HOUSE BILL 237

56th legislature - STATE OF NEW MEXICO - second session, 2024

INTRODUCED BY

Meredith A. Dixon and Kristina Ortez and Nathan P. Small

 

 

 

 

 

AN ACT

RELATING TO THE ENVIRONMENT; ENACTING THE CLIMATE, ENERGY AND WATER AUTHORITY ACT; CREATING THE CLIMATE, ENERGY AND WATER AUTHORITY; PROVIDING THE POWERS AND DUTIES OF THE AUTHORITY; ESTABLISHING A DECARBONIZATION TECHNOLOGY PROGRAM; CREATING THE CLIMATE, ENERGY AND WATER PROJECT FUND; MAKING APPROPRIATIONS.

 

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, Energy and Water Authority Act".

     SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Climate, Energy and Water Authority Act:

          A. "authority" means the climate, energy and water authority;

          B. "board" means the board of the authority; and

          C. "eligible entity" means the state or an agency or institution of the state or a county, a municipality, a school district, a public post-secondary educational institution, an acequia association, a public improvement district, a special water, drainage, irrigation or conservancy district or other special district created pursuant to law, an Indian nation, tribe or pueblo located wholly or partially in New Mexico, including a political subdivision or a wholly owned enterprise of an Indian nation, tribe or pueblo or a consortium of those Indian entities or a consortium of any two or more qualified entities created pursuant to law.

     SECTION 3. [NEW MATERIAL] CLIMATE, ENERGY AND WATER AUTHORITY CREATED--QUORUM--EXECUTIVE DIRECTOR--MEETINGS--COMPENSATION.--

          A. The "climate, energy and water authority" is created and is administratively attached to the economic development department.

          B. The authority shall be governed by a board consisting of fifteen members as follows:

                (1) seven ex-officio voting members from state agencies:

                     (a) the secretary of environment or the secretary's designee;

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

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

                     (d) the secretary of transportation or the secretary's designee;

                     (e) the governor's chief of staff or the governor's chief of staff's designee;

                     (f) the secretary of finance and administration or the secretary's designee; and

                     (g) the secretary of Indian affairs or the secretary's designee;

                (2) six voting members with expertise in climate, energy or water appointed by the governor from a list of nominees submitted to the governor jointly by the president pro tempore of the senate and the speaker of the house of representatives:

                     (a) one representative from a public higher education institution;

                     (b) one representative from an Indian nation, tribe or pueblo;

                     (c) two representatives, each of whom represent a different national laboratory; and

                     (d) two representatives from the private sector; and

                (3) two ex-officio nonvoting members:

                     (a) the executive director of the New Mexico renewable energy transmission authority or the executive director's designee; and

                     (b) the chair of the public regulation commission or the chair's designee.

          C. The appointed board members shall serve four-year terms at the pleasure of the governor. The governor shall fill vacancies by appointment for the remainder of an unexpired term within thirty days of a vacancy. A board member shall be eligible for reappointment. The governor shall select three of the voting members initially appointed to serve an initial term of two years; thereafter, the appointments will be for staggered terms of four years.

          D. The board members shall designate a member of the board to serve as chair, and the board may elect annually other officers as the board deems necessary.

          E. The board may delegate to one or more of its members, officers, employees or agents powers and duties as the board deems proper and consistent with the Climate, Energy and Water Authority Act.

          F. The board shall appoint an executive director and fill a vacancy in that position. The executive director shall direct the affairs and business of the authority, subject to the policies, control and direction of the board. The executive director shall:

                (1) employ the staff necessary for the performance of the authority's powers and duties, including consultants, financial advisors and legal advisors;

                (2) prescribe the powers and duties and fix the compensation of employees and consultants; and

                (3) inform the governor and the governor's chief of staff about issues impacting the authority and issues requiring coordination and support from other state agencies.

          G. The board shall meet at least once a month and at the call of the chair. A majority of voting board members constitutes a quorum for the transaction of business. The affirmative vote of at least a majority of a quorum present shall be necessary for an action to be taken by the board.

          H. Appointed board members may receive per diem and mileage for in-person attendance of a meeting or per diem for virtual attendance of a meeting as provided for nonsalaried public officers in the Per Diem and Mileage Act but shall receive no other compensation, perquisite or allowance.

