SENATE BILL 125

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Michael Padilla

 

 

 

 

 

AN ACT

RELATING TO PUBLIC SCHOOL CAPITAL OUTLAY; CREATING THE BUILDING SYSTEM INNOVATION PROJECT INITIATIVE TO PROVIDE GRANT ASSISTANCE FOR THE CONCERTED REPLACEMENT OF HEATING, VENTILATION AND AIR CONDITIONING AND ELECTRICAL DISTRIBUTION SYSTEMS TO EXTEND THE USEFUL LIFE OF A BUILDING, PROMOTE STUDENT HEALTH AND SAFETY, PROMOTE ENVIRONMENTAL PROTECTION AND REDUCE THE COSTS OF ENERGY CONSUMPTION; MAKING CONFORMING AMENDMENTS TO THE PUBLIC SCHOOL CAPITAL OUTLAY ACT; MAKING AN APPROPRIATION.

 

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

     SECTION 1. Section 22-24-4.6 NMSA 1978 (being Laws 2015, Chapter 93, Section 3, as amended) is amended to read:

     "22-24-4.6. BUILDING SYSTEM REPAIR, RENOVATION OR REPLACEMENT.--

          A. The council shall develop guidelines for a building system repair, renovation or replacement initiative pursuant to the provisions of this section, and, except as provided in Section 22-24-13 NMSA 1978, those guidelines shall apply to all applications and grant assistance awards for building system repair, renovation or replacement projects.

          B. A school district [desiring a grant award pursuant to this section shall submit] may request grant assistance for a building system repair, renovation or replacement by submitting an application to the council. The application shall include an assessment of the building system that, in the opinion of the school district, the repair, renovation or replacement of which would extend the useful life of the building itself.

          C. Upon receipt of an application, the authority shall verify the assessment made by the school district and rank the application with similar applications pursuant to a methodology adopted by the council.

          D. [After a public hearing and to the extent that money is available in the fund for such purposes, the council shall approve building system repair, renovation or replacement projects on the established priority basis] The council shall review an application at a public hearing and, subject to availability of money in the fund, approve grant assistance for building system repair, renovation or replacement projects in accordance with the priorities adopted by the council; provided that no project shall be approved unless the council determines that the school district is willing and able to pay the portion of the total cost of the project that is not funded with grant assistance from the fund.

          E. The [state share] state's and school district's shares of the total cost of an approved building system repair, renovation or replacement project shall be calculated pursuant to the methodology in Subsection B of Section 22-24-5 NMSA 1978.

          F. A grant made pursuant to this section shall be expended by the school district within three years of the grant allocation."

     SECTION 2. A new section of the Public School Capital Outlay Act, Section 22-24-13 NMSA 1978, is enacted to read:

     "22-24-13. [NEW MATERIAL] BUILDING SYSTEM INNOVATION PROJECT INITIATIVE.--

          A. As used in this section, "building system innovation project" means a building system replacement project that involves the concerted replacement of a heating, ventilation and air conditioning system and an electrical distribution system.

          B. Beginning July 1, 2025, a school district may submit an application for grant assistance for a building system innovation project to the council. The application shall include:

                (1) an assessment of the existing heating, ventilation and air conditioning and electrical distribution systems; and

                (2) a description of desired replacement systems that, in the opinion of the school district, will extend the useful life of the building, promote student health and safety, promote environmental improvement and reduce the costs of energy consumption.

          C. The authority shall verify the assessment and evaluate the description submitted with an application and rank the application with other grant assistance applications for building system innovation projects in accordance with council rules.

          D. The council shall review an application at a public hearing and, subject to availability of money in the fund for that purpose, approve the application if the council determines that the building system innovation project is likely to extend the useful life of the building, promote student health and safety, promote environmental improvement and reduce the costs of energy consumption.

          E. The council shall prioritize applications for building system innovation projects that:

                (1) are eligible to receive federal funding;

                (2) include the replacement of an evaporative cooling system; or

                (3) utilize photovoltaic technology in the electrical distribution system.

          F. The state's and school district's shares of the total cost of a project shall be calculated in accordance with Subsection B of Section 22-24-5 NMSA 1978. The council shall not approve an application unless it determines that the school district is willing and able to pay the school district's share of the total cost of a project.

          G. Grant assistance awarded pursuant to this section shall be expended by the school district within three years from the date the council approved the application."

     SECTION 3. APPROPRIATION.--Ten million dollars ($10,000,000) is appropriated from the general fund to the public school capital outlay fund for expenditure in fiscal year 2026 and subsequent fiscal years to provide grant assistance for building system innovation projects. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

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