Energy and Natural ResourcesWorking Session

Transcription

1 Guadalupe Collaborative Partnership Energy and Natural ResourcesWorking Session February 9, 2015

2 Agenda Welcome Purpose of meeting Overview Presentations Questions, Answers and Discussion Adjourn 2 Working Session on Energy and Natural Resources

3 Overview of Energy and Natural Resources

4 Wind and Solar Energy N E W M E X I C O Guadalupe County has good potential for additional wind and solar energy Additional electric transmission lines connected to largersolar grid needed Like Cuba Elec Santa Fe Gallup Grants Rio Rancho Bernalillo Tucumcari Albuquerque Guadalupe Guadalupe County County Solar Ins Annual Belen Datil Socorro Carrizozo Raton Clayton Taos Alamogordo Silver City Cuba Like the other southwestern sta 5 5 has an outstanding solar resour Roswell 6 least 80 kw of PV installed in bo 6 Portales Chama off-grid applications. Fe Data source: Electricity CarlsbadGeneration Potential: 1 Las Cruces Deming Rio Rancho Bernalillo Renewable E Laboratory 20 Tucumcari Albuquerque 0 Solar Insolation Annual Average Belen Clovis Datil Portales Socorro 4 Working Session on Energy and Natural Resources Carrizozo Source: Roswell Silver City Alamogordo C In Hobbs Espanola Lordsburg Santa Grants k Clovis Solar Gallup off- Espanola M E X I C O Farmington leas Clayton Taos N E W has Raton Chama Farmington kwh/m2/day County 25 miles

5 Wind Energy Potential Annual Average Wind Speed at 80 Meters 5 Working Session on Energy and Natural Resources

6 Considerations for Wind and Solar Clean energy self-sufficiency Economic benefits Tax revenues for County and School Districts Payments to property owners - supporting ranching Employment - construction and on-going maintenance Need for additional transmission capacity Incentives and lobbying efforts needed to support growth, such as: 6 Working Session on Energy and Natural Resources Tax credits Industrial revenue bonds

7 Oil and Gas Potential Heavy oil and asphalt have been known for years Petroleum geology studies since late1980s indicate good prospects for oil and gas 7 Helium found north of Newkirk Working Session on Energy and Natural Resources Source: New Mexico Bureau of Geology & Mineral Resources New Mexico Earth Matters, Winter 2012.

8 Oil and Gas Development Considerations Emerging basin economics and need for infrastructure investment Job creation can be tremendous Environmental concerns Water use - can be intensive, while new water conservation technologies Roads and well site land disturbance in any environmentally sensitive areas Hydraulic fracturing (fracking) debate Local regulations possible in addition 8 Working Session on Energy and Natural Resources to state and federal regulations

9 Sandstone and Decorative Rock Dimensional stone including flagstone, sandstone, moss rock Current activity in Milagro and Anton Chico area Potential for larger operations? 9 Working Session on Energy and Natural Resources Industrial mineral geologists could evaluate development potential in feasibility study and market study Are a processing facility, rail loading or other infrastructure needed? Are financing incentives needed?

10 Agriculture and Water - County Profile Population Elevation Land Area Average First Freeze Average Last Freeze 4,687 persons 4,620 feet 2,999 square miles 25-Oct 17-Apr Inland Water Irrigated Land Surface Water Ground Water 800 acres 3,730 acres 450 acres Total Federal Land 6,355 acres Cattle (including Calves) 21,803 animals State Land 160,347 acres Sheep and Lambs 3,633 animals Indian Land 0 acres Equine, Horses and Ponies 459 animals Deeded Land 1,716,641 acres Crops Harvested in ,800 acres Source: 2014 New Mexico Stockman Directory 10 Working Session on Energy and Natural Resources

11 ic US HI W GH AY 84 Energy and Natural Resource P n Puerto o i n U De Luna Development Scenario if ac Pastura Anton Chico Pe co sr ive r Colonias 54 SAN MIGUEL HW AY Newkirk Cuervo HI G TORRANCE US INTERSTATE 40 QUAY Milagro Santa Rosa Pintada AY 54 miles HW Y 60 HI G WA US on HIG H 0 No rth e DE BACA Vaughn US rn B ur lin HI - gt Sa on a nt No US rth e 0 HIG H WA Y 60 rn - HI W GH AY AY Fe US W GH From Guadalupe CountySession Working on Energy and Comprehensive Natural Plan 2012 Resources gt US Puerto De Luna AY Pastura ic W GH B ur lin io cif HI Un a np US Vaughn S ta an Fe Speed Area High Wind miles Irrigated Agriculture Aragonne Mesa Wind Farm Natural Gas and Helium Oil and Gas Pipeline High Wind Speed Area Irrigated Agriculture Road Quarrying Rock Natural Gas and Helium Railroad Rock Quarrying Hydrology Rock Cutting and Transportation and Transportation Cutting Rock Growth Area Landfull County Line Alternative Energy Transmission Line Landfull Alternative Energy Transmission Line Architectural Research Consultants, Incorporated LINCOLN Aragonne M Oil and Gas ROOSEVELT Road Railroad Hydrology Growth Area County Line Architectur Consultants,

