Lawmakers passed three bills this session focused specifically on environmental priorities and increased funding for environmental agencies.
Some of the initiatives were years in the making, such as establishing rules for lessening “carbon-intensive” fuels for cars, geothermal energy research, and funding future land and water conservation.
“Our conservation legacy fund is second-to-none now, anywhere in the United States,” said Gov. Michelle Lujan Grisham at an end-of-session press conference, noting that the legislature provided $300 million to the permanent fund.
The governor can veto or sign legislation through March 6. For now, here’s a look at what passed, and what didn’t during the 30-day New Mexico legislative session.
State environmental agencies such as the New Mexico Environment Department and the state’s Energy, Minerals and Natural Resources Department saw double-digit budget increases.
In House Bill 2, lawmakers passed a $10.22 billion budget.
The New Mexico Environment Department’s total budget will be $201 million this year, a 26% increase from the $159 million budget passed in the 2023 session.
While significantly more federal funds are in the environment department’s operating budget, New Mexico increased the general fund provision to $4 million for next year, totaling $29.7 million for NMED. That was smaller than the executive budget request, which asked for $6.9 million more from the general fund.
An additional $7 million from the general fund for surface and groundwater programs will increase the number of employees in permit programs, but there’s no estimate for how many will be added, said Matthew Maez, a spokesperson for the state’s environment department.
There’s no anticipated hiring of more employees based on the general fund increase, Maez said.
“The increase we received allows us to appropriately compensate our employees based on education and experience levels,” he said.
For the New Mexico Energy, Minerals and Natural Resources Department, the total budget increased by 26% from the $149 million passed last year, to $188 million for the next fiscal year that begins July 1.
A recurring increase of $1.2 million for the New Mexico Bureau of Geology and Mineral Resources will help the state with groundwater monitoring, said Stacey Timmons, a groundwater researcher. That’s half of the executive’s request for a little more than $2 million, but the funding will mean someone can dedicate a full-time position to groundwater monitoring.
“This is a step in the right direction, but there’s a long way to go,” Timmons said about funding water data.
Lawmakers appropriated $300 million for the Land of Enchantment Legacy Fund, which can provide state moneys for six agencies to continue programs that have been underfunded or sporadically funded.
The Land of Enchantment Legacy Fund would provide $50 million over four years to six state agencies and 10 programs within them.
The fund has yearly disbursements, and also has an investments managed by the State Investment Council.
The fund could potentially unlock millions in federal matching dollars for forest and watershed health, outdoor recreation, agriculture, historic preservation, wildlife species protection and conservation, said Jake McCook, a spokesman for the legacy fund coalition.
Previously, state programs would have to cobble together state funding for programs, losing out on federal dollars.
“Now you have 10 programs funded no matter what, with state dollars,” McCook said.
“We were the last western state that didn’t have a program to do that funding, and now we’ve leapfrogged to first in the nation by having such a large amount available,” McCook said. “The governor and legislature both deserve a lot of credit for that.”
Three bills with environmental priorities passed both chambers and are on the governor’s desk.
Sen. Mimi Stewart (D-Albuquerque) carried House Bill 41 which allows for the Environmental Improvement Board to draft and enforce new rules and standards for alternate fuels for cars and trucks.
“We’re really open for business,” Stewart said. “We’re open for clean renewable energy business, especially.”
Lawmakers passed House Bill 91 Geothermal Resources Project Fund, authorizing $2.5 million for geothermal energy projects that can use the heat of the earth’s interior to heat water, which can then be used for electricity, hot water use or heating and cooling.
Another $1 million was approved in the state budget for geothermal resource development at the New Mexico Institute of Mining and Geology.
Senate Bill 169 would make changes to the land and conservation fund, which assists county, city and tribal governments with state money to match federal funds. The bill removed a population cap, and noted the prioritization of tribal and smaller governments. The Senate Finance Committee struck a $10 million dollar appropriation from the bill.
In the tax package, House Bill 252, lawmakers included tax credits for heat pumps and electric vehicles, which were vetoed last year.
“I think governor, this bill is better than the bill we had last year for a whole bunch of reasons,” said Sen. Peter Wirth (D-Santa Fe) in a press conference with Lujan Grisham and other Democratic leadership last week. “Obviously, it’s a fifth of the size.”
Stewart also celebrated a win in the rooftop solar tax credit program, which the state passed in 2020, but ran out of money to pay people.
“This tax package includes a provision that if you applied for tax credits in 2020, 2021, 2022 and 2023 and you didn’t get it because the state ran out of money, you can apply again,” Stewart told reporters during a press conference last week. “We put a $20 million fund for back payments, and raised the cap on that significantly, so we won’t run out of money going forward.”
In a short, 30-day session, the agenda is set by the governor and the budget.
The vast majority of bills die.
Some of the legislation that did not make it included a trio of bills introduced by Rep. Debra Sariñana (D-Albuquerque), or a constitutional amendment proposed by Rep. Joanne Ferrary (D-Las Cruces) to grant environmental rights to all people in New Mexico.
One of Lujan Grisham’s priorities, creating a half-billion dollar market for brackish and oil and gas wastewater, failed this session, but is expected to be a key part of the interim and be introduced next year.
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