HB 128/a
Page 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
AN ACT
RELATING TO PUBLIC FINANCE; CREATING THE LOCAL SOLAR ACCESS
FUND IN THE NEW MEXICO FINANCE AUTHORITY; PROVIDING GRANTS
FOR SOLAR ENERGY SYSTEMS; REQUIRING THE NEW MEXICO FINANCE
AUTHORITY TO ESTABLISH RULES; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the New Mexico Finance
Authority Act is enacted to read:
"LOCAL SOLAR ACCESS FUND--CREATED--APPLICATIONS AND
GRANTS--CONTRACT PERFORMANCE AND PAYMENT BONDS.--
A. As used in this section:
(1) "eligible entity" means a county, a
municipality, a school district, a land grant-merced
controlled and governed pursuant to Chapter 49, Article 1
NMSA 1978 or an Indian nation, tribe or pueblo located wholly
or partially in New Mexico; and
(2) "solar energy system" means the
equipment used to generate, convert, store, manage and
monitor solar energy for use as thermal energy or electricity
and may include:
(a) energy storage systems, including
batteries, that are capable of retaining, storing and
delivering electrical energy by chemical, thermal, mechanical
or other means; and HB 128/a
Page 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
(b) interconnection equipment required
to safely interconnect the system with the electrical grid.
B. The "local solar access fund" is created in the
authority. The fund consists of appropriations,
distributions, transfers, income from investment of the fund,
bequests, gifts, grants, donations and any other money
distributed or otherwise allocated to the fund. Balances in
the fund at the end of a fiscal year shall not revert to the
general fund. The fund shall be administered by the
authority as a separate account and may consist of
subaccounts as the authority deems necessary to carry out the
purposes of the fund.
C. Money in the fund is appropriated to the
authority to implement the provisions of this section,
including to:
(1) provide grants to eligible entities to
plan, design, construct, purchase, install and equip solar
energy systems used to power buildings and infrastructure
located within New Mexico that are owned and operated by an
eligible entity, including necessary upgrades or repairs
required to install or connect solar energy systems;
(2) provide grants to eligible entities or
New Mexico councils of governments for technical assistance
to apply for federal or other funding to plan, design,
construct, purchase, install and equip solar energy systems; HB 128/a
Page 3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
and
(3) pay the administrative costs incurred by
the authority in carrying out the provisions of this section.
D. Money in the fund that is not needed for
immediate disbursement may be deposited or invested in the
same manner as other funds administered by the authority.
E. By December 31, 2025, the authority shall
establish rules in consultation with the energy, minerals and
natural resources department to carry out the provisions of
this section, including:
(1) criteria for evaluating proposed solar
energy systems, including minimum eligibility requirements;
and
(2) metrics to be used by the authority to
prioritize solar energy systems that shall include:
(a) an eligible entity's need for
authority funding to plan or complete a solar energy system;
(b) the percentage of low-income
households in the community served by that solar energy
system;
(c) buildings and infrastructure that
are used to provide community services or emergency shelter;
(d) the requirement that the majority
of the funding shall be allocated to rural eligible entities
as determined by the authority; HB 128/a
Page 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
(e) the projected long-term operating
cost reductions of the solar energy system;
(f) procedures to ensure maximum
geographic disbursement and diversity;
(g) appropriate caps on different types
of grants to ensure the fund's sustainability and selection
of the most qualified projects;
(h) solar energy systems that include
an energy storage system;
(i) pricing consistent with statewide
price agreements; and
(j) solar energy systems that support
workforce development, including by hiring local New Mexico
workers, paying the prevailing wage or hiring workers
participating in apprenticeship programs that are registered
pursuant to the Apprenticeship Assistance Act.
F. Applications for grants shall be in a form
specified by the authority and shall include such information
as required by the authority, including:
(1) an estimate of the cost of the solar
energy system for which a grant is being sought;
(2) an estimate of the operating cost
savings expected to be achieved by the solar energy system;
and
(3) a description of the benefits of the HB 128/a
Page 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
solar energy system.
G. An eligible entity, except for an Indian
nation, tribe or pueblo, that is made a grant pursuant to this
section shall require a contractor of a project funded by the
local solar access fund to post a performance and payment bond
as described in Section 13-4-18 NMSA 1978."