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|
SPONSOR: |
HENRC |
DATE TYPED: |
|
HB |
1025/HENRCS |
||
|
SHORT TITLE: |
Clean Energy Act |
SB |
|
||||
|
|
ANALYST: |
Valenzuela |
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APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
|
NFI |
See Narrative |
|
|
|
|
|
|
|
|
|
|
(Parenthesis
( ) Indicate Expenditure Decreases)
REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
|
FY03 |
FY04 |
|
|
|
|
|
FY05:
$6.5 million |
$6.5
million |
Recurring |
Clean
Energy Fund |
|
|
FY10:
$15.5 million |
$15.5
million |
Recurring |
Clean
Energy Fund |
(Parenthesis ( ) Indicate Revenue Decreases)
Office
of the Attorney General
SUMMARY
Synopsis
of Bill
House Energy and
Natural Resources Committee substitute for House Bill 1025 proposes enacting a
new statute, the Clean Energy Act, that would authorize, on
Significant
Issues
As
currently in the bill, the Act identifies the following discretionary recurring
appropriations from the fund, totaling approximately $9,800.0:
$ 300.0 est. Administrative
overhead for EMNRD (5 percent maximum)
$ 500.0 Low-income
energy assistance funding administered by the New Mexico Mortgage Finance
Authority (minimum)
$ 1,000.0 Renewable energy or energy efficiency
projects at state-owned buildings (maximum)
$ 4,000.0 Renewable energy or energy efficiency
projects at universities, public schools, or local governments (maximum)
$ 4,000.0 Develop electric services for
low-income communities or Indian nation, tribe or pueblo (maximum)
No
state agency responded with revenue projections for the fund in its analysis of
the bill. The LFC projections, with assumptions, of the estimated revenue into
the fund are provided in the table below:
|
|
1993 |
1998 |
2003
(est.) |
2009
(est.) |
|
Utility Retail Sales Revenue (MWh)[1] |
14,926,879 |
18,173,120 |
21,696,192[2] |
25,902,2532 |
|
Percent Change (5-yr cumulative) |
17.0
% |
21.7% |
19.4% |
19.4% |
|
Assessment amount per KWh |
|
|
$ 0.0003 |
$ 0.0006 |
|
Estimated Revenue from Assessment |
|
|
$ 6,508.9 |
$ 15,541.4 |
|
Earmarked Appropriation in the Act |
|
|
$ 9,800.0 |
$ 9,800.0 |
As
shown in the table, the intended effect for appropriations would not be
realized until the assessment doubles to $0.0006/KWh, which is slated to occur
on
FISCAL IMPLICATIONS
Revenue generated will
not revert to the general fund. This
bill creates a new fund and provides for continuing appropriations. The LFC objects to including continuing
appropriation language in the statutory provisions for newly created
funds. Earmarking reduces the ability of
the legislature to establish spending priorities.
ADMINISTRATIVE IMPLICATIONS
The bill does not
define when utility companies would be required to transfer the assessment
revenue to the state, whether on an monthly, quarterly or annual basis.
DUPLICATION AND RELATIONSHIP
The bill creates a
fund similar to the systems benefit charge fund (Section 62-3A-13 NMSA 1978)
that would be repealed if the Electric Utility Industry Restructuring Act is
repealed by Senate Bill 718.
House Bill 1025 is a
duplicate of Senate Bill 865.
MFV/sb