HB 37 — COMMUNITY ENERGY EFFICIENCY DEV BLOCK GRANT

dC. m :

b r e t º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 5 - e a n e d r e l u [ A d C.

By November 1 of each year in which a community energy efficiency project is in operation, the department shall provide to the interim legislative committee that addresses the status of the development of energy efficiency measures and programs a report on the status of participation HB 37/a Page 5 in the community energy efficiency development program by people in h underserved communities, the types of projects funded by grants u » r made through the program and any recommended changes with t h g e l i respect to the program.

h r i s SECTION 4.

[NEW MATERIAL ] COMMUNITY ENERGY EFFICIENCY h , e h PROJECT REQUIREMENTS.-- t u g e b l e e , gh A.

A county, municipality, Indian nation, tribe or n d d i = = o h pueblo or the New Mexico mortgage finance authority may submit l ] b ,d i a º r an application to the department for a grant for a community e r = t e w d m a n o energy efficiency project.

dB. m :

b r e t º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 6 - e a n e d r e l u [ A d B.

HB 37/a Page 6 (a) residential housing units occupied by low-income persons within an underserved community;

or h (b) residential housing units within an g o t hr underserved community that otherwise meet the criteria for g e i k housing that is affordable to low-income persons as established h r i s by the department in rule;

h , t, (5) propose a series of energy efficiency e u g e b l e e h measures expected to reduce energy use in targeted households n d d i = = o h and the estimated reduction of energy use from the l ] b ,d i a º e implementation of the measures;

r(6) iidentify =a rservice tprovider ethat wwill dimplement mthe aenergy nefficiency omeasures (6)in identifytargeted ahouseholds and set forth the experience of the service provider thatin willworking dwith mthe :targeted underserved community;

b e d s º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 7 - e a n e d r e l u [ A d implement the energy efficiency measures in targeted households and set forth the experience of the service provider in working with the targeted underserved community;

and HB 37/a Page 7 (9) provide a project budget detailing anticipated expenditures and additional sources of funding that h would complement a grant obtained pursuant to the Community u » r Energy Efficiency Development Block Grant Act.

t h g e l i C.

Notwithstanding the application requirements of h r i s Subsection B of this section, the New Mexico mortgage finance h , e h authority may submit an application that:

t u g e b l e e , gh (1) describes the community energy efficiency n d d i = = o h project for which a grant is requested and how the project l ] b ,d i a º r would support infrastructure improvements for affordable e r = t e w d m a n o housing that would complement and not duplicate other energy defficiency mprograms :in the state;

b r e t º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 8 - e a n e d r e l u [ A d efficiency programs in the state;

HB 37/a Page 8 (3) proposes a series of energy efficiency measures expected to reduce energy use in targeted households h and the estimated reduction of energy use from the u » r implementation of the measures;

t h g e l i (4) identifies a service provider that will h r i s implement the energy efficiency measures in targeted households h , e h and sets forth the experience of the service provider in t u g e b l e e , gh working with underserved communities;

n d d i = = o h (5) identifies one or more community partners l ] b ,d i a º r that will identify and work with targeted households and sets e r = t e w d m a n o forth the experience of the community partner in working with dunderserved mcommunities; :

b r e t º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 9 - e a n e d r e l u [ A d underserved communities;

[NEW MATERIAL ] REQUIRED GRANT OF AUTHORITY.-- A.

The Community Energy Efficiency Development Block Grant Act is enacted to allow the state, a county or a municipality to provide or pay the costs of financing infrastructure necessary to support affordable housing HB 37/a Page 9 projects as provided by Article 9, Section 14 of the constitution of New Mexico.

h B.

Prior to the department's final approval of an u » r application for a grant pursuant to the Community Energy t h g e l i Efficiency Development Block Grant Act, an applicant that is a h r i s county or a municipality shall provide the department with a h , e h copy of the ordinance enacted by the county or municipality t u g e b l e e , gh that provides the county's or municipality's formal approval n d d i = = o h for a specific community energy efficiency development block l ] b ,d i a º r grant and includes in the ordinance the terms and conditions of e r = t e w d m a n o the grant approved by the department.

