New Mexico geothermal bill returns to governor’s desk

House Bill 91 or the “Geothermal Resource Project Funds” has been passed by the Senate and now heads to the desk of Governor Michelle Lujan Grisham for the second year in a row.

A similar billed filed during the 2023 legislative session made it to this point but was not ultimately signed into law after being pocket vetoed by the Governor. Then-known as House Bill 365, it was one of several bills that were vetoed amidst concerns over the sustainability of several proposed tax cuts and financial incentives.

Sen. Jerry Ortiz y Pino, D-Albuquerque, a fervent support of geothermal energy and sponsor of HB 91, said that he has met with the Governor’s staff over the interim and that the Governor has indicated that she will sign the legislation this year.

HB 91 proposes the creation of a fund that can provide grants of up to USD 250,000 for cost-benefit studies for geothermal projects.

The fund can also provide grants for geothermal development projects for recipients representing political subdivisions such as counties or municipalities, state universities, or Native American tribes, nations, or pueblos. The bill also creates a revolving loan fund for private entities.

Before the current legislation sessions, Sen Ortiz stated that the geothermal legislation will be introduced in two phases. The first phase, which is currently being processed, aims to focus on providing grants and loans for entities or businesses to develop or transition to geothermal. The second phase will focus on the long-term promotion and development of geothermal with the target of supplying 100% of the state’s power demand.

Source: New Mexico Political Report