Enchant Energy, the company that plans to turn the San Juan Generating Station near Farmington into the world’s largest carbon capture system, responded to criticisms made in a recent report, blasting the proposal. NM Political Report spoke with the Institute for Energy Economics and Financial Analysis (IEEFA) report author Karl Cates about his concerns for the proposal last month. RELATED: Energy think tank blasts carbon capture proposal for San Juan coal plant
Enchant Energy addressed a number of issues raised by the IEEFA report in a document posted to the company’s website in late July. The company reiterated its belief that the proposed carbon capture system offers a cost-effective, low-emission solution to keep the coal-fired San Juan Generating Station open. “Contrary to the IEEFA assertion, Enchant Energy is not making hard and fast ‘presumptions,’” the company said, pointing to a pre-feasibility study the company commissioned earlier this summer from global engineering firm Sargent & Lundry.
An energy market think tank has dubbed the carbon capture proposal for the San Juan Generating Station, the Northwestern New Mexico coal-fired power plant which is closing soon, a “false hope.”
The Institute for Energy Economics and Financial Analysis (IEEFA), an Ohio-based energy think tank, recently published a scathingly critical report about Enchant Energy’s proposal to use carbon capture technology to keep the coal-fired power plant open and operating. PNM, the majority stakeholder in the San Juan plant, plans to shutter the facility by 2022 as part of the utility’s wider goal of ending all coal-fired power generation in its portfolio by 2031. That strategy aligns with Governor Michelle Lujan Grisham’s Energy Transition Act (ETA) law, which would see the state generate 50 percent of its electricity from renewable energy sources by 2030. The City of Farmington announced in February that it reached an agreement with Enchant Energy to keep the plant open. The company is an unknown firm in the energy sector and a newcomer to the state.
The Legislature has moved to Gov. Michelle Lujan Grisham’s desk a controversial bill designed to dramatically increase the amount of renewable energy used to produce electricity in New Mexico while also helping the Public Service Company of New Mexico recoup its investments in the coal-burning San Juan Generating Station near Farmington. Following a three-hour debate Tuesday, the House passed Senate Bill 489 by a margin of 43-22. It was a mostly party-line vote, with almost all Democrats in favor of the bill and almost all Republicans voting against it. The measure goes now to Lujan Grisham, who has enthusiastically supported it. How PNM’s electrical rates will be affected was a major point of contention during debates over the bill in the Legislature.
A bill aimed at shutting down the coal-burning San Juan Generating Station and strengthening New Mexico renewable energy standards survived a rambling 3 1/2-hour filibuster and other parliamentary maneuvering by opponents in the state Senate on Wednesday night. But one victim of the games on the Senate floor was the annual House vs. Senate basketball contest at the Santa Fe Indian School gym, an annual benefit for the University of New Mexico’s Comprehensive Cancer Center. The Senate team had to concede and return to the Capitol, some members arriving in the Senate chamber still wearing basketball gear, because the debate on Senate Bill 489 — dubbed the Energy Transition Act — went on well into the night. State Sen. Cliff Pirtle returned to the Senate floor wearing his jersey for the House-Senate basketball game and the rules-mandated tie.
In a case of strange political bedfellows, a conservative lawmaker from San Juan County and the leader of a Santa Fe environmental group not known for compromising came together Tuesday to back a bill aimed at easing the economic woes of New Mexico communities hit by the closing of large coal-burning power plants. The House of Representives voted 44-25 to pass Rep. Rod Montoya’s House Bill 325, designed to help a large school district keep most of its tax base if Public Service Company of New Mexico closes the San Juan Generating Station by 2022. To become a reality, the measure would also have to clear the Senate before the Legislature adjourns at noon Thursday. “Are you going to refer to me as an environmentalist activist,” Montoya joked with a reporter Tuesday. Endorsing the bill was Mariel Nanasi, executive director of New Energy Economy, a Santa Fe-based non-profit that has fought many PNM rate increases and other proposals before the state Public Regulation Commission.
