SENATE BILL 420

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Eric G. Griego

AN ACT

RELATING TO PUBLIC FINANCE; ENACTING A NEW SECTION OF THE SEVERANCE TAX ACT TO PROVIDE FOR INVESTMENT OF A PORTION OF THE SEVERANCE TAX PERMANENT FUND IN GREEN INDUSTRIES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the Severance Tax Act is enacted to read:

     "[NEW MATERIAL] INVESTMENT IN NEW MEXICO GREEN INDUSTRIES.--

          A. No more than six percent of the market value of the severance tax permanent fund may be invested in New Mexico green industries under this section.

          B. If an investment is made under this section, not more than fifteen million dollars ($15,000,000) of the amount authorized for investment pursuant to Subsection A of this section shall be invested in any one New Mexico enterprise that provides jobs in green industries.

          C. The state investment officer shall make investments pursuant to this section only upon approval of the state investment council after a review by the council. The state investment officer may make debt or equity investments pursuant to this section only in New Mexico green industries that provide jobs located in New Mexico.

          D. The green jobs cabinet shall investigate all applications for investments pursuant to this section and shall certify the approved applications to the state investment officer.

          E. The state investment officer may loan at a market rate of interest, with respect to an eligible New Mexico green industries enterprise, up to eighty percent of an expected and estimated tax credit available to a green industries enterprise pursuant to the provisions of the Income Tax Act or the Corporate Income and Franchise Tax Act; provided that the enterprise agrees to name the state investment officer as its agent for the purpose of filing an application for the tax credit to which the company is entitled if the company does not apply for the tax credit. The state investment council shall determine the estimated amount of a tax credit and shall establish guidelines for the state investment officer's initiation of a loan and the terms of the loan.

          F. As used in this section, "green industries" means industries that contribute directly to preserving or enhancing environmental quality by reducing waste and pollution or producing sustainable products using sustainable processes and materials and that provide opportunities for advancement along a career track of increasing skills and wages. Green industries include:

                (1) energy system retrofits to increase energy efficiency and conservation;

                (2) production and distribution of biofuels and vehicle retrofits for biofuels;

                (3) building design and construction that meet the equivalent of best available technology in energy and environmental design standards;

                (4) organic and community food production;

                (5) manufacture of products from non-toxic, environmentally certified or recycled materials;

                (6) manufacture and production of sustainable technologies, including, but not limited to, solar panels, wind turbines and fuel cells;

                (7) solar technology installation and maintenance;

                (8) recycling, green composting and large-scale reuse of construction and demolition materials and debris; and

                (9) water system retrofits to increase water efficiency and conservation."

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