SCHOOL BUILDING SYSTEM INNOVATION PROJECT

SB 125 creates a new grant program to help New Mexico public school districts replace outdated heating, ventilation, air conditioning (HVAC), and electrical systems in school buildings. School districts can apply for grants to fund these "building system innovation projects," which must extend building life, improve student health/safety, protect the environment, and reduce energy costs. The bill appropriates $10 million from the general fund for fiscal year 2026 and later, with grants needing to be spent within three years. Priority is given to projects eligible for federal funding, replacing evaporative cooling systems, or using solar (photovoltaic) technology.