[1] NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

 

Only the most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC’s office in Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR:

McSorley

 

DATE TYPED:

02/01/02

 

HB

 

 

SHORT TITLE:

Nonprofit Alternate Energy Project

 

SB

410

 

 

ANALYST:

Trujillo

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

 

$150.0

 

 

Non-recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to Appropriation in The General Appropriation Act

 

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From:                                                                

Energy, Minerals and Natural Resources Department  (EMNRD)

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 410 appropriates $150.0 from the general fund to EMNRD to contract for services with a statewide energy and utility advocacy organization to assist in the provision of sustainable energy to low-income communities and families in locations currently not connected to regular energy and utility services.

 

     Significant Issues

 

EMNRD reports there are at least 4,500 households in New Mexico that are not connected to the electric utility grid.  Many of these same households are also likely without natural gas service.  The specified appropriation would greatly assist in identifying, analyzing and implementing promising mechanisms for providing these households with sustainable energy from such sources as the sun and wind.   Provision of sustainable energy to low-income communities and families would, in turn, enhance their health, comfort and quality of life.  An existing organization known as the New Mexico Sustainable Energy Collaborative (NMSEC) is already active in this area and could possibly serve as the entity rendering the assistance envisioned in the bill.

 

FISCAL IMPLICATIONS

 

The appropriation of $150.0 contained in this bill is a non-recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2003 shall revert to the general fund. 

 

ADMINISTRATIVE IMPLICATIONS

 

EMNRD reports it is already facilitating the activities of the NMSEC.

 

TECHNICAL ISSUES

 

EMNRD reports the term “services” on line 19 is not defined.  It is therefore unclear whether the appropriation could be used for establishment of a revolving loan fund for the purchase of sustainable energy equipment; for creation of a program for lease or lease-purchase of sustainable energy equipment; or for similar initiatives that may not traditionally be considered “services.”  Such mechanisms have significant potential to facilitate the provision of sustainable energy to the targeted population.  The term “sustainable energy” on line 21 also is not defined, but is generally construed to include energy produced from solar, wind, geothermal, and biomass resources.

 

LT/prr

 [1]Begin typing on the * in replace mode.  Do not add or delete spaces.