HOUSE MEMORIAL 29

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

Peter Wirth

A MEMORIAL

REQUESTING THAT THE NEW MEXICO HYDROGEN BUSINESS COUNCIL CONVENE A SPECIAL COMMITTEE TO DEVELOP AND RECOMMEND A STATE-OPERATED HYDROGEN ENERGY LIABILITY INSURANCE PROGRAM TO EASE ECONOMIC BARRIERS TO HYDROGEN BUSINESSES IN NEW MEXICO.

     WHEREAS, there is an urgent need to move the United States' energy economy away from petroleum-based systems and other limited resources of foreign fossil fuels for reasons of national security; and

     WHEREAS, continued use of fossil fuels adversely affects the environment in two key ways: increased pollutants and the production of greenhouse gases; and

     WHEREAS, the nation's future energy source mix should increasingly rely on clean, sustainable and renewable sources; and

     WHEREAS, extracted hydrogen will become an important element of the nation's energy portfolio, because it can be obtained from domestic sources and its use emits only water vapor; and

     WHEREAS, federal laboratories in the state of New Mexico have, for nearly thirty years, participated in the evolution of technologies that allow for the use of hydrogen for energy purposes, making the state a technology leader; and

     WHEREAS, the governor has proclaimed New Mexico the "Clean Energy State" and desires the state to become a leader in hydrogen energy; and

     WHEREAS, the deployment of hydrogen-energy-based systems and businesses has been recognized as an important component of the state's economic development strategy; and

     WHEREAS, a major impediment to more rapid implementation of hydrogen-based systems is the absence of liability and property insurance for hydrogen energy installations; and

     WHEREAS, the unwillingness of insurers to underwrite hydrogen systems, despite many significant and distinguished studies indicating their safety, exists because very few installations and very little data on their performance exist; and

     WHEREAS, should first-tier indemnification be provided to a significant degree, insurers are likely to provide second- tier insurance; and

     WHEREAS, the state of New Mexico has the opportunity to take the lead nationally, in remedying this situation by providing liability insurance to qualified hydrogen energy installations, thereby accelerating the introduction of this important energy source;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that, during the 2006 legislative interim, the New Mexico hydrogen business council be requested to convene a committee with appropriate representation from state government and business interests to develop draft legislation for the 2007 legislative session that creates a state-operated liability insurance program for certified hydrogen energy projects; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the secretary of economic development and the governor.

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