New Mexico
State Scorecard Rank
23
New Mexico
17.0Scored out of 50Updated 12/2022
State Government
Score: 3 out of 4.5
State Government Summary List All
New Mexico offers financial incentives for energy efficiency investments. It enables PACE financing but does not have any active PACE programs. The state government leads by example by requiring efficient buildings and fleets, benchmarking public buildings, and encouraging the use of energy savings performance contracts.
Financial Incentives List All
The state of New Mexico offers the following financial incentives to encourage energy efficiency improvements:
- 2021 Sustainable Building Tax Credit: ECMD manages the Sustainable Building Tax Credit (SBTC), which benefits New Mexicans by incentivizing builders to build energy-efficient and healthy, comfortable homes. The 2021 Sustainable Building Tax Credit requires a higher level of LEED (Leadership in Energy and Environmental Design) certification to qualify a project. In addition, the 2021 credit provides bonuses for a fully electric house, and/or for meeting net-zero carbon certification, zero energy certification, zero waste certification or zero water certification. The 2021 credit also scales up for low-income persons and affordable housing projects. A new part of the 2021 credit is the provision of tax credits for the installation of energy-conserving products in existing commercial and residential buildings – helping to improve extant building stock in New Mexico.
- Community Energy Efficiency Development Block Grant Act: Low-income energy efficiency grants given to municipalities, counties, Indian nations, and tribes of pueblos. It will be for neighborhood upgrades to access economies of scale. It passed in the 2022 legislature, and the rules are currently being written.
- Energy Efficiency & Renewable Energy Bond Program/Clean Energy Revenue Bond Program
Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE New Mexico). In addition to these state-funded incentives, New Mexico has enabled commercial Property Assessed Clean Energy (PACE) financing, but it does not yet have any active programs. For additional information on PACE, visit PACENation.
Last Reviewed: June 2022
Equity Metrics and Workforce DevelopmentList All
The final supporting funds from a three-year Clean Energy States Alliance program on LMI efforts have been used to provide training supplies and tools for a LMI trades program at Northern New Mexico College. The college is located in the largest LMI community in the state, and supporting the trades program there is viewed as being a possible path for a brighter future for this community. The CESA program in New Mexico over the years of 2016 to 2019 developed the PV-on-a-Pole concept where a small system could be installed without using rooftop space or much ground space and still provide significant solar energy production for a low-income family. This concept has resonated with individuals both in state and out of state. The present largest effort for this type of solar sinstallation is in Humboldt County California. Also, the state is currently engaged in a statewide modeling effort (USDOE funded) to evaluate energy efficiency policies using a systems dynamic model. Results will show county impact levels. These results will be the first step in ensuring the LMI program(s) the state wants to pursue will have the desired impact on all residents, both rural and urban residents from all different income strata.
Workforce Development
The Economic Development Department did a statewide strategic plan that looks at nine industries (including clean energy) to look at short term recovery, long term planning, and economic diversification. This plan focuses on how to support businesses and develop the workforce.
Last Reviewed: September 2020
Carbon Pricing PoliciesList All
The State of New Mexico does not yet have carbon pricing policies in place.
Per EO 2019-003, New Mexico does have a statewide emissions reduction goal in place, specifically to reduce emissions 45% by 2030 (baseline year 2005).
Last Reviewed: September 2022
Building Energy Disclosure List All
There is no disclosure policy in place.
Last Reviewed: July 2019
Public Building Requirements List All
New Mexico first set energy standards for public buildings in 2006. Executive Order 2006-001 called for adoption of LEED-Silver standards in new public buildings in excess of 15,000 square feet and/or using over 50kW peak electrical demand, and that such buildings achieve a minimum delivered energy performance standard of 50% of the average consumption for that building type. New construction and renovation of existing buildings between 5,000 and 15,000 square feet must achieve a minimum delivered energy performance standard of 50% of the average consumption for that building type. Renovations of existing buildings in excess of 15,000 square feet and/or using over 50 kW peak electric demand must meet LEED-Silver standards and achieve a minimum delivered energy performance standard of 50% of the U.S. energy consumption for that building type. Under Executive Order 2006-01 and Senate Bill 200 (below), the state reviews over $186 million of renovation projects in all institutions of higher learning that must meet these criteria.
