Vote gives new life to tax break for coal plant

The back-and-forth lobbying is intense on a bill that would give an $85-million tax break for the Desert Rock coal plant on the Navajo Nation, and a Senate committee voted to give it new life Thursday evening.

Senate Bill 431, sponsored by Senate President Pro Tem Ben Altamirano, D-Silver City, was approved on a vote of 5-4 by the Senate Conservation Committee. It now moves to the Finance Committee before it can be voted on by the full Senate.

This morning, the bill’s companion, House Bill 178, sponsored by Rep. Tom Taylor, R-Farmington and the minority leader, will be reconsidered by the House Energy and Natural Resources Committee. It must also pass the Taxation and Revenue Committee before heading to the House floor.

A week ago, both bills were tabled and likely dead, but, in Santa Fe, anything can happen.

Sen. John Ryan, R-Albuquerque, was absent when the Senate committee voted to table the bill Monday. He made the motion to untable the bill Thursday afternoon when the committee met in a previously unscheduled session, and the bill was approved by a one-vote margin.

The house version of the bill was brought back to life a week ago when Rep. Joni Gutierrez, D-Las Cruces, who had originally voted to table the bill, made a motion to reconsider it. She has been mum on why she did that, but most expect her to vote to approve the bill when the committee meets at 8:30 a.m.

The tax credit is controversial because the plant will send an estimated 10.5 million tons of carbon dioxide into the air each year. It’s going to be built by Sithe Global Power of Houston, in partnership with the Navajo Nation.

Gov. Bill Richardson has a goal of reducing such emissions throughout the state by 11 million tons each year and has said in the past that the plant concerns him. On Thursday, Richardson spokesman Jon Goldstein told me that “the governor is concerned with the potential negative impacts this would have on his aggressive climate change emission reduction goals,” but remains neutral on the legislation.

Meanwhile, on a vote of 32-0, the Senate on Thursday passed Senate Bill 418, sponsored by Michael Sanchez, D-Belen and the majority leader, which would require that at least 15 percent of an electric utility’s power supply come from renewable energy sources by 2015, with the requirement increasing to 20 percent in 2020.

The bill now moves to the House.

“This bill is another step toward keeping our air healthy and making New Mexico the clean energy state,” Richardson said in a news release. “By increasing our use of renewable energy, New Mexico is once again showing itself a national leader on diversifying our energy sources and addressing global climate change.”

For Richardson, a delicate balancing act

Richardson appears to be seeking a delicate balance on the two proposals.

The governor is in a tough position because many Democratic and Republican leaders in the Legislature support the coal plant, as does the leadership of the Navajo Nation – a group Richardson will seek support from in the presidential race.

At the same time, many Navajos and other citizens oppose the coal plant. During the presidential campaign, as Richardson touts New Mexico’s tough, new clean energy standards, the point will likely be raised that he did little to fight the tax break for the coal plant, whose emissions would almost exactly cancel out his target for reducing emissions in the state.

It will also likely be pointed out that the plant isn’t exactly in line with the “man-on-the-moon effort” Richardson has said is necessary to combat global warming.

It’s notable that Desert Rock, though it would send its emissions into the air in the Four Corners region and primarily in Northwestern New Mexico, would sell most of its power to Nevada and Arizona.

Update, 11:50 a.m.

A vote on the House version of the Desert Rock bill was delayed today because of several attempts to amend it and other concerns that were raised at this morning’s hearing. It will likely be voted on in the next few days.