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

SPONSOR Harrison

ORIGINAL DATE

LAST UPDATED

03/12/07

HM 91

SHORT TITLE FOUR CORNERS-AREA HEALTH STUDY

SB

ANALYST Hanika Ortiz

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY07

FY08

FY09 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

$.1 see

narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

SUMMARY

Synopsis of Bill

House Memorial 91 requests the DOH and other governmental agencies undertake a health study

of residents in the four corners area of the state, with emphasis on respiratory illnesses.

The memorial has the following comments:

•

There are presently two coal-fired power plants operating in the Four Corners region of

the Navajo Nation that generate significant amounts of air pollution.

•

There is a proposal to construct an additional coal-fired power plant in the Four Corners

region of the Navajo Nation that may increase current levels of air pollution in that

region.

•

There are reports that residents of the Four Corners region of the state suffer respiratory

illnesses at a rate that is significantly higher than that experienced by state residents in

general.

•

There may be a connection between the rate of respiratory illnesses among residents of

the Four Corners region of the state and the levels of air pollution in that region, but no

studies have been undertaken to establish whether such a relationship exists.

House Memorial 91 – Page

2

FISCAL IMPLICATIONS

The DOH, in cooperation with other appropriate state, tribal and federal agencies, is being

requested to undertake a health study of residents in the Four Corners region of the state, with an

emphasis on respiratory illnesses. The study group will incur costs to State agencies dependent

upon how many Department staff members participate; how often the group meets; and, the

additional costs derived from the implementation of any recommendations made by the group.

If members of the study group receive no other compensation, perquisite or allowance, they may

be entitled to per diem and mileage as provided in the Per Diem and Mileage Act.

SIGNIFICANT ISSUES

Many residents of this region believe that public health has not been properly evaluated or

secured for citizens of the Four Corners region in regards to air pollution. High incidences of

asthma and other respiratory illnesses are prevalent in the Four Corners region.

According to Dine Care, two existing coal-fired power plants in the vicinity have been called

two of the worst point-sources of pollution in the U.S. by the EPA, spewing concentrations of a

number of pollutants proven to be damaging to human health and the environment. The health of

neighboring residents on Navajo lands has been compromised by their exposure to these toxins.

Those residents, and many of their neighbors and supporters, have joined forces to resist forced

relocation and exposure to even more toxic pollutants any new plant will add to their already

overburdened community.

According to the San Juan Citizen Alliance, the proposed Desert Rock Power Plant is a 1,500

megawatt mine-mouth, coal-fired power plant by Sithe Global Power, LLC in Burnham on the

Navajo Nation, San Juan County, New Mexico on a 580-acre site approximately 30 miles

southwest of Farmington, New Mexico. If constructed, Desert Rock will become part of a

massive complex of existing coal mines (BHP Billiton), coal delivery systems and coal-fired

power plants (Arizona Public Services Company Four Corners Power Plant and Public Service

Company of New Mexico San Juan Generating Station) located in the Four Corners region.

ADMINISTRATIVE IMPLICATIONS

DOH notes the Department has conducted studies of respiratory illnesses in San Juan County

(Association between Ozone and Emergency Department Visits for Asthma in the Farmington,

NM area poster report to CDC 2003). The Farmington study showed a statistically significant

increase in emergency department visits for asthma due to a 10 parts per billion (10ppb) increase

in ozone. Particulate matter, nitrogen dioxide and sulfur dioxide concentrations were also

examined, although these data were limited because they were not collected daily. To improve

data, the DOH is partnering with the National Aeronautic and Space Administration (NASA) to

secure satellite data of air pollutants on a daily basis.

TECHNICAL ISSUES

The Four Corners is the survey point at the intersection of the four U.S. states of Utah, Colorado,

New Mexico, and Arizona and the high desert plateau region surrounding that point. The

memorial is unclear as to what exact areas of the state and its residents are being studied.

House Memorial 91 – Page

3

The memorial does not provide a date by which the study group is expected to complete its tasks;

nor, is it clear which legislative committee the study group should report its findings and

recommendations.

DUPLICATION, CONFLICT, COMPANIONSHIP OR RELATIONSHIP

HM91 duplicates SM 75

HM 91 relates to SB 994 Coal Electric Facility Gross Receipts concerning the proposed Desert

Rock coal-fired power plant.

SUBSTANTIVE ISSUES

DOH reports that exposure to air pollutants, such as ozone, nitrogen dioxide, sulfur dioxide and

particulates have repeatedly been shown to be associated with negative health outcomes,

including mortality, reduced lung function growth and asthma). In an Environmental Protection

Agency (EPA) study of air quality in New Mexico, Sather showed that the ozone concentrations

in San Juan County were increasing and were among the highest found in EPA sites in the

Southwest. He further concluded that the levels were similar throughout most of the county and

that nitrogen dioxide and alkanes were the main volatile organic compounds in the ozone

development.

The 2003-2005 average age-adjusted death rate for chronic lower respiratory diseases for San

Juan County is 58.5 deaths per 100,000 standard population, which is significantly higher than

the state's rate of 47.2 deaths per 100,000 standard population for the same period as

standardized to the 2000 U.S. population.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

A health study on the respiratory illnesses of residents in the four corners of the state will not

take place through the memorial.

AHO/mt