46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; PROVIDING FOR ENERGY CONSERVATION; ENACTING THE CLEAN ENERGY ACT; CREATING A FUND; MAKING AN APPROPRIATION.

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

Section 1. SHORT TITLE.--This act may be cited as the "Clean Energy Act".

Section 2. FINDINGS.--The legislature finds that protection of the state's environment and the promotion of renewable energy and energy efficiency technologies is important for the state's future. The legislature further finds that as technologies evolve and conditions change, policymakers should make regular reassessments of state policies to determine the usefulness, acceptability, benefits and the appropriateness of continuing financial incentives for renewable energy and energy efficiency.

Section 3. DEFINITIONS.--As used in the Clean Energy Act:

A. "department" means the energy, minerals and natural resources department;

B. "energy efficiency" means the application of technology resulting in the reduced or improved use of energy;

C. "renewable energy" means thermal or electrical energy generated by means of a low- or zero-emissions generation technology that has substantial long-term production potential, including solar, wind, hydrogen, geothermal, landfill gas, biomass or fuel cells that are not fossil fueled but does not include fossil fuel or nuclear power; and

D. "secretary" means the secretary of energy, minerals and natural resources.

Section 4. CLEAN ENERGY CHARGE.--Effective January 1, 2004, a clean energy charge of three-hundredths of one cent ($.0003) per kilowatt-hour is imposed on all retail kilowatt-hour sales in the state billed by public utilities, municipal utilities and distribution cooperative utilities. Effective January 1, 2007, the clean energy charge shall increase to six-hundredths of one cent ($.0006) per kilowatt-hour. The clean energy charge shall be separately identified on customer bills.

Section 5. CLEAN ENERGY FUND.--

A. The "clean energy fund" is created in the state treasury. All clean energy surcharges collected pursuant to the Clean Energy Act shall be deposited in the fund. Earnings from investment of the fund shall be credited to the fund. Money in the fund is appropriated to the department for the purpose of administering the Clean Energy Act. Money in the fund shall not revert at the end of any fiscal year. Disbursements from the fund shall be made upon warrants drawn by the secretary of finance and administration pursuant to vouchers signed by the secretary of energy, minerals and natural resources.

B. The department shall adopt rules establishing the application procedure and required qualifications of projects, including qualifications of a person that may participate in applying for a disbursement from the fund for projects to research, develop or apply the use of energy- efficient and renewable energy technologies. Factors that may be considered in approving or denying disbursements from the fund are:

(1) the geographic area of the state in which the project is to be conducted in relation to other projects;

(2) the cost of the project and the relative contribution of the disbursement sought from the fund to the total cost of the project; and

(3) in the case of a project of a school district or a public post-secondary educational institution, the number and involvement of students in the project.

C. The department shall annually disburse:

(1) no more than five percent of the total amount of money available from the fund to the department for administration of the Clean Energy Act;

(2) no less than five hundred thousand dollars ($500,000) for low-income energy assistance to match federal low-income housing energy assistance for the weatherization program administered by the New Mexico mortgage finance authority or for other low-income energy assistance authorized and administered by the state;

(3) no more than one million dollars ($1,000,000) to encourage the use of energy efficiency and renewable energy through the initiation, development and evaluation of energy efficiency and renewable energy projects at state-owned facilities;

(4) no more than four million dollars ($4,000,000) to encourage the use of energy efficiency and renewable energy through the initiation, development and evaluation of energy efficiency and renewable energy projects authorized and directed by a public post-secondary educational institution, a school district or by a municipality or county; and

(5) no more than four million dollars ($4,000,000) to projects sponsored by the governing body of an Indian nation, tribe or pueblo to develop electric service or increase energy efficiency and conservation through the initiation and implementation of new renewable energy projects in low-income communities.

D. The department shall report on disbursements made from the fund to the legislative finance committee prior to each regular legislative session. The report shall include:

(1) a list of recipients receiving disbursements;

(2) the amount of each disbursement;

(3) the date of each disbursement;

(4) a description of each project or expansion funded with a disbursement;

(5) a description of each project's contribution to the state's knowledge and use of energy efficiency and renewable energy technologies; and

(6) a description of the expansion and enhancement of electric service in the state.