posted on Friday, February 24, 2006 1:27 PM
by
Andrea Robinson
New Mexico Renewable Energy Transmission Authority Bill Dead for Now
Companion House and Senate bills to create a new quasi-agency to plan and finance interstate transmission lines did not survive a filibuster mounted by New Mexico's Republican leaders at the end of the legislative session. Proposed by Governor Bill Richardson, the new agency would have issued state bonds to finance transmission line construction, exercised the power of eminent domain to obtain rights of way for transmission corridors, and entered into leases with utilities to operate the new transmission lines. This transmission expansion would proceed in tandem with the goal of building more wind and solar power generation that, using the new transmission lines, could be exported to surrounding states with renewable portfolio standards, such as Arizona, California and Colorado.
The measure's supporters justified creating the new agency on the ground that it was needed to fill the transmission void in federal programs. In particular, they pointed to the fact that FERC's transmission pricing policy that is intended to spur transmission investments has bogged down amidst opposition from state regulators and consumer groups. They also doubt that FERC's backstop authority to approve transmission siting will, on its own, spur new transmission construction. They further note that DOE's new authority under the Energy Policy Act of 2005 (EPAct 2005) to help finance new transmission lines in the West and Southwest applies only to constrained areas and would not ensure that renewable energy would benefit from the new lines.
Critics of the proposal argued that the new agency would be redundant with new federal authority over transmission siting and construction. Rather than furthering the development of renewable power resources, the critics countered that the a new agency would instead promote coal and nuclear development. In addition, they felt that granting a new agency eminent domain set a dangerous precedent. Despite these criticisms, the bills passed both houses with overwhelming support and simply became caught up in the end-of-session crunch as Republican legislators debated other issues. Governor Richardson may raise the legislation again in a special session of the state's legislators, in an effort to catch up with states like Wyoming that already have a transmission siting authority in place. The strong support for such an authority in New Mexico will likely produce the result the Governor seeks, and exemplifies the impatience of a number of states with the cumbersome procedures surrounding DOE's and FERC's new authorities under EPAct 2005 to promote transmission expansions.