Energy

SB 308 allows New Mexico public utilities to petition for waivers from renewable energy requirements, enabling them to build, operate, or purchase carbon-based energy facilities (like natural gas plants) and energy from outside the state. It establishes a voluntary natural gas monitoring program, requires a carbon intensity standard for New Mexico natural gas production, and creates a tax credit for greenhouse gas-reducing natural gas technology. The bill directly affects utilities and natural gas producers by modifying compliance pathways for clean energy goals while introducing new reporting and tax incentives. It does not change existing renewable energy targets (e.g., 40% by 2025) but provides flexibility through waivers and new mechanisms to support emissions reductions.

HB 225 prohibits New Mexico's Environmental Improvement Board (EIB) from creating or enforcing rules that would require vehicle manufacturers to produce or sell a specific percentage of zero-emission vehicles each year. The bill directly affects the EIB, preventing it from implementing such regulatory requirements, and indirectly impacts vehicle manufacturers who might otherwise have been subject to these rules. It blocks a mechanism for controlling emissions through mandated vehicle sales percentages, rather than creating new sales obligations. The legislation does not alter current vehicle sales standards or consumer choices but restricts a potential future regulatory path. This is a procedural bill focused on limiting regulatory authority, not on direct policy changes for consumers or manufacturers.

HB 227 repeals New Mexico's Clean Transportation Fuel Standard Program and prohibits future adoption of rules requiring fuel providers to meet carbon intensity standards. It specifically removes references to "carbon intensity" from environmental law definitions and eliminates the department's duty to implement fuel standard rules. The bill directly affects fuel producers, refiners, and regulators who would have been subject to the 2024 program's requirements. This legislation eliminates existing regulatory obligations without creating new requirements or financial impacts.

HB 226 amends New Mexico's Rural Electric Cooperative Act and Renewable Energy Act to redefine "renewable energy resource" by adding "natural gas using combined cycle technology" to the list of qualifying sources. This change directly affects rural electric cooperatives and public utilities, allowing them to count electricity generated from this specific natural gas technology toward renewable energy requirements. The bill does not make natural gas renewable in general, but explicitly excludes other fossil fuels while including this combined cycle method under the definition. This is a technical definitional update, not a new policy requirement, and aligns with existing provisions that exclude most fossil fuels.

HB 113, the Renewable Energy Production Tax Act, imposes a 3.75% excise tax on electricity generated from renewable sources (solar, wind, hydropower, geothermal, or qualifying biomass) at commercial facilities in New Mexico. It applies to electricity sold in the wholesale market, with tax calculated based on the monthly average wholesale price, and requires payment by the 25th of the following month. Revenue from this tax will be directed to the Severance Tax Permanent Fund, and the law exempts government entities, tribal lands, and small-scale personal use (under 500 kWh daily). The tax begins on January 1, 2027, affecting commercial renewable energy producers but not residential or exempt entities.