Energy bills proposed

Jan. 30--ALBUQUERQUE, N.M. -- State lawmakers are considering several bills aimed at boosting solar and wind energy.

Sen. Dede Feldman, D-Albuquerque, is supporting a bill to establish an income tax credit for homeowners or small businesses that install solar systems that provide heat or generate electricity.

Sen. Pete Campos, D-Las Vegas, is backing a measure on construction of power lines to transport wind-generated electricity to other states.

Bills aimed at achieving similar goals were introduced in the 2005 session but failed to pass.

Feldman said she is working with the Coalition for Clean Affordable Energy on the solar tax credit bill. The coalition has advocated a state tax credit equal to 30 percent of the cost of an installed system, minus any federal solar credit, up to a maximum value of $9,000. The coalition has proposed that the tax credit be available for 10 years.

Coalition chairman Ben Luce expects Rep. Bobby Gonzalez, D-Taos, to back a similar bill in the House.

The state tax credit would augment a federal tax credit and a PNM program through which businesses and homeowners who install solar systems can sell power to the utility, Luce said.

A federal tax credit capped at $2,000 of the cost of the installed solar system kicked in Jan. 1. It will be available through 2007.

State regulators recently approved a PNM program to pay business and residential customers who install grid-tied solar systems 13 cents for each kilowatt-hour of electricity they produce. PNM will gain credits toward alternative energy requirements mandated by state law.

PNM has estimated that a 1-kilowatt rated photovoltaic system would cost about $10,000 to $12,000 to install. The utility has estimated that an average home would need a system rated at between 1 and 2 kilowatts.

Luce said he also expects Campos to support a measure to establish a state agency similar to the Mortgage Finance Authority to promote construction of power lines to move wind energy to markets in energy-hungry states like California.