The department shall not dapprove man :application for a community energy efficiency project if the county or municipality fails to enact an ordinance that gives formal approval for the terms and conditions approved by the department for the community energy efficiency development block grant and includes in the ordinance those exact terms and conditions.

b r e t º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 10 - e a n e d r e l u [ A d approve an application for a community energy efficiency project if the county or municipality fails to enact an ordinance that gives formal approval for the terms and conditions approved by the department for the community energy efficiency development block grant and includes in the ordinance those exact terms and conditions.

Prior to the department's final approval of an application for a grant pursuant to the Community Energy Efficiency Development Block Grant Act, an applicant that is an Indian nation, tribe or pueblo shall provide the department with a copy of a resolution enacted by the Indian nation, tribe or pueblo that provides the Indian nation's, tribe's or pueblo's formal approval for a specific community energy efficiency development block grant and includes in the HB 37/a Page 10 ordinance the terms and conditions of the grant approved by the department.

The department shall not approve an application h for a community energy efficiency project if the Indian nation, u » r tribe or pueblo fails to enact a resolution that gives formal t h g e l i approval for the terms and conditions approved by the h r i s department for the community energy efficiency development h , e h block grant and includes in the resolution those exact terms t u g e b l e e , gh and conditions.

n d d i = = o h D.

Prior to the department's final approval of an lapplication ]from bthe ,dNew iMexico mortgage finance authority for a ºgrant rpursuant applicationto fromthe Community Energy Efficiency Development Block Grant Act, the New Mexico mortgage finance authority forshall eprovide rthe =department twith eformal wapproval dof mthe aNew nMexico omortgage afinance grantauthority pursuant to theaccept Communitya Energyspecific Efficiencycommunity Developmentenergy defficiency mdevelopment :block grant.

b r e t º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 11 - e a n e d r e l u [ A d Block Grant Act, the New Mexico mortgage finance authority shall provide the department with formal approval of the New Mexico mortgage finance authority to accept a specific community energy efficiency development block grant.

[NEW MATERIAL ] SELECTION OF COMMUNITY ENERGY EFFICIENCY PROJECTS.-- A.

(2) the geographic diversity of the portfolio of community energy efficiency projects to be HB 37/a Page 11 approved by the department;

(3) the experience of each community partner h or service provider identified in the application in working g o t hr with the targeted underserved community;

g e i k (4) whether the application includes a h r i s commitment by a service provider or community partner to employ h , t, apprentices from a registered apprenticeship program that e u g e b l e e h promotes diversity or to provide paid internships to persons n d d i = = o h from the targeted underserved communities;

l ] b ,d i a º e (5) the value of the project as a r i = r t e w d m a n o demonstration project to provide data for the effectiveness of dimplementing msimilar :projects elsewhere;

b e d s º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 12 - e a n e d r e l u [ A d implementing similar projects elsewhere;

(2) the degree to which the project will contribute to economic recovery, including from the HB 37/a Page 12 coronavirus disease 2019 pandemic;

or (3) the degree to which the project will h reduce economic hardship of individual families due to the g o t hr coronavirus disease 2019 pandemic.

g e i k C.

In considering an application from the New h r i s Mexico mortgage finance authority, the department shall h , t, consider whether full or partial funding of the New Mexico e u g e b l e e h mortgage finance authority application would:

n d d i = = o h (1) promote geographic diversity of the l ] b ,d i a º e portfolio of community energy efficiency projects;

r(2) ireduce =the renergy tburden eof wlow-income dpersons, mwithin aor noutside oof (2)underserved reducecommunities, thewho would not be likely to otherwise receive energy burdenefficiency ofimprovements low-incomethrough dother mstate :programs;

b e d s º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 13 - e a n e d r e l u [ A d persons, within or outside of underserved communities, who would not be likely to otherwise receive energy efficiency improvements through other state programs;

[NEW MATERIAL ] COMMUNITY ENERGY EFFICIENCY DEVELOPMENT BLOCK GRANT FUND CREATED--ADMINISTRATION.-- A.

provided that federal funding allocated to the HB 37/a Page 13 state for the federal weatherization assistance program pursuant to 42 U.S.C.

Section 6863 or the federal low income home energy h assistance program pursuant to 42 U.S.C.

Sections 8621 through u » r 8630 shall not be deposited in the fund without the written t h g e l i approval of the appropriate federal agency and the New Mexico h r i s mortgage finance authority.

Expenditures from the fund shall h , e h be made on warrant of the secretary of finance and t u g e b l e e , gh administration pursuant to vouchers signed by the secretary of n d d i = = o h energy, minerals and natural resources or the secretary's l ] b ,d i a º r authorized representative.

e r = t e w d m a n o B.

