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

SPONSOR Garcia, T

ORIGINAL DATE

LAST UPDATED

1/29/2008

HB 119

SHORT TITLE Alternative energy for Schools Grant Act

SB

ANALYST Aguilar

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$1,000.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

Higher education Department (HED)

Department of Finance and Administration (DFA)

Energy, Minerals and Natural Resources Department (EMNRD)

SUMMARY

Synopsis of Bill

House Bill 119 appropriates $1 million from the general fund to the Energy, Minerals and

Natural Resources Department to provide grants to schools to install alternative energy

infrastructure.

FISCAL IMPLICATIONS

The appropriation of $1 million contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall revert

to the general fund.

SIGNIFICANT ISSUES

House Bill 119 provides funding and establishes a methodology for distributing the funds to

provide grants to schools to install alternative energy infrastructure that will help defray a

school’s energy costs and provide educational opportunities for students relating to the use of

alternative sources of energy.

House Bill 119 – Page

2

Any public school or post secondary educational institutions that has in place an alternative

energy project team is eligible to apply for grants.

Schools receiving grants shall use the funding to pay for technical assistance, equipment or

installations costs associate with the alternative project.

EMNRD is responsible for administering the grant, promulgating rules, determining eligible

projects and awarding grants.

TECHNICAL ISSUES

The appropriation is to EMNRD to carry out the provisions of the Act. It does not specify if a

portion of the $1,000.0 can be used for program administration.

The restriction of the funds to one fiscal year may not allow the agency enough time to develop

the start-up of the program (to include creating application materials and determining

application processes, standards for awards and review procedures by rule) and make awards that

would utilize the entire appropriation amount before reversion.

EMNRD suggest the following amendments for consideration by the Legislature:

The bill should be amended to include an energy efficiency requirement to qualify for an

alternative energy grant and allow for a competitive selection process instead of rulemaking.

Page 2, lines 7 through 11: D. "qualified school" means a facility that meets minimum insulation

requirements for the building shell, minimum energy efficiency requirements for the heating and

cooling and lighting systems and maximum water consumption requirements either in a public

school or public post-secondary educational institution in New Mexico and also has in place an

alternative energy project team that includes school, community and technical assistance

membership; and

Page 3, line 3 change “adopt rules" to “develop a competitive process".

Page 3, line 19: “(1) meets energy efficiency requirements." Renumber following sections

accordingly.

PA/mt