A bill that seeks to make it easier for schools to access solar energy passed the House Energy, Environment and Natural Resources Committee Saturday on a 7-4 vote.
The bill provides a tax credit to those who install solar arrays on school property.
The schools will be able to contract with companies to provide them with the solar array, which will likely be in the form of panels over parking structures.
Bill sponsor Rep. Joanne Ferrary, D-Las Cruces, said that HB 187 will allow every public school in the state that wants to to access solar energy through contracts with companies that will benefit from both state and federal tax credits.
She said it is important to pass this legislation now because of the federal incentives that are currently available.
Some of the debate in the committee focused on whether this bill would violate the state’s anti-donation clause, a part of the state constitution which bars governmental entities in the state from, with small exceptions, providing benefits to specific people or entities.
Rep. Cynthia Borrego, D-Albuquerque, requested that a legal opinion be provided in the next committee about whether this would violate the anti-donation clause.
HB 187 now heads to the House Taxation and Revenue Committee.
Taxing renewable energy production
Later in the committee meeting, the legislators tabled HB 150 which would have required renewable energy producers to pay a 3.75 percent tax on the wholesale value of the electricity produced.
Sponsor Rep. John Block, R-Alamogordo, said the bill was intended to create parity among the energy producing sectors and the percentage for the tax is based on what oil and gas producers pay in severance tax. Block also presented it as an opportunity to grow revenue for the state.
But opponents say it would stifle economic growth and increase the costs of renewable power.
Rep. Nathan Small, D-Las Cruces, spoke about planned wind development in Union County and transmission lines. He said the bill could prevent those from becoming a reality and that investment would not be available for those communities.
The committee voted 6-4 to table the bill.
