HB 80 New Mexico House · 2026 Regular Session

OIL & GAS CONSERVATION TAX ACT CHANGES

HB 80 increases funding for New Mexico's Oil and Gas Reclamation Fund by raising the tax distribution percentage from 2/19% to 50% starting July 2027, gradually increasing to 100% through 2037 before returning to 50% after 2037. The bill directly affects oil and gas operators (through higher tax contributions) and the state's energy department (which administers the fund). Key provisions include expanding fund use to cover energy education programs ($150,000 annually) and requiring the department to plug abandoned wells, restore sites, and pursue cost recovery from operators. Funds will be managed under the Energy, Minerals and Natural Resources Department with annual reporting requirements.

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

House Passage

Feb 2026

Senate Passage

Feb 2026

Signed into Law

Mar 2026

Introduced Jan 14, 2026 Signed Mar 10, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

EN substitute → Final Version · 5 edits

MODERATE

This bill increases the percentage of oil and gas conservation tax revenue distributed to the Oil and Gas Reclamation Fund over time, expanding how the fund can be used to support well plugging, site remediation, and public education. It also strengthens the fund's ability to recover costs from operators who fail to properly plug wells or restore sites.

Scope change

The bill expands the scope of the Oil and Gas Reclamation Fund by increasing funding percentages and adding new allowable uses for the money, including statewide education on energy emissions.

FISCAL

Increased the percentage of tax revenue distributed to the Oil and Gas Reclamation Fund from a fixed rate to a graduated schedule: 50% from July 2027-2028, 75% from July 2028-2029, 100% from July 2029-2037, and 50% thereafter.

ELIGIBILITY

Added new allowable uses for fund money, including statewide education on energy and emissions impacts (capped at $250,000 annually) and support for contractors selling salvaged equipment to offset plugging costs.

ENFORCEMENT

Expanded the division's right to seek indemnification from operators for plugging and remediation costs, and clarified that funds collected from such suits go back into the reclamation fund.

DEFINITION

Added a new definition for 'associated production facilities' to clarify which facilities are covered under the reclamation requirements.

TIMELINE

Set the effective date of the new provisions to July 1, 2027, aligning with the start of the increased funding percentages.

Floor votes · Senate Feb 18, 2026 · House Feb 15, 2026

How they voted

34–0

Passed · 4 other

Total votes 38

Feb 18, 2026

D Democratic22

20 Yea 2

90% Yea

R Republican16

14 Yea 2

87% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 10, 2026

Signed into law

Signed

executive

Feb 18, 2026

Upper · Passed

passed Senate

upper

Feb 17, 2026

Upper · Passed

DO PASS committee report adopted

upper

Feb 16, 2026

Introduced

Sent to Senate Finance Committee

upper

Feb 15, 2026

Lower · Passed

passed House

lower

Feb 11, 2026

Lower · Passed

DO PASS committee report adopted

lower

Jan 27, 2026

Lower · Passed

DO NOT PASS, replaced with committee substitute

lower

Jan 22, 2026

Introduced

Sent to House Energy, Environment and Natural Resources Committee & House Appropriations & Finance Committee

lower

Jan 14, 2026

Introduced

Sent to House Pre-file

lower

5 primary · 0 co-sponsors