Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes. F I S C A L I M P A C T R E P O R T SPONSOR Reps. Sariñana and Martinez, A/Sen. Pope LAST UPDATED 02/05/2025 ORIGINAL DATE 02/05/2025 SHORT TITLE Energy Project Siting & Military Bases BILL NUMBER House Bill 159 ANALYST Lobaugh ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT* (dollars in thousands) Agency/Program FY25 FY26 FY27 3 Year Total Cost Recurring or Nonrecurring Fund Affected OMBPS No fiscal impact No fiscal impact No fiscal impact No fiscal impact Recurring General Fund Parentheses ( ) indicate expenditure decreases. *Amounts reflect most recent analysis of this legislation. Sources of Information LFC Files Agency Analysis Received From Office of Military Base Planning and Support (OMBPS), Public Regulation Commission (PRC) New Mexico Attorney General (NMAG Agency Analysis was Solicited but Not Received From Energy, Minerals and Natural Resources Department (EMNRD) SUMMARY Synopsis of House Bill 159 House Bill 159 (HB159) requires the developer or owner of a renewable energy project in New Mexico to provide written notification to the chair of the state Military Base Planning Commission (a 12-member state commission comprised of the lieutenant governor and 11 governor-appointees) within 10 days of submitting a notice of a proposed construction or alteration of a renewable energy project to the U.S. Federal Aviation Administration (FAA). HB159 also requires the developer or owner of a renewable energy project to notify the chair of the state Military Base Planning Commission within 10 days of obtaining approval or finding of adverse impact on military operations by providing a copy of approval or finding. The effective date of this bill is July 1, 2025. FISCAL IMPLICATIONS HB159 does not contain an appropriation. HB159 does not have a fiscal impact on the state budget. House Bill 159 – Page 2 SIGNIFICANT ISSUES Federal law requires the developer or owner of a renewable energy project to notify the FAA before the construction or expansion of a renewable energy project. The FAA evaluates renewable energy projects, such as wind turbines and solar panel arrays, to ensure projects do not negatively impact airspace or air safety with turbines or sun glare. When the FAA evaluates proposed renewable energy projects, the FAA can refer the project for review by the U.S. Department of Defense (DoD), through an organization called the Military Aviation and Installation Assurance Siting Clearinghouse (Clearinghouse), for potential impacts to military operations. A developer or owner of a renewable energy project can also voluntarily ask the DoD Clearinghouse for an informal review of the project before notifying the FAA. According to the state Office of Military Base Planning and Support, the state Military Base Planning Commission is currently unable to confirm prior to construction whether renewable energy developers and owners are following federal statutes to prevent, minimize, or mitigate the adverse impacts of projects on military operations. The Office of Military Base Planning and Support also notes that renewable energy projects that are incompatible with military operations can (1) result in project delays and increased costs to the developer or owner, (2) decrease the military value of DoD aviation training routes and airspace, or (3) lead to the loss of military missions in the state. The term “other facility” on line 1 of page 2 is vague and may impact the implementation and interpretation of HB159. OTHER SUBSTANT IVE ISSUES The Military Base Planning Commission is currently scheduled to cease operations effective July 1, 2028 (Section 9-15-51.1 NMSA 1978). CSL/rl/SL2/rl