Environment

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.

HB 109 changes how New Mexico prioritizes water projects funded through the Water Project Fund. It requires the Finance Authority to use a new scoring system evaluating factors like project urgency (based on regional water plans), availability of matching funds, permit readiness, regional impacts, and improvements to water quality or quantity. Crucially, the bill allows the Authority to fund projects without annual legislative approval until December 31, 2028, after which a two-thirds majority vote in both legislative chambers would be needed to extend this exemption. The bill also specifies fund structure details, including dedicated allocations for water rights adjudications.