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F I S C A L I M P A C T R E P O R T
SPONSOR Cisneros
ORIGINAL DATE
LAST UPDATED
1/30/06
HB
SHORT TITLE
FORESTRY BIOMASS ECONOMIC
DEVELOPMENT
SB 327
ANALYST Weber
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$100.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Indian Affairs Department (IAD)
Department of Game and Fish (DGF)
Energy, Minerals and Natural Resources (EMNR)
SUMMARY
Synopsis of Bill
Senate Bill 327 appropriates $100 thousand from the general fund to the Indian Affairs
Department to assist the Picuris Pueblo in establishing an economic development program based
on value-added products derived from forestry biomass.
FISCAL IMPLICATIONS
The appropriation of $100 thousand contained in this bill is a recurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of FY07 shall revert to
the general fund.
SIGNIFICANT ISSUES
Since 1999, the Energy, Minerals and Natural Resources Department has directed funds to tribal
and local governments, communities, and small businesses to help improve utilization of, and
create markets for, woody biomass from hazardous fuel reduction activities. There is still a void
pg_0002
Senate Bill 327 Page 2
in assisting start-up and existing woody biomass business with business planning and marketing.
Biomass is organic matter such as wood, plants, residue from agriculture or forestry, and the
organic component of municipal and industrial waste.
Options for biomass utilization:
Use in conventional wood products
Pulp and Paper use
Composite wood products
Inclusion in plastics cements, etc.
Bioenergy
Bioenergy, a developing alternative to fossil fuels, is the use of organic matter such as woodand
related products as well as the organic component of municipal and industrial wastes, to provide
heat, make fuels, and generate electricity. Wood, the largest source of bioenergy, has been used
to provide heat for thousands of years. In addition to heating, biomass can be used, like fossil
fuels, to power automotive vehicle sand generate electricity. Modern technology is working to
improve the efficiency of bioenergy production to increase its marketability. The two leading
options for converting large amounts of biomass in the U.S. to energy are conversion of biomass
to electricity and conversion of biomass to liquid fuels.
The Energy, Minerals and Natural Resources web site reports several new bio-energy projects
are underway in New Mexico. The City of Albuquerque, and New Mexico State University are
carrying a long-term study of a municipal solid waste bioreactor design into the field-scale
construction phase. The cities of Las Cruces and Ojinaga Mexico are jointly studying a process
for growing fuel wood with wastewater sludge.
The U.S. Forest Service is working with the State Forestry Division on two wood chip fueled
power systems at Jemez Mountain schools and the Glorieta Conference Center. Groups in Silver
City and Angel Fire are studying use of lumber mill residues and forest thinnings for fueling a
bio-energy project. New Mexico State University's demonstration of a tumbleweed harvester
could help make this high-energy material a practical energy source.
Rapid growth of the New Mexico dairy industry has greatly increased the production of manure
in New Mexico. The State of New Mexico is working with the U.S. Department of Energy and
Dairy Producers of New Mexico, a local dairy trade organization, to develop a project involving
the use of a bioreactor to produce methane from this waste.
POSSIBLE QUESTIONS
What infrastructure currently exists at the Picuris Pueblo supporting the value-added forestry
biomass initiative.
MW/nt