Environment (Forestry)

HB 171 establishes a "Wildfire Fund" to reimburse New Mexico electric utilities for damages from wildfires they caused through their infrastructure (defined as "covered wildfires"). The fund is financed by a per-megawatt surcharge collected from participating utilities, not customers, with surcharge amounts based on each utility's wildfire risk history and mitigation plans. Utilities must submit approved wildfire mitigation plans covering vegetation management, infrastructure safety, and response protocols to qualify for fund payments. The bill also creates new oversight roles - the Service Infrastructure Safety Engineer and Bureau within the Public Regulation Commission - to manage the fund and ensure compliance.

SB 161 requires New Mexico electric utilities (including regulated companies and certain municipal cooperatives) to create and submit wildfire prevention plans to the Public Regulation Commission for approval. Utilities that follow approved plans can receive a "certificate of compliance," which shields them from liability in lawsuits if a fire originates from their equipment. The law also allows utilities to recover mitigation costs through special bill charges ("riders") and mandates annual compliance reports. This directly affects utilities operating in wildfire-prone areas and changes how liability is handled in fire-related lawsuits.

This bill appropriates $15 million from the state general fund to the Interstate Stream Commission for riverfront forest (bosque) management projects in the middle Rio Grande valley. The funds will cover planning, implementing, and maintaining these projects during fiscal years 2027 and 2028. Any unspent balance by the end of 2028 must revert to the general fund. The bill directly affects the commission and communities relying on the Rio Grande valley's ecological and recreational resources.

HB 204 requires New Mexico homeowners insurance companies to disclose how they use wildfire risk models in pricing and underwriting. Insurers must submit model details to the insurance superintendent, explain how property-specific (like defensible space) and community-level (like forest treatment) mitigation efforts affect premiums, and provide clear discounts for these actions. Policyholders will receive annual written notices explaining their risk score, available discounts, and how mitigation actions could lower their premiums, with a process to appeal inaccurate scores. The bill applies only to homeowners and residential condo/multifamily property insurance policies.

HB 184 reorganizes New Mexico's conservation funding by transferring the entire balance of the Land of Enchantment Legacy Fund into the Conservation Legacy Permanent Fund and establishing new investment and distribution rules. It requires the Conservation Legacy Fund to be invested under the prudent investor rule, sets annual distributions from the Conservation Legacy Fund to the Land of Enchantment Fund at 5% of its three-year average value, and specifies how funds from the Land of Enchantment Fund must be allocated. Specifically, 22.5% goes to the Energy, Minerals & Natural Resources Department for forest/watershed projects, 22.5% to the University Board for agricultural programs, 10% to the Environment Department for water quality, 15% to Economic Development for outdoor recreation, 8% to Cultural Affairs, and 22% to Wildlife for conservation programs. Unspent funds from these allocations revert to the Conservation Legacy Fund. The bill takes effect July 1, 2026.