SENATE BILL 169

56th legislature - STATE OF NEW MEXICO - first session, 2023

INTRODUCED BY

Elizabeth "Liz" Stefanics and Kristina Ortez and

Antonio Maestas and Andrea Romero





AN ACT

RELATING TO THE ENVIRONMENT; CREATING THE CLIMATE INVESTMENT CENTER; CREATING THE ENVIRONMENTAL PROJECT FINANCING PROGRAM; AUTHORIZING THE CLIMATE INVESTMENT CENTER TO DEVELOP AND ESTABLISH TERMS FOR THE ENVIRONMENTAL PROJECT FINANCING PROGRAM; CREATING THE CLIMATE INVESTMENT CENTER BOARD; CREATING THE CLIMATE INVESTMENT REVOLVING FUND; MAKING AN APPROPRIATION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. [NEW MATERIAL] CLIMATE INVESTMENT CENTER--CREATED--POWERS.--

A. The "climate investment center" is created as a nonprofit, independent, public corporation. The climate investment center shall administer the environmental project financing program. In carrying out the environmental project financing program, the climate investment center may:

(1) create new financing programs; manage and offer grants and incentive programs; and develop and deploy loan products through partnerships, direct investments and co-investments;

(2) sue and be sued in all actions arising out of any act or omission in connection with the environmental project financing program;

(3) enter into any contracts or obligations, including leveraging public and private funding and philanthropic support; and

(4) cooperate and coordinate with state and federal agencies, local governments, political subdivisions and private entities.

B. The climate investment center shall not be considered a state agency for any purpose. The climate investment center is exempted from the provisions of the Personnel Act and the Procurement Code.

C. The state shall not be liable for any obligations incurred by the climate investment center.

SECTION 2. [NEW MATERIAL] ENVIRONMENTAL PROJECT FINANCING PROGRAM--CREATED--TERMS--DUTIES.--

A. The "environmental project financing program" is created and shall be administered by the climate investment center.

B. The climate investment center shall develop and administer the environmental project financing program to fund projects, programs, loans and investment opportunities to further the climate action goals of the state. The climate investment center shall establish strategic goals. In developing the program, the climate investment center shall prescribe the form of application for obtaining funding and establish a process to review and assess projects.

C. The climate investment center shall establish rules and operating procedures to implement the environmental project financing program.

D. In carrying out the environmental project financing program, the climate investment center may:

(1) make, enter into and enforce all contracts necessary or desirable for the purposes of administering the environmental project financing program;

(2) use all available remedies under law to enforce a contract pursuant to the environmental project financing program; and

(3) contract with other public or private entities to:

(a) receive funding from those public and private entities;

(b) assist those public and private entities in funding projects, programs and investment opportunities; and

(c) assist the climate investment center with administering the environmental project financing program.

SECTION 3. [NEW MATERIAL] CLIMATE INVESTMENT CENTER BOARD--CREATED--NOMINATING COMMITTEE--APPOINTMENT--POWERS.--

A. The "climate investment center board" is created. The climate investment center shall be governed by the board. The initial board, consisting of nine voting members, shall be created before December 31, 2023 by a nominating committee. The nominating committee shall consist of seven New Mexico residents with expertise in financial investment and environmental and social issues. Members of the nominating committee shall serve on a volunteer basis and shall consist of:

(1) four voting members selected from applications by the public and appointed by the speaker of the house of representatives and the president pro tempore of the senate; and

(2) three additional voting members, which shall include:

(a) the chief executive officer of the New Mexico finance authority or the chief executive officer's designee;

(b) the secretary of human services or the secretary's designee; and

(c) the secretary of energy, minerals and natural resources or the secretary's designee.

B. A member of the nominating committee shall not also apply to serve on the climate investment center board. The nominating committee shall solicit applications for qualified applicants and shall recommend candidates to be approved by the speaker of the house of representatives and the president pro tempore of the senate.

C. The members appointed to the climate investment center board shall have expertise in matters relating to renewable energy, economic development, banking, environmental justice, law, finance, foundation or nonprofit management or other matters relevant to the work of the climate investment center. At least one board member shall have expertise in one or more of the following:

(1) economic development;

(2) issues of economic development in tribal communities;

(3) economic and environmental justice issues facing low-income and minority groups;

(4) investment fund management;

(5) investment in and deployment of renewable energy;

(6) climate change mitigation and adaptation; and

(7) foundation or nonprofit management.

D. When appointing a member to the board, consideration shall be given to whether the members appointed to the board reflect the ethnic and geographic diversity of the state.

E. Each public member of the climate investment center's initial board shall hold office for a term of two years; provided that the initial appointment shall be made of five board members for one-year terms and four board members for two-year terms. A vacancy on the climate investment center board following the initial appointments shall be made by the remaining members of the board and shall be subject to terms provided in the bylaws as adopted by the climate investment center board.

F. The climate investment center board shall hire a chief executive officer.

G. The chief executive officer of the climate investment center, the secretary of energy, minerals and natural resources or the secretary's designee and the secretary of human services or the secretary's designee shall serve as nonvoting members of the climate investment center board.

H. The climate investment center board shall annually elect a chair from among its members and shall elect those other officers it determines necessary for the performance of its duties.

I. The climate investment center board shall hire a chief executive officer.

J. The climate investment center board shall determine the goals of the climate investment center in establishing the environmental project financing program. The board shall consider the following objectives:

(1) maximizing reductions in greenhouse gas emissions;

(2) mitigating climate change, adapting to the impacts resulting from climate change and implementing climate resiliency measures;

(3) providing support and reducing energy burdens, as determined by the ratio of household energy costs to household income, to those in vulnerable and tribal communities impacted by climate change;

(4) enhancing green job creation;

(5) supporting economic growth;

(6) supporting sustainable buildings and transportation;

(7) providing support for workers and communities impacted by the transition to a low-carbon economy;

(8) promoting investments in priority projects; and

(9) receiving and using federal funding and other resources to fund priority projects.

K. Public members of the climate investment center board shall be reimbursed for attending meetings of the board as provided in the Per Diem and Mileage Act.

L. As used in this section, "priority project" means a project that uses:

(1) solar resources;

(2) wind resources;

(3) geothermal resources;

(4) hydropower;

(5) energy efficiency resources;

(6) water efficiency resources;

(7) fuel cells using renewable resources;

(8) alternative-fuel vehicles that do not run on fossil fuels;

(9) energy storage; or

(10) any other source that naturally replenishes over a human rather than geological time frame and that is derived from solar, water or wind resources.

SECTION 4. [NEW MATERIAL] CLIMATE INVESTMENT REVOLVING FUND--CREATED.--The "climate investment revolving fund" is created in the climate investment center. The fund consists of appropriations, distributions, transfers, gifts, grants, donations, bequests, fees collected and other money distributed or otherwise allocated to the fund or derived from the environmental project financing program. Balances in the fund at the end of a fiscal year shall not revert to the general fund. Money in the fund is appropriated to the climate investment center to carry out the provisions of the environmental project financing program and may be used to pay reasonably necessary administrative costs to carry out that program.

SECTION 5. [NEW MATERIAL] ENVIRONMENTAL PROJECT FINANCING PROGRAM--REPORTS.--The climate investment center shall make annual reports to the governor and to the legislature, prior to each regular legislative session, on the environmental project financing program.

SECTION 6. APPROPRIATION.--Twenty million dollars ($20,000,000) is appropriated from the general fund to the department of finance and administration for expenditure in fiscal year 2024 and subsequent fiscal years to provide operating capital to carry out the provisions of the environmental project financing program as administered by the climate investment center. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

SECTION 7. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2023.

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