HB 320, the Industrial Carbon Reduction Act, creates a program to incentivize New Mexico industrial facilities producing specific products (like concrete, steel, cement, and hydrogen) to reduce carbon emissions by at least 40% below industry benchmarks. Facilities that meet this threshold earn a $85 per metric ton incentive for new, incremental carbon reductions, calculated based on verified emissions data and product production volume. To qualify, facilities must apply for certification, providing detailed projections of carbon intensity, production volume, and reduction timelines, with applications prioritized for projects with high feasibility, environmental benefits, and local economic growth potential. Certifications, valid for up to 10 years, will be issued through 2036 for eligible facilities meeting the program's requirements.
HB 254 modifies New Mexico's utility cost test to allow investor-owned electric utilities to include the value of avoided greenhouse gas emissions when determining if energy efficiency programs are cost-effective. This change directly affects investor-owned utilities by enabling them to count reduced emissions as a financial benefit in cost-benefit analyses for energy-saving programs. The bill amends definitions and procedures in the Efficient Use of Energy Act, requiring the Public Regulation Commission to consider avoided emissions when evaluating whether utility programs meet the "utility cost test" standard. It does not mandate new emissions reductions but changes how existing programs are assessed for cost-effectiveness. The bill is currently pending before the House committees.
HB 153 establishes a state rebate program to incentivize the use of low-carbon construction materials, such as cement, steel, and glass, in eligible projects (over one residential unit or 5,000 square feet of nonresidential space). Material buyers (e.g., developers or contractors) can receive rebates for purchasing materials meeting emissions benchmarks set by the Department of Environment - 15% below industry-average greenhouse gas emissions - verified through independently assessed environmental product declarations. Rebates are capped at $500,000 per project and $10 million statewide annually, with priority given to projects achieving the greatest emissions reductions and using New Mexico-made materials. The program requires annual reporting on emissions reductions and includes strict antifraud measures, including penalties for false claims.
HB 152, the Environmental Product Declaration Act, requires manufacturers of specific building materials (including concrete, steel, asphalt, glass, and insulation) to create independently verified environmental declarations. These declarations must include a life-cycle assessment of greenhouse gas emissions (embodied carbon) and meet international standards, enabling comparisons of environmental impacts between products. The Department of Environment will administer the program, supported by a $5 million fund transferred from the general fund, and must publish annual reports starting October 2027. The act takes effect July 1, 2026, with rules to be finalized by January 2027.
SB 18 establishes legally binding statewide greenhouse gas emissions targets for New Mexico, requiring a 45% reduction from 2005 levels by 2030, 75% by 2040, and net zero emissions (100% reduction) by 2050. The bill mandates that the Environmental Improvement Board track and report emissions, allowing states to meet targets through direct reductions or carbon removal projects within New Mexico, including initiatives on tribal lands. It updates key definitions in environmental law to clarify terms like "greenhouse gas," "statewide emissions," and "carbon intensity" for consistent reporting and enforcement. These provisions directly affect state agencies, businesses, and industries contributing to emissions within New Mexico.
SB 78 would change New Mexico law to include nuclear energy as a renewable energy source for public utilities and rural electric cooperatives. The bill amends definitions to specifically list nuclear facilities (using fission or fusion without carbon emissions during generation) as a qualifying "renewable energy resource." This means nuclear power would count toward the state's renewable energy requirements under current law. The change directly affects how utilities calculate compliance with New Mexico's renewable portfolio standards.