New Mexico continues to implement Executive Order 2007-053, which launched a statewide energy efficiency initiative that calls for state agencies to reduce energy usage by 20% below 2005 levels by 2015. The 2012 DOE SEP competitive award has a goal to realize 20% energy savings by the year 2020 in the General Services Department building inventory through the WISE (Whole-building Investments for Sustainable Efficiency) program.
SB 200 of 2010 established a wider building requirement for certain building projects throughout the state that receive state funding. New buildings and building additions of 3,000 square feet or more, and buildings undergoing certain system renovations must be designed and constructed to attain Energy Star certification. These buildings must meet an Energy Star rating of 75 or better. The Energy Conservation and Management Division (EMCD) encourages public entities to conduct energy audits then provides technical assistance to enable these entities to implement and fund identified measures. In addition, ECMD state tracks energy use in public buildings using Portfolio Manager. This data will be used to develop and inform a sustainable whole building energy retrofit program for public facilities. To date, the state has benchmarked approximately 20% of public buildings.
The state of New Mexico and the staff of the Energy Conservation and Management Division (ECMD) and State Energy Office (SEO) are committed in meeting the EPACT Goal of improving energy efficiency by 25%, the Advanced Energy Initiative (AEI) and the 20in20 initiative. Many steps have been taken to promote energy efficiency in New Mexico, including the implementation of many clean energy Executive Orders. The State Energy Office will also be reviewing and evaluating New Mexico's energy usage data to measure compliance with these goals. Governor Michelle Lujan Grisham issued executive order 2019-03 in January of 2019 requiring state agencies to develop a NM Climate Strategy to reduce greenhouse gas pollution and adoption of new building codes.
Last Reviewed: June 2022
Fleets List All
The Alternative Fuel Acquisition Act, signed into law in 2002 and amended in 2007, requires that 75% of vehicles bought by state agencies and educational institutions meet or exceed national CAFÉ standards, are hybrid vehicles, are capable of using alternative fuel, or are plug-in electric vehicles. The Energy Conservation and Management Division (ECMD) is required to compile the data, evaluate the effectiveness of the Act, and offer technical compliance support.
The state has an Alternative Fuels Programs Manager who coordinates reporting for statutory requirements related to transportation and promotes New Mexico-produced alternative fuels. The manager also promotes, coordinates, monitors, and implements state alternative fuel transportation programs that includes mass transit and petroleum reduction strategies. Additionally, the manager also co-leads a state agency transportation decarbonization team that meets bi-weekly. In the 2019 legislative session, the state’s General Services Department received $1 million in funding to purchase all electric vehicles (EV) for the state's fleet and $1.5 million for EV charging infrastructure to be deployed at state owned property.
Last Reviewed: June 2022
Energy Savings Performance Contracting List All
The Energy, Conservation, and Management division (ECMD) of the New Mexico Energy, Minerals, and Natural Resources Department (EMNRD) houses information about the state’s ESPC statutes, including guidelines for qualifying ESCOs and a few other model documents. EMNRD has initiated and now co-chairs the New Mexico Energy Service Coalition, a public-private partnership that seeks to support the use of energy performance contracting; educate the general public on energy efficiency; develop and disseminate information on energy efficiency practices; and provide a forum for networking. Coalition members include EMNRD, energy service providers, financiers, efficient equipment suppliers and reps, building improvement and service companies, building owners and property managers, and others from schools, higher education, government, and healthcare facilities. Since December of 2013 to the present, New Mexico implemented $280.4 million in Energy Savings Performance Contracting that is saving 127.47 million kWh and providing $12.6 million in guaranteed utility savings. The New Mexico General Services Department has updated their state price agreement. Agencies can implement projects by directly contacting the approved vendors and conducting an Investment Grade Audit. The program confidence has improved by implementing a third party review process to help guide agencies through the audit development process and verification of measures installed in the facilities. In addition, measurement and verification reports are required to be reported to the NM Energy Conservation and Management Division every January to confirm the guaranteed savings.
