HM 56 — STUDY SAN JUAN FREIGHT HAULING

HOUSEA MEMORIAL 56RECOGNIZING 54THAN LEGISLATURE-OPPORTUNITY STATEFOR JOB GROWTH IN SAN JUAN COUNTY AND REQUESTING THE ECONOMIC DEVELOPMENT DEPARTMENT TO CONVENE A STUDY GROUP TO STUDY THE POTENTIAL BENEFITS OF NEWFREIGHT MEXICOHAULING -FROM FIRSTSAN SESSIO,JUAN 2019COUNTY INTRODUCEDTO BYTHE RodMAJOR MontoyaRAIL andAND JamesINTERSTATE R.J.CORRIDOR.

Strickler8 andWHEREAS, AnthonySan AllisonJuan andcounty Paulhas C.a long history with energy production, including natural gas, oil and coal;

Bandy and BrianWHEREAS, Egolfthe 7energy 9sector Ahas MEMORIALbeen RECOGNIZINGSan ANJuan OPPORTUNITYcounty's FORtop JOBeconomic GROWTHbase INindustry, SANresponsible JUANfor COUNTYgenerating ANDvital REQUESTINGtaxable THEgross ECONOMICreceipts DEVELOPMENTfor DEPARTMENTlocal TOgovernments CONVENEand Afor STUDYproviding GROUPthousands TOof STUDYjobs THEand POTENTIALmillions BENEFITSof OFdollars FREIGHTin HAULINGwages FROMfor SANthe JUANcounty; COUNTY TO THE MAJOR RAIL AND INTERSTATE CORRIDOR.

16and WHEREAS, Sandue Juanto countychanges in global markets, environmental pressures, less expensive fuel stock and other factors, this region has abeen longadversely historyaffected withby energyindustry edislocations, tdownsizing 17in production, includingjob naturallosses gas,and oilpotential andfuture coal;job losses;

and w l n d 18 WHEREAS, the energy sector has been San Juan county's top = = 19 a l economic base industry, responsible for generating vital i a e r 20 taxable gross receipts for local governments and for providing a t m m 21 thousands of jobs and millions of dollars in wages for the d r e 22 county;

and c e s k 23 WHEREAS, due to changes in global markets, environmental e a n b 24 pressures, less expensive fuel stock and other factors, this u [ region has been adversely affected by industry dislocations, .213336.1 downsizing in production, job losses and potential future job losses;

and WHEREAS, the San Juan generating station and San Juan HM 56 Page 1 coal mine currently employ more than four hundred fifty people and several hundred contractors and subcontractors and support business employees both locally and throughout the state, amounting to over one thousand five hundred employees, providing over nine million dollars ($9,000,000) in property taxes per year and anchoring the economy of San Juan county;

and WHEREAS, workers displaced as a result of the potential e e 17 closure of the San Juan generating station, San Juan coal mine e e n d 18 and associated contractor, subcontractor and support business = = l ] 19 workforces will be seeking other career opportunities to a l r i 20 support their families;

and t e a t WHEREAS, the New Mexico energy policy and implementation m m 21 e d r e 22 plan, finalized in 2015, recommends an energy approach that c e r c 23 encourages and prizes energy development of all kinds for New e a n b 24 Mexico, as a means to build from energy assets and to grow the u [ economy;

and .213336.1 - 2 - WHEREAS, the New Mexico energy roadmap, a consensus-based,consensus- based, stakeholder-developed plan, finalized in 2018, defines a set of goals and sequence of strategies required to diversify the New Mexico energy economy more effectively and to efficiently move energy and advance usage of alternative fuels for forms of transportation;

and WHEREAS, the regional economic assessment and strategy for the coal-impacted Four Corners region report, published HM 56 Page 2 February 8, 2017, highlights the lack of rail service and industrial freight services in the Four Corners region as a roadblock to attracting new industry to the area;

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

and e e n d 18 WHEREAS, limited industrial transportation infrastructure = = l ] 19 exists in San Juan county, with freight rail service over one a l r i 20 hundred twenty miles away, the nearest interstate highway over t e a t one hundred miles away and a lack of commercial air service;

m m 21 e d r e 22 and c e r c 23 WHEREAS, Navajo agricultural products industry produces a e a n b 24 significant amount of agricultural goods on over seventy-twoseventy- utwo [ thousand acres;

and .213336.1 - 3 - WHEREAS, increased manufacturing opportunities will help diversify and support the tax base and workforce of San Juan county;

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF HM 56 Page 3 REPRESENTATIVES OF THE STATE OF NEW MEXICO that the economic development department be requested to convene a study group, along with the workforce solutions department, the department of transportation and the energy, minerals and natural resources department, to conduct a study and develop a report analyzing:

the economic impact of increased capability to export natural resources and agricultural, industrial and e e 17 retail products;

e e n d 18 B.

the cost differential of the construction of a = = l ] 19 railway and the construction of an industrial freight corridor;

a l r i 20 C.

the cost differential of the transportation of t e a t goods on rail and an industrial freight corridor for shippers m m 21 e d r e 22 and end users;

c e r c 23 D.

potential emissions and highway road maintenance e a n b 24 reductions as a result of fewer diesel trucks operating on u [ state highways;

and .213336.1 - 4 - E.

and BE IT FURTHER RESOLVED that the economic development department, the workforce solutions department, the department of transportation and the energy, minerals and natural resources department, along with the New Mexico HM 56 Page 4 natural gas vehicles association, the New Mexicans for economic prosperity growth coalition, local and regional economic development organizations and colleges 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, the department of transportation and the energy, minerals and natural resources department present their report to the relevant e e 17 interim legislative committees prior to November 1, 2019;

and e e n d 18 BE IT FURTHER RESOLVED that copies of this memorial be = = l ] 19 transmitted to the secretary of economic development, the a l r i 20 secretary of workforce solutions, the secretary of t e a t transportation, the secretary of energy, minerals and natural m m 21 e d r e 22 resources and the chief executive officer of Four Corners c e r c 23 economic development.

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