[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.

 

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

 

 

 

SPONSOR:

McSorley

 

DATE TYPED:

01/29/02

 

HB

 

 

SHORT TITLE:

Study Alternative Energy Resources

 

SB

SJM26

 

 

ANALYST:

Trujillo

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

 

 

$0.1 Indeterminate

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

 

SOURCES OF INFORMATION

LFC Files

 

Responses Received From:                                                                

Energy, Minerals and Natural Resources Department  (EMNRD)

Commissioner of Public Lands (CPL)

Environment Department (ED)

 

SUMMARY

 

     Synopsis of Bill

 

Senate Joint Memorial 26 requests the Legislative Council to direct the appropriate legislative Interim Committee to study means to foster use of alternative energy resources.

 

     Significant Issues

 

EMNRD reports this memorial would create a study of means that the state could use to facilitate the increased use of alternative energy resources. The study could serve as a basis for developing legislative or policy initiatives which could stimulate alternative energy development in New Mexico.

 

According to CPL, alternative energy sources are not defined in the bill.  Solar radiation and wind are mentioned but other energy sources such as geothermal or technologies such as fuel cells or energy conservation are not discussed in the memorial.

 

ADMINISTRATIVE IMPLICATIONS

 

Slight administrative implications have been reported by EMNRD and  CPL.

 

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

 

Relates to SB187 and HB233

 

TECHNICAL ISSUES

 

EMNRD suggests on page 2, line 10: Insert a comma after “states” to clarify that the intent of the memorial is to direct the appropriate legislative interim committee “to study alternative energy…and to encourage development of alternative energy sources.”

 

OTHER SUBSTANTIVE ISSUES

 

EMNRD reports New Mexico has a diverse and extensive renewable energy resource base.  For example, New Mexico ranks 2nd among all states in solar and 12th in wind resources.  Significant geothermal and biomass resources are also located within our borders.  Yet New Mexico’s renewable resources remain largely untapped. Increased use of alternative energy resources could be beneficial to New Mexico and its citizens for several reasons:

a)     Many alternative energy resources have less environmental impact than conventional resources;

b)     Alternative energy resources are usually decoupled from supply and cost changes of conventional resources;

c)     Development of untapped alternative energy resources would result in increased economic activity;

d)     Alternative energy resources can be developed locally, reducing dependency upon imported resources.

ED indicates the information and recommendations resulting from the study should better enable the legislature to formulate a well-founded strategy for fostering the use of alternative energy resources.

ED suggests as an alternative, the legislature could request that appropriate agencies of the executive branch prepare a report on approaches to fostering use of alternative energy resources.  The legislature could also commission a panel of independent experts to prepare and present such a study.

 

LAT/njw

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