ECMD has processed $49.5 million in energy performance contracting projects in the past few years. These projects span over 200 buildings across 13 institutions and 8.6 million square feet. These efforts are supporting New Mexico’s partnership with DOE in the Better Buildings Performance Contracting Accelerator, through which the state committed to achieve $50 million in energy performance contracting projects by 2016. The state currently has $15.7 million worth of efficiency projects under construction.
Also, House Memorial 61 (HM 61) requests a study of energy performance contracting, water conservation, and financing for public facilities in New Mexico. A task force, comprised of representatives from various governmental agencies, was created to evaluate how to expand, improve, and promote energy performance contracting.
New Mexico’s General Services Department established statewide price agreements with seven energy services companies (ESCOs) in 2015: Ameresco, Energy Control Inc./Opterra, Johnson Controls, McKinstry, NORESCO, Siemens, and YESCO (Yearout Mechanical). These ESCOs are deemed Qualified Providers in the Energy Performance Contracting (EPC) Program managed by the Energy, Minerals and Natural Resources Department. They are available for direct selection by eligible governmental entities, which include state/local governments, K-12 public schools, and higher educational institutions.
Last Reviewed: July 2020
Research & Development List All
No public research centers have a focus on energy efficiency.
Last Reviewed: July 2019
Buildings
Score: 4.5 out of 12
Buildings Summary List All
In August 2020, the New Mexico Construction Industries Commission (CIC) voted to adopt the 2018 New Mexico Energy Conservation Code (NMECC), based on the 2018 IECC with state-specific amendments. The new code reduces energy use in new residential and commercial buildings by about 25 percent relative to the previously adopted 2009 IECC.
Residential Codes List All
In August 2020, the New Mexico Construction Industries Commission (CIC) voted to adopt the 2018 New Mexico Energy Conservation Code (NMECC), based on the 2018 IECC with state-specific amendments. The code applies statewide. Local building jurisdictions must meet or exceed the state code which becomes the minimum code. Amendments are minor and deal mostly with providing flexibility to builders.
Because localities are permitted to adopt stretch codes, the City of Santa Fe and Town of Taos have adopted more stringent building codes. The City of Albuquerque is also planning to adopt a stretch code beyond the 2018 IECC. Builders can also use the updated NM Energy Conservation Code Residential Applications Manual to comply when building a passive solar or high mass home.
Last Reviewed: June 2022
Commercial Code List All
The ASHRAE 90.1 Standard is adopted by reference. In addition, the USDOE grant will provide training that will help builders comply. In August 2020, the New Mexico Construction Industries Commission (CIC) voted to adopt the 2018 New Mexico Energy Conservation Code (NMECC), based on the 2018 IECC with state-specific amendments. The code applies statewide. Local building jurisdictions must meet or exceed the state code which becomes the minimum code. Because localities are permitted to adopt stretch codes, the City of Santa Fe and Town of Taos have adopted more stringent building codes. The City of Albuquerque is also planning to adopt a stretch code beyond the 2018 IECC. Builders can also use the updated NM Energy Conservation Code Residential Applications Manual to comply when building a passive solar or high mass home.
Last reviewed: June 2022
Compliance List All
- Gap Analysis/Strategic Compliance Plan: New Mexico completed a gap analysis and a strategic compliance plan in 2011 in partnership with the Building Codes Assistance Project. The Southwest Energy Efficiency Project (SWEEP) is conducting a field study in 2022 to evaluate the actual building practices in New Mexico and to determine the actual compliance with building codes.
- Baseline & Updated Compliance Studies: No studies have been made to evaluate code compliance.
- Utility Involvement: No regulatory guidelines have been established with regard to involving utilities in supporting building energy code compliance. NM’s largest investor-owned utility has provided building code training as part of its energy efficiency programming. Utilities conducted workshops on the energy code as part of the Efficient Use of Energy Act which support energy efficiency.
- Stakeholder Advisory Group: Technical Advisory Committees with different skill sets meet once a month to resolve issues of complaince. These groups report to the Construction Industries Division which enforces the energy code.
- Training/Outreach: New Mexico is actively engaged in providing and supporting training programs and outreach and continues to work with home builder organizations to provide information, training and technical assistance as needed. New Mexico will start developing training workshop information for the 2018 International Energy Conservtion Code
Last Reviewed: June 2022
CHP
CHP Summary List All
The state has an interconnection standard that applies to CHP and favorable revenue streams available for CHP projects. One new CHP system was installed in New Mexico in 2018.
