SENATE CONSERVATION COMMITTEE SUBSTITUTE FOR

SENATE BILL 169

56th legislature - STATE OF NEW MEXICO - first session, 2023

 

 

 

 

 

 

 

AN ACT

RELATING TO THE ENVIRONMENT; ENACTING THE CLIMATE INVESTMENT CENTER ACT; CREATING THE CLIMATE INVESTMENT CENTER; CREATING THE ENVIRONMENTAL PROJECT FINANCING PROGRAM; PROVIDING POWERS AND DUTIES; AUTHORIZING THE CENTER TO DEVELOP AND ESTABLISH APPLICATIONS, SELECTIONS AND TERMS FOR ENVIRONMENTAL PROJECTS; CREATING THE CLIMATE INVESTMENT CENTER BOARD; CREATING THE CLIMATE INVESTMENT REVOLVING FUND; MAKING AN APPROPRIATION.

 

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

     SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Climate Investment Center Act".

     SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Climate Investment Center Act:

          A. "board" means the climate investment center board;

          B. "center" means the climate investment center; and

          C. "program" means the environmental project financing program.

     SECTION 3. [NEW MATERIAL] CLIMATE INVESTMENT CENTER-- CLIMATE INVESTMENT PROGRAM--CREATED--POWERS AND DUTIES.--

          A. The "climate investment center" is created as a

nonprofit, independent, public corporation. The center may:

                (1) receive federal funds;

                (2) create financing programs, offer and administer grants and incentive programs and make loans;

                (3) enter into contracts or other obligations, including contracts or obligations to:

                     (a) leverage public and private funding and philanthropic support;

                     (b) receive funding from public and private entities;

                     (c) fund projects, programs and investment opportunities of those public and private entities; and

                     (d) receive other assistance to administer the program;

                (4) cooperate and coordinate with state and federal agencies, local governments and other political subdivisions and private entities; and

                (5) at the discretion of the chief executive officer of the center, hire staff for the administration of the program.

          B. The center is not a state agency for any purpose. The state shall not be liable for any obligations incurred by the center.

          C. The center shall:

                (1) develop and administer the "environmental project financing program" to fund projects, programs, loans and investment opportunities to further the climate action goals of the state;

                (2) establish bylaws and operating procedures for implementing the program;

                (3) hire a chief executive officer;

                (4) implement strategic goals, as established by the board pursuant to Subsection G of Section 4 of the Climate Investment Center Act;

                (5) develop and provide the form of applications for obtaining funding under the program;

                (6) establish the terms of agreements for financing under the program;

                (7) establish processes to approve or deny applicants for financing and review and assess existing recipients of program funding; and

                (8) establish procedures for the enforcement of contracts for financing approved by the center and repayment of loans.

     SECTION 4. [NEW MATERIAL] CLIMATE INVESTMENT CENTER BOARD--CREATED--APPOINTING COMMITTEE--MEMBERS--QUALIFICATIONS--TERMS--VACANCIES--DUTIES.--

          A. The "climate investment center board" is created as the board of directors of the center. The appointing committee shall appoint the initial board by December 31, 2023, after which the board shall appoint members pursuant to Subsection D of this section. The board consists of nine members, appointed by the appointing committee by December 31, 2023. A member of the appointing committee shall not be apply to be a member of the board.

          B. The appointing committee consists of seven members, serving voluntarily, appointed as follows:

                (1) three members appointed by the governor;

                (2) one member appointed by the president pro tempore of the senate;

                (3) one member appointed by the minority floor leader of the senate;

                (4) one member appointed by the speaker of the house of representatives; and

                (5) one member appointed by the minority floor leader of the house of representatives.

          C. Board members shall be selected from applicants solicited by the appointing committee. Members appointed to the board shall:

                (1) provide adequate representation of ethnic groups and geographic areas of the state; and

                (2) have expertise in one or more of the following areas and all areas shall be represented on the board:

                     (a) economic development;

                     (b) tribal community economic development and issues unique to those communities;

                     (c) economic and environmental justice issues faced by low-income and minority communities;

                     (d) sustainable development;

                     (e) investment fund management;

                     (f) investment in and deployment of clean technologies;

                     (g) climate change mitigation and adaptation; or

                     (h) foundation or nonprofit management.

          D. Members of the board shall hold office for a term of two years; provided that the initial appointment shall be made of five members for one-year terms and four members for two-year terms. After December 31, 2023, the board shall appoint members to fill vacancies by vote of the remaining members of the board. Members of the board shall be subject to bylaws adopted by the board.

          E. The board shall annually elect a chair from among its voting members and shall elect those other officers it determines necessary for the performance of its duties. The director of the board, if elected pursuant to this subsection, may hire staff.

          F. The board shall have three nonvoting members, consisting of:

                (1) the secretary of energy, minerals and natural resources or the secretary's designee;

                (2) the secretary of economic development or the secretary's designee; and

                (3) the secretary of environment or the secretary's designee.

          G. The board shall determine the strategic goals of the center and establish projects for the program. The strategic goals shall include:

                (1) investment in priority projects, including:

                     (a) solar, wind, geothermal and energy efficiency resources;

                     (b) building electrification measures;

                     (c) alternative and electric fuel transportation and infrastructure;

                     (d) energy storage; and

                     (e) other renewable sources of energy that replenish within a human lifetime;

                (2) financially sustainable reduction of greenhouse gas emissions;

                (3) determination of actions to mitigate and adapt to climate change in this state;

                (4) reduction of energy burdens faced by households in tribal communities affected by climate change;

                (5) creation of green jobs;

                (6) support of economic growth in fields that address climate change;

                (7) support of sustainable buildings and transportation; and

                (8) support of workers and communities during a transition to a low-carbon economy, if applicable.

     SECTION 5. [NEW MATERIAL] CLIMATE INVESTMENT REVOLVING FUND.--The board may establish a "climate investment revolving fund" for the purposes of providing loans and receiving repayment of the loans. The funds shall consist of transfers, gifts, grants, donations, bequests, fees and income collected and other money distributed or otherwise allocated to the fund or derived from the program.

     SECTION 6. [NEW MATERIAL] REPORTS.--The center shall make an annual report to the governor and to the legislature prior to each regular legislative session. The report shall provide for the prior fiscal year:

          A. the total amount of financing provided to applicants and projects, programs, loans and investments funded by the program;

          B. the average amount of financing provided to applicants for projects, programs, loans and investments funded by the program;

          C. the total amounts of applications and current recipients for financing under the program;

          D. the total number of loan recipients that are in the process of filing or have filed for bankruptcy;

          E. the total number of loans and the amount of those loans, if any, in a delinquent status or default;

          F. resources and liabilities of the center;

          G. the average rate of return on expenditure for the projects, programs, loans and investments; and

          H. an overview of the types of projects, programs, loans and investments and recipients of the program and whether those relate to the strategic goals established by the board pursuant to Subsection G of Section 4 of the Climate Investment Center Act.

     SECTION 7. APPROPRIATION.--Twenty million dollars ($20,000,000) is appropriated from the general fund to the department of finance and administration for expenditure in fiscal year 2024 and subsequent fiscal years for operating and investment capital to carry out the provisions of the environmental project financing program as administered by the climate investment center. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

     SECTION 8. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2023.

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