New Mexico lawmakers renew push for renewable energy ahead of 2020 session

A trio of bills were pre-filed for the upcoming New Mexico Legislative Session to create funding for renewable energy projects, while establishing a plan for the State to increase its renewable portfolio and establish a tax on such forms of electricity.

The efforts came about a year after Gov. Michelle Lujan Grisham called on state agencies and lawmakers to work toward increasing renewable energy in New Mexico, a state traditionally reliant on oil and gas for most of its energy output and subsequent revenue.

Lujan Grisham introduced House Bill 15 during the 2019 session to establish a “new renewable portfolio” and require public utilities to convert to 50 percent renewable energy production by 2030, and 80 percent by 2040.

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“This legislation puts our state on a clear path,” Lujan Grisham said. “An increased (renewable portfolio standard) will boost investment in both wind and solar, where we know New Mexico can be a national leader, and attract major new employers, not to mention create good jobs and careers.”

That bill ultimately died in the House Energy and Natural Resources Committee, but lawmakers renewed their efforts to support renewable energy in this year’s session with a string of initiatives aimed at establishing New Mexico as a national leader in renewable energy.

House Memorial 9

Sponsored by State Rep. Joseph Sanchez (D-40), HM 9 would establish the State’s priorities in studying how renewable energy could be increased in New Mexico, calling on the State Investment Office to develop a strategic plan and investment for renewable energy generation, storage and transmission.

The memorial defined renewable energy as projects that generate energy from wind, solar and other renewable sources.

It called on the State to recognize the “immediate” need to invest in building large-scale renewable energy projects in New Mexico, warning that continued reliance on oil and gas could subject the state to an unreliable boom and bust cycle experienced by the fossil fuel industry.

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“Fossil fuels are a finite resource, and the fossil fuel industry is subject to economic boom and bust cycles,” read the memorial. “The state's economy would be strengthened by diversifying investments in New Mexico renewable energy projects, broadening energy exports and upgrading energy transmission infrastructure.”

If passed, the memorial would task the State Investment Office with consulting with the New Mexico State Land Office to research and draft a plan to establish policy for New Mexico’s renewable energy investments, aiming to begin such investments before 2021.

It would also require the State Investment Office report findings on the impact of supplementing oil and gas investments could have on state revenue, identify funds and new sources of dollars for such projects and opportunities to collaborate with electric cooperatives, Native American tribes and other utilities.

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Read the memorial:

House Bill 99

Sanchez also sponsored HB 99 to appropriate $55,000 toward developing the state’s strategic plan for renewable energy.

The funds would be appropriated in fiscal years 2020 and 2021, if HB 99 passed.

Any leftover funds would revert to New Mexico’s General Fund at the end of FY 2021.

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Read the bill:

Senate Bill 18

Sponsored by State Sen. Michael Padilla (D-14) and Rep. Lind Trujillo (D-48), SB 18 would enact the Renewable Energy Production Tax Act, imposing an excise tax on electricity generated by renewable energy, and earmarking the dollars to a newly-created Early Childhood Program Fund.

That fund would be “non-reverting” in that unexpended dollars would remain, and be used for early childhood education and related programs.

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Producers of renewable energy would be charged a 2.5 percent of the taxable value of each megawatt hour of renewable electricity produced in the state, as determined by the federal Energy Information Administration.

“For the privilege of generating electricity from renewable energy resources, there is imposed on a generating facility an excise tax on the taxable value of electricity generated from renewable energy resources in this state,” read the bill.

The federal government, State of New Mexico, and Native American tribes would be exempt, along with any renewable energy generated for personal use.

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A foreign nation would be exempt, read the bill, only when required by a treaty.

The tax would be due on the 25th day of each month.

If passed, SB 18 would go into effect on Jan. 1, 2021.

Read the bill:

Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on Twitter.