HB 91 — GEOTHERMAL RESOURCES PROJECT FUNDS

HOUSEAN BILLACT 91RELATING 56THTO LEGISLATUREGEOTHERMAL -RESOURCES; STATEOFNEWMEXICO- SECOND SESSION , 2024 INTRODUCED BY Patricia Roybal Caballero and Tara L.

LujanAMENDING andTHE GeraldDUTIES OrtizOF yTHE PinoENERGY ThisCONSERVATION documentAND mayMANAGEMENT incorporateDIVISION amendmentsOF proposedTHE byENERGY, aMINERALS committee,AND butNATURAL notRESOURCES yetDEPARTMENT; adopted, as well as amendments that have been adopted during the current legislative session.

TheCREATING documentTHE isGEOTHERMAL aPROJECTS toolDEVELOPMENT toFUND; show amendments in context and cannot be used for the purpose of adding amendments to legislation.

AN ACT h RELATING TO GEOTHERMAL RESOURCES;

AMENDING THE DUTIES OF THE g o ENERGY CONSERVATION AND MANAGEMENT DIVISION OF THE ENERGY, t hr g e i k MINERALS AND NATURAL RESOURCES DEPARTMENT;

CREATING THE h r i s GEOTHERMAL PROJECTS DEVELOPMENT FUND;

h , t, CREATING THE GEOTHERMAL PROJECTS REVOLVING LOAN FUND;

e u g e b l e e h AUTHORIZING LOANSLOANS. HAFCº ;

MAKING9 APPROPRIATIONS»HAFC.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

nSECTION d1. d i = = o h l ] b ,d i a º e BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

rSection i71-9-1 =NMSA r1978 t(being eLaws w2016, dChapter m71, aSection n1 oand SECTIONLaws 1.2016, Chapter 78, Section 1) is amended to read:

Section 71-9-1 NMSA 1978 (being Laws 2016, d m :

b e d s º o t n = .227236.1AIC February 2, 2024 (6:02pm) s k m e e a n e d r e l u [ A d Chapter 71, Section 1 and Laws 2016, Chapter 78, Section 1) is amended to read:

SHORT TITLE.--[SectionsTITLE.--Chapter 1 through 11 of this act] Chapter 71, Article 9 NMSA 1978 may be cited as the "Geothermal Resources Development Act"." SECTION 2.

"correlative rights" means the opportunity afforded, insofar as is practicable, to each owner or leaseholder in a geothermal reservoir to produce the owner's or leaseholder's just and equitable share of the geothermal resources within such reservoir, being an amount, so far as can be practicably determined and so far as can be practicablyHB h91/a Page 1 practicably obtained without waste, substantially in the proportion that u » r the recoverable geothermal resources of such ownership or lease t h g e l i interest bear to the total recoverable geothermal resources in h r i s the reservoir and, for such purpose, to use the owner's or h , e h leaseholder's just and equitable share of the natural heat or t u g e b l e e , gh energy in the reservoir;

n d d i = = o h B.

"division" means the energy conservation and l ] b ,d i a º r management division of the energy, minerals and natural e r = t e w d m a n o resources department;

dC. m :

b r e t º o t n = .227236.1AIC February 2, 2024 (6:02pm) s k m e - 2 - e a n e d r e l u [ A d C.

[C.] D.

[D.] E.

"geothermal resources" means the natural heat of the earth in excess of two hundred fifty degrees Fahrenheit, or the energy, in whatever form, below the surface of the earth present in, resulting from, created by or that may be extracted from this natural heat in excess of two hundred fifty degrees Fahrenheit, and all minerals in solution or other products obtained from naturally heated fluids, brines, associated gases and steam, in whatever form, HB 91/a Page 2 found below the h surface of the earth, but excluding oil, hydrocarbon gas and u » r other hydrocarbon substances and excluding the heating and t h g e l i cooling capacity of the earth not resulting from the natural h r i s heat of the earth in excess of two hundred fifty degrees h , e h Fahrenheit, as may be used for the heating and cooling of t u g e b l e e , gh buildings through an on-site geo-exchangegeo- exchange heat pump or similar n d d i = = o h on-site system;

and l ] b ,d i a º r [E.] F.

"person" means an individual or other legal e r = t e w d m a n o entity, including federal, state or local governments or their dagents mor :instrumentalities." SECTION 3.

b r e t º o t n = .227236.1AIC February 2, 2024 (6:02pm) s k m e - 3 - e a n e d r e l u [ A d agents or instrumentalities." SECTION 3.

The division has jurisdiction over all matters hHB 91/a Page 3 relating to the exploration, development and production of u » r geothermal resources.

It has jurisdiction, authority and t h g e l i control of all persons, matters and things necessary or proper h r i s to enforce effectively the provisions of the Geothermal h , e h Resources Development Act, including making investigations and t u g e b l e e , gh inspections of geothermal projects, facilities and wells.

n d d i = = o h C.

The division may limit and allocate production l ] b ,d i a º r of geothermal resources as needed to prevent waste whenever the e r = t e w d m a n o total amount of geothermal resources that may be produced from da mgeothermal :reservoir is limited.

b r e t º o t n = .227236.1AIC February 2, 2024 (6:02pm) s k m e - 4 - e a n e d r e l u [ A d a geothermal reservoir is limited.

(1) administer laws and rules relating to geothermal resources, except those laws specifically HB 91/a Page 4 administered by another authority;

(2) administer the geothermal projects h development fund and geothermal projects revolving loan fund g o t hr and ensure that all applicable state economic development g e i k incentive programs are used for grants and loans from those h r i s funds;

h , t, (3) apply for federal grants related to e u g e b l e e h geothermal resources development;

and n d d i = = o h (4) foster the growth of geothermal l ] b ,d i a º e resources in New Mexico." r i = r t e w d m a n o SECTION 4.

A new section of the Geothermal Resources dDevelopment mAct :is enacted to read:

b"GEOTHERMAL ePROJECTS dDEVELOPMENT sFUND ºCREATED--STUDY oGRANTS--PROJECT tGRANTS--ANNUAL nREPORT.-- =A. .227236.1AIC February 2, 2024 (6:02pm) s k m e - 5 - e a n e d r e l u [ A d Development Act is enacted to read:

"[NEW MATERIAL ] GEOTHERMAL PROJECTS DEVELOPMENT FUND CREATED--STUDY GRANTS--PROJECT GRANTS--ANNUAL REPORT.-- A.

Money in the geothermal projects development fund may be used to make grants of up to two hundred fifty thousand dollars ($250,000) for the purposes of studying the HB 91/a Page 5 costs and benefits of a proposed geothermal development project as approved by the secretary of energy, minerals and natural h resources.

g o t hr C.

Money in the geothermal projects development g e i k fund may be used to provide grants for financing a geothermal h r i s development project approved by the secretary of energy, h , t, minerals and natural resources.