New Mexico Considers Relief Measures for Gas Prices

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The pain of high gasoline prices and fears of big winter heating bills may be easing a bit for those living in New Mexico. That state's Legislature meets today to consider an emergency relief package that would put money directly into the pockets of every taxpayer. NPR's Ted Robbins reports from Santa Fe.

TED ROBBINS reporting:

Like millions of other Americans who drive to and from work, John Salazar(ph) has been hit hard by $3-a-gallon gasoline.

Mr. JOHN SALAZAR: It's a big impact. It practically cuts our income in half.

ROBBINS: Salazar works, goes to college and has a wife at home with two young children. Now he has a new worry: What will happen when the weather turns cold.

Mr. SALAZAR: The heating costs--I think they're going to be outrageous this winter.

ROBBINS: But because John Salazar lives in the state of New Mexico, he's likely to get some help. The state has a $270 million budget surplus this year largely thanks to revenues from oil and gas production. So Governor Bill Richardson proposes giving $100 million back to taxpayers.

Governor BILL RICHARDSON (Democrat, New Mexico): We're in an emergency situation here in New Mexico and I believe it's important that we give consumers relief.

ROBBINS: Governor Richardson, a Democrat, was Energy secretary in the Clinton administration. His gas and home heating relief package would give a direct rebate, a check, to every New Mexican who filed a tax return. The average rebate would be $89, but low-income families would get more including credits on their utility bills.

Gov. RICHARDSON: A low-income family with four kids could get a gasoline rebate check for $200 which on top of the home heating credits on their gas bill--for as much as $500. That's $700 to low-income New Mexicans to offset energy costs for the most vulnerable families.

ROBBINS: Now Alaska gives regular payouts to its citizens from energy royalties. So do the Canadian province of Alberta and the country of Norway. But few other states have consistent budget surpluses from oil and gas royalties. Energy economist Phil Verleger says that gives Bill Richardson the opportunity to satisfy his constituents and establish himself as a national leader on this issue.

Mr. PHIL VERLEGER (Energy Economist): Bill Richardson is probably one of the smartest politicians in the country and I think he's going to run for president and it's clearly a very popular step. New Mexico has the revenue, and to pay it back will certainly put him in good stead with the citizens of New Mexico and probably put him in good stead with many Democrats.

ROBBINS: Even Republican State Senator Lee Rawson says the chances of passing energy relief are, in his words, 100 percent.

State Senator LEE RAWSON (Republican, New Mexico): This Legislature will always give money back to the public when they can because that's what the public wants and that's what they expect and it just buys votes.

ROBBINS: Rawson says he'd rather cut sales taxes, but he probably doesn't have the votes since the Legislature is controlled by Democrats. And he admits a check is more dramatic. Another part of Governor Richardson's energy relief package, though, appears to be going nowhere. He has asked the oil and gas industry to donate $50 million so the rebates can be expanded.

Gov. RICHARDSON: Unfortunately the response so far from the oil and gas industry has been silence. They feel that taxes and royalties they already pay are good enough, and the billions of dollars in profits shouldn't be shared with consumers who are paying the price for those profits.

ROBBINS: Energy economist Phil Verleger says the governor shouldn't expect an industry donation.

Mr. VERLEGER: It would be very imprudent for a company to agree to pay more to the state of New Mexico because they would then find the governor of Alaska, the governor of Texas, the governor of Kansas, the governor of California all wind up at their desk saying, `Well, we want you to pay twice as much.'

ROBBINS: John Salazar says he'll be happy with any rebate. He figures under the governor's plan he'll get about $140.

Mr. SALAZAR: You know, actually that's $140 I didn't have. (Laughs) So that comes in handy, especially with two kids in Pampers.

ROBBINS: Checks could go out within three weeks after the New Mexico Legislature passes a bill. In the meantime, the state is also looking into ways to conserve energy. Governor Richardson says he wants to lead by example. He vows to trade in his Lincoln Navigator SUV for a more fuel-efficient vehicle, but so far, he just hasn't been able to find the right model. Ted Robbins, NPR News, Santa Fe.

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