HOUSE BILL 9
56th legislature - STATE OF NEW MEXICO - second session, 2024
Meredith A. Dixon and Nathan P. Small and Kristina Ortez
RELATING TO ECONOMIC DEVELOPMENT; CREATING THE CLIMATE, ENERGY AND WATER DIVISION WITHIN THE ECONOMIC DEVELOPMENT DEPARTMENT; PROVIDING THE POWERS AND DUTIES OF THE DIVISION; ESTABLISHING THE DECARBONIZATION TECHNOLOGY PROGRAM; CREATING THE CLIMATE, ENERGY AND WATER PROJECT FUND; MAKING APPROPRIATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Economic Development Department Act is enacted to read:
"[NEW MATERIAL] CLIMATE, ENERGY AND WATER DIVISION CREATED.--
A. The "climate, energy and water division" is created in the department. The division shall:
(1) serve as project permitting navigators for climate, energy and water projects;
(2) identify site-ready and brownfield locations for climate, energy and water projects;
(3) provide recommendations to the governor and the legislature for the streamlining of permitting for climate, energy and water projects;
(4) work with international, regional and national entities on climate, energy and water technology and economics;
(5) coordinate with industry and workforce organizations, educational and post-secondary educational institutions and the workforce solutions department to ensure a trained workforce in the state;
(6) engage directly with Indian nations, tribes and pueblos on energy partnerships, including serving as a resource for grant opportunities, workforce development and industry relationships;
(7) identify and facilitate partnerships for entities in the state to apply for competitive federal grant opportunities relating to climate, energy and water technology, hubs and economics;
(8) establish guidelines and rules for programs and grants for clean energy, water and energy conservation technology pilot and demonstration projects;
(9) develop a two-year strategic plan and submit the plan to the department before August 1 of each year;
(10) gather, centralize and disseminate information on climate, energy and water technology and entities working in those sectors; and
(11) create programs to support the decarbonization of New Mexico industry, electricity generation, transportation, agriculture and buildings.
B. The division may:
(1) adopt rules for a decarbonization technology program;
(2) make, enter into and enforce contracts, agreements and other instruments necessary, convenient or desirable in the exercise of the division's powers and functions;
(3) enter into agreements to share employees with the department of environment, the energy, minerals and natural resources department and the workforce solutions department; and
(4) do anything necessary to carry out the division's purposes and exercise the division's powers."
SECTION 2. A new section of the Economic Development Department Act is enacted to read:
"[NEW MATERIAL] DECARBONIZATION TECHNOLOGY PROGRAM.--The climate, energy and water division of the department shall establish the "decarbonization technology program" in the department to:
A. recruit climate, energy and water technology companies to the state;
B. coordinate and link pilot and demonstration projects to existing entities in the state;
C. promote technology transfer, commercialization and research and development of climate, energy and water technology in the state;
D. develop and implement tools and incentives to facilitate decarbonization efforts;
E. make recommendations for policy and statutory changes; and
F. establish a carbon concierge program to connect suppliers, offtakers and carbon-emitting sectors to new technologies."
SECTION 3. A new section of the Economic Development Department Act is enacted to read:
"[NEW MATERIAL] CLIMATE, ENERGY AND WATER PROJECT FUND--CREATED.--
A. The "climate, energy and water project fund" is created as a nonreverting fund in the state treasury. The fund consists of appropriations, gifts, grants, fees, distributions, donations and income from investment of the fund. Money in the fund shall be expended upon warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of economic development or the secretary's authorized representative. Money in the climate, energy and water project fund is appropriated to the department for administration by the climate, energy and water division to make grants to an eligible entity for:
(1) state matching funds for federal grants for clean energy projects;
(2) pilot and demonstration projects for clean energy, water and energy conservation technologies; and
(3) studies and research concerning the development of clean energy and energy conservation.
B. As used in this section, "eligible entity" means the state or an agency or institution of the state or a county, a municipality, a school district, a public post-secondary educational institution, an acequia association, a public improvement district, a special water, drainage, irrigation or conservancy district or other special district created pursuant to law, an Indian nation, tribe or pueblo located wholly or partially in New Mexico, including a political subdivision or a wholly owned enterprise of an Indian nation, tribe or pueblo or a consortium of those Indian entities or a consortium of any two or more qualified entities created pursuant to law."
SECTION 4. APPROPRIATIONS.--
A. Ten million dollars ($10,000,000) is appropriated from the general fund to the climate, energy and water project fund for expenditure in fiscal year 2025 and subsequent fiscal years for the purposes of the fund. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.
B. Five million dollars ($5,000,000) is appropriated from the general fund to the climate, energy and water division of the economic development department for expenditure in fiscal year 2025 to carry out the purposes of the division. Any unexpended or unencumbered balance remaining at the end of fiscal year 2025 shall revert to the general fund.
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