Money in the fund is subject to appropriation by d m :

b r e t º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 14 - e a n e d r e l u [ A d the legislature to the department to carry out the purposes of the Community Energy Efficiency Development Block Grant Act, including the administrative costs of the department;

provided that money in the fund that is derived from the federal government may be expended by the department without legislative authorization for any purpose that is consistent with the goal of reducing the energy burden of low-income persons or underserved communities as otherwise allowed by law, including carrying out the community energy efficiency development block grant program and the administrative costs of the department.

HENRCº SECTION 8.

A new section of Chapter 62, Article 6 NMSA 1978 is enacted to read:

"[NEW MATERIAL] UTILITY REPORTING ON DISCONNECTIONS, ARREARS AND PEOPLE WITHOUT SERVICE.-- A.

By December 31, 2023, the commission shall h promulgate rules requiring that each utility under the u » r commission's jurisdiction report:

t h g e l i (1) on a quarterly basis, the number of h r i s customers in each customer class that are disconnected, the h , e h reason for disconnection, the number of customers reconnected t u g e b l e e , gh after disconnection, the number of disconnected and reconnected n d d i = = o h customers that were eligible for the federal low-income home l ] b ,d i a º r e r = energy assistance program, the current number of customers t e w d m a n o eligible for disconnection due to arrears and the average d m :

b r e t º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 15 - e a n e d r e l u [ A d amount of arrears for customers eligible for disconnection;

(2) on an annual basis, the number, or best estimate of the number, of prospective residential customers that are not receiving utility service in the utility's service territory and any information available about why the prospective customers are not receiving service;

and (3) any other information the commission determines is necessary and available for understanding and monitoring the provision of uninterrupted electricity and gas service and adequate water service to all New Mexicans and to low-income New Mexicans in particular.

ForMoney in the purposesfund ofis thissubject section,to "low-income"appropriation meansby anthe annuallegislature householdto adjustedthe grossdepartment income,to ascarry definedout inthe Sectionpurposes 62 of the federalCommunity InternalEnergy RevenueEfficiency CodeDevelopment ofBlock 1986,Grant asAct, thatincluding sectionthe mayadministrative becosts amended or renumbered, of equal to or less than two hundred percent of the federaldepartment; poverty level." h SECTION 9.

Aprovided newthat sectionmoney ofin Chapterthe 62,fund Articlethat 6is NMSAderived ufrom »the rfederal tgovernment hmay 1978be expended by the department without legislative authorization for any purpose that is enactedconsistent towith read:the goal of reducing the energy burden of low-income persons or underserved communities as otherwise allowed by law, including carrying out the community energy efficiency development block grant program and the administrative costs of the department.

gHB e37/a lPage i14 "[NEW25 MATERIAL] PUBLIC UTILITY REPORT ON ACHIEVING ENERGY h r i s AND WATER EQUITY.-- h , e h t u g A.

By December 31, 2023, the commission shall issue e b l e e , gh an order requiring each public utility providing electricity n d d i = = o h l ] b ,d service to provide a report that:

i a º r e r = (1) includes an analysis of the benefits, t e w d m a n o d m :

b r e t º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 16 - e a n e d r e l u [ A d costs and feasibility of providing all prudent energy efficiency improvements to fifty percent of all low-income New Mexico households by 2030 and to one hundred percent of all low-income New Mexico households by 2050, including an analysis of the benefits to energy affordability, utility load and greenhouse gas emissions;

(2) identifies whether the utility's rates are affordable to low-income customers in its service territory, and if not, identifies what type of low-income discount rate, alone or in combination with other actions such as energy efficiency improvements, the utility would recommend to achieve energy affordability;

and (3) identifies whether changes could be made to the utility's policies, to the rules or orders of the commission or in statute to ensure that all homes have access to essential household services, improve energy affordability, h reduce energy burden and ensure continuous energy access for u » r t h low-income New Mexicans.

g e l i B.

By December 31, 2023, the commission shall issue h r i s an order requiring each public utility providing water service h , e h t u g and each wastewater company under its jurisdiction to provide a e b l e e , gh report that includes an analysis of the benefits, costs and n d d i = = o h l ] b ,d feasibility of providing adequate water service to fifty i a º r e r = percent of all New Mexico households by 2030 and to one hundred t e w d m a n o d m :

b r e t º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 17 - e a n e d r e l u [ A d percent of all New Mexico households by 2050 that desire that service in their jurisdiction.

