NM Legislative Activity
Our Legislative Priorities
By Year
Visit our website to view our priority bill for the following legislative sessions:
Hydrogen Hub Acts
One of the more contentious topics this session is the Governor's push for a hydrogen hub in New Mexico. There are two acts currently in draft form that establish a Hydrogen Hub:
Discussion Points
Hydrogen Hub Development Act Issues
Carbon Intensity
Proposed bills use criteria based on 'carbon intensity'. Terms like 'low carbon-intensity hydrogen', 'clean hydrogen' need to be clearly defined.
In Section 2.1 of the draft Hydrogen Hub Act:
"carbon intensity” means the quantity of carbon dioxide-equivalent produced at the site of production per kilogram of hydrogen produced, expressed in grams of carbon dioxide equivalent per megajoule;"
In this instance it should be per kg H2 produced throughout. Renewable hydrogen has a carbon intensity of 0 kg CO2e / kg H2. The draft Hydrogen Hub Act allows for 9 kg CO2e / kg H2, reducing to 3 kg CO2e / kg H2over a number of years.
Note: the term "carbon intensity” is also used to in the electricity generation industry when it refers to the number of grams of carbon dioxide (CO2) that it takes to make one unit of electricity a kilowatt per hour (kW/hour), which could be where the confusion has arisen.
Prohibition on Use of Fresh Water
Then in Section 3.1.a of the draft Hydrogen Hub Act:
Hydrogen meeting the definition set forth herein shall qualify for certain incentives as set forth in this Act provided the hydrogen molecule is not directly derived from fresh water.
This benefits the FFI who will qualify for incentives and anyone wanting to develop a process for the electrolysis of water is out of luck. Other 'sources' of water, e.g. the toxic produced water from fracking may be eligible but electrolysis requires it to be cleaned up to avoid damage to the electrolysis cells.
Better Hydrogen Hub Acts
Many environmental groups as of December 2021 have expressed opposition to the draft bills because of their favorable treatment of the fossil-fuel industry. In order to accommodate some form of the bills, some possible improvements could include performance criteria and prudence clauses i.e. limit implementation initially to a pilot plant scale. This will allow the bill to proceed and give the fossil-fuel industry a chance to demonstrate their proposals as a viable solution.
The acts would set the stage for whatever permits, incentives etc. needed to build it, test it, prove if it works on not, all before scaling up and investing large sums of money, and risking stranded assets. This is actually good project development practice. Included in the pilot study could be such things as a demonstration of electrolysis of candidate industrial water streams, demonstration of artificial Carbon Capture and Sequestration, demonstration of successful injection well performance and verification the carbon is dutifully locked away forever.
With public funds used for subsidies and tax credits to help finance projects, the results of the work should be closely and independently examined to provide recommendations to the appropriate state agencies for approval for scaling up licenses if it all meets certain performance criteria (tighter than in the draft), is consistent with the ETA standards, etc. One criterion might focus on how the hydrogen generated, the cogenerated oxygen and other possible byproducts (e.g. chlorine) would be integrated into the existing markets. Subsidies and tax credits should not be directed at already developed technology of Steam Methane Reforming (SMR) to produce hydrogen.
By limiting the size of the project, we limit the impact on the environment until it's demonstrated to work well enough. Several pilot scale projects could be licensed for competing technologies and notably without the current limitation on the electrolysis of fresh water.
Better still would be an HHA that is focussed on a hydrogen hub based on growing renewable hydrogen production to meet current and future industrial demands, encouraging advances in fuel-cell technology, advances in electrolysis cells and hydrogen storage options and infrastructure. Grants, subsidies and tax credits should be directed to supporting those developments and thus encourage new businesses in NM while engaging existing research institutions in academia and the national labs.
US 2021 Infrastructure Bill and Climate Provisions
On August 10, 2021, the U.S. Senate passed the Infrastructure Investment and Jobs Act (IIJA) by a bipartisan vote of 69–30. In addition to funding for roads and bridges, the $1.2 trillion infrastructure package includes a number of provisions to spur investment in clean energy innovation technologies—in particular, it provides resources to accelerate research, development, demonstration, and deployment of clean hydrogen in the United States.
For a detailed discussion of what is in the bill see Hydrogen Highlights in the Bipartisan Infrastructure Bill by the law firm of Pillsbury Winthrop Shaw Pittman LLP.
