NM
New Mexico Senate Bill SB142

New Mexico 2025 Regular Session

New Mexico Senate Bill SB142 Compare Versions

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1-SB 142
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28+SENATE BILL 142
29+57
30+TH LEGISLATURE
31+-
32+
33+STATE
34+
35+OF
36+
37+NEW
38+
39+MEXICO
40+
41+-
42+ FIRST SESSION
43+,
44+
45+2025
46+INTRODUCED BY
47+George K. Muñoz and Meredith A. Dixon
2848 AN ACT
2949 RELATING TO THE GRID MODERNIZATION ROADMAP AND GRANT PROGRAM;
3050 REQUIRING THE ENERGY, MINERALS AND NATURAL RESOURCES
3151 DEPARTMENT, IN CONSULTATION WITH THE PUBLIC REGULATION
32-COMMISSION, TO DEVELOP A ROADMAP FOR GRID MODERNIZATION;
33-ADDING SCHOOL DISTRICTS AND CHARTER SCHOOLS AS ELIGIBLE
34-LOCATIONS FOR PROPOSED PROJECTS; AMENDING THE DEFINITION OF
35-"GRID MODERNIZATION".
52+COMMISSION, TO DEVELOP A ROADMAP FOR GRID MODERNIZATION; ADDING
53+SCHOOL DISTRICTS AND CHARTER SCHOOLS AS ELIGIBLE LOCATIONS FOR
54+PROPOSED PROJECTS; AMENDING THE DEFINITION OF "GRID
55+MODERNIZATION"; MAKING APPROPRIATIONS.
3656 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
3757 SECTION 1. Section 71-11-1 NMSA 1978 (being Laws 2020,
3858 Chapter 15, Section 1) is amended to read:
39-"71-11-1. GRID MODERNIZATION ROADMAP AND GRANT
40-PROGRAM.--
59+"71-11-1. GRID MODERNIZATION ROADMAP AND GRANT PROGRAM.--
4160 A. The energy, minerals and natural resources
4261 department, in consultation with the public regulation
43-commission, shall develop a roadmap for grid modernization
44-that shall detail priorities and strategies to modernize
45-New Mexico's electric grid.
46-B. The department shall establish a grid
47-modernization grant program to support implementation of a
48-modern grid by providing grants to eligible projects proposed
49-by:
50-(1) municipalities and county governments;
51-(2) state agencies; SB 142
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62+commission, shall develop a roadmap for grid modernization that
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90+shall detail priorities and strategies to modernize New
91+Mexico's electric grid.
92+B. The department shall establish a grid
93+modernization grant program to support implementation of a
94+modern grid by providing grants to eligible projects proposed
95+by:
96+(1) municipalities and county governments;
97+(2) state agencies;
7898 (3) state universities;
7999 (4) public schools;
80100 (5) post-secondary educational institutions;
81101 and
82102 (6) Indian nations, tribes and pueblos.
83103 C. The department shall adopt rules establishing
84104 the application procedure, the required qualifications for
85-projects and the purposes for which the grant may be used.
86-In approving grants, consideration shall be given to:
105+projects and the purposes for which the grant may be used. In
106+approving grants, consideration shall be given to:
87107 (1) the extent to which the project improves
88108 electrical system efficiency, reliability, resilience and
89109 security; lowers operations and maintenance costs; and meets
90-energy demands through a flexible, diversified and
91-distributed energy portfolio consistent with New Mexico's
92-energy goals;
110+energy demands through a flexible, diversified and distributed
111+energy portfolio consistent with New Mexico's energy goals;
93112 (2) the extent to which the project
94113 incorporates a new technology or a new or innovative
95-application of an existing technology that will provide
96-useful information to the state, utilities, electric
97-cooperatives and the general public related to grid
98-modernization;
99-(3) the degree to which the project fosters
100-the general public's, students' or a specific government or
101-industry sector's overall understanding and appreciation of
102-the benefits of modernizing the electric grid; SB 142
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114+application of an existing technology that will provide useful
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143+information to the state, utilities, electric cooperatives and
144+the general public related to grid modernization;
145+(3) the degree to which the project fosters
146+the general public's, students' or a specific government or
147+industry sector's overall understanding and appreciation of the
148+benefits of modernizing the electric grid;
129149 (4) the extent to which the project
130150 complements or coordinates with the resource planning of a
131-public utility as required by the Public Utility Act;
132-(5) the extent to which the project
133-stimulates in-state economic development, including the
134-creation of jobs and apprenticeships; and
151+public utility as required by the Public Utility Act; [and ]
152+(5) the extent to which the project stimulates
153+in-state economic development, including the creation of jobs
154+and apprenticeships; and
135155 (6) the speed of deployment of the project .
136156 D. Grants shall be awarded on a competitive basis,
137157 and priority shall be given to proposals that use matching
138-funds from non-state sources. The grant program shall seek
139-to fund applicants from:
140-(1) Indian nations, tribes and pueblos;
141-(2) rural communities served by rural
158+funds from non-state sources. The grant program shall seek to
159+fund applicants [in each of the following categories ] from:
160+(1) [an Indian nation, tribe or pueblo ] Indian
161+nations, tribes and pueblos ;
162+(2) [a rural community served by a rural
163+electric cooperative] rural communities served by rural
142164 electric cooperatives ;
143-(3) rural communities served by
144-investor-owned public utilities;
145-(4) urban or semi-urban municipalities and
146-counties;
147-(5) institutions of higher education; and
148-(6) school districts and charter schools.
149-E. Projects receiving a grant from the grid
150-modernization grant program shall be required to coordinate
151-with the electric service provider that serves the entity in
152-order to ensure that the program does not adversely impact
153-electrical system efficiency, reliability, resilience and SB 142
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165+(3) [a rural community served by an investor-
166+owned public utility] rural communities served by investor-
167+owned public utilities ;
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180-security. If no electric service connection exists at the
181-location of a proposed project, notice of the project shall
182-be given to the electric service provider in whose territory
183-the project is proposed to be located.
196+(4) [an urban or semi-urban municipality or
197+county; and] urban or semi-urban municipalities and counties;
198+(5) [an institution of higher education ]
