New Mexico Legislature Should Move on Clean Energy, Jobs, and Climate

This blog was co-written with James Povijua, regional director of NRDC's Nature program in the Southwest.

We’re off to the races in the 2024 New Mexico Legislature. While big-ticket budget, education, and public safety issues will draw a lot of attention, there’s time enough for state leaders to make progress that boosts our health and our communities, our job opportunities, and our climate. 

This swift 30-day session’s primary purpose is to approve a new state budget. As everyone knows, the state has a sizable budget surplus, largely from rising oil and gas revenues that are tied mainly to booming production in the Permian Basin.  

But those revenues are projected to decrease over time. That’s why this legislative session should include wise investments and policies that build a safer, cleaner, healthier future for all New Mexicans, especially those living on the frontlines of pollution and climate impacts and who struggle to pay bills to take care of their families.   

Here are some of the initiatives we will be engaged in and encouraging lawmakers and the governor to act on.  

The New Mexico Match Fund

Wouldn’t it be great if we could unlock new opportunities in communities, businesses, and neighborhoods across our state?  

The New Mexico Match Fund, backed by Governor Michelle Lujan Grisham and State Representative Meredith Dixon, could make that happen. With $100 million or more allocated by the Department of Finance and Administration, the state could bridge the gap for businesses, communities, and entities that often cannot meet funding match requirements for federal grants and programs. 

If the state sets up this $100 million or more matching fund—paid for by surplus oil and gas revenues—it can help New Mexico get its share of billions of federal dollars in the Bipartisan Infrastructure Law and the Inflation Reduction Act (IRA) that are specifically available to states. 

In doing so, we can use federal investments to create good-paying jobs in New Mexico in the wind, solar, water sustainability, health care, and technology industries.

The match fund can also help the state draw federal investments in energy and power infrastructure, transportation, water infrastructure, and access to broadband Internet.  

Federal funds and programs, like those in the IRA and the infrastructure law, typically require a nonfederal match for a project to get off the ground. Those laws provide roughly 80 percent of the funding. The New Mexico Match Fund can supply the remaining 20 percent needed to approve and launch a project that builds a better future. 

State leaders also propose using 5 percent of the match fund to hire grant writers, project managers, and other specialists. These experts will help tribes, local governments, wastewater officials, and community organizations in seeking federal grants and work with them through project construction and development. 

Taken together, the New Mexico Match Fund could steer part of the state budget surplus to make sure New Mexico doesn’t leave money that’s available to it on the table. This will also make the state more competitive and attractive to new and existing businesses.  

Electric vehicle tax credits

The governor and state leaders are proposing new tax credits to help people buy electric vehicles (EVs). This family-friendly initiative builds on the state’s approval last year of advanced clean car and truck standards. Those standards require manufacturers to deliver an increasing number of electric vehicles to the state for sale in the coming years.  

The IRA offers an EV tax credit at the point of sale that can take up to $7,500 off the purchase price of a new EV. An added state-based EV tax credit could make buying electric vehicles even more affordable for middle- and low-income New Mexicans and help build out the charging network.   

$20 million for workforce development and training

We also support the efforts of Somos un Pueblo Unido, an organization that is advocating for $20 million from state funds for workforce development and job retraining programs for frontline communities. This extra funding will help expand access to programs at the state’s departments of Higher Education and Workforce Solutions, ensuring that all community members in our state can train for jobs in renewable energy. 

Oil and Gas Act reform 

The state’s Oil and Gas Act hasn’t been significantly updated in decades and, with production booming, now is the right time to get that done. This could include:  

• Phasing out freshwater use in oil and gas operations 

• Increasing new well setbacks from “sensitive locations,” such as homes, schools, and hospitals 

• Boosting bonding fees to curb state liability for orphan wells 

• Increasing fees and penalties 

These bills and initiatives enjoy broad support and will make life better for New Mexicans at home, at work, and in their communities. For the good of all New Mexicans, they deserve to be enacted.  

Even within 30 days, we can make substantial progress.