HOUSE COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE SUBSTITUTE
FOR HOUSE BILL 9
56th legislature - STATE OF NEW MEXICO - second session, 2024
AN ACT
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. Section 9-15-4 NMSA 1978 (being Laws 1983, Chapter 297, Section 4, as amended) is amended to read:
"9-15-4. DEPARTMENT ESTABLISHED.--The "economic development department" is created in the executive branch. The department shall be a cabinet department and shall consist of, but not be limited to, [seven] six divisions as follows:
A. the administrative services division;
B. the economic development division;
C. the New Mexico film division;
[D. the technology enterprise division;
E. the trade and Mexican affairs division;]
D. the climate, energy and water division;
[F.] E. the New Mexico outdoor recreation division; and
[G.] F. the creative industries division."
SECTION 2. 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 projects;
(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 climate, energy and water 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 and projects;
(8) establish guidelines and rules for programs and grants for climate, energy and water 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, the office of the state engineer and the workforce solutions department; and
(4) do anything necessary to carry out the division's purposes and exercise the division's powers."
SECTION 3. 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 to the state and support decarbonization, energy efficiency, clean energy, energy storage and water efficiency and resilience technology companies;
B. coordinate and link pilot and demonstration projects to existing entities in the state;
C. promote technology transfer, commercialization and research and development of decarbonization, energy efficiency, clean energy, energy storage and water efficiency and resilience technology in the state;
D. develop and implement tools and incentives to facilitate decarbonization efforts; and
E. establish a carbon concierge program to connect decarbonization technology suppliers, offtakers and carbon- emitting sectors to new technologies that will reduce or eliminate greenhouse gas emissions or support water resilience."
SECTION 4. 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 for:
(1) state matching funds for federal grants for climate, water and energy technology projects;
(2) pilot and demonstration projects for decarbonization, energy efficiency, clean energy, energy storage and water efficiency and resilience technologies; and
(3) studies and research concerning the development of decarbonization, energy efficiency, clean energy, energy storage and water efficiency and resilience technologies.
B. The climate, energy and water division shall develop an application grant process that:
(1) protects intellectual property; and
(2) ensures transparency.
C. The climate, energy and water division shall develop grant criteria that may include:
(1) the viability of the technology;
(2) whether the technology was developed in the state;
(3) whether the technology can be deployed in the state;
(4) whether the project demonstrates a long-term connection to the state;
(5) whether the project will benefit the state's environment, public health, economy and workers; and
(6) whether the project or technology has received funding from other sources."
SECTION 5. 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.
SECTION 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2024.
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