C.

The commission shall request public comment on the reports required by this section and hold a public hearing on the reports to solicit recommendations on action that the commission may take.

D.

By December 31, 2024, the commission shall promulgate rules or issue orders in response to recommendations made by utilities and members of the public to make immediate, reasonable and consistent improvements toward ensuring all homes have access to essential household services, toward energy affordability and to reduce energy burden as allowed by law, with a goal of achieving fifty percent energy affordability for low-income New Mexicans by 2030 and one hundred percent by 2050;

provided that the commission may tailor policies to apply to a subset of low-income New Mexicans h to achieve these goals.

In promulgating the rules or issuing u » r t h the orders, the commission shall consider the degree to which g e l i the rules or orders:

h r i s (1) ensure all homes have access to essential h , e h t u g household services;

e b l e e , gh (2) improve energy affordability;

n d d i = = o h l ] b ,d (3) reduce utility load;

i a º r e r = (4) reduce greenhouse gas emissions;

and t e w d m a n o d m :

b r e t º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 18 - e a n e d r e l u [ A d (5) impact ratepayers.

E.

By December 31, 2024, the commission shall promulgate rules or issue orders in response to recommendations made by water utilities and wastewater companies under its jurisdiction and members of the public to make immediate, reasonable and consistent improvements to the access to water service, including wastewater connections, with a goal of providing adequate water service to fifty percent of all New Mexico households by 2030 and to one hundred percent of all New Mexico households by 2050 that desire that service.

F.

For the purposes of this section:

(1) "adequate water service" means service to a customer that provides the customer with access to piped or well water twenty-four hours a day, meets state and federal standards for safety and enables complete plumbing at the customer's residence, including a water heater, sink, shower or h bathtub, toilet and a code-compliant system for removing u » r t h wastewater;

g e l i (2) "energy affordability" means that the h r i s combination of electricity and gas bills do not equal more than h , e h t u g five percent of the annual income of a customer's household;

e b l e e , gh (3) "essential household services" means n d d i = = o h l ] b ,d internet, electric, natural gas, water, wastewater and other i a º r e r = services connected to a domicile, as provided by law, and t e w d m a n o d m :

b r e t º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 19 - e a n e d r e l u [ A d includes the infrastructure necessary to connect the services to a domicile;

and (4) "low-income" means an annual household adjusted gross income, as defined in Section 62 of the federal Internal Revenue Code of 1986, as that section may be amended or renumbered, of equal to or less than two hundred percent of the federal poverty level." SECTION 10.

Section 62-8-6 NMSA 1978 (being Laws 1941, Chapter 84, Section 42, as amended) is amended to read:

"62-8-6.

DISCRIMINATION.-- A.

No public utility shall, as to rates or services, make or grant any unreasonable preference or advantage to [any] a corporation or person within any classification or subject [any] a corporation or person within any classification to any unreasonable prejudice or disadvantage.

[No] A public utility shall not establish and h g maintain any unreasonable differences as to rates of service o t hr either as between localities or as between classes of service.

g e i k B.

Nothing shall prohibit [however] the commission h r i s h from approving:

, t, e u g (1) economic development rates;

[and] e b l e e h (2) rates designed to retain load;

or [from n d d i = = o h l ] b ,d approving] i a º e r i = r (3) energy efficiency programs designed to t e w d m a n o d m :

b e d s º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e - 20 - e a n e d r e l u [ A d reduce the burden of energy costs on low-income customers pursuant to the Efficient Use of Energy Act.

C.

Nothing in this section shall prohibit a public utility from making or granting a reasonable preference or advantage to low-income customers with approval of the commission, and the commission may approve a rate, charge, service, classification or facility that includes the reasonable preference or advantage.

The implementation of such a commission-approved rate, charge, service, classification or facility by a public utility shall not be deemed to subject a person or corporation to any unreasonable prejudice or disadvantage or undue discrimination."»HENRC - 21 - h u » r t h g e l i h r i s h , e h t u g e b l e e , gh n d d i = = o h l ] b ,d i a º r e r = t e w d m a n o d m :

b r e t º o t n = .221431.1AIC February 1, 2022 (5:31pm) s k m e e a n e d r e l u [ A d