Biomass Builder Appeals ; State Refused It Tax Credits

By JACK KING Journal Staff Writer

A company trying to build a biomass power plant south of Estancia says the state made a mistake when it recently

denied it renewableenergy tax credits worth about $2 million a year.

Western

Water and Power filed an appeal this week with Joanna Prukop, the secretary of Energy, Minerals and Natural Resources, asking her to reverse a Sept. 25 decision denying the tax credits or to hold a public hearing on the facts of the case.

The credits would be worth approximately $2 million a year for 10 years, the company said. The plant could be built without them, but they would help make it more financially viable.

The company applied twice for the tax credit. Following its second application in August, it received a letter from Fernando R. Martinez, the department’s director, stating the application was rejected because it was incomplete.

Contracts with landowners providing the biomass fuel failed to specify the biomass available or the acreage available for thinning and removal, according to the state.

Western Water and Power, however, insists it included copies of the contracts and provided a description of acreage the company has under contract with the State Land Office. The company, in its appeal, also said it specified the estimated tonnage of biomass available on the acreage, taking into consideration roadless areas, steep slopes, tree diameter and environmentally sensitive areas. And it provided the texts of two studies showing there is 21 million tons of biomass within a 50-mile radius of the plant, and 5.9 million tons in a 25-mile radius, the company’s appeal said.

State statutes don’t even require the agency to ask for specific biomass available, said Western Water and Power co-owner David Cohen.

Brent Racher, of biomass provider Racher Resource Management, said expecting the company to provide more specific data for the life of the plant is unreasonable.

Energy, Minerals and Natural Resources spokeswoman Jodi Porter said the department makes all applicants follow the same requirements.

“A wind farm applied for the tax credits recently and we denied its application, because it had to have some contracts with the State Land Office finalized,” she said.

(c) 2007 Albuquerque Journal. Provided by ProQuest Information and Learning. All rights Reserved.