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

SPONSOR Griego

ORIGINAL DATE

LAST UPDATED

2/18/07

HB

SHORT TITLE Mora Land Grant Wind Energy Study

SB 1128

ANALYST Propst

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$100.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Energy, Minerals and Natural Resources Department (EMNRD)

SUMMARY

Synopsis of Bill

Senate Bill 1128 provides $100.0 to the Department of Finance and Administration (DFA) to pay

for a feasibility study for a wind energy enterprise on the Mora Land Grant

.

FISCAL IMPLICATIONS

The appropriation of $100.0 contained in this bill is a recurring expense to the General Fund.

Any unexpended or unencumbered balance remaining at the end of FY08 shall revert to the

General Fund.

SIGNIFICANT ISSUES

NMNRD reports that the wind power industry is rapidly growing. The feasibility study proposed

in SB 1128 could be the first step leading to a wind energy enterprise on the Mora Land Grant. If

such an enterprise were to be developed, positive regional effects could be seen in jobs, cash

flow for land leases, and renewable energy.

Senate Bill 1128 – Page

2

EMNRD, Energy Conservation and Management Division (ECMD) have provided studies

potential economic benefits of wind power in Eddy, Otero, Lea and Colfax Counties. It also has

products on wind power plant site screening and guidelines for wind power developers and

investors available which could be useful for the study. New Mexico has 497 megawatts of wind

power capacity at 5 wind power plants. These plants result in lease payments to landowners and

create jobs. EMNRD could assist DFA in developing a request for proposals for the contract for

the feasibility study.

TECHNICAL ISSUES

EMNRD notes that it may be difficult to complete the study within the one year provided as

similar studies have taken at least two years.

WEP/nt