Gov. Michelle Lujan Grisham signed a slate of bills into law Tuesday afternoon aimed at expanding renewable energy and modernizing the state’s electricity infrastructure, including a bill that reinstates the solar tax credit that expired under the previous administration. SB 29, sponsored by Sen. Mimi Stewart, D-Albuquerque and Rep. Matthew McQueen, D-Galisteo, reinstates the solar tax credit that expired in 2016. The bill creates a personal income tax credit to cover 10 percent of the costs of a solar thermal or solar photovoltaic system for residential, business or agriculture applications. The new law is applicable to tax years starting on January 1, 2020. The tax credit will help more New Mexico families and small businesses “invest in solar, and will boost our statewide effort to move toward the goal of having a 50 percent renewable portfolio standard by 2030,” Stewart said.
The Ogallala aquifer is rapidly declining. The large underground reservoir stretches from Wyoming and the Dakotas to New Mexico, with segments crossing key farmland in Texas, Nebraska, Kansas and Oklahoma. It serves as the main water source for what’s known as the breadbasket of America — an area that contributes at least a fifth of the total annual agricultural harvest in the United States. The U.S. Geological Survey began warning about the aquifer’s depletion in the 1960s, though the severity of the issue seems to have only recently hit the mainstream. Farmers in places like Kansas are now grappling with the reality of dried up wells.
The 2020 Legislative session finished promptly at noon on Thursday after a week of long nights in debate that resulted in the passage of the number of clean energy bills backed by Gov. Michelle Lujan Grisham. However, not every priority passed the legislature this year. Here’s a look at the clean energy bills that made it to the governor’s desk this year, and the ones that didn’t. Solar tax credit: Senate Majority Whip Mimi Stewart, D-Albuquerque, often joked about how many times she sponsored a bill to reinstate the solar tax credit since the credit expired in 2016. “I hate to count how many times the committee’s actually heard [this bill],” Stewart joked with a House committee during the session.
The Senate passed a second bill that would create a tax credit for electric vehicles late Wednesday evening, after passing a similar Senate bill one day earlier. On Tuesday, the Senate passed SB 2, sponsored by Pat Woods, R-Broadview, and Bill Tallman, D-Albuquerque, by a narrow vote of 19-18. The Senate then passed HB 217, sponsored by Mesilla Democratic Rep. Micaela Lara Cadena and Santa Fe Democratic Rep. Jim Trujillo, by a vote of 23-13, late Wednesday night. RELATED: Senate version of electric vehicle tax credit passes floor by one vote
“This bill is almost a mirror bill to SB 2,” Woods said. “The only difference between this bill and the electric vehicle income tax credit bill that I passed earlier was that this bill requires you to be a resident of the state of New Mexico before you receive a tax credit.”
“This bill was amended in Senate Finance [Committee] to mirror my bill,” Woods added.
A bill to reinstate a solar tax credit is headed to the governor’s desk. The bill, sponsored by Senate Majority Whip Mimi Stewart, D-Albuquerque, passed the House floor Wednesday by a vote of 51-19. SB 29 would create a personal income tax credit to cover 10 percent of the costs of a solar thermal or solar photovoltaic system for residential, business or agriculture applications. Democratic Rep. Matthew McQueen of Galisteo is the House sponsor of the bill.
New Mexico initiated a similar tax credit in the last decade, which expired in 2016. The Legislature passed a bill to reinstate the credit that same year, but it was pocket-vetoed by then-Gov. Susana Martinez.
A proposal to restructure the Public Regulation Commission died in the Senate Corporations and Transportation Committee after a two-plus hour debate. The bill was tabled by a vote of 5-4. Democratic Reps. Nathan Small of Las Cruces and Linda Trujillo of Santa Fe presented HB 11 to the committee Tuesday afternoon. Small and Trujillo told the committee the bill would help address staffing issues at the PRC and make the commission more efficient.
A Senate proposal to create an electric vehicle tax credit passed the Senate floor Tuesday by just one vote. SB 2, sponsored by Sens. Pat Woods, R-Broadview, and Bill Tallman, D-Albuquerque, would create personal income tax credits for New Mexico residents who purchase or lease plug-in hybrid vehicles or 100 percent battery electric vehicles. The bill provides a $2,500 tax credit for residents whose annual income is above $50,000; but the tax credit jumps to $5,000 for residents who make less than $50,000. “We’re talking really about taxing the poor,” said Albuquerque Republican Sen. Mark Moores during the debate.
A bill aimed at expanding powerline infrastructure in the state easily passed the Senate floor unanimously on Tuesday after a short debate. HB 50 would make transmission line projects eligible for Industrial Revenue Bonds (IRBs) issued by counties and municipalities. Republican Sen. Steven Neville of Farmington presented the bill on the floor Tuesday. “This is an amendment to the Industrial Revenue Bond procedure and acts that we have in our statute that allows private powerlines, primarily related to renewable energy projects, to allow them to participate in the IRB process,” Neville said. “It’s not for PNM or any of the public utilities.
A proposal to make structural changes to the Public Regulation Commission passed the House floor with a narrow vote of 36-34 after a three-hour debate Sunday evening. HB 11 is sponsored by Democratic Reps. Nathan Small of Las Cruces and Linda Trujillo of Santa Fe. It would restructure the PRC with the aim of streamlining operations and making the commission more efficient. RELATED: PRC reform bill advances with big concerns
The bill “strengthens and simplifies the Public Regulation Commission,” Small said, adding that the bill “appropriately separates the decision making function from the advocacy function.” Small said he met with former and current PRC staff, including commissioners; and considered other other utility commissions from other states in drafting the legislation.
The state House passed a memorial that would direct the State Investment Council (SIC) to explore investment opportunities in renewable energy, transmission and storage. HM 9 directs the SIC and the State Land Office to collaborate together on developing a strategic plan for investing in renewables and related projects within the state. “The goal of this memorial is to invest more renewables in our state,” said Democratic Rep. and bill sponsor Joseph Sanchez of Alcalde. “Our state has the second highest solar density in the country, second to the Mojave Desert in California. The renewable industry is booming in other states, this is a great opportunity to move forward in this area.”