SB 48 — COMMUNITY BENEFIT FUND

SENATEAN BILLACT 48RELATING 57THTO LEGISLATUREPUBLIC -FINANCE; STATE OF NEW MEXICO - FIRST SESSION, 2025 INTRODUCED BY Mimi Stewart This document may incorporate amendments proposed by a committee, but not yet adopted, as well as amendments that have been adopted during the current legislative session.

TheCREATING documentTHE isCOMMUNITY aBENEFIT toolFUND. to show amendments in context and cannot be used for the purpose of adding amendments to legislation.

h5 ANBE ACTIT gENACTED oBY RELATINGTHE TOLEGISLATURE PUBLICOF FINANCE;THE STATE OF NEW MEXICO:

CREATINGSECTION THE1. COMMUNITY BENEFIT FUND t hr g e i k SFCº ;

MAKINGCOMMUNITY ABENEFIT TRANSFERFUND--PROJECTS FROM THE GENERAL FUND TO THEBE COMMUNITYFUNDED.-- hA. r i s BENEFIT FUND»SFC .

hThe ,"community t,benefit efund" uis gcreated eas ba lnonreverting efund ein hthe BEstate ITtreasury. ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

n d d i = = o h SECTION 1.

[NEW MATERIAL ] COMMUNITY BENEFIT FUND-- l ] b ,d i a º e PROJECTS TO BE FUNDED.-- r i = r t e w d m a n o A.

The "community benefit fund" is created as a d m :

b e d s º o t n = .228868.8AIC February 20, 2025 (4:07pm) s k m e e a n e d r e l u [ A d nonreverting fund in the state treasury.

and (b) reducing methane leaks and releases attributable to the extractive industries, projects shall implement greenhouse gas emission reduction strategies to achieve emission reductions that are in addition to those that h would be achieved pursuant to any existing greenhouse gSB o48 tPage hr1 regulatory requirements in state or federal law;

g e i k (2) increase electric grid capacity, h r i s resilience or reliability through grid modernization;

h , t, (3) increase electricity from renewable energy e u g e b l e e h resources and the efficiency of electricity from energy n d d i = = o h efficiency projects;

l ] b ,d i a º e (4) reduce the use of combustion engine rvehicles ithrough =transportation rprojects, tincluding eprojects wthat dincrease melectric avehicle ninfrastructure oor vehiclesbicycle throughand transportationpedestrian projects,infrastructure; including projects d m :

b e d s º o t n = .228868.8AIC February 20, 2025 (4:07pm) s k m e - 2 - e a n e d r e l u [ A d that increase electric vehicle infrastructure or bicycle and pedestrian infrastructure;

or (8) establish or expand worker training h activities to provide workers for industries that assist in uSB »48 rPage 2 achieving the objectives identified in Paragraphs (1) through t h g e l i (7) of this subsection.

h r i s B.

A project that proposes to meet the requirements h , e h of:

t u g e b l e e , gh (1) Paragraphs (1) through (5) of Subsection A n d d i = = o h of this section shall include:

l(a) ]documentation bthat ,dtwo imeetings aregarding ºthe rproject (a)were documentationheld thatwithin twothe meetingscommunity eaffected rby =the tproposed eproject wto daccept mcomments aand naddress oconcerns regardingand thethat projectshows werethat heldnotice withinof the communitymeetings affectedwas dprovided mto :overburdened communities that may be impacted by the project;

b r e t º o t n = .228868.8AIC February 20, 2025 (4:07pm) s k m e - 3 - e a n e d r e l u [ A d by the proposed project to accept comments and address concerns and that shows that notice of the meetings was provided to overburdened communities that may be impacted by the project;

The department of finance and administration shall, in consultation with energy, minerals and natural resources department, develop or identify SCONCºa an existing»SCONC SCONCºa»SCONC data tool SCONCºused by the h federal government»SCONC that uses spatial datasets to identify u » r overburdened communities, which are communities experiencing tdisproportionate hburdens gSB e48 lPage i3 disproportionate burdens in climate change, energy, health, h r i s housing, legacy pollution, transportation, water and wastewater h , e h and workforce development.

SCONCº The departments shall ensure t u g e b l e e , gh that data from tribal and indigenous communities are included n d d i = = o h in the data used by the data tool.»SCONCtool. l ] b ,d i a º r D.

OnD. or before December 1 of each year that a e r = t e w d m a n o project receives funding from the community benefit fund, the d m :

bOn ror ebefore tDecember º1 oof teach nyear =that .228868.8AIC February 20, 2025 (4:07pm) s k m e - 4 - e a nproject ereceives dfunding rfrom ethe lcommunity ubenefit [fund, Athe d administrating agency shall submit a report to the appropriate interim legislative committees with the progress or, if appropriate, final results of the project and any other information the committee requires to evaluate the project.

(3) "greenhouse gas" means a gas or gaseous h compound that contributes to the process through which heat isSB u48 »Page r4 is trapped near earth's surface by absorbing infrared radiation, t h g e l i including carbon dioxide, methane, nitrous oxide, h r i s hydrofluorocarbons, perfluorocarbons, nitrogen trifluoride and h , e h sulfur hexafluoride;

t u g e b l e e , gh (4) "grid modernization" means improvements to n d d i = = o h electric distribution or transmission infrastructure, including l ] b ,d i a º r related data analytics equipment, that are designed to eaccommodate ror =facilitate tthe eintegration wof drenewable melectric ageneration nresources owith accommodatethe orelectric facilitatedistribution thegrid integrationor ofto renewableotherwise enhance electric ddistribution mor :transmission grid reliability, grid security, demand response capability, customer service or energy efficiency or conservation;

b r e t º o t n = .228868.8AIC February 20, 2025 (4:07pm) s k m e - 5 - e a n e d r e l u [ A d generation resources with the electric distribution grid or to otherwise enhance electric distribution or transmission grid reliability, grid security, demand response capability, customer service or energy efficiency or conservation;

5) biomass resources, limited to agriculture or animal waste, SB 48 Page 5 small diameter timber h not to exceed eight inches, salt cedar and other phreatophyte u » r or woody vegetation removed from river basins or watersheds in t h g e l i New Mexico;

provided that these resources are from facilities h r i s certified by the energy, minerals and natural resources h , e h department to:

a) be of appropriate scale to have sustainable t u g e b l e e , gh feedstock in the near vicinity;

b) have zero life cycle carbon n d d i = = o h emissions;

and c) meet scientifically determined restoration, l ] b ,d i a º r sustainability and soil nutrient principles;

and 6) landfill e r = t e w d m a n o gas and anaerobically digested waste biomass;

and d(b) mdoes :not include electric energy generated by use of fossil fuel or nuclear energy.

bSB r48 ePage t º o t n = .228868.8AIC February 20, 2025 (4:07pm) s k m e - 6 -25 e a n e d r e l u [ A d (b) does not include electric energy generated by use of fossil fuel or nuclear energy.

SFCº SECTION 2.

TRANSFER.--Three hundred forty million dollars ($340,000,000) is transferred from the general fund to the community benefit fund»SFC .

- 7 - » g o » r h t i k l i g t h s , e h t l i w l b l e e , g n d l h = = b , a l º d i a r e r = , a t e d m a n o d m :

b r e t º o t n = .228868.8AIC February 20, 2025 (4:07pm) s k em e e a n e d r e l u [ A d