New Mexico 2023 Regular Session Status: In Committee 1 D cosponsors

SB 266 — RETAIL DISTRIBUTED GENERATION

Last action — DO NOT PASS, replaced with committee substitute

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2023 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

284 added · 229 removed

Plain-language change summary

The bill SB 266 has made some significant changes regarding definitions and requirements related to renewable energy sources. Notably, the definition of "retail distributed generation" has been simplified to focus on renewable energy facilities that are five megawatts or smaller, without the previous stipulation to allocate a percentage of capacity to low-income customers. This change may make it easier for smaller renewable projects to be developed and connected to the energy system, which is important for increasing renewable energy access and potentially lowering costs for consumers.

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SENATE BILL 266 56TH LEGISLATURE -STATEOFNEWMEXICO- FIRST SESSION, 2023 INTRODUCED BY Elizabeth "Liz" Stefanics and Andrea Romero 6 8 10 AN ACT RELATING TO ENERGY;
SENATE CONSERVATION COMMITTEE SUBSTITUTE FOR SENATE BILL 266 56TH LEGISLATURE -STATEOFNEWMEXICO- FIRST SESSION, 2023 4 6 8 10 AN ACT RELATING TO ENERGY;
"municipality" means a municipal corporation, .223399.3 organized under the laws of the state, and H class counties;
"municipality" means a municipal corporation, .225206.2 SCONC/SB 266 organized under the laws of the state, and H class counties;
= = 19 a l H.
= = 19 H.
"renewable energy resource" means the following i a e r 20 energy resources, with or without energy storage:
"renewable energy resource" means the following a l i a e r 20 energy resources, with or without energy storage:
e a n b 24 (3) biomass resources, limited to agriculture u [ or animal waste, small diameter timber, not to exceed eight .223399.3 - 2 - inches, salt cedar and other phreatophyte or woody vegetation removed from river basins or watersheds in New Mexico;
e a n b 24 (3) biomass resources, limited to agriculture u [ or animal waste, small diameter timber, not to exceed eight .225206.2 - 2 - SCONC/SB 266 inches, salt cedar and other phreatophyte or woody vegetation removed from river basins or watersheds in New Mexico;
= = 19 a l J.
= = 19 J.
"renewable purchased power agreement" means an i a e r 20 agreement that binds an entity generating power from renewable a t m m 21 energy resources to provide power at a specified price and d r e 22 binds the purchaser to that price;
"renewable purchased power agreement" means an a l i a e r 20 agreement that binds an entity generating power from renewable a t m m 21 energy resources to provide power at a specified price and d r e 22 binds the purchaser to that price;
"retail distributed generation" means a e a n b 24 renewable energy facility that is no greater than five u [ megawatts, measured in alternating current, and:
"retail distributed generation" means a new or e a n b 24 existing renewable energy facility that is no greater than five u [ megawatts, measured in alternating current, that is .225206.2 - 3 - SCONC/SB 266 interconnected to the distribution system and:
.223399.3 - 3 - (1) is either located behind a customer's meter;
(1) is either located behind a New Mexico customer's meter;
or (2) allocates at least thirty percent of the resource's nameplate capacity directly to low-income customers as defined in Subsection G of Section 62-16B-2 NMSA 1978;
or (2) is a community solar facility as defined in Subsection D of Section 62-16B-2 NMSA 1978;
A public utility shall meet the renewable = = 19 a l portfolio standard requirements, as provided in this section, i a e r 20 to include renewable energy in its electric energy supply a t m m 21 portfolio as demonstrated by its retirement of renewable energy d r e 22 certificates;
A public utility shall meet the renewable = = 19 portfolio standard requirements, as provided in this section, a l i a e r 20 to include renewable energy in its electric energy supply a t m m 21 portfolio as demonstrated by its retirement of renewable energy d r e 22 certificates;
For public utilities other u [ than rural electric cooperatives and municipalities, .223399.3 - 4 - requirements of the renewable portfolio standard are:
For public utilities other u [ than rural electric cooperatives and municipalities, .225206.2 - 4 - SCONC/SB 266 requirements of the renewable portfolio standard are:
provided that = = 19 a l compliance with this standard until December 31, 2047 shall not i a e r 20 require the public utility to displace zero carbon resources in a t m m 21 the utility's generation portfolio on the effective date of d r e 22 this 2019 act;
