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|
SPONSOR: |
Adair |
DATE TYPED: |
01/30/02 |
HB |
|
||
|
SHORT TITLE: |
Biomass
Feasibility Study |
SB |
326 |
||||
|
|
ANALYST: |
Trujillo |
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APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or Non-Rec |
Fund Affected |
||
|
FY02 |
FY03 |
FY02 |
FY03 |
|
|
|
|
$300.0 |
|
$180.0 |
Non-Recurring |
General Fund |
(Parenthesis
( ) Indicate Expenditure Decreases)
Relates
to Appropriation in The General Appropriation Act
LFC Files
Responses Received
Energy, Minerals and Natural Resources
Department (EMNRD)
SUMMARY
Synopsis
of Bill
Senate Bill 326
appropriates $300.0 from the general fund to EMNRD for the Forestry
Division to assess the feasibility of using biomass from salt cedar and other
undesirable woody vegetation removal and watershed restoration projects to
generate electric power. The projects
are to include:
· An
inventory of the supply of undesirable woody vegetation such as salt cedar,
Russian olive, pinon and juniper on land that needs clearing and restoration to
native plant species in the middle Rio Grande valley, the Pecos river valley
and the northern upland rangelands;
· Cooperation
and consultation with federal, state, local and nonprofit organizations to implement
the action plan; and
· Preparation
of an interdisciplinary action plan to remove undesirable woody species to
enhance water quality and quantity, restoration of native plant species and
wildlife habitat, promote fire prevention in the bosque, promote local industry
and improve the environment.
Significant
Issues
EMNRD reports the bill
addresses the need to assess the volume of woody material that could be
feasible to remove for use in electrical generation power plants. To offset the
construction costs, the mill proponents will need a 20 to 25 year commitment of
wood supply. The bill directs the
creation of an interdisciplinary action plan.
The bill calls for the project to include cooperation with federal,
state, local and nonprofit organizations to implement the action plan.
There are a
number of issues associated with this bill.
Interpretation of the phrase “feasibility of using biomass from salt
cedar and other undesirable woody vegetation removal and watershed restoration
projects to generate electric power” could be difficult. Assessing the feasibility of watershed
restoration projects would focus on various types of labor and equipment to
conduct the work.
Assessing the
feasibility of using that material for electrical power generation would
require in depth research on the numerous existing technologies for generating
electricity. These technologies have
significantly different fuel performance requirements, woody material consumption
schedules and widely divergent generation efficiencies. There are electrical generation plants that
operate using small logs, chipped wood, compressed chips, or only clean chips.
The term
undesirable woody vegetation has the possibility of diverse interpretations
that will impact the accuracy of the feasibility study. Many people do not believe pinon and juniper
trees to be undesirable. The result is
that gross measures of standing tree volumes will not assure long-term
availability of materials to run the electrical generation plant.
The
bill requires EMNRD to cooperate and consult with federal, state, local and
nonprofit organizations to implement an action plan. The federal agencies have
planning and environmental clearance requirements that need significant lead
times.
FISCAL IMPLICATIONS
The appropriation of
$300.0 contained in this bill is a non-recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of 2003 shall
revert to the general fund.
EMNRD reports the appropriation is not
sufficient to provide reliable data and a successful implementation
plan. The Forestry Division estimates
an additional $180,000 will be needed as well as an additional year to
accomplish the implementation and data gathering.
ADMINISTRATIVE IMPLICATIONS
EMNRD reports
it will require additional personnel and an extended period to accomplish the
study; an FTE to conduct the environmental analysis to assess volumes and
assure the removal operations do not create erosion, or impact wildlife; an FTE
will be needed to manage the assessment of the feasibility of various electrical
generation stations; an FTE to manage the consultation and implementation of
the action plan and work on assessing the willingness of landowners to allow material
to be removed from their land.
EMNRD estimates
the action plan will take an additional year to complete.
TECHNICAL ISSUES
EMNRD suggests the
following amendments:
Line 17 should be amended to read: “Four hundred and eighty thousand
dollars ($480,000) and three (3) FTE”
Lines 19 and 20 should be amended to read: “for expenditure in fiscal
years 2003 and 2004”
According to EMNRD, the
bill does not specify the size or type of electric power generation technology
to be researched and assessed.
Moreover, the technical and economical feasibility of an electrical
power plant is very site specific dependant on a variety of other significant
factors such as projected electricity demand, proximity to the transmission
grid, water requirements and availability and land ownership.
The extent of the middle Rio Grande valley the
Pecos river valley and the upper northern rangelands is not defined, leaving to
interpretation the precise acreage to be inventoried.
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