SB 109 prevents utilities from recovering costs related to abandoning power plants if they later build new natural gas resources. Specifically, it blocks qualifying utilities from applying for financing orders to recover energy transition costs (like employee severance, decommissioning, and mine reclamation) through energy transition bonds if they construct new natural gas facilities. The bill amends existing law to deny this cost-recovery mechanism for utilities abandoning generating facilities while developing new natural gas infrastructure. This directly affects utilities seeking to transition away from certain power sources while expanding natural gas operations.
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.
SB 113 increases New Mexico's agricultural biomass tax credit from $5 to $10 per wet ton for dairy and feedlot owners who transport biomass to facilities generating electricity or biocrude fuel. It directly affects dairy and feedlot operators by allowing them to claim this credit against state income or corporate taxes for eligible biomass transportation. The bill sets a $5 million annual cap on total credits, allows unused credits to carry forward up to four years, and permits credit transfers between taxpayers. This change applies to taxable years ending before January 1, 2030, and aims to incentivize renewable energy production from agricultural waste.
HB 207 requires New Mexico's Water Quality Control Commission to create specific rules allowing the reuse of treated water generated from oil and gas operations (called "produced water"). This bill directly affects oil and gas operators, water treatment facilities, and entities seeking to use this treated water for purposes like irrigation or industrial processes. The key mechanism is mandating the Commission to develop these rules, which must be based on scientific data and consider water quality protection, while ensuring the rules align with existing legal authority under the Water Quality Act. The bill does not specify the exact permitted uses but sets a process for the Commission to establish them.
HB 246 appropriates $62 million from the state general fund over fiscal years 2027-2029 to provide matching state funds for political subdivisions (like counties or municipalities) that have received federal approval to acquire and rehabilitate floodplain land. The bill directly affects local governments seeking to address flood risks by restoring floodplain areas to their natural state, reducing threats to life, safety, and public infrastructure. Key provisions require state matching funds to be used only for land already approved for federal assistance, with unspent funds reverting to the general fund by 2029. This policy change enables local flood risk mitigation projects through combined federal-state funding.
HB 186 increases tax credits for landowners who donate property for conservation or preservation purposes. For donations made on or after July 1, 2026, it raises the credit to 80% of the land's fair market value (up from 50%), with a new $2 million annual cap (up from $250,000). The credit is refundable (meaning taxpayers receive cash if it exceeds their tax bill) and can be transferred in $10,000 increments to other taxpayers. This directly affects landowners donating conservation easements or similar permanent interests to eligible public or private conservation groups, such as those preserving farmland, historic sites, or natural habitats.
SB 39, the Microgrid Oversight Act, establishes new regulations for microgrids in New Mexico. It requires microgrids to meet renewable energy targets (40% by 2028, 50% by 2030, 80% by 2040, and 100% zero-carbon by 2045) through annual reporting on energy generation and compliance. The bill prohibits electric utilities from raising customer rates when purchasing power from microgrids and grants the Public Regulation Commission oversight authority, including rulemaking and fee collection. This directly affects microgrid operators, electric utilities, and the commission, with compliance deadlines starting in 2027.
HB 108 allows watershed districts in New Mexico to request soil and water conservation districts to levy property taxes for district operations. Specifically, watershed districts can ask the local soil conservation district board to impose an annual tax (capped at $5 per $1,000 of property value) to fund administration, construction, and maintenance of watershed projects. This bill clarifies the appointment process for watershed district boards, ensuring representation from soil conservation districts that hold minority land within the watershed area. It directly affects watershed districts, soil conservation districts, and property owners within those districts who may be subject to the requested taxes. The key change is creating a formal mechanism for watershed districts to secure dedicated funding through local property tax levies.
This bill bans the installation of decorative, non-recreational grass (nonfunctional turf) on state properties managed by the General Services Department or Legislative Council Service starting in 2028. It requires all existing nonfunctional turf to be replaced with drought-resistant landscaping (like native plants or efficient irrigation systems) by 2033 and restricts irrigation to recycled water for such areas after that year. Exceptions include cemeteries and tree canopy zones where replacement isn’t feasible. The state allocates $3.5 million to cover implementation costs for these changes.
SB 84 creates a two-year pilot program offering a one-credit high school course on water management and conservation, directly affecting participating schools and students in New Mexico. The Public Education Department will develop the curriculum with partners like higher education and tribal nations, select three schools (one from each of three specific county types), and report annually on program effectiveness. The bill appropriates $5 million for fiscal years 2027-2028 to cover curriculum development, teacher salaries, and operational costs, with unspent funds reverting to the general fund. The program aims to provide practical environmental education preparing students for water-related careers.