provided that = = 19 compliance with this standard until December 31, 2047 shall not a l i a e r 20 require the public utility to displace zero carbon resources in a t m m 21 the utility's generation portfolio on the effective date of d r e 22 this 2019 act;
Reasonable and consistent .223399.3 - 5 - progress shall be made over time toward this requirement.
Reasonable and consistent .225206.2 - 5 - SCONC/SB 266 progress shall be made over time toward this requirement.
In addition to the requirements of Subsection A of this section, a public utility shall be required to include retail distributed generation in its electric energy supply portfolio as demonstrated by its retirement of renewable energy certificates for retail electrical generation;
As part of the resource acquisitions needed to comply with Subsection A of this section, a public utility shall cause retail distributed generation to be interconnected to the public utility's system by encouraging customer adoption and access.
Compliance shall be demonstrated by the public utility's retirement of renewable energy certificates for retail distributed generation;
For public utilities other than rural electric cooperatives and municipalities, requirements of the renewable portfolio standard are:
In the case of qualifying facilities that are net metered, all of the energy generated by the qualifying facility shall be deemed to have been purchased by the public utility and all of the energy consumed on-site by the qualifying facility shall be included in the determination of total retail sales for the purposes of calculating the renewable portfolio standard as described in e t 17 Subsection A of this section.
(1) no later than January 1, 2026, retail distributed generation shall comprise no less than six percent of each public utility's total retail sales to New Mexico customers;
For public utilities other than w l n d 18 rural electric cooperatives and municipalities, requirements of = = 19 the renewable portfolio standard are:
(2) no later than January 1, 2028, retail e t 17 distributed generation shall comprise no less than eight w l n d 18 percent of each public utility's total retail sales to New = = 19 a l Mexico customers;
a l i a e r 20 (1) no later than January 1, 2026, retail a t m m 21 distributed generation shall comprise no less than six percent d r e 22 of each public utility's total retail sales to New Mexico c e s k 23 customers;
i a e r 20 (3) no later than January 1, 2030, retail a t m m 21 distributed generation shall comprise no less than ten percent d r e 22 of each public utility's total retail sales of electricity to c e s k 23 New Mexico customers;
e a n b 24 (2) no later than January 1, 2028, retail u [ distributed generation shall comprise no less than eight .225206.2 - 6 - SCONC/SB 266 percent of each public utility's total retail sales to New Mexico customers;
e a n b 24 (4) no later than January 1, 2031, retail u [ distributed generation shall comprise no less than twelve .223399.3 - 6 - percent of each public utility's total retail sales of electricity to New Mexico customers;
(3) no later than January 1, 2030, retail distributed generation shall comprise no less than ten percent of each public utility's total retail sales of electricity to New Mexico customers;
and (5) no later than January 1, 2033, retail distributed generation shall comprise no less than fifteen percent of each public utility's total retail sales of electricity to New Mexico customers.
(4) no later than January 1, 2031, retail distributed generation shall comprise no less than twelve percent of each public utility's total retail sales of electricity to New Mexico customers;
[B.] C.
(5) no later than January 1, 2033, retail distributed generation shall comprise no less than fifteen percent of each public utility's total retail sales of electricity to New Mexico customers;
(6) by no later than November 1, 2032, the commission shall provide to the appropriate interim legislative e t 17 committee a report on the status of the retail distributed w l n d 18 generation requirement set forth in this subsection and = = 19 recommendations for future compliance requirements;
and a l i a e r 20 (7) to support the implementation of the a t m m 21 requirements set forth in this subsection:
d r e 22 (a) each public utility shall, by c e s k 23 December 31, 2024, make available information and maps that e a n b 24 provide the amount of retail distributed generation that can be u [ interconnected to the distribution system at a given time and .225206.2 - 7 - SCONC/SB 266 at a given location under existing grid conditions and operations without adversely impacting safety, power quality, reliability or other operational criteria and without requiring electric infrastructure upgrades;
