Summary:

 House Bill 128 (HB 128) creates the Local Solar Access Fund in the New Mexico Finance Authority. It provides grants for solar energy systems and requires the New Mexico Finance Authority to establish rules. HB 128 appropriates sixty million dollars ($60,000,000).
 

Legislation Overview:

 House Bill 128 (HB 128) creates the Local Solar Access Fund, a new section in the New Mexico Finance Authority Act. It directs the NMFA to use the fund to provide grants for such things as planning, designing, construction, purchasing, or installing solar equipment as well as provide technical assistance to apply for federal and other funding sources to support the phase of the implementation of a solar energy project by an eligible entity and administrative costs. HB 128 defines eligible entity and solar energy system.
HB 128 mandates the NMFA to establish rules in consultation with the Energy, Minerals and Natural Resources Department (EMNRD) for the grant program including the requirement that the majority of the funding shall be allocated to rural eligible entities as determined by the NMFA and eight other provisions.  It directs the NMFA to create application forms with specific information required. With the exception of an Indian nation, tribe or pueblo, an eligible entity that receives a grant must require the contractor of a solar access project to post a performance and payment bond as described in Section 13-4-18 NMSA 1978.

HB 128 appropriates sixty million dollars ($60,000,000) from the General Fund (GF) to EMNRD for expenditure for Fiscal Year (FY) 2026 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.

HB 128 makes the provisions of this act effective only upon the enactment into law of an
appropriation for administrative costs of the NMFA in the General Appropriation Act of 2025.
The secretary of finance and administration shall notify the New Mexico compilation commission (NMCC) and the director of the legislative council service (LCS) by 1 July 2025 that the appropriation has been made.
 

Amendments:

 3/4/25
The House amended HAFC/HB 128AA (HAFC/HB 128AA HFla) by clarifying that eligible entities or NM councils of governments may receive grants from the Local Solar Access Fund. 

2/26/25
The House Appropriation and Finance Committee (HAFC) amended HENRC HB 128A (HAFC HB 128AA) by requiring the HAFC to promulgate rules for solar energy systems that include an energy storage system. It removes the contingency for an appropriation for the HAFC administrative costs before the Act would be effective.

2/4/25
The House Energy, Natural Resources Committee (HENRC) amended HB 128 (HB 128A HENRC) so that minimum eligibility requirements and criteria for selection of the best project would be included in the rules for an award from the Local Solar Access Fund.  It clarifies that local workers mean local New Mexico workers. HB 128A HENRC eliminates the contingency of funding of administrative costs for the NM Finance Authority to make the act effective.