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

SPONSOR Lujan, B.

ORIGINAL DATE

LAST UPDATED

1/23/08

HB 146

SHORT TITLE Solar Energy Research Park and Academy

SB

ANALYST Escudero

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$9,000.0

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

Energy, Minerals & Natural Resources Department (EMNRD)

SUMMARY

Synopsis of Bill

House Bill 146 appropriates $9,000.0 from the general fund to the Board of Regents of the

Northern New Mexico State School to establish Solar Energy Research Park and Academy.

FISCAL IMPLICATIONS

The appropriation of $9,000.0 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.

This request for funding was submitted by Northern New Mexico College to the New Mexico

Higher Education Department (NMHED) but is not included in NMHED’s funding

recommendation for FY09.

The HED’s evaluation table of FY09 Research and Public Service Projects provided to the LFC

classifies this project as a “breach" of the Higher Education Formula. Reasons for this

classification decision are not provided. (LFC Report 07-20, Higher Education Department

Review of Selected Research and Public Service Projects, January 12, 2008, Table 4, p75.)

House Bill 146 – Page

2

SIGNIFICANT ISSUES

•

According to HED, New Mexico’s combination of ideal weather and entrepreneurial

spirit make it a potential epicenter for renewable energy in the twenty-first century. The

state experiences more than 340 days of sunshine per year, and in the eastern region,

sustained winds are the norm, making New Mexico an ideal location for solar and wind

energy research.

•

The New Mexico Economic Development Department (NMEDD) indicates that for more

than 25 years, New Mexico has excelled in hydrogen and fuel cell research and

development. The NMEDD sponsored the creation of the Hydrogen Technology

Partnership, which is now managed by the Regional Development Corporation. It's an

alliance of industry, academia, and government leaders which envisions a New Mexico

that uses its research and resources to reduce the nations dependency on imported oil.

•

The NMEDD further states that research in renewable energy is thriving in New Mexico.

In 2004, the state received $40.4 million from the U.S. Department of Energy Office of

Energy Efficiency and Renewable Energy for a variety of state and federal programs

relating to renewable energy development.

•

In June 2006, Sen. Jeff Bingaman announced that the New Mexico State University

(NMSU) was awarded an $875,000 grant from the U.S. Department of Energy (DOE) for

solar energy research and development at the university. Funds benefited NMSU's

Southwest Region Experiment Station (SWRES), which provides critical support to the

DOE National Center for Photovoltaic.

Universities throughout New Mexico are also currently engaged in renewable energy

research, including solar energy research:

University of New Mexico, Albuquerque researchers are trying to find a way to eliminate the

need for precious metals in fuel cells, thus reducing their cost. They are also investigating ways

to make large-scale hydrogen generation more effective.

New Mexico Institute of Mining and Technology, Socorro, is an engineering university where

researchers are focusing on fuel cells and technology related to clean coal production.

San Juan College, Farmington is preparing young New Mexicans for the future by offering its

unique renewable energy degree and certificate. Half the programs students already have at least

a bachelor’s degree before they begin, and 25 students are enrolled in the program at any given

time.

•

According to EMNRD, there is a current need in the New Mexico solar industry for

qualified plumbers and mechanical technicians with solar expertise. This is a growing

industry that requires that programs focus on technology transfer, commercialization, and

training activities.

•

The solar energy research facility at Northern New Mexico Community College

(NNMCC) in Española would support solar energy development in New Mexico. Taking

into account solar industry needs, EMNRD recommends that the new facility include

programs that emphasize technology transfer and commercialization of solar systems,

and training of technicians to install and service them. EMNRD further encourages

NNMCC to emphasize solar thermal heating and cooling technologies through its

programs.

PME/jp