SB 59/a GEOTHERMAL PROJECT FUNDING & MANAGEMENT

Sen Jerry Ortiz y Pino

Actions: [1] SCC/SCONC/SFC-SCC [3]germane-SCONC [4] DP/a-SFC

Scheduled: Not Scheduled

 Senate Bill 59 (SB 59) amends the duties of the Energy Conservation and Management Division of the Energy, Minerals and Natural Resources Department. It creates the Geothermal Projects Development Fund and authorizes grants. SB 59 creates the Geothermal Projects Revolving Loan Fund and authorizes loans. It appropriates twenty-five million six hundred thousand dollars ($25,600,000). 

 

 Senate Bill 59 (SB 59) amends the duties of the Energy Conservation and Management Division (ECMD) of the Energy, Minerals and Natural Resources Department (EMNRD) in Section 71-9-5 1978 NMSA to include administering laws and rules relating to geothermal resources; administering the Geothermal Projects Development Fund and the Geothermal Projects Revolving Loan Fund; applying for relevant federal grants; and fostering the growth of geothermal resources in the state.
SB 59 creates the Geothermal Resources Development Act (GRDA) which establishes the Geothermal Projects Development Fund administered by the ECMD.  The GRDA contains parameters for the use of grants from the GPDF including that the secretary of energy, minerals and natural resources must approve the geothermal development project; that the division may make grants to political subdivisions of the state; to a state university; or an Indian nation, tribe or pueblo. The money in the GPDF may be used for administrative and reimbursable costs incurred by the EMNRD and for grants of up to two hundred fifty thousand dollars ($250,000) for the purposes of studying the costs and benefits of a proposed geothermal development project.  These projects are not exempt from any required permits or permission under state or federal law.  
SB 59 requires the secretary of energy, minerals and natural resources to present a report by 1 December 2024 and every 1 December thereafter to the governor, the Legislative Finance Committee and the library of the Legislative Council Service that will include grants approved; status of studies funded; status of projects funded in whole or part from the fund; administrative and reimbursable costs; and the status of the GPDF.
SB 59 creates another section of the Geothermal Resources Development Act that establishes a Geothermal Projects Revolving Loan Fund which has the same parameters as the GPDF with the exception that nonprofit organizations and private entities may qualify for a loan from this fund. It mandates the secretary of energy, minerals and natural resources to follow the same reporting requirements as for the report on the GPDF.
SB 59 appropriates twenty-five million six hundred thousand dollars ($25,600,000) from the General Fund (GF) as follows:
Six hundred thousand dollars ($600,000) to the EMNRD for expenditure in Fiscal Year (FY) 2025 for staffing and other operational expenses.  Any unexpended or unencumbered balance remaining at the end of FY 2025 reverts to the GF.
Ten million dollars ($10,000,000) to the Geothermal Projects Development Fund for expenditure in FY 2025 and subsequent FYs.  Any unexpended or unencumbered balance remaining at the end of FY 2025 will not revert to the GF.
Fifteen million dollars ($15,000,000) to the Geothermal Projects Revolving Loan Fund for expenditure in FY 2025 and subsequent FYs.  Any unexpended or unencumbered balance remaining at the end of FY 2025 will not revert to the GF. 

 30 Jan 2024
The Senate Conservation Committee amended SB 59 (SCONC SB 59A) by requiring the secretary of energy, minerals and natural resources to develop criteria for projects funded through the Geothermal Projects Revolving Loan Fund including establishing priorities that maximize economic benefit to the state.
It changes the date by which the appropriations for staffing must be spent from end of FY 2025 to end of FY 2028.