12 Presentations Wind and Solar Jeremy Turner Max Tenorio and Don Thompson David Savage Sandstone and Decorative Rock Leo Muniz Agriculture and Water Gino Lujan and Leigh Ann Marez Michael Patrick Oil and Gas 12 Working Session on Energy and Natural Resources John Michael Richardson

13 Guadalupe County Wind and Solar Energy and Electric Transmission Jeremy Turner, Executive Director February 9, 2015

14 PNM System BB Line has approximately 1,100 MW capacity. Current requests far exceed that capacity 2

15 Open Access! Access to the transmission system! FERC Jurisdiction!Interstate commerce!wholesale transactions! Access must be provided! Access must be fair, non-discriminatory! Pro-forma Open-Access Transmission Tariff (OATT) defines terms and conditions, procedures 3

16 Type of Access (1) Transmission (Delivery) Service! Allows transfer of power & energy through the system! Point-to-Point Transmission Service Agreement (TSA) or Network Integration Transmission Service Agreement (NITSA) (2) Generator Interconnection Service! Allows a generator to interconnect to the grid! Interconnection Agreement! Large Generator Interconnection Agreement! Small Generator Interconnection Agreement Generation Interconnection service does not convey transmission delivery service! Generator can inject at the Point of Interconnection (POI), but cannot deliver energy to any point beyond the POI 4

17 Opportunity Name " Western Spirit Clean Line Type " 345-kv electric transmission line Location " Central New Mexico Developers " New Mexico Renewable Energy Transmission Authority (RETA) " Clean Line Energy Partners Estimated Cost " $350 million Length " 200 miles Capacity " 1,500 MW Path " Through Albuquerque area and over existing lines owned by PNM " Ultimate delivery to the Four Corners plant with connectivity to load centers across southwest 5

18 Project Area 6

19 High-Level Project Schedule Development Anchor Customers FERC Filings State Regulatory Filings Engineering Environmental Work Right of Way Pre Construction State Regulatory Filings Completed Engineering Completed Environmental Work Completed Right of Way Construction Firm Selected Procurement Construction 7

20 Transmission Beneficiaries! Project is expected to create approximately 200 construction jobs and 5 permanent transmission related jobs! An economic study is expected to be conducted this year! Guadalupe, Torrance, Santa Fe and Sandoval Counties! State Land Office and Private landowners! San Felipe, Santa Ana and Zia Pueblos Generation Beneficiaries! Wind/Solar farms associated with the Project are expected to create approximately 1,500 construction jobs and 100 permanent jobs! Guadalupe and Torrance counties! State Land Office! depending on developed properties Job Creation Potential Indirect Jobs and Related Spending! Hotels, steel sales, concrete sales, restaurants, hardware stores, road contractors, fiber optics 8

21 Next Steps Engineering / Environmental # Feasibility Report # Engineering & Environmental Firm selected # Routing Report Completed (POWER Engineers) # Agency/NGO Meetings " Next Steps: Finalize Routing Develop & Finalize Permit Study Protocols ROW / Land Acquisition # Right-of-Way Services Firm selected # Preliminary routing review, parcel assessment (Doyle Land Services) " Next Steps: Begin ROW Acquisition Following Tribal Land ROW Regional Planning (WECC/SWAT) " Developing Draft Project Coordination Review Report " Present Project at SWAT meeting " Next Steps: PCRG interest request letter to WECC distribution lists 9

22 Contact Info New Mexico Renewable Energy Transmission Authority Jeremy Turner, Executive Director 712 Calle Grillo Santa Fe, NM (505)

23 % change Number of Farms Land in Farms 1,405,030 acres 1,461,766 acres - 4 Average Size of Farm 5,446 acres 7,028 acres - 23 Market Value of Products Sold $10,850,000 $10,485, Crop Sales $179,000 (2 percent) Livestock Sales $10,672,000 (98 percent) Average Per Farm $42,056 $50,407-17

24 % change Number of Farms Land in Farms 1,643,213 acres 1,405,030 acres + 17 Average Size of Farm 4,417 acres 5,446 acres - 19 Market Value of Products Sold $17,709,000 $10,850, Crop Sales $380,000 (2 percent) Livestock Sales $17,329,000 (98 percent) Average Per Farm $47,605 $42,

