Renewable energy now required on New Mexico state land after Lujan Grisham signs bill

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Public land managed by the State of New Mexico was required to see renewable energy developments, after a bill was signed into law to make the state’s Office of Renewable Energy permanent.

House Bill 95 was intended to codify into law the office established within the State Land Office by Commissioner of Public Lands Stephanie Garcia Richard, meaning it could not be disintegrated by any future land commissioner or government leader.

Sponsored by Reps. Tara Lujan (D-48) and Debra Sarinana (D-21), the bill was intended to help New Mexico expand renewable energy development as a path toward lowering carbon emissions from traditional energy development like coal and oil and gas.

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This goal was spelled out in the 2019 Energy Transition Act that called for New Mexico to produce 100 percent carbon-free energy by 2045 to reduce the state’s impact on pollution and climate change.

The State Land Office estimated revenue from wind and solar power generation in the state was more than $12 million in Fiscal Year 2022.

That money goes to statutory beneficiaries of State Trust land, including public schools, universities and hospitals.

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Records show there were 27 active leases on State Trust land as of March 9, with a total capacity of 1,556 megawatts, mostly in central New Mexico around Torrance and Lincoln counties.

That’s enough to power about 320,000 homes, the State Land Office reported.

The land office also reported 12 active solar power leases with a capacity of 274 megawatts, enough for about 54,700 homes.

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Solar leases were mostly listed in southern New Mexico, in Doña Ana, Otero, Eddy and Lea counties, with other leases further north in Bernalillo, McKinley and San Juan counties.

Garcia Richard said the bill would help New Mexico take advantage of recent growth in renewable energy throughout the U.S., touting a “tripling” of such production since Garcia Richard took office in 2019.

Land Commissioner-elect Stephanie Garcia Richard requested the hearing to increase well density in the Blanco-Mesaverde pool in the San Juan Basin to be postponed until she takes office in January. Her request was not granted.
Land Commissioner-elect Stephanie Garcia Richard requested the hearing to increase well density in the Blanco-Mesaverde pool in the San Juan Basin to be postponed until she takes office in January. Her request was not granted.

“With abundant wind and solar resources at our disposal across the state, it would be foolish not to aggressively pursue renewable energy development. Thanks to this legislation, New Mexico is now well-positioned to be a national leader in this booming sector,” she said.

“The fact that we were able to triple renewable energy on state lands in just a few short years shows that there is a strong appetite for growing the industry in the state.”

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Lujan said supporting renewable energy in New Mexico would help the state cut down on pollution it generates from oil and gas and other traditional energy sources.

New Mexico is the second-highest, oil-producing state in the U.S., and relies on the industry for about a third of its budget.

But Lujan said the state was in need of a “transition” to new, less damaging forms of pollution with renewables potentially leading the way.

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“As renewable energy becomes an increasingly important part of New Mexico’s energy future, we have to make sure that this burgeoning industry has the support it needs to flourish,” she said. “With our economy and climate at stake, we have a responsibility to ensure we deliver on New Mexico’s potential to be a clean energy leader.”

Sarinana said renewable energy posed an added funding source for public education throughout New Mexico by bringing more money into the State Land Office.

“Our public education system and many other critical public institutions rely on the revenue generated by the State Land Office,” she said. “Creating the Office of Renewable Energy within the Land Office will allow us to meet New Mexico’s energy needs in ways that are sustainable and supportive of our just transition to clean energy.”

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During HB 95’s final hearing March 9 before the New Mexico Senate where it passed 27-8, Sen. Craig Brandt (R-40) of Sandoval County, who voted against the bill, argued it would unduly force future land commissioners to support and define renewable energy.

“The world continues to change and continues to progress,” he said during the Senate Floor debate. “As new technology is developed, new things may become renewable energy. Do we want the land commissioner to determine that? I think not. That should be up to this body.”

Another opponent of the bill Sen. William Sharer (R-1) of San Juan County argued ahead of the vote that oil and gas generated much more revenue than renewables.

He contended oil and gas revenue equates to “a million dollars an hour” while the $12 million brought in in FY 2022 by renewables was only “a million a month.”

“We ought to be giving a little more love to the people that are paying a million dollars an hour,” Sharer said. “But I don’t wish to degrade wind, solar, geothermal or anything else. We should be an all-of-the-above package. I just want to make sure that we all here know a million dollars a month versus a million dollars an hour.”

Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on Twitter.

This article originally appeared on Carlsbad Current-Argus: Renewable energy required on New Mexico state land after bill signed