Interconnection StandardsList All
Policy: New Mexico Public Regulation Commission (PRC) rules 568 (NMAC 17.9.568) and 569 (NMAC 17.9.569)
Description: Adopted by the PRC in July 2008, New Mexico’s interconnection rules simplify the interconnection requirements of qualifying facilities up to 10 MW in capacity, and specifically allow for the interconnection of CHP. Four levels of capacity are distinguished, with smaller capacity systems requiring less stringent interconnection processes. All systems are required to comply with applicable local and national utility standards—including NEC, IEEE, and UL standards—and disconnect switches are required on all systems. The PRC may require a generating facility to obtain insurance, and interconnection customers are required to pay reasonable application fees. Municipal utilities are exempt from these standards, as they are not regulated by the PRC.
Last Updated: July 2018
Encouraging CHP as a ResourceList All
There are currently no state policies designed to acquire energy savings from CHP (like other efficiency resources) or energy generation from CHP (in terms of kWh production) that apply to all forms of CHP and to the majority of the state's customers. Large users that consume more than 7000 MWh per year can implement a self-directed energy efficiency program. Participants can receive credit for up to 70% of the annual energy efficiency rider.
Last Updated: August 2019
Deployment IncentivesList All
Incentives, grants, or financing: New Mexico's Energy Efficiency and Renewable Energy Bonding Act authorizes bonds to be issued to finance energy efficiency and renewable energy improvements in state government and school buildings. CHP systems are eligible for funding.
Net metering: In January 2007, the New Mexico Public Regulation Commission (PRC) extended the availability of net metering to systems up to 80 megawatts (MW) in capacity. Net metering is available to all "qualifying facilities" (QFs), as defined by the federal Public Utility Regulatory Policies Act of 1978 (PURPA), which generally include CHP systems. Previously, net metering in New Mexico was limited to systems up to 10 kilowatts (kW) in capacity.
Net-metered customers are credited or paid for any monthly net excess generation (NEG) at the utility's avoided-cost rate. All utilities subject to PRC jurisdiction must offer net metering (municipal utilities, which are not regulated by the commission, are exempt). Customers on a time-of-use tariff are permitted to net meter. There is no statewide cap on the aggregate capacity of net-metered systems.
Last Updated: September 2018
Additional Supportive PoliciesList All
There are currently some additional supportive policies that encourage renewable-fueled CHP in New Mexico. Biomass-fueled CHP systems are eligible for a corporate tax credit through the Renewable Energy Production Tax Credit and a sales tax incentive through the Biomass Equipment & Materials Compensating Tax Deduction. Additionally, the Energy Transition Act includes a 100 percent Zero Carbon Resource Standard. A Zero Carbon Resource, as defined by the Act, means an electricity generation resource that emits no carbon dioxide into theatmosphere, or that reduces methane emitted into the atmosphere in an amount equal to no less than one-tenth of the tons of carbon dioxide emitted into the atmosphere, as a result of electricity production. This definition, is a direct carve-out for anaerobic digesters which often use the digester gas for heat and power production and may included co-firing with fossil fuels. The one-tenth ratio allows for up to 72% of co-firing natural gas with captured digester gas to still be considered a "zero carbon resource". Recycled energy projects may also be eligible for an Advanced Energy Tax Credit. The state energy office also partners with USDOE support services to address any needs from any entity that requests assistance.
New Mexico has used the DOE CHP Technical Assistance Partnership program on several occasions in the past 3 years. Currently, the state energy office is working with the Houston Advanced Research Center to organize two workshops targeted to the state's large oil and gas industry. The workshops will focus on combined heat and power and will also highlight pending regulations targeting waste in the sector including venting and flaring of associated gas and produced water recycling and reuse.