     SECTION 4. [NEW MATERIAL] AUTHORITY--DUTIES AND POWERS.--

          A. The authority shall:

                (1) serve as project permitting navigators for climate, energy and water projects;

                (2) identify site-ready and brownfield locations for climate, energy and water projects;

                (3) provide recommendations to the governor and the legislature for the streamlining of permitting for climate, energy and water projects;

                (4) work with international, regional and national entities on climate, energy and water technology and economics;

                (5) coordinate with industry and workforce organizations, educational and post-secondary educational institutions and the workforce solutions department to ensure a trained workforce in the state;

                (6) engage directly with Indian nations, tribes and pueblos on energy partnerships, including serving as a resource for grant opportunities, workforce development and industry relationships;

                (7) identify and facilitate partnerships for entities in the state to apply for competitive federal grant opportunities relating to climate, energy and water technology, hubs and economics;

                (8) establish guidelines and rules for programs and grants for clean energy, water and energy conservation technology pilot and demonstration projects;

                (9) maintain records and accounts of revenues and expenditures as required by the state auditor. The state auditor shall conduct an annual financial and legal compliance audit of the accounts of the authority and file copies with the governor and the legislature;

                (10) develop a two-year strategic plan and submit the plan to the economic development department before August 1 of each year;

                (11) gather, centralize and disseminate information on climate, energy and water technology and entities working in those sectors; and

                (12) create programs to support the decarbonization of New Mexico industry, electricity generation, transportation, agriculture and buildings.

          B. The authority may:

                (1) adopt rules to carry out the purposes of the Climate, Energy and Water Authority Act, including rules for a decarbonization technology program;

                (2) make, enter into and enforce contracts, agreements and other instruments necessary, convenient or desirable in the exercise of the authority's powers and functions and for the purposes of the Climate, Energy and Water Authority Act;

                (3) enter into agreements to share employees with the department of environment, the energy, minerals and natural resources department and the workforce solutions department; and

                (4) do anything necessary to carry out the authority's purposes and exercise the powers in the Climate, Energy and Water Authority Act.

     SECTION 5. [NEW MATERIAL] DECARBONIZATION TECHNOLOGY PROGRAM.--The authority shall establish a decarbonization technology program to:

          A. recruit climate, energy and water technology companies to the state;

          B. coordinate and link pilot and demonstration projects to existing entities in the state;

          C. promote technology transfer, commercialization and research and development of climate, energy and water technology in the state;

          D. develop and implement tools and incentives to facilitate decarbonization efforts;

          E. make recommendations for policy and statutory changes; and

          F. establish a carbon concierge program to connect suppliers, offtakers and carbon-emitting sectors to new technologies.

     SECTION 6. [NEW MATERIAL] CLIMATE, ENERGY AND WATER PROJECT FUND--CREATED.--

          A. The "climate, energy and water project fund" is created as a nonreverting fund in the authority. The fund consists of appropriations, gifts, grants, fees, distributions, donations and income from investment of the fund. Money in the fund shall be expended upon warrant of the secretary of finance and administration pursuant to vouchers signed by the executive director of the authority or the executive director's authorized representative. The authority shall administer the fund, and money in the fund is appropriated to the authority to make grants to an eligible entity for:

                (1) state matching funds for federal grants for clean energy projects;

                (2) pilot and demonstration projects for clean energy, water and energy conservation technologies; and

                (3) studies and research concerning the development of clean energy and energy conservation.

          B. Any unexpended or unencumbered balance in the fund at the end of a fiscal year shall not revert to the general fund and shall remain in the fund.

     SECTION 7. APPROPRIATIONS.--

          A. Ten million dollars ($10,000,000) is appropriated from the general fund to the climate, energy and water project fund for expenditure in fiscal year 2025 and subsequent fiscal years for the purposes of the fund. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

          B. Five million dollars ($5,000,000) is appropriated from the general fund to the climate, energy and water authority for expenditure in fiscal year 2025 to carry out the purposes of the Climate, Energy and Water Authority Act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2025 shall revert to the general fund.

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