and (b) each public utility shall make such information accessible via the public utility's website and update such information on a monthly basis.
C.
Any person may contest a public utility's compliance with Subsection B of this section by bringing a complaint before the commission.
[B.] D.
(1) not jeopardize the operation of a sewage treatment facility that captures and combusts methane gas in the facility's operations;
(1) not jeopardize the operation of a sewage treatment facility that captures and combusts methane gas in e t 17 the facility's operations;
(2) maintain and protect the safety, reliable operation and balancing of loads and resources on the electric system;
w l n d 18 (2) maintain and protect the safety, reliable = = 19 operation and balancing of loads and resources on the electric a l i a e r 20 system;
e t 17 (3) prevent unreasonable impacts to customer w l n d 18 electricity bills, taking into consideration the economic and = = 19 a l environmental costs and benefits of renewable energy resources i a e r 20 and zero carbon resources;
a t m m 21 (3) prevent unreasonable impacts to customer d r e 22 electricity bills, taking into consideration the economic and c e s k 23 environmental costs and benefits of renewable energy resources e a n b 24 and zero carbon resources;
a t m m 21 (4) prevent carbon dioxide emitting d r e 22 electricity-generating resources from being reassigned, c e s k 23 redesignated or sold as a means of complying with the standard;
u [ (4) prevent carbon dioxide emitting .225206.2 - 8 - SCONC/SB 266 electricity-generating resources from being reassigned, redesignated or sold as a means of complying with the standard;
e a n b 24 (5) in consultation with the energy, minerals u [ and natural resources department, undertake programs not .223399.3 - 7 - prohibited by law to achieve the standard;
(5) in consultation with the energy, minerals and natural resources department, undertake programs not prohibited by law to achieve the standard;
(a) review of the standard, with a focus on technologies, forecasts, existing transmission, environmental protection, public safety, affordability and electricity transmission and distribution system reliability;
(a) review of the standard, with a focus on technologies, forecasts, existing transmission, e t 17 environmental protection, public safety, affordability and w l n d 18 electricity transmission and distribution system reliability;
(b) evaluation of the anticipated financial costs and benefits to electric utilities in e t 17 implementing the standard, including the impacts and benefits w l n d 18 to customer electricity bills;
= = 19 (b) evaluation of the anticipated a l i a e r 20 financial costs and benefits to electric utilities in a t m m 21 implementing the standard, including the impacts and benefits d r e 22 to customer electricity bills;
and = = 19 a l (c) identification of the barriers to, i a e r 20 and benefits of, achieving the standard.
and c e s k 23 (c) identification of the barriers to, e a n b 24 and benefits of, achieving the standard.
a t m m 21 [C.] D.
u [ [C.] E.
Any customer that is a political d r e 22 subdivision of the state, or any educational institution c e s k 23 designated in Article 12, Section 11 of the constitution of New e a n b 24 Mexico with an enrollment of twenty thousand students or more u [ during the fall semester on its main campus, with consumption .223399.3 - 8 - exceeding twenty thousand megawatt-hours per year at any single location or facility and that owns facilities that produce renewable energy or hosts such facilities through a renewable purchased power agreement, shall not be charged by the utility for power purchases of one year or less or fuel on the amount of electricity purchased from the utility equal to the amount of renewable energy produced or hosted by the customer.
Any customer that is a political .225206.2 - 9 - SCONC/SB 266 subdivision of the state, or any educational institution designated in Article 12, Section 11 of the constitution of New Mexico with an enrollment of twenty thousand students or more during the fall semester on its main campus, with consumption exceeding twenty thousand megawatt-hours per year at any single location or facility and that owns facilities that produce renewable energy or hosts such facilities through a renewable purchased power agreement, shall not be charged by the utility for power purchases of one year or less or fuel on the amount of electricity purchased from the utility equal to the amount of renewable energy produced or hosted by the customer.
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The customer shall also certify to the state auditor and notify the commission that the customer will retire all renewable energy certificates associated with the renewable energy produced by those facilities.