Last Updated: August 2019
Utilities
Score: 5 out of 15
Utilities Summary List All
New Mexico has three investor-owned electric utilities (IOUs), three natural gas utilities, and seventeen customer-owned rural electric distribution cooperatives. The 2005 Efficient Use of Energy Act requires the electric IOUs and gas utilities to acquire cost-effective and achievable energy efficiency (EE) and load management resources available in their territories (NMSA 1978, §62-17-5(G)). Electric IOUs must spend 3% of customer bills, while the gas utilities shall not spend more than 3% of total annual revenues. Currently, the three electric IOUs and the largest gas utility, New Mexico Gas, choose to recover program costs and a proposed profit incentive through a tariff rider with an annual reconciliation mechanism. These four utilities offer a variety of energy efficiency programs, including programs targeted at low-income customers and multi-family housing.
Electric IOUs have a statutory goal of saving 8% of 2005 retails sales through their EE programs by calendar year 2020, which was updated by HB 291 in 2019 to call for 5% savings relative to 2020 retail sales between 2021-2025. The three electric IOUs, Public Service Company of New Mexico (PNM), Southwestern Public Service Company (SPS), and El Paso Electric (EPE), are all on target to meet current savings goal.
The rural electric distribution cooperatives are only required to examine the potential for offering cost-effective programs to reduce energy consumption or peak electricity demand (NMSA 1978, §62-17-11(A)). Each cooperative's governing body will approve any slate of programs.
Last reviewed: June 2022
Customer Energy Efficiency Programs List All
The Efficient Use of Energy Act (EUEA), enacted in 2005, directs New Mexico's public utilities to evaluate and implement cost-effective energy efficiency and load management programs in their resource portfolios (NMSA 1978, Chapter 62 Article 17). Electric and natural gas utilities shall achieve savings of 5% of 2005 total retail kWh sales by 2014 and 8% of 2005 total retail kWh sales by 2020. This was later updated in 2019 by HB 291 to call for 5% savings relative to 2020 retail sales between 2021-2025.
Estimated program funding must be no less than three percent and no more than five percent of blling revenues from all customers' for investor-owned electric utilities and shall not exceed 5% of total annual revenues for gas utilities. Program costs and incentives may be recovered through a tariff rider or base rates. Distribution cooperative utilities are to establish targets for energy efficiency and load management and implement those programs that are economically feasible and practical for their members and customers. Approval for energy efficiency and load management programs proposed by cooperatives are isseud by the governing body of the cooperative rather than the commission. (NMSA 1978, §62-17-11(A).
Each public electric and natural gas utility must file an application every three years. Each public utility must file annual reports each year (17.7.2 NMAC). Public Service Company of New Mexico files on April 15. Southwestern Public Service Company files on May 15. El Paso Electric Company files on July 15. Natural gas utilities must file by July 1 of each year. Distribution cooperatives must file an annual report by May 1.
Last reviewed: June 2022
Energy Efficiency as a Resource List All
The Efficient Use of Energy Act (EUEA) provides the statutory requirements for incorporating energy efficiency as a resource. It directs "public utilities to develop all cost-effective and achievable energy efficiency and load management resources" (NMSA 1978, §62-17). The EUEA notes that integrated resource plans should consider energy efficiency as well as the traditional supply-side resources in formulating the plan (NMSA 1978, §62-17-10).
The New Mexico Public Regulation Commission (PRC) sets out the rules for implementing statute. The PRC's energy efficiency rule, NMAC 17.7.2, was updated in 2021. (Case No. 19-00168-UT).
The PRC mandates that electric utilities must file an IRP and a four-year action plan every three years. The Integrated Resource Planning (IRP) rule states that "In identifying additional resource options, the utility shall consider all feasible supply-side, energy storage, and demand-side resources." (NMAC 17.7.3.9.F). The IRP Rule further states,"To identify the most cost-effective resource portfolio, utilities shall evaluate all feasible supply, energy storage, and demand-side resource options on a consistent and comparable basis, and take into consideration risk and uncertainty (including but not limited to financial, competitive, reliability, operational, fuel supply, price volatility and anticipated environmental regulation). The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis. The utility shall also consider and describe ways to mitigate ratepayer risk. (NMAC 17.7.3.9.G(1)).