25 County Ag Trends over the past 10 yrs USDA definition of a farm any land in agriculture production generating $1000 or In reported income there is NO distinction between a farm and ranch % change Number of Farms Land in Farms 1,643,213 acres 1,405,030 acres + 17 Average Size of Farm 4,417 acres 5,446 acres - 19 Market Value of Products Sold $17,709,000 $10,850, Crop Sales $380,000 (2 percent) Livestock Sales $17,329,000 (98 percent) Average Per Farm $47,605 $42, Guadalupe County Rank in NM Farm Commodity production compared to 33 counties:! 2011 &2012 ranked 22 nd! 2010 ranked 23 rd! ranked 24 th! 2003 & 2004 ranked 26 th

26 Number of livestock 10 year Cattle and Calves (#head)! ,803 (# s back down)! ,500! ,500! ,000 (# s up)! ,000! ,000! ,000! ,000! ,000! ,000 Sheep and Lambs (#head)! (up several 100--??)! (# s decreased ½ in 10 yrs)! ! ! ! ! ! ! !

27 Guadalupe Collaborative Partnership Energy and Natural Resources Working Session Cooperatives Michael Patrick New Mexico Cooperative Extension Service Blue Hole Conference Center, Santa Rosa, NM February 9, 2015 New Mexico State University

28 Cooperatives What is a Cooperative? Why Cooperatives are Organized Cooperative Business Principles Steps in Establishing a Cooperative Where to get Help. New Mexico State University

29 What is a Cooperative? Cooperatives are businesses owned and controlled by the people who use them. Cooperatives differ from other businesses because they are member owned and operate for the benefit of members, rather than earn profits for investors. Like other businesses, most cooperatives are incorporated under State law. New Mexico State University

30 What is a Cooperative? In the United States there are more than 40,000 cooperatives that serve one out of every four citizens. The cooperative business structure provides insurance, credit, health care, housing, telephone, electrical, transportation, child care, and utility services. Members use cooperatives to buy food, consumer goods, and business and production supplies. Farmers use cooperatives to market and process crops and livestock, purchase supplies and services, and to provide credit for their operations. New Mexico State University

31 Why Cooperatives Are Organized Cooperatives are organized to: 1. Improve bargaining power; 2. Reduce costs; 3. Obtain products or services otherwise unavailable; 4. Expand new and existing market opportunities; 5. Improve product or service quality; or 6. Increase income. New Mexico State University

32 Cooperative Business Principles The differences between cooperatives and other businesses are often expressed as three broad principles that characterize all cooperatives and explain how they operate. They are: $The user-owner principle. The member-users own and provide the necessary financing. Members finance cooperatives in several different ways. New Mexico State University

33 Cooperative Business Principles $The user-control principle. The member-users control the business. They elect the board of directors and approve changes in its structure and operation. The board sets policy and is responsible for business oversight. $The user-benefit principle. Assures that the cooperative s only purpose is to provide and distribute benefits to members based on their use. Benefits may include a service otherwise not available, advantages from volume purchasing or sales, or distribution of profits based on member use of the cooperative. New Mexico State University

34 Steps in Establishing a Cooperative If you are interested in forming a cooperative, the first step is to learn all you can about cooperatives. This includes the legal, economic, and financial aspects of cooperative business. Getting the help of a cooperative development specialist, an attorney, and an accountant will in increase your chances for success. A cooperative development specialist can help coordinate a new venture from conception until the operation is running smoothly. Careful planning increases the chances of success. New Mexico State University

35 Steps in Establishing a Cooperative Here are 10 important steps in organizing a cooperative: 1.Hold an exploratory meeting with others who have a similar interest and determine whether you have common needs and desire to address those needs as a group. 2.Select a steering committee to guide the group through the formation process; 3. Conduct a survey of potential members; 4. Analyze markets for products, supplies, and services; New Mexico State University

36 Steps in Establishing a Cooperative 5. Prepare a business plan; 6. Incorporate the business; 7. Adopt bylaws and select a board of directors; 8. Find investment funds-including member investment needed to carry out the business plan; 9.Hire management and employees, and acquire facilities and equipment; 10. Begin operations. New Mexico State University

37 Where to Get Help USDA Rural Development New Mexico State Office Business & Cooperative Programs Richard Carrig, Program Director 6200 Jefferson, NE Room 255 Albuquerque, NM Phone: New Mexico Cooperative Extension Service Michael Patrick, Extension Specialist Phone: New Mexico State University