HOUSE BILL 200

55th legislature - STATE OF NEW MEXICO - second session, 2022

INTRODUCED BY

James G. Townsend and Larry R. Scott and Rod Montoya

 

 

 

 

 

AN ACT

RELATING TO RULES; REQUIRING CERTAIN STATE AGENCIES TO CONDUCT A COST ASSESSMENT FOR RULES THAT IMPOSE NEW MANDATES ON THE OIL AND GAS INDUSTRY; REQUIRING THE DEVELOPMENT OF RECOMMENDATIONS TO REDUCE COSTS TO INDUSTRY AND A STUDY OF THE IMPACTS TO CONSUMERS; REQUIRING REPORTING.

 

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

     SECTION 1. [NEW MATERIAL] RULEMAKING--NEW MANDATES ON THE OIL AND GAS INDUSTRY--COST ASSESSMENT--CONSUMER IMPACT STUDY-- REPORT TO LEGISLATURE REQUIRED.--

          A. For any rule adopted by the oil conservation commission, the environmental improvement board, the energy, minerals and natural resources department or the department of environment that imposes a new mandate on the oil and gas industry, the respective commission, board or department shall, in consultation with representatives of the oil and gas industry:

                (1) conduct a cost assessment of the private sector cost of compliance with the final rule. The cost assessment shall estimate the cost of compliance for the oil and gas industry as a whole on an annual basis for the first five years of compliance;

                (2) develop recommendations for legislation to reduce the cost of compliance to the oil and gas industry, which may include a tax credit, a reimbursement grant or a combination of one or more cost reduction mechanisms; and

                (3) conduct a consumer impact study to assess the impact that the additional costs incurred by the oil and gas industry from compliance with the final rule will have on New Mexico consumers in terms of higher energy prices, more expensive petroleum-based consumer goods, reduced energy supply and diminished reliability of service.

          B. No later than ninety days after a final rule is adopted, the respective department, board or commission shall submit the cost assessment, legislative recommendations and results of the consumer impact study to the majority and minority leadership of the house of representatives, the majority and minority leadership of the senate, the legislative finance committee and the governor. The legislative recommendations shall be considered in the immediately proceeding legislative session.

          C. This section shall apply to rules effective on and after May 25, 2021. For rules adopted prior to May 18, 2022, the cost assessment, legislative recommendations and results of the consumer impact study shall be submitted pursuant to Subsection B of this section within ninety days of the effective date of this 2022 act.

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