The Roundhouse in Santa Fe. Post file photo

By ROBERT NOTT
The Santa Fe New Mexican

Some say it is an initiative that will produce jobs and revive one of the most economically depressed areas of New Mexico.

Others contend the plan will increase the production of fossil fuels in a state striving to reduce carbon dioxide emissions.

Either way, the idea of turning New Mexico into a hydrogen hub continued to draw lots of attention and divided opinions as this year’s legislative session heads into the homestretch.

Wednesday, about 100 members of the public weighed in with thoughts on House Bill 228, which would allow interested parties wanting to develop the hydrogen industry in the state to apply for public/private partnership money.

Members of the House Commerce and Economic Development Committee took public comment Wednesday night, but agreed to put off discussing or voting on the bill until Thursday. 

The bill calls for the creation of a hydrogen hub development board to oversee the projects with funds and approval by the New Mexico Finance Authority.

But because a previous version of the bill was tabled by a different committee, only to be revived and revised twice before finding its way to the House Commerce and Economic Development Committee, some members of the public said they dislike the way the legislation has continued to survive. 

Rep. Patty Lundstrom, (D-Gallup), who introduced the bill, said it’s an effort to transform the abandoned Escalante Power Plant in Prewitt into a hydrogen facility, which will help create jobs and provide an economic boost in Western New Mexico. 

Many who spoke in favor of the bill Wednesday said the legislation will provide employment for many on the Navajo Nation who lost their jobs as coal-fired plants in the region shut down. 

Bill Lee, CEO of the Gallup-McKinley County Chamber of Commerce, said the bill, if passed, could provide “real economic development directed at attracting new industry and great jobs that will support New Mexico while diversifying our economy.”

Others in favor of the bill, noting President Joe Biden’s push for developing the hydrogen industry, said if New Mexico doesn’t move on the opportunity now, it will be left behind while neighboring states take advantage of the initiative. 

Gov. Lujan Grisham wants to move quickly to develop the framework for the new hydrogen industry so New Mexico can draw some of the $8 billion for the industry that is included in the massive federal infrastructure bill approved by Congress and signed into law last year by Biden. 

“That’s potentially billions of dollars for our state — lots of jobs,” former state Rep. Joseph Sanchez, who spoke in favor of the legislation. “We need this for our state.”

Environmentalists and others disagreed, telling committee members the still-untested clean hydrogen industry will further “perpetuate our reliance on fossil fuels,” as one opponent put it. 

HB 228 is intended to gradually reduce the amount of carbon dioxide emissions in the production of clean, or “blue,” hydrogen over time. The bill calls for the level of allowable emissions to start with two kilograms of carbon dioxide per kilogram of hydrogen produced.

By 2035, the bill requires that ratio to drop to one kilogram of carbon dioxide per kilogram of hydrogen produced and, by 2045, zero carbon dioxide per kilogram of hydrogen.

Opponents said they don’t buy that argument. One critic, Andy Payne said the proposal is not “a solution toward solving climate change, but just a shortsighted attempt to create jobs now.” He suggested state leaders invest in more solar- and wind-powered energy initiatives. 

Another critic said the bill will simply condemn the state to living “in a world of methane pollution.”

The bill’s fate remains unclear. Even if the commerce committee approves it, it would have to garner approval from the full body of the House of Representatives before heading to the Senate, where it would have to go through at least two committees before the chamber voted on it.

The Senate Conservation Committee, which is likely to hear the bill, recently shut down a related bill that would allow the state to receive federal funds for hydrogen projects.

The sponsor of that bill, Sen. George Muñoz, (D-Gallup), said after that action he thinks “hydrogen is dead” during this year’s session.