HM056

HOUSE MEMORIAL 56

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

Rod Montoya and James R.J. Strickler and Anthony Allison and Paul C. Bandy and Brian Egolf

A MEMORIAL

RECOGNIZING AN OPPORTUNITY FOR JOB GROWTH IN SAN JUAN COUNTY AND REQUESTING THE ECONOMIC DEVELOPMENT DEPARTMENT TO CONVENE A STUDY GROUP TO STUDY THE POTENTIAL BENEFITS OF FREIGHT HAULING FROM SAN JUAN COUNTY TO THE MAJOR RAIL AND INTERSTATE CORRIDOR.

WHEREAS, San Juan county has a long history with energy production, including natural gas, oil and coal; and

WHEREAS, the energy sector has been San Juan county's top economic base industry, responsible for generating vital taxable gross receipts for local governments and for providing thousands of jobs and millions of dollars in wages for the county; and

WHEREAS, due to changes in global markets, environmental pressures, less expensive fuel stock and other factors, this region has been adversely affected by industry dislocations, downsizing in production, job losses and potential future job losses; and

WHEREAS, the San Juan generating station and San Juan coal mine, which supplies fuel to the generating station, have either laid off or lost by attrition over one-third of their workers since the beginning of 2016 when the potential closure of the generating station was proposed for 2022; and

WHEREAS, the San Juan generating station and San Juan coal mine currently employ more than four hundred fifty people and several hundred contractors and subcontractors and support business employees both locally and throughout the state, amounting to over one thousand five hundred employees, providing over nine million dollars ($9,000,000) in property taxes per year and anchoring the economy of San Juan county; and

WHEREAS, workers displaced as a result of the potential closure of the San Juan generating station, San Juan coal mine and associated contractor, subcontractor and support business workforces will be seeking other career opportunities to support their families; and

WHEREAS, the New Mexico energy policy and implementation plan, finalized in 2015, recommends an energy approach that encourages and prizes energy development of all kinds for New Mexico, as a means to build from energy assets and to grow the economy; and

WHEREAS, the New Mexico energy roadmap, a consensus-based, stakeholder-developed plan, finalized in 2018, defines a set of goals and sequence of strategies required to diversify the New Mexico energy economy more effectively and to efficiently move energy and advance usage of alternative fuels for forms of transportation; and

WHEREAS, the regional economic assessment and strategy for the coal-impacted Four Corners region report, published February 8, 2017, highlights the lack of rail service and industrial freight services in the Four Corners region as a roadblock to attracting new industry to the area; and

WHEREAS, the federal economic development administration has made significant investments through its national partnerships for opportunity and workforce and economic revitalization initiatives in assisting the coal-impacted communities of the northwest New Mexico region to develop a plan to diversify their economies; and

WHEREAS, limited industrial transportation infrastructure exists in San Juan county, with freight rail service over one hundred twenty miles away, the nearest interstate highway over one hundred miles away and a lack of commercial air service; and

WHEREAS, Navajo agricultural products industry produces a significant amount of agricultural goods on over seventy-two thousand acres; and

WHEREAS, increased manufacturing opportunities will help diversify and support the tax base and workforce of San Juan county; and

WHEREAS, increasing economic opportunities in the northwest New Mexico region further benefits the economy of New Mexico and adds to tax revenues contributing to the state budget;

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the economic development department be requested to convene a study group, along with the workforce solutions department, the department of transportation and the energy, minerals and natural resources department, to conduct a study and develop a report analyzing:

A. the economic impact of increased capability to export natural resources and agricultural, industrial and retail products;

B. the cost differential of the construction of a railway and the construction of an industrial freight corridor;

C. the cost differential of the transportation of goods on rail and an industrial freight corridor for shippers and end users;

D. potential emissions and highway road maintenance

reductions as a result of fewer diesel trucks operating on state highways; and

E. rail service and economic impact information already obtained and developed for Four Corners economic development; and

BE IT FURTHER RESOLVED that the economic development department, the workforce solutions department, the department of transportation and the energy, minerals and natural resources department, along with the New Mexico natural gas vehicles association, the New Mexicans for economic prosperity growth coalition, local and regional economic development organizations and colleges and universities in the region, be consulted and engaged in the development of the report and strategic planning process; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the secretary of economic development, the secretary of workforce solutions, the secretary of transportation, the secretary of energy, minerals and natural resources and the chief executive officer of Four Corners economic development.

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