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Thursday, December 13, 2007

Decision On Biomass Plant Credits Delayed

By Laura Nesbitt
Mountain View Telegraph
    A state agency has delayed a decision on whether a proposed biomass power plant near Estancia will receive any tax credits until the parties involved explain their arguments publicly.
    Energy, Minerals and Natural Resources Department Secretary Joanna Prukop decided Tuesday— the day a decision was expected on an appeal by Western Water and Power Production LLC— to listen to oral arguments from the parties.
    WWPP is appealing the denial of its application for state renewable energy production tax credits to the Energy, Conservation and Management Division of EMNRD.
    The first Energy, Minerals and Natural Resources Department letter rejecting WWPP's application for tax credits was dated April 17. Western Water and Power Production also received a second rejection letter Sept. 25.
    The state's response to the appeal stated that Western Water and Power did not demonstrate that it had secured any biomass fuel for the project.
    "WWPP's incomplete application did not meet the criteria for approval. An applicant can resubmit its application, but it will lose its place in line," Jodi McGinnis Porter, public information officer for the Energy, Minerals and Natural Resources Department, has said.
    The tax credits could be worth as much as $2.74 million annually, according to the Energy, Conservation and Management Division response to the appeal.
    Western Water and Power Production intends to use biomass, primarily piñon and juniper, from nearby mountains and rangeland to fuel its proposed $80 million, 35-megawatt plant.
    Oral arguments have been scheduled for 10 a.m. on Jan. 25 in Porter Hall in the Wendell Chino Building, 1220 S. St. Francis Drive in Santa Fe.
    Although the hearing will be open to the public, members of the public will not be allowed to comment.
    Prukop will listen to the parties summarize their positions— 20 minutes from Western Water and Power Production, and Energy, Conservation and Management Division can share 20 minutes with High Lonesome Wind Ranch and Forest Guardians, the other parties in the appeal, McGinnis Porter said Wednesday.
    "We hope that the hearing will clarify some issues," she said.
    Hearing officers will also be allowed to ask the parties questions. The hearing officers are Bill Brancard, division director for Mining and Minerals, a division of the Energy, Minerals and Natural Resources Department, and Gail MacQuesten, assistant general counsel for Oil Conservation, also a division of EMNRD.
    After the proceeding, Brancard and MacQuesten "will review the entire written record and provide a perspective" to Prukop. A decision will be made by Prukop 20 days after the hearing, Porter said.
    Brancard and MacQuesten may also help Prukop "draft a final written decision," Porter said.
    If Western Water and Power is unsuccessful in obtaining tax credits from the Energy, Minerals and Natural Resources Department, company president David Cohen said the firm will have to examine "other contingencies."
    "Depending on what happens the project could be in jeopardy but we're optimistic that we could still make it work," Cohen said Tuesday.
    Cohen said Western Water and Power Production would consider litigation to obtain the credits.
    "We think we have a strong legal case," he said.
    Western Water and Power Production has a contract with Public Service Company of New Mexico calling for the company to begin delivering power by the summer of 2009.
    "We've asked PNM for an extension and we're awaiting a response," Cohen said.
    Earlier this month, U.S. Rep. Heather Wilson sent a letter to Gov. Bill Richardson urging him to "resolve issues" involved with the denial of tax credits.