45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO THE PRODUCTION OF ELECTRICAL ENERGY; PROVIDING FOR A LEGISLATIVE INTERIM COMMITTEE TO STUDY THE ECONOMIC FEASIBILITY OF CONSTRUCTING AND OPERATING A COAL-FIRED ELECTRICAL GENERATING PLANT IN NORTHEAST NEW MEXICO; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. ELECTRICAL GENERATING PLANT--FINDINGS--FEASIBILITY STUDY.--

A. The legislature finds that:

(1) there is a shortage of electrical generating capacity in the western United States;

(2) a coal-fired electrical generating facility in northeastern New Mexico, utilizing New Mexico's coal and land resources, could provide jobs and low-cost electricity to the region with resulting economic growth;

(3) the sales of surplus electricity, not needed by New Mexico businesses and residents, could provide additional revenue; and

(4) a study should be conducted to examine the feasibility of the state entering into a joint venture with private industry to finance, construct and operate such a coal-fired generating facility by the most feasible methods.

B. The purpose of this section is to provide for a comprehensive feasibility study of the cost and benefits of financing, constructing and operating a coal-fired electrical generating facility in northeastern New Mexico.

C. There is created a joint interim legislative committee that shall be known as the "electrical generation study committee". The committee shall function from the date of its appointment until the first day of December prior to the second session of the forty-fifth legislature. The electrical generation study committee shall be composed of six members. Three members of the house of representatives shall be appointed by the speaker of the house of representatives. Three members of the senate shall be appointed by the senate committees' committee or, if the senate appointments are made in the interim, by the president pro tempore of the senate after consultation with and agreement of a majority of the members of the senate committees' committee. Members shall be appointed from each house so as to give the two major political parties in each house the same representation on the electrical generation study committee as prevails in each house. However, in no event shall either party have less than one member from each house on the committee. The speaker of the house of representatives and the president pro tempore of the senate shall each appoint a co-chairman of the committee. A vacancy on the electrical generation study committee shall be filled by appointment in the same manner as the original appointment. No action shall be taken by the electrical generation study committee if a majority of the total membership from either house on the committee rejects the action.

D. After its appointment, the electrical generation study committee shall hold one organizational meeting to develop a work plan and budget for the ensuing interim. The work plan and budget shall be submitted to the New Mexico legislative council for approval. Upon approval of the work plan and budget by the New Mexico legislative council, the electrical generation study committee shall:

(1) pursuant to the Procurement Code, select a person to study the costs and benefits of financing, constructing and operating a coal-fired electrical generating plant in northeastern New Mexico. The study shall include:

(a) the feasibility of the state entering into a joint venture for the costs and operation of the plant under which the state would supply the land and a portion of the initial capital and operating costs and direct a streamlined program in return for a long-term contract for electricity at the lowest obtainable price for the benefit of new and existing New Mexico businesses and residents;

(b) projections for the future demand for electricity and prices in California and the rest of the western United States;

(c) projections for the cost of coal for the generating plant;

(d) the overall economic feasibility of financing and constructing such a facility;

(e) alternatives to the facility that may stimulate economic development to the region;

(f) any potential environmental and social costs of the facility; and

(g) any other issues identified by the study committee;

(2) receive periodic progress reports from the person performing the study and take the responsibility for the overall direction of the study; and

(3) forward the results of the study with the recommendations and comments of the committee to the governor and the legislature by December 15, 2001 for consideration by the second session of the forty-fifth legislature.

E. The public regulation commission, the commissioner of public lands, the energy, minerals and natural resources department, the economic development department and every other state agency and political subdivision of the state shall, upon request, furnish and make available to the electrical generation study committee documents, material or information requested by the members of the committee or its staff.

F. The staff for the electrical generation study committee shall be provided by the legislative council service.

Section 2. APPROPRIATION.--Two hundred thousand dollars ($200,000) is appropriated from the general fund to the legislative council service for expenditure in fiscal years 2001 and 2002 for the purpose of carrying out the provisions of this act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2002 shall revert to the general fund.

Section 3. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.