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SPONSOR: |
Romero |
DATE TYPED: |
3/7/03 |
HB |
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SHORT TITLE: |
Renewable Energy Programs |
SB |
836 |
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ANALYST: |
Maloy |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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See Narrative |
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(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to SB 718 and SB 865.
Conflicts with SJM 51.
Responses
Received From
Public
Regulation Commission
Energy,
Minerals and Natural Resources Department
Office
of the Attorney General
Environment
Department
SUMMARY
Senate Bill 836 enacts a new section of the Public Utility Act that directs the Public Regulation Commission (PRC) to adopt rules and develop a renewable energy program applicable to public electric utilities.
The bill provides that the program may include
requirements for voluntary programs; renewable energy portfolio standards; a renewable
energy credit trading system; educational programs; source and emission
disclosure requirements; new metering requirements; interconnection standards;
and customer interest surveys.
Significant Issues
1. This bill defines and clarifies the authority of the PRC regarding renewable energy programs applicable to public utilities providing electric services. Such definition and clarification is needed in light of recent challenges by utility companies of PRC’s recently adopted Renewable Portfolio Standards (RPS) for electric utilities.
2. The PRC’s RPS generally meets the intent of this legislation.
3. The RPS requires that investor-owned electric utilities generate or procure 10% of their energy from renewable sources by 2011.
4. Rural electric cooperative utilities are excluded from the mandatory renewable energy portfolio standard in the Commission’s existing renewable energy rule. This bill does not suggest such an exclusion.
5. This legislation does not mandate a preference for New Mexico-based renewable energy resources.
FISCAL IMPLICATIONS
The bill does not contain an appropriation. The development and adoption of rules has
FTE and budget implications / costs. It
is presumed that these costs are to be absorbed by existing resources.
RELATIONSHIPS AND CONFLICTS
1. SB 836 relates to SB718, where the
Electric Utility Restructuring Act is repealed. The Restructuring Act includes references to the PRC’s
responsibilities regarding the desirability of renewable portfolio standards.
2. SM 836 also relates to SB 865, which
establishes the Clean Energy Fund to be financed by a per kilowatt-hour charge
on retail electrical sales. Money from the fund would be distributed through
the Energy, Minerals and Natural Resources Department to qualified applicants
for projects to research, develop or apply energy-efficient, low-emissions,
and/or zero-emissions renewable energy techniques.
3. SB836 conflicts with SJM 51, which
urges the PRC to suspend its recently adopted mandatory renewable resource portfolio
standards rule pending the conclusion of an interim legislative committee’s
deliberation studying the most appropriate means for government to encourage
and support the development and use of renewable energy resources.
OTHER SUBSTANTIVE ISSUES
Both departments also
note the continuing heightened interest in renewable resources and their
potential significant environmental and economic benefits for New Mexicans.
SJM/sb