HM 41 — ESCALANTE GENERATING STATION JOB GROWTH

HOUSEA MEMORIAL 41RECOGNIZING 53RDAN LEGISLATUREOPPORTUNITY -FOR STATEJOB OFGROWTH NEWPRESENTED MEXICO - SECOND SESSION, 2018 INTRODUCED BY HarryTHE GarciaESCALANTE andGENERATING EliseoSTATION LeeIN AlconPREWITT, andNEW PatriciaMEXICO; A.

Lundstrom and D.

Wonda Johnson 7 9 A MEMORIAL RECOGNIZING AN OPPORTUNITY FOR JOB GROWTH PRESENTED BY THE ESCALANTE GENERATING STATION IN PREWITT, NEW MEXICO;

e9 t 17 WHEREAS, the northwest New Mexico region has a long w l n d 18 history with energy production, including natural gas, oil, = = 19 a l uranium and coal;

and i a e r 20 WHEREAS, the energy sector, which includes coal and oil a t m m 21 and gas production, has been the region's top economic base d r e 22 industry, responsible for generating upwards of forty percent c e s k 23 of taxable gross receipts for local governments and for e a n b 24 providing thousands of jobs and approximately twelve percent of u [ the wages in the region;

and .209829.1 WHEREAS, due to changes in global markets, less expensive fuel stock and other factors, this region has been adversely affected by industry dislocations, downsizing in production and job loss;

and WHEREAS, the El Segundo and Lee Ranch mines, which supply fuel to Tri-State generation and transmission association's Escalante generating station, laid off nearly HM 41 one-third of their workers at the beginning of 2017;

and Page 1 WHEREAS, the New Mexico energy policy and implementation plan, finalized in 2015, recommends an all-of-the-above energy approach for New Mexico as a means to build from the energy assets and to grow the economy;

and WHEREAS, the federal economic development administration has made significant investments through its national partnerships for opportunity and workforce and economic revitalization initiative in assisting the coal-impacted e e 17 communities of the northwest New Mexico region to develop a e e n d 18 plan to diversify their economy;

and = = l ] 19 WHEREAS, the Escalante generating station employs more a l r i 20 than one hundred people, provides one million four hundred t e a t thousand dollars ($1,400,000) in property taxes per year and is m m 21 e d r e 22 an economic anchor for both Cibola and McKinley counties;

and c e r c 23 WHEREAS, due to its proximity to the Escalante generating e a n b 24 station and the availability of excess steam for industrial u [ reuse, an international cardboard recycling company was .209829.1 - 2 - recruited and attracted to co-locate on adjacent property;

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the potential for the state and local e e n d 18 governments to enter into public-private partnerships to = = l ] 19 incentivize these developments;

and a l r i 20 BE IT FURTHER RESOLVED that the economic development t e a t department, the workforce solutions department and the energy, m m 21 e d r e 22 minerals and natural resources department, along with New c e r c 23 Mexico energy associations, the national rural electric e a n b 24 cooperative association, the Continental Divide electric u [ cooperative, local and regional economic development .209829.1 - 3 - organizations and universities in the region, be consulted and engaged in the development of the report and strategic planning process;

and BE IT FURTHER RESOLVED that the economic development department, the workforce solutions department and the energy, minerals and natural resources department present HM 41 Page 3 their report to the relevant interim legislative committees prior to November 1, 2018;

and BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the secretary of economic development, the secretary of workforce solutions,solutions and the secretary of energy, minerals and natural resourcesresources. and the chief executive officer of the national rural electric cooperative association.

-HM 441 -Page 164 e8 e25 17 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .209829.1