For the first time, U.S. law will define “clean hydrogen” — the current definition explicitly includes hydrogen produced from renewables, fossil fuels with carbon capture, utilization and sequestration technologies, nuclear, and other eligible sources.
Note 'clean hydrogen' is not the same a 'renewable hydrogen' because of the inclusion of fossil-fuel soureces.
Hydrogen Background Information
Main article Hydrogen Background
Hydrogen is widely used in industry already, mostly produced from methane. There has been much progress on the production via electrolysis and on its use in fuel cells. Because renewable hydrogen costs are falling it continues to gain attention. See the main article for more information on hydrogen production, storage, safety, uses and byproducts.
2020 Session
Passed
HM 9 - State Renewable Investment Plan
HM9 - The 'State Renewable Investment plan' directed the NM State Investment Council to create a plan to invest part of its $28 billion dollar state investment fund into New Mexico renewable energy projects. This could include loans, financing or equity in renewable energy generation, storage or transmission, and economically targeted investment to place infrastructure on State Land and Native American land.
SM 63 - Community Solar Working Group
SM 63 - Requests the legislature to form a working group to review statewide community solar initiatives and develop recommendations that result in a sustainable and scalable market-based program for the state of New Mexico.
HB 166 - Healthy Soil Program Funding
HB 166 - Provides for an increase of $300,000 in the New Mexico Department of Agriculture’s (NMDA) budget for the 2019-HB 204 Healthy Soil Program.
HB 233 - Energy Grid Modernization Roadmap
HB233 - Passed in 2020 Short Session this bill funds initiatives via grants to suitable institutions in an effort to create a New Mexico energy roadmap.
SB 29 - Solar Market Development Tax Credit
SB 29 - Provides tax credits for consumers installing solar power with low-income individuals receiving double the amount of the tax credit.
Not Passed
HB9 / SB80 Community Solar Act - Authorizes creation of community owned solar facility of up to 5MW.
HB99 - Renewable Energy Investment Policy Funding - Would provide auxiliary funding for HM9 State Renewable Investment Plan program. The State Investment Council also has the ability to fund the program without legislation.
HB173 - Gas Taxes, New Funds & Distributions - Impose surtaxes on gasoline and special fuels and devote the proceeds equally to the state road fund, to a new clean infrastructure fund, and to a new gas surtax low-income rebate fund. It's being called "The Next Generation Transportation Act"!
HB201 - Energy Storage System Tax Credit Changes - Would provide tax credits to individuals who purchase renewable energy storage systems.
HB 217 / SB 2 - Electric Vehicle Income Tax Credit - Provides a tax credit of $2500 when a tax payer purchases an electric vehicle. For individuals earning under $50,000 and families under $75,000 the credit is $5000.
HB 313 - Car Charging Station Tax Credit - HB 313 would allow a taxpayer who installs and places in service a public motor vehicle charging station in calendar years 2020 and 2021 to apply for a credit of up to seventy-five percent of the cost of the motor vehicle charging station against the taxpayer's tax liability. The total amount of HB 313 credits to be issued by the state is $25 million.
SB 114 - Community Energy Efficiency Development Grant - This is another of the excellent new energy bills for which we will be advocating strongly. SB 114 would provide funding to counties to make energy efficiency measures available in low-income households.
2019 Session
SB489 - The NM Energy Transition Act
The Passing
NM Energy Transition Act SB 489, was signed by governor MLG March 22, 2019
which states that NM will be:
- 50% carbon-free electricity by 2030
- 100% carbon-free electricity by 2045 (same as CA and Hawaii)
Challenges
NEE et al filed suit in NM Supreme Court on 8/26/19 challenging parts that they perceived as unconstitutional (Aug/2019), see NEE’s announcement at:
and the MM Supreme Court writ at:
The NM Supreme Court refused to hear this writ. NEE continues to campaign to ‘restore’ power to the PRC to regulate PNM. Other NM Supreme Court efforts are still in progress.
What is the ETA?
High Country News called the ETA a mini-Green New Deal in this thorough reporting:
- "New Mexico’s ‘mini’ Green New Deal, dissected" - Jonathan Thompson - March 25, 2019
Western Resource Advocates explains what’s in the act and it’s benefits in their on-line (Wayback Machine archived) article at:
- "The Energy Transition Act Makes New Mexico a National Leader in Clean Energy" - Maria Nájera - March 7, 2019
