Summary:

 Senate Bill 142 (SB 142) relates to the Grid Modernization Roadmap and Grant Program (GMRGP); requires the Energy, Minerals and Natural Resources Department (ENMRD), in consultation with the Public Regulation Commission (PRC), to develop a roadmap for grid modernization; adds school districts and charter schools as eligible locations for proposed projects; amends the definition of "grid modernization"; and makes appropriations. 

Legislation Overview:

 Senate Bill 142 (SB 142) amends Section 71-11-1 NMSA 1978 to require the Energy, Minerals and Natural Resources Department (ENMRD) to consult with the Public Regulation Commission (PRC) in developing a roadmap for grid modernization. Further, school districts and charter schools are added as eligible locations for proposed projects. A caveat is added stating that if no electric service connection exists at the location of a proposed project, notice of the project must be given to the electric service provider in whose territory the project is proposed to be located.

The speed of project development is added to the criteria for grants.

The definition of “grid modernization” is expanded to include: (1) projects that facilitate the integration of net-zero carbon resources; (2) construction of increased electric grid distribution capacity and transmission grid infrastructure, including substations and the purchase of high-capacity transmission lines, transformers and other electric grid equipment; and (3) enabling the application of artificial intelligence to identify methane leaks and opportunities to reduce or eliminate methane leaks. 

A definition of “net-zero carbon resource" is added, meaning “an  electricity generation resource that emits no carbon dioxide into the atmosphere, or that reduces methane emitted into the atmosphere in an amount equal to no less than one-tenth of the tons of carbon dioxide emitted into the atmosphere, as a result of electricity production."

One hundred thousand dollars ($100,000) is appropriated from the Grid Modernization Grant Fund (GMGF) to the Energy, Minerals and Natural Resources Department for expenditure in Fiscal Years 2025 and 2026 for administration costs incurred to carry out the provisions of the Act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2026 will revert to the GMGF. 

Two hundred thousand dollars ($200,000) is appropriated from the GMGF to the Public Regulation Commission for expenditure in Fiscal Years 2025 and 2026 for administration costs incurred to carry out the provisions of the Act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2026 is to revert to the GMGF.
 

Current Law:

 Currently, EMNRD is not required to consult with the PRC for development of the roadmap for grid modernization. Also, school districts and charter schools are not included as eligible locations for proposed projects. The definition of grid modernization does not include the specified projects, and appropriations as specified are not currently available.

 

Amendments:

 Amended February 25, 2025 in SFC

SFCa/SB 142: The Senate Finance Committee amendment to Senate Bill 142 makes the following changes:

1. On page 1, line 17, strike "; MAKING APPROPRIATIONS". 
2. On page 7, strike Section 2 in its entirety.