GOP action kills New Mexico grid finance bill

London (Platts)--20Feb2006

New Mexico legislation to create a state agency to help fund transmission
projects to export renewable energy to other states died last week when
Republican lawmakers launched a filibuster in the last hours of the state's
legislative session.

Two transmission authority companion bills: House Bill 111 and Senate Bill
317, cleared both chambers Feb. 14. The bills, however, languished along with
dozens of others during the filibuster, Ned Farquar, energy and environmental
advisor to Gov. Bill Richardson, said Friday. 

The Republicans were concerned with other issues, like a state minimum wage
bill and ethics reform, but ending up killing many bills as the session ended
Feb. 16, he said.

Richardson will decide this week on possibly bringing back the legislators for
a special session, and the transmission authority legislation could be taken
up then, Farquar said.

The bills had strong bipartisan support, according to Farquar. On Feb. 14, the
House approved the bill on a 50 to 8 vote and the Senate unanimously passed
the bill with 40 votes. The bills were sent to the opposite chambers for
approval, but got caught in the end-of-session crunch.

Richardson strongly supported the bill, which is similar to legislation that
died in 2005. Richardson has been trying to build up the renewable energy
industry in New Mexico. The state's efforts to boost transmission may be idled
while other states like Wyoming, which has a state transmission authority,
gain a competitive advantage, Farquar said.

Under the bill, the New Mexico Renewable Energy Transmission Authority, a
quasi-governmental agency, would be able to issue tax-exempt revenue bonds to
provide financing for public and private entities to build and operate new
transmission lines and electric storage facilities, both inside and outside of
New Mexico. There is no limit on the authority's bonding ability.

The legislation was designed to give New Mexican renewable projects faster
access to surrounding states with renewable energy portfolio standards, like
Arizona, California and Colorado, according to the New Mexico Energy, Minerals
and Natural Resources Dept. The act requires that any project managed by the
authority contain at least 30% renewables.

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