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SENATE BILL 142
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
George K. Muñoz and Meredith A. Dixon
AN ACT
RELATING TO THE GRID MODERNIZATION ROADMAP AND GRANT PROGRAM;
REQUIRING THE ENERGY, MINERALS AND NATURAL RESOURCES
DEPARTMENT, IN CONSULTATION WITH THE PUBLIC REGULATION
COMMISSION, TO DEVELOP A ROADMAP FOR GRID MODERNIZATION; ADDING
SCHOOL DISTRICTS AND CHARTER SCHOOLS AS ELIGIBLE LOCATIONS FOR
PROPOSED PROJECTS; AMENDING THE DEFINITION OF "GRID
MODERNIZATION"; MAKING APPROPRIATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 71-11-1 NMSA 1978 (being Laws 2020,
Chapter 15, Section 1) is amended to read:
"71-11-1. GRID MODERNIZATION ROADMAP AND GRANT PROGRAM.--
A. The energy, minerals and natural resources
department, in consultation with the public regulation
commission, shall develop a roadmap for grid modernization that
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shall detail priorities and strategies to modernize New
Mexico's electric grid.
B. The department shall establish a grid
modernization grant program to support implementation of a
modern grid by providing grants to eligible projects proposed
by:
(1) municipalities and county governments;
(2) state agencies;
(3) state universities;
(4) public schools;
(5) post-secondary educational institutions;
and
(6) Indian nations, tribes and pueblos.
C. The department shall adopt rules establishing
the application procedure, the required qualifications for
projects and the purposes for which the grant may be used. In
approving grants, consideration shall be given to:
(1) the extent to which the project improves
electrical system efficiency, reliability, resilience and
security; lowers operations and maintenance costs; and meets
energy demands through a flexible, diversified and distributed
energy portfolio consistent with New Mexico's energy goals;
(2) the extent to which the project
incorporates a new technology or a new or innovative
application of an existing technology that will provide useful
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information to the state, utilities, electric cooperatives and
the general public related to grid modernization;
(3) the degree to which the project fosters
the general public's, students' or a specific government or
industry sector's overall understanding and appreciation of the
benefits of modernizing the electric grid;
(4) the extent to which the project
complements or coordinates with the resource planning of a
public utility as required by the Public Utility Act; [and ]
(5) the extent to which the project stimulates
in-state economic development, including the creation of jobs
and apprenticeships; and
(6) the speed of deployment of the project .
D. Grants shall be awarded on a competitive basis,
and priority shall be given to proposals that use matching
funds from non-state sources. The grant program shall seek to
fund applicants [in each of the following categories ] from:
(1) [an Indian nation, tribe or pueblo ] Indian
nations, tribes and pueblos ;
(2) [a rural community served by a rural
electric cooperative] rural communities served by rural
electric cooperatives ;
(3) [a rural community served by an investor-
owned public utility] rural communities served by investor-
owned public utilities ;
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(4) [an urban or semi-urban municipality or
county; and] urban or semi-urban municipalities and counties;
(5) [an institution of higher education ]
institutions of higher education; and
(6) school districts and charter schools .
E. Projects receiving a grant from the grid
modernization grant program shall be required to [be
coordinated] coordinate with the electric service provider that
serves the entity in order to ensure that the program does not
adversely impact electrical system efficiency, reliability,
resilience and security. If no electric service connection
exists at the location of a proposed project, notice of the
project shall be given to the electric service provider in
whose territory the project is proposed to be located.
F. The department shall provide a report on the
grid modernization grant program to the legislative finance
committee prior to each regular legislative session. The
report shall include:
(1) a list of grant recipients;
(2) the amount and date of each grant;
(3) a description of each project funded; and
(4) a description of how each project
contributes to grid modernization and demonstrates increased
electric grid reliability, resilience and security; creates
economic benefits; or pilots or demonstrates new technologies
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or new implementations of existing technologies.
G. For the purposes of this section:
(1) "department" means the energy, minerals
and natural resources department; [and ]
(2) "grid modernization" means improvements to
electric distribution or transmission infrastructure, including
related data analytics equipment, that are designed to
accommodate or facilitate the integration of renewable electric
generation resources or net-zero carbon resources with the
electric distribution grid or to otherwise enhance electric
distribution or transmission grid reliability, grid security,
demand response capability, customer service or energy
efficiency or conservation and includes:
(a) advanced metering infrastructure
that facilitates metering and providing related price signals
to users to incentivize shifting demand;
(b) intelligent grid devices for [real
time] real-time system and asset information at key substations
and large industrial customers;
(c) automated control systems for
electric distribution circuits and substations;
(d) communications networks for service
meters;
(e) distribution system hardening
projects for circuits and substations designed to reduce
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service outages or service restoration times;
(f) physical security measures at key
distribution substations;
(g) cybersecurity measures;
(h) energy storage systems and
microgrids that support circuit-level grid stability, power
quality, reliability or resiliency or provide temporary backup
energy supply;
(i) electrical facilities and
infrastructure necessary to support electric vehicle charging
systems;
(j) new customer information platforms
designed to provide improved customer access, greater service
options and expanded access to energy usage information; [and ]
(k) [other new technologies that may be
developed regarding the electric grid ] construction of
increased electric grid distribution capacity and transmission
grid infrastructure, including substations and the purchase of
high-capacity transmission lines, transformers and other
electric grid equipment; and
(l) enabling the application of
artificial intelligence to identify methane leaks and
opportunities to reduce or eliminate methane leaks; and
(3) "net-zero carbon resource" means an
electricity generation resource that emits no carbon dioxide
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into the atmosphere, or that reduces methane emitted into the
atmosphere in an amount equal to no less than one-tenth of the
tons of carbon dioxide emitted into the atmosphere, as a result
of electricity production ."
SECTION 2. APPROPRIATIONS.--
A. One hundred thousand dollars ($100,000) is
appropriated from the grid modernization grant fund to the
energy, minerals and natural resources department for
expenditure in fiscal years 2025 and 2026 for administration
costs incurred to carry out the provisions of Section 1 of this
act. Any unexpended or unencumbered balance remaining at the
end of fiscal year 2026 shall revert to the grid modernization
grant fund.
B. Two hundred thousand dollars ($200,000) is
appropriated from the grid modernization grant fund to the
public regulation commission for expenditure in fiscal years
2025 and 2026 for administration costs incurred to carry out
the provisions of Section 1 of this act. Any unexpended or
unencumbered balance remaining at the end of fiscal year 2026
shall revert to the grid modernization grant fund.
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