HB 108 LOCAL SOLAR ACCESS FUND

Rep Reena C Szczepanski

Actions: HPREF [2] HENRC/HAFC-HENRC [3] DP-HAFC

Scheduled: Not Scheduled

  House Bill 108 (HB 108) creates the Local Solar Access Fund in the New Mexico Finance Authority that provides grants for solar energy systems. It requires the New Mexico Finance Authority to establish rules and appropriates one hundred ten million dollars ($110,000,000).  

 House Bill 108 (HB 108) creates the Local Solar Access Fund in a new section of the New Mexico Finance Authority Act (NMFA Act) (Section 6-21-1 et seq NMSA 1978).  This non-reverting fund provides grants to eligible entities for all stages of a solar energy system that provides power to buildings and infrastructure located in NM that are owned and operated by an eligible entity; grants for technical assistance to apply for federal or other funding; and payment of relevant administrative costs. It provides definitions for eligible entity and solar energy system and gives the NMFA the discretionary power to deposit or invest currently unneeded funds in the same manner as it does for other similar funds.
HB 108 requires the NMFA to establish rules no later than 31 December 2024 for disbursement of grants including evaluation criteria and prioritization metrics with nine specified factors. The NMFA creates the application forms which will include cost estimates; operating cost savings estimates; and benefits of the solar energy system.

HB 108 appropriates one hundred ten million dollars ($110,000,000) from the General Fund (GF) to the Energy, Minerals and Natural Resources Department for expenditure in Fiscal Year (FY) 2025 and subsequent FYs for the NMFA to carry out the purposes of the Local Solar Access Fund.

Any unexpended or unencumbered balance remaining at the end of a FY will not revert to the GF.

 

 A state Renewable Portfolio Standard (RPS) requires electric companies in New Mexico to provide 100% carbon-free electricity to customers by 2045. Because New Mexico ranks #3 in the United States for solar energy potential due to its sunny climate, utility companies are relying heavily on solar power to meet this target. The Community Solar Act was signed into law in April 2021 and will help eliminate hurdles for developing community solar farms. In addition, New Mexico offers net metering programs through electricity companies, a state solar tax credit, and a solar property tax exemption program. 
In 2023 just over six percent of New Mexico’s electricity was generated from solar panels. There are over 2,000 solar jobs in New Mexico, and 83 solar companies operate here. Of these companies, 45 are solar installers, contractors, or developers with many concentrated in Albuquerque and Santa Fe. 
https://www.greenlancer.com/post/solar-power-new-mexico