Last reviewed: June 2022
Energy Efficiency Resource Standards List All
Summary: 5% reduction from 2005 total retail electricity sales by 2014, and an 8% reduction by 2020. HB 291 calls for a further 5% reduction from 2020 total retail electricity sales for programs implemented from years 2021 to 2025
In 2008, New Mexico legislature passed HB 305, which amended the Efficient Use of Energy Act (first passed in 2005) and established energy efficiency targets for the state. The 2008 law required investor-owned utilities to achieve a 5% reduction from 2005 total retail electricity sales by 2014 and a 10% reduction by 2020 (see NM Stat. § 62-17-1 et seq.).
The state’s targets were amended in 2013 with the passage of HB 267. The law established a fixed tariff rider for funding energy efficiency and load management programs. The bill was a compromise among energy efficiency advocates, New Mexico’s utilities, and representatives of the Public Regulation Commission, and preserved the targets but reduced the energy savings requirement in 2020 for electric utilities from 10% to 8% of sales.
In early 2019, the New Mexico legislature passed HB 291, requires efficiency programs by public utilities to achieve savings no less than 5% of 2020 total retail kWh sales from programs implemented in years 2021 through 2025. Also, no later than June 30, 2025, the commission shall adopt, through HB 291 rulemaking, energy savings targets for electric utilities for years 2026 through 2030 based on cost-effective and achievable energy savings and provide utility incentives based on savings achieved.
Distribution cooperative utilities, which are not fully regulated by the PRC, must periodically examine the potential to assist their customers in reducing energy consumption or peak electricity demand in a cost-effective manner. Each cooperative utility must submit, concurrently with its annual report, a report that describes all of the cooperative's programs or measures that promote energy efficiency, conservation, or load management.
New Mexico has no natural gas EERS.
Last reviewed: June 2022
Utility Business Model List All
Currently no utility has a decoupling or lost revenue adjustment mechanism in New Mexico, however HB 291 (2019) specifically allows for adoption of a decoupling mechanism that ensures that the revenue per customer approved by the commission in a general rate case proceeding is recovered by the public utility without regard to the quantity of electricity actually sold by the public utility.
The Efficient Use of Energy Act and the Rule do allow a utility to propose a profit incentive mechanism that is based on satisfactory program performance and does not exceed the product of the approved annual program costs and its weighted average cost of capital. PNM, EPE, and SPS all earn an incentive award. NM Gas proposed an incentive award in its Plan Year 2017 program for the first time.
El Paso Electric's currently approved profit incentive was decided in Case No. 18-00116-UT and was set at 7.1% of annual Energy Efficiency and Load Management expenditures for verified annual savings of at least 12 gigawatt-hours with an adder of 0.075% for each 1.0 GWh of additional energy savings, up to a maximum of 7.6557%. Southwestern Public Service's currently approved profit incentive was decided in Case No. 19-00140-UT and was set at 5.9% of annual Energy Efficiency and Load Management expenditures for verified annual savings of at least 33 gigawatt-hours for 2020 and 40.134 GWh for 2021 with an adder of 0.10% for each 1.0 GWh of additional energy savings, up to a maximum of 7.24%. Public Service Company of New Mexico's currently approved profit incentive was decided in Case No. 20-00087-UT and was set at 7.1% of annual Energy Efficiency and Load Management expenditures for verified annual savings of at least 80 gigawatt-hours with an adder of 0.125% for each 1.0 GWh of additional energy savings beyond 95GWh, up to a maximum of 10.73%.
Last reviewed: June 2022
Evaluation, Measurement, & Verification List All
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Primary cost-effectiveness test(s) used: utility cost test
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Secondary cost-effectiveness test(s) used: none
Section 8 of the Efficient Use of Energy Act concerns the legislative requirements for measurement and verification of energy efficiency programs. Annual reports must be submitted by each utility and a comprehensive M&V report must be conducted by an independent evaluator every three years. Typically, a subset of programs is independently evaluated every year. New programs are independently evaluated in their first year, and every year the two programs with the highest projected energy savings are evaluated. The Commission has oversight in selecting the independent program evaluator and uses an RFP process for this purpose.
According to the Database of State Efficiency Screening Practices (DSESP), New Mexico uses the Utility Cost Test (UCT) as the primary test for decision making and evaluating program cost-effectiveness. The benefit-cost tests are required for total program level screening.