199+institutions of higher education; and
200+(6) school districts and charter schools .
201+E. Projects receiving a grant from the grid
202+modernization grant program shall be required to [be
203+coordinated] coordinate with the electric service provider that
204+serves the entity in order to ensure that the program does not
205+adversely impact electrical system efficiency, reliability,
206+resilience and security. If no electric service connection
207+exists at the location of a proposed project, notice of the
208+project shall be given to the electric service provider in
209+whose territory the project is proposed to be located.
184210 F. The department shall provide a report on the
185211 grid modernization grant program to the legislative finance
186212 committee prior to each regular legislative session. The
187213 report shall include:
188214 (1) a list of grant recipients;
189215 (2) the amount and date of each grant;
190-(3) a description of each project funded;
191-and
216+(3) a description of each project funded; and
192217 (4) a description of how each project
193218 contributes to grid modernization and demonstrates increased
194219 electric grid reliability, resilience and security; creates
195220 economic benefits; or pilots or demonstrates new technologies
196-or new implementations of existing technologies.
197-G. For the purposes of this section:
198-(1) "department" means the energy, minerals
199-and natural resources department;
200-(2) "grid modernization" means improvements
201-to electric distribution or transmission infrastructure,
202-including related data analytics equipment, that are designed
203-to accommodate or facilitate the integration of renewable
204-electric generation resources or net-zero carbon resources SB 142
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231-with the electric distribution grid or to otherwise enhance
232-electric distribution or transmission grid reliability, grid
233-security, demand response capability, customer service or
234-energy efficiency or conservation and includes:
249+or new implementations of existing technologies.
250+G. For the purposes of this section:
251+(1) "department" means the energy, minerals
252+and natural resources department; [and ]
253+(2) "grid modernization" means improvements to
254+electric distribution or transmission infrastructure, including
255+related data analytics equipment, that are designed to
256+accommodate or facilitate the integration of renewable electric
257+generation resources or net-zero carbon resources with the
258+electric distribution grid or to otherwise enhance electric
259+distribution or transmission grid reliability, grid security,
260+demand response capability, customer service or energy
261+efficiency or conservation and includes:
235262 (a) advanced metering infrastructure
236263 that facilitates metering and providing related price signals
237264 to users to incentivize shifting demand;
238-(b) intelligent grid devices for
239-real-time system and asset information at key substations and
240-large industrial customers;
265+(b) intelligent grid devices for [real
266+time] real-time system and asset information at key substations
267+and large industrial customers;
241268 (c) automated control systems for
242269 electric distribution circuits and substations;
243270 (d) communications networks for service
244271 meters;
245272 (e) distribution system hardening
246273 projects for circuits and substations designed to reduce
247-service outages or service restoration times;
248-(f) physical security measures at key
249-distribution substations;
250-(g) cybersecurity measures;
251-(h) energy storage systems and
252-microgrids that support circuit-level grid stability, power
253-quality, reliability or resiliency or provide temporary
254-backup energy supply;
255-(i) electrical facilities and SB 142
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302+service outages or service restoration times;
303+(f) physical security measures at key
304+distribution substations;
305+(g) cybersecurity measures;
306+(h) energy storage systems and
307+microgrids that support circuit-level grid stability, power
308+quality, reliability or resiliency or provide temporary backup
309+energy supply;
310+(i) electrical facilities and
282311 infrastructure necessary to support electric vehicle charging
283312 systems;
284313 (j) new customer information platforms
285314 designed to provide improved customer access, greater service
286-options and expanded access to energy usage information;
287-(k) construction of increased
288-electric grid distribution capacity and transmission grid
289-infrastructure, including substations and the purchase of
315+options and expanded access to energy usage information; [and ]
316+(k) [other new technologies that may be
317+developed regarding the electric grid ] construction of
318+increased electric grid distribution capacity and transmission
319+grid infrastructure, including substations and the purchase of
290320 high-capacity transmission lines, transformers and other
291321 electric grid equipment; and
292322 (l) enabling the application of
293323 artificial intelligence to identify methane leaks and
294324 opportunities to reduce or eliminate methane leaks; and
295325 (3) "net-zero carbon resource" means an
296326 electricity generation resource that emits no carbon dioxide
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297355 into the atmosphere, or that reduces methane emitted into the
298356 atmosphere in an amount equal to no less than one-tenth of the
299-tons of carbon dioxide emitted into the atmosphere, as a
300-result of electricity production."
357+tons of carbon dioxide emitted into the atmosphere, as a result
358+of electricity production ."
359+SECTION 2. APPROPRIATIONS.--
360+A. One hundred thousand dollars ($100,000) is
361+appropriated from the grid modernization grant fund to the
362+energy, minerals and natural resources department for
363+expenditure in fiscal years 2025 and 2026 for administration
364+costs incurred to carry out the provisions of Section 1 of this
365+act. Any unexpended or unencumbered balance remaining at the
366+end of fiscal year 2026 shall revert to the grid modernization
367+grant fund.
368+B. Two hundred thousand dollars ($200,000) is
369+appropriated from the grid modernization grant fund to the
370+public regulation commission for expenditure in fiscal years
371+2025 and 2026 for administration costs incurred to carry out
372+the provisions of Section 1 of this act. Any unexpended or
373+unencumbered balance remaining at the end of fiscal year 2026
374+shall revert to the grid modernization grant fund.
375+- 7 -
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