Update on Polluting Desert Rock Power Plant Tax Subsidy Bills

From activists against Desert Rock:
This past Sunday, the NM Senate Conservation committee met to consider its version of the Desert Rock bill (SB 431). It was essentially tabled. Yet, the bill is still alive in the House. The House Energy committee was supposed to take the bill up for re-consideration on Monday morning. They have delayed consideration of HB 178 till this Friday, February 23 at 8:30 AM.

Please contact the following Reps and ask them to oppose the bill:

Representative Joni Marie Gutierrez
Las Cruces Area
Capitol Office Phone: 986-4234
Office Phone: 647-5577
Home Phone: 526-5079
E-mail: jonig@zianet.com

Representative Thomas A. Garcia
Taos, Mora, Colfax, Guad
Capitol Office Phone: 986-4242
E-mail: ocate@hotmail.com

The subsidy is being proposed through two bills being considered in the Roundhouse that would reduce Desert Rock’s overall New Mexico tax liability by about 15 percent. Sithe Global Power, the company selected by the Navajo Nation’s Diné Power Authority, to develop, finance, construct and operate the 1,500 megawatt power plant, has already negotiated a reduction of its Navajo Nation tax liability by about two-thirds. The total cost of the facility is estimated at $3 billion, making it the most costly construction project in New Mexico history.

If any money is to be given to corporate interests at all, it should go toward supporting innovative, cutting-edge coal technologies now available, such as coal gasification, that significantly reduce coal- power emissions overall, including mercury, lead, sulfur dioxide and nitrogen oxides.

The New Mexico Environment Department reports that Desert Rock’s emissions would significantly impact air quality in a region where air quality is already close to exceeding the National Ambient Air Quality Standard for ground-level ozone, the most common cause of smog. The plant would increase New Mexico’s emissions of mercury, a dangerous neurotoxin, by 13 percent and the region’s sulfur dioxide emissions by 10 percent, according to a state analysis.

The plant would raise statewide greenhouse gas levels by 25 percent, boosting statewide greenhouse gas emissions to about 59 million tons per year. The state predicts its total greenhouse gas emissions would reach nearly 60 million tons per year by 2012 without Richardson's limits. His executive order calls for greenhouse gases in 2012 to be the same as in 2000, or at about 48 million tons per year. The Desert Rock plant expects to emit just under 11 million tons of carbon dioxide each year. Because the state does not have jurisdiction over the facility, the state agencies cannot mandate the type of technology that should be used.

Our money should not go to subsidize a regional power plant that intends to sell most of its power out of state. Sithe doesn't want to admit it, but it is going to build this plant -- if EPA lets them -- whether or not they get the $85 million tax break from New Mexicans. So giving it to them would truly be a giveaway.

Thanks for considering this critical issue,
Kristin Casper: kristincasper@yahoo.com

Editor's Note: For more background and information on this attempted tax giveaway to what would be a filthy, polluting producer of energy in our state, check our previous post, which includes many useful links.