Energy

SB 235, the Microgrid Oversight Act, requires microgrids (systems generating at least 20 megawatts that can operate independently or connected to the grid) to transition to 100% zero-carbon electricity by 2045 through a renewable portfolio standard. Microgrid owners must report annually on energy generation (by source), water use, and compliance status, while electric utilities cannot raise rates to cover microgrid infrastructure costs. The law directly affects microgrid operators and electric utilities, imposing new reporting obligations and prohibiting rate increases tied to microgrid development. It creates a framework for oversight by the Public Regulation Commission, ensuring microgrids meet renewable energy targets without passing infrastructure costs to customers.

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 154 updates the definition of "advanced energy product" for New Mexico's existing tax credit programs. It specifies that qualifying products include solar components (like panels and cells), wind turbine parts, battery materials, fusion machine components, and critical minerals (such as lithium and cobalt). This definition determines eligibility for the Advanced Energy Equipment Income Tax Credit and Corporate Income Tax Credit, which provide tax relief for manufacturers investing in qualifying facilities within New Mexico. The bill directly affects businesses producing these specific energy technologies who seek to claim the tax credits.