The customer shall also certify to the state auditor and notify e t 17 the commission that the customer will retire all renewable w l n d 18 energy certificates associated with the renewable energy = = 19 produced by those facilities.
Any financial benefits as a result of the provisions of this subsection shall accrue to the e t 17 customer immediately [upon the effective date of this 2019 act] w l n d 18 on June 14, 2019 and shall be reflected in customer bills each = = 19 a l month, subject to annual true-up and reconciliation.
Any financial benefits as a a l i a e r 20 result of the provisions of this subsection shall accrue to the a t m m 21 customer immediately [upon the effective date of this 2019 act] d r e 22 on June 14, 2019 and shall be reflected in customer bills each c e s k 23 month, subject to annual true-up and reconciliation.
The i a e r 20 provisions of this subsection shall not prevent the utility a t m m 21 from recovering all of its reasonable and prudent fuel and d r e 22 purchased power costs.
The e a n b 24 provisions of this subsection shall not prevent the utility u [ from recovering all of its reasonable and prudent fuel and .225206.2 - 10 - SCONC/SB 266 purchased power costs.
c e s k 23 [D.] E.
[D.] F.
Upon a motion or application by a public e a n b 24 utility the commission shall, or upon a motion or application u [ by any other person the commission may, open a docket to .223399.3 - 9 - develop and provide financial or other incentives to encourage public utilities to produce or acquire renewable energy or retail distributed generation that exceeds the applicable annual renewable portfolio standard set forth in this section;
Upon a motion or application by a public utility the commission shall, or upon a motion or application by any other person the commission may, open a docket to develop and provide financial or other incentives to encourage public utilities to produce or acquire renewable energy or retail distributed generation that exceeds the applicable annual renewable portfolio standard set forth in this section;
[E.] F.
e t 17 [E.] G.
If, in any given year, a public utility determines that the average annual levelized cost of transmission-interconnected renewable energy that would need to be procured or generated for purposes of compliance with the e t 17 renewable portfolio standard would be greater than the w l n d 18 reasonable cost threshold, the public utility shall not be = = 19 a l required to incur that excess cost;
If, in any given year, a public utility w l n d 18 determines that the average annual levelized cost of = = 19 transmission-interconnected renewable energy that would need to a l i a e r 20 be procured or generated for purposes of compliance with the a t m m 21 renewable portfolio standard would be greater than the d r e 22 reasonable cost threshold, the public utility shall not be c e s k 23 required to incur that excess cost;
provided that the existence i a e r 20 of this condition excusing performance in any given year shall a t m m 21 not operate to delay compliance with the renewable portfolio d r e 22 standard in subsequent years.
provided that the existence e a n b 24 of this condition excusing performance in any given year shall u [ not operate to delay compliance with the renewable portfolio .225206.2 - 11 - SCONC/SB 266 standard in subsequent years.
The provisions of this c e s k 23 subsection do not preclude a public utility from accepting a e a n b 24 project with a cost that would exceed the reasonable cost u [ threshold.
The provisions of this subsection do not preclude a public utility from accepting a project with a cost that would exceed the reasonable cost threshold.
When a public utility can generate or procure .223399.3 - 10 - renewable energy at or below the reasonable cost threshold, it shall be required to do so to the extent necessary to meet the applicable renewable portfolio standard and shall not be precluded from exceeding the standard.
When a public utility can generate or procure renewable energy at or below the reasonable cost threshold, it shall be required to do so to the extent necessary to meet the applicable renewable portfolio standard and shall not be precluded from exceeding the standard.
[F.] G.
[F.] H.
and (2) testimony and exhibits that demonstrate that the proposed procurement is reasonable as to its terms and conditions considering price, availability, reliability, any renewable energy certificate values and diversity of the renewable energy resource;
and (2) testimony and exhibits that demonstrate e t 17 that the proposed procurement is reasonable as to its terms and w l n d 18 conditions considering price, availability, reliability, any = = 19 renewable energy certificate values and diversity of the a l i a e r 20 renewable energy resource;
