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 Lujan/Borrego
LAST UPDATED
ORIGINAL DATE 2/18/2025
SHORT TITLE Clean Energy & Natural Resources Board
BILL
NUMBER House Bill 394
ANALYST Davidson
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected
$100.0 Nonrecurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected EMNRD No fiscal impact $65.0 $65.0 $130.0 Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Public Regulation Commission (PRC) Energy, Minerals and Natural Resources (EMNRD)
SUMMARY
Synopsis of House Bill 394
House Bill 394 appropriates $100 thousand from the general fund to the Energy, Minerals and
Natural Resources Department for the purpose of creating the clean energy and natural resources
advisory board. The bill outlines the directives of the board, its makeup, and the qualifications of
its members.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
The
appropriation of $100 thousand contained in this bill is a nonrecurring expense to the
general fund. Any unexpended or unencumbered balance remaining at the end of FY26 shall House Bill 394 – Page 2
revert to the general fund.
The Energy, Minerals and Natural Resource Department (EMNRD) anticipates implementation
of the bill and staffing of the new advisory board will require a half-time position, or roughly $65
thousand increase. LFC estimates this increase based on the agency’s average personnel costs.
SIGNIFICANT ISSUES
The Public Regulation Commission (PRC) notes none of the positions on the 17-member board
is designated for a tribal representative and raises concerns the bill does not codifying any
coordination between PRC and the Energy, Minerals and Natural Resources Department, even
though both agencies are engaged in the regulation and cultivation of the state’s clean energy and
natural resources.
PRC also indicates the board should meet more than the twice a year called for the in the bill due
to the complexity of clean energy initiatives and natural resource management.
EMNRD notes, due to the size of the board and the four-year commitment required of members,
staffing the board could prove challenging. EMNRD notes this issue could also be exacerbated
by the varying levels of expertise required of board members.
EMNRD analysis further notes the bill establishes quorum requirements for the transaction of
business for the board, but “specifies no concrete or discernible actions or duties that the board
might undertake beyond providing advice (which is undefined), establishing subcommittees, and
creating bylaws. This lack of apparent authority or purpose will add to the challenge of recruiting
board members.”
EMNRD suggests the duties of the board and its composition are potentially misaligned. The
analysis notes one of the duties of the board, “addressing clean energy and natural resources for
implementing and maintaining clean energy in the state,” could lead the board to prioritize, for
example, the development of critical minerals operations, which could conflict with other
members of the board, such as forestry and state parks. This conflict between the duties of the
board and its complex makeup could be clarified with more direct language.
EMNRD lists the current boards, commissions, and tasks forces it already staffs and takes advise
from:
Radioactive Waste Consultation Task Force (NMSA 1978, 74A-4A-6)
• Fire Planning Task Force (NMSA 1978, Section 68-2-34)
• Tree Planting Advisory Committee (NMSA 1978, Section 68-2-33)
• New Mexico Urban Forest Council (federal funding requirement)
• Natural Lands Protection Act Committee (NMSA 1978, Section 75-5-4; NMSA 1978,
Section 75-9-4; NMSA 1978, Sections 75-10-3 and 6)
• Forest and Watershed Management Coordinating Group (voluntary)
• Mining Commission (NMSA 1978, Section 69-36-6)
• Coal Surface Mining Commission (NMSA 1978, Section 69-25A-4)
• Oil Conservation Commission (NMSA 1978, Section 70-2-4)
• Technical Advisory Committee to the Office of Interstate Natural Gas Markets (NMSA
1978, Section 70-11-5)
• State Parks Advisory Board (NMSA 1978, Section 16-2-2) House Bill 394 – Page 3
• Rio Grande Trail Commission (NMSA 1978, Section 9-5C-1)
• Carlsbad Brine Well Remediation Authority (NMSA 1978, Section 75-11-1)
• New Mexico Youth Conservation Corps Commission (NMSA 1978, Section 9-5B-5)
EMNRD notes, beyond the issues it highlights in its analysis, the proposed additional advisory
board has the potential to aid agencies when it comes to advising rule changes, land acquisitions,
funding opportunities, and rollout of new public facing programs.
AD/hj/hg