After a Senate committee last week poured cold water on a bill allowing Public Service Company of New Mexico to sell bonds to pay for the expenses of shutting down a coal-burning plant in San Juan County, a Farmington legislator has introduced a new bill aimed at easing the impact of the plant’s closure on county residents and government institutions. House Minority Whip Rod Montoya, R-Farmington, told The New Mexican on Thursday that his legislation, House Bill 325, would require the state Public Regulation Commission to consider the economic effects on communities when deciding cases involving the shutdown of large power sources, such as the San Juan Generating Station. The bill also would require a utility to build any replacement power source in the same community as the facility it is planning to close. Many proponents of the original measure tied to PNM, Senate Bill 47, argued during a lengthy hearing Saturday that it would offer aid to residents of San Juan County who heavily rely on jobs at the power plant and a nearby coal mine that supplies it. “The school district in Kirtland, New Mexico, gets about $37 million a year from the power plant,” Montoya said Thursday.
A bill scheduled to come before the Senate Conservation Committee on Saturday has some environmental groups and the state’s largest electric utility facing off over financing the retirement of a coal-fired power plant. If passed, the bill would create a bond financing mechanism allowing Public Service Company of New Mexico, or PNM, to recover “stranded” costs associated with its planned closure of the San Juan Generating Station near Farmington. The bill would allow the utility to form a subsidiary that could issue low-interest “energy redevelopment bonds” and recover more than $300 million. Senate Bill 47 is sponsored by Albuquerque Democratic Sen. Jacob Candelaria, an attorney, and Republican Sen. Steven Neville, a real estate appraiser from Aztec. Its counterpart, House Bill 80, is also a bipartisan bill, sponsored by Rep. Roberto Gonzales, D-Ranchos de Taos, and Republican Minority Whip Rod Montoya, a miner from Farmington.
I hope readers had a restful break from work, school and yes, media, too. To help catch you up on environment news around New Mexico, I have a few links to share. In December, PNM closed two units at its San Juan Generating Station. Now, the utility wants legislative approval to address how it will recover the money it spent on the plant. According to an AP story by Susan Montoya Bryan:
The utility closed two units at the plant in December as part of an agreement to curb haze-causing pollution in the Four Corners region.
As carbon dioxide levels hit levels unseen in 650,000 years and global temperatures continue to rise, the United States government is rolling back climate change policies. On Tuesday, President Donald Trump signed an executive order revoking and rescinding all Obama-era orders and reports addressing climate and clean energy. He also ordered the U.S. Environmental Protection Agency to review and revoke the Clean Power Plan, which would have required states to cut greenhouse gas emissions from power plants. Last year, the U.S. Supreme Court stayed implementation of that plan, pending the outcome of a lawsuit against the EPA by utilities, the coal industry and 24 states. New Mexico, through Attorney General Hector Balderas, was one of 25 states, cities and counties to file a motion to intervene in support of the plan.
The Dakota Access Pipeline may be 1,000 miles away from the southwest, but issues raised at Standing Rock—related to energy development and Indian lands and rights—resonate here in New Mexico. “In the case of Standing Rock, I think it sent a very strong message about what we can do, what being involved in a community can do, and the pressure it can put on an agency,” said Theresa Pasqual, an archaeologist and former director of Acoma Pueblo’s Historic Preservation Office who now works as a consultant. “I hope that here in New Mexico, especially for people that have been following the Standing Rock tribe’s movement to protect its water and to protect its cultural resources, that they will take an interest in what happens here, but also say, ‘What can I do? What can I do to be engaged locally?’” Doing so, she said, can change the “course of conversation” around many of the energy issues that affect New Mexico’s tribes. Related: The launch of our new environmental beat
Indeed, New Mexico’s tribes have struggled with issues not unlike those raised in Standing Rock for a long time.