Energy and Natural Resources Committee amendment is clean up language and does not change the original intent of the bill.



Synopsis of Bill



House Bill 216 provides $80.0 of general fund for the Energy Conservation and Management Division of the Energy, Minerals and Natural Resources Department (EMNRD) to conduct a practical demonstration of a solar photovoltaic system and an ultra-high-efficiency co-generation fuel cell system. The goal of the project is to demonstrate a new generation of electric and fossil fuel technologies while providing an opportunity to evaluate their potential economic and environmental benefits.



Significant Issues



The department would report findings of the project to the Legislature in two years.



Fuel cell technology is a core competency of existing public and private sector entities located in New Mexico. In fact, the Los Alamos National Laboratory (LANL) is quite active researching this technology and has worked with private companies to commercialize this technology. Universities in New Mexico too have been involved in the research and development of this technology.



FISCAL IMPLICATIONS



House Bill 218 would provide an appropriation to EMNRD to carry out the objective of the bill.



ADMINISTRATIVE IMPLICATIONS



Ideally, the department would work with the existing scientific community to complete this project, therefore, EMNRD would not need to hire additional staff to implement this legislation.



TECHNICAL ISSUES



The bill provides only for an appropriation in fiscal year 2000, but identifies the completion date as 2001 for this project.



POSSIBLE QUESTIONS



1. What universities, private companies, or national laboratories currently conduct scientific experiments with fuel cells technology and how do these experiments parallel with the project being proposed by House Bill 218?



2. Is this technology within the public domain, or do private companies or national laboratories maintain exclusive licensing rights?



3. Because private companies have commercialized this technology and thus maintain intellectual property rights, can the State of New Mexico legally embark into this arena of testing and demonstration of a commercial technology?



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