Further information on cost-effectiveness screening practices for New Mexico is available in the Database of State Efficiency Screening Practices (DSESP), a resource of the National Efficiency Screening Project (NESP).
Last Updated: January 2019
Guidelines for Low-Income Energy Efficiency Programs List All
Requirements for State and Utility Support of Low-Income Energy Efficiency Programs
The state’s energy efficiency targets, first established in 2005 with the Efficient Use of Energy Act, were amended in 2013 with the passage of HB 267, and renewed and amended in 2019 with the passage of HB 291. The 2019 legislation calls for an 5% reduction of the 2020 energy consumption as a percent of sales during the period of 2021 through 2025. The legislation calls on the Public Regulations Commission to adopt energy savings targets by June 30, 2025 for the years 2026 through 2030. The legislation also maintains that no less than 5% of the amount received by the public utility for program costs must be specifically directed to energy efficiency programs for low-income customers.
Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs
The utility cost test (UCT) is conducted in New Mexico and is considered to be the primary test for decision making and evaluating program cost effectiveness. HB 267 directs that “…In developing this test for energy efficiency and load management programs directed to low-income customers, the commission shall either quantify or assign a reasonable value to reductions in working capital, reduced collection costs, lower bad-debt expense, improved customer service effectiveness and other appropriate factors as utility system economic benefits.”
It was later codified in New Mexico Administrative Code that “in developing the utility cost test for energy efficiency and load management measures and programs directed to low-income customers, unless otherwise quantified in a commission proceeding, the public utility shall assume that 20% of the calculated energy savings is the reasonable value of reductions in working capital, reduced collection costs, lower bad-debt expense, improved customer service, effectiveness, and other appropriate factors qualifying as utility system economic benefits” [17.7.2.9 NMAC - Rp. 17.7.2.9 NMAC, 1-1-15].
Last reviewed: June 2022
Self Direct and Opt-Out Programs List All
A self-direct option is offered statewide in the territories of three investor-owned utilities. Eligible customers must have electricity consumption greater than 7,000 MWh per year. Participants can receive credit for up to 70% of the annual energy efficiency rider. Self-direct customers provide their own engineering analysis and must meet the same total resource cost test as all the other industrial and commercial offerings. The customer must demonstrate to the reasonable satisfaction of the utility that its expenditures are cost-effective. Eligible expenditures must have a simple payback period of more than one year but less than seven years.
There is no provision for large customers to opt out entirely from paying for energy efficiency programs.
Last reviewed: July 2019
Data AccessList All
New Mexico has no policies in place that require utilities to release energy use data to customers or third parties.
Last reviewed: July 2019
Transportation
Score: 3 out of 13
Transportation Summary List All
New Mexico has established a freight plan, but the state has not otherwise pursued policies to encourage efficient transportation system development.
Tailpipe Emission Standards List All
The state is currently drafting rules that would adopt California’s ZEV program, which requires increasing production of plug-in hybrid, battery electric, and fuel cell vehicles from 2018 to 2025. Plans to further incentive EVs and EV charging infrastructure are pending.
Last Reviewed: November 2022
Transportation System Efficiency List All
Transportation and Land use Integration: New Mexico does not have a statewide planning office with jurisdiction over local zoning decisions, thus these policies are determined at county or local levels.
VMT Targets: In September 2019, Governor Lujan Grisham announced that New Mexico will be proposing, adopting and implementing clean car standards. The state is also currently developing a Transportation Action Plan and a Sustainable Infrastructure Action Plan which will address reducing vehicles-miles-traveled and reduce green house gas emissions. The plan should reduce VMT by 15% per capita below 2015 levels by 2027.
FAST Freight Plans and Goals: New Mexico has a state freight plan that identifies a multimodal freight network, but it does not include freight energy or greenhouse gas reduction goals.
Last Reviewed: November 2022
Incentives for High-Efficiency Vehicles List All
No policy in place or proposed.
Last Reviewed: November 2022
Equitable Access to TransportationList All
New Mexico does not have any state programs in place to incentivize the creation of low-income housing near transit facilities, but it does consider the proximity of transit facilities when distributing federal Low-Income Housing Tax Credits to qualifying property owners. Last Reviewed: November 2022