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





SPONSOR: Tinnin DATE TYPED: 02/26/01 HB 866
SHORT TITLE: Permits for Electric Generation Facilities SB
ANALYST: Valenzuela


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
 Recurring

or Non-Rec

 Fund

Affected

FY01 FY02 FY01 FY02

NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



Relates to SB 266, SB 452 and SB 672.



SOURCES OF INFORMATION



LFC Files

Public Regulation Commission

Energy, Minerals and Natural Resources Department (EMNRD)

Department of Environment (DOE)



SUMMARY



Synopsis of Bill



House Bill 866 adds a new section to the Air Quality Control Act that allows local governments to approve construction permits for electric generating facilities of 100 MW or less generating capacity. According to the bill, the permit would be valid unless the new facility, while in operation, does not meet all New Mexico Environment Department (NMED) or federal act emissions standards. If the facility falls below the standards, the NMED will have the authority to shut down the facility, until the operations are certified as meeting standards by the department. A facility that receives a permit under this bill is required to report to NMED within 30 days of receiving the locally approved construction permit.



Significant Issues



If enacted, House Bill 866 could significantly decrease the amount of time needed to obtain approval for construction of new electric generation facilities. Under current state and federal

law, a proposal to construct an electric generating facility requires issuance of an air quality permit before construction begins. The federal government may challenge House Bill 866, if enacted.



FISCAL IMPLICATIONS



House Bill 866 does not carry an appropriation.



POSSIBLE QUESTIONS