or e t 17 (3) demonstration that the plan is otherwise w l n d 18 in the public interest.
or a t m m 21 (3) demonstration that the plan is otherwise d r e 22 in the public interest.
= = 19 a l [G.] H.
c e s k 23 [G.] I.
By July 1, 2020, and each July 1 i a e r 20 thereafter, a public utility shall file a renewable energy a t m m 21 standard report to the commission on the public utility's d r e 22 procurement and generation of renewable energy since the last c e s k 23 report and a procurement plan that includes:
By July 1, 2020, and each July 1 e a n b 24 thereafter, a public utility shall file a renewable energy u [ standard report to the commission on the public utility's .225206.2 - 12 - SCONC/SB 266 procurement and generation of renewable energy since the last report and a procurement plan that includes:
e a n b 24 (1) the cost of procurement for new renewable u [ energy required to comply with the renewable portfolio .223399.3 - 11 - standard;
(1) the cost of procurement for new renewable energy required to comply with the renewable portfolio standard;
(a) was the result of competitive procurement that included opportunities for bidders to propose purchased power, facility self-build or facility build-transfer options;
(a) was the result of competitive procurement that included opportunities for bidders to propose e t 17 purchased power, facility self-build or facility build-transfer w l n d 18 options;
(b) has a cost that is reasonable as evidenced by a comparison of the price of electricity from e t 17 renewable energy resources in the bids received by the public w l n d 18 utility to recent prices for comparable energy resources = = 19 a l elsewhere in the southwestern United States;
= = 19 (b) has a cost that is reasonable as a l i a e r 20 evidenced by a comparison of the price of electricity from a t m m 21 renewable energy resources in the bids received by the public d r e 22 utility to recent prices for comparable energy resources c e s k 23 elsewhere in the southwestern United States;
and i a e r 20 (c) is in the public interest, a t m m 21 considering factors such as overall cost and economic d r e 22 development opportunities;
and e a n b 24 (c) is in the public interest, u [ considering factors such as overall cost and economic .225206.2 - 13 - SCONC/SB 266 development opportunities;
and c e s k 23 (4) strategies used to minimize costs of e a n b 24 renewable energy integration, including location, diversity, u [ balancing area activity, demand-side management and load .223399.3 - 12 - management.
and (4) strategies used to minimize costs of renewable energy integration, including location, diversity, balancing area activity, demand-side management and load management.
[H.] I.
[H.] J.
[I.] J.
[I.] K.
The commission may reject a procurement plan if, within forty days of filing, the commission finds that the plan does not contain the required information and, upon the rejection, shall provide the public utility the time necessary to file a revised plan;
The commission may reject a procurement plan if, within forty days of filing, the commission finds that e t 17 the plan does not contain the required information and, upon w l n d 18 the rejection, shall provide the public utility the time = = 19 necessary to file a revised plan;
provided that the total amount of renewable energy required to be procured by the e t 17 public utility shall not change." w l n d 18 SECTION 3.
provided that the total a l i a e r 20 amount of renewable energy required to be procured by the a t m m 21 public utility shall not change." d r e 22 SECTION 3.
EFFECTIVE DATE.--The effective date of the = = 19 a l provisions of this act is January 1, 2024.
EFFECTIVE DATE.--The effective date of the c e s k 23 provisions of this act is January 1, 2024.
i a e r 20 - 13 - a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .223399.3
e a n b 24 - 14 - u [ .225206.2
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Action History

  1. DO NOT PASS, replaced with committee substitute

  2. Sent to Senate Conservation Committee & Senate Tax, Business and Transportation Committee

Sponsors

Sponsorship breakdown

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2 sponsors · 0 co-sponsors · 110 not signed on

Sponsors (2)

Co-sponsors (0)

None.

Not signed on (110)

110 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 266?
SB 266 is sponsored by Elizabeth "Liz" Stefanics (Democrat) and Romero, G.A.
What is the current status of SB 266?
This bill died with 2023 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 266?
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