A House committee on Tuesday removed two Belen projects from a bulging capital outlay bill (SB182), setting up a possible showdown between the House and Senate.
The capital outlay bill is meant to sweep $130 million in state money from more than 1,500 brick-and-mortar projects around the state to help beef up the state’s nearly-depleted reserves, or rainy-day fund.
But the House Taxation and Revenue Committee voted 9-7 to exempt two of those projects from being swept of state money — a highway interchange in Belen and infrastructure for a Signet Solar plant in the same city.
Among those voting to exempt the Belen projects was House Speaker Ben Lujan, D-Santa Fe.
“In the event that we would adopt the amendment and the project is not a viable project then simply the money is not spent,” Lujan said of the Signet Solar item. “So I don’t’ see any problem adopting the amendment.”
The committee’s action, while seemingly small, could have large repercussions.
Both projects were among several of Gov. Bill Richardson’s capital outlay priorities that the Senate added to the capital outlay bill before passing it and sending it on to the House.
They also have been at the center of a tug-of-war between the Richardson administration and Sen. Majority Leader Michael Sanchez, D-Belen.
Sanchez could not be reached for comment Tuesday night.
Sanchez sponsored legislation this year to remove money from the Belen interchange. Meanwhile, Signet Solar has run into its own troubles, according to published reports.
The $840 million solar manufacturer was unable to secure a loan guarantee for the first phase of its project, the Valencia County News Bulletin has reported.
Beyond that, Senate leaders have said that if the House amended the big capital outlay bill the legislation could all unravel. Most of the projects in the bill are state lawmakers districts and many lawmakers view projects they can deliver to their districts – like gyms, senior centers and – as tangible proof to their constituents that they’re working hard for them.
If one lawmaker gets his project exempted, others will want to do the same, they said.