HB 206 — UTILITY AFFORDABILITY & RELIEF ACT

The public regulation commission shall promulgate rules or issue orders to effectuate the provisions of the Utility Affordability and Relief Act.

The orders and rules may address how arrears incurred prior to or after the coronavirus disease 2019 public health emergency are addressed by a public utility when a customer also has arrears incurred e t 17 during the coronavirus disease 2019 public health emergency.

w l n d 18 B.

Within sixty days of the effective date of the = = 19 Utility Affordability and Relief Act, the commission shall, by a l i a e r 20 adoption of a rule or issuance of an order, direct public a t m m 21 utilities to file regular reports for the duration of the d r e 22 utility bill relief program on the number of customers that are c e s k 23 participating in the program, the amount of arrears that have e a n b 24 been temporarily and permanently forgiven, the number of u [ customers that have applied for economic hardship, the number .219503.3 - 3 - HCPAC/HB 206 of customers that have been granted and denied an economic hardship, the number of residential customers and residential customers eligible for the low-income home energy assistance program that have been disconnected for failure to pay arrears incurred during the coronavirus disease 2019 public health emergency, and any other information the commission determines to aid in overseeing the program.

SECTION 4.

[NEW MATERIAL] INSTALLMENT AGREEMENTS-- RESTRICTIONS ON DISCONNECTION AND COLLECTION FROM CUSTOMERS.-- A.

A public utility shall offer its residential customers with arrears incurred during the coronavirus disease 2019 public health emergency an installment agreement with a payback term that is at least double the number of months for which a customer failed to pay at least fifty percent of the amount owed for that month;

provided that a public utility shall not be required to offer a payback term of more than e t 17 twenty-four months, and a customer may request a shorter w l n d 18 payback term.

= = 19 B.

A public utility shall not assess nor seek to a l i a e r 20 recover late fees against a residential customer for arrears a t m m 21 incurred during the coronavirus disease 2019 public health d r e 22 emergency.

An installment agreement entered into pursuant to c e s k 23 Subsection A of this section shall not include late fees for e a n b 24 arrears incurred during the coronavirus disease 2019 public u [ health emergency.

.219503.3 - 4 - HCPAC/HB 206 C.

A public utility shall not discontinue electricity, gas, water or wastewater service to or pursue collection against a residential customer for arrears incurred during the coronavirus disease 2019 public health emergency if:

(1) the customer enters into an installment agreement and makes payments under the installment agreement;

or (2) the customer's payments are in forbearance or forgiven due to economic hardship.

SECTION 5.

[NEW MATERIAL] UTILITY BILL RELIEF PROGRAM-- REQUIREMENTS--ACCOUNT CREDITS.-- A.

The "utility bill relief program" is created and shall be administered in accordance with the provisions of the Utility Affordability and Relief Act.

AWithin residentialsixty customerdays of the effective date of the Utility Affordability and Relief Act, the commission shall, by adoption of a rule or issuance of an order, direct public utilities to file regular reports for the duration of the h utility bill relief program on the number of customers that hasare u » r participating in the program, the amount of arrears incurredthat duringhave t h g e been temporarily and permanently forgiven, the coronavirusnumber diseaseof 2019l publici h r i s customers that have submitted a certification of economic h , e h hardship, the number of customers that have been granted a t 17u healthg emergencye qualifiesb l deferral for economic hardship, the utilitynumber billof reliefresidential e e , gh n d d i = = o h customers eligible for the low-income home energy assistance l ] b ,d i a º r program that have been disconnected for failure to pay arrears e r = t e w ld incurred during the coronavirus disease 2019 public health m a n o d 18m if::

=b r e t º o t n = 19.219987.2AIC (1)March the3, customer2021 meets(10:11am) thes qualificationsk tom ae l- i4 - e a n e d r 20e receivel assistanceu pursuant[ toA thed federalemergency low-incomeand homeany aother tinformation mthe mcommission 21determines energyto assistanceaid program;in overseeing the program.

or d r e 22 (2) the customer demonstrates through an c e s k 23 application for economic hardship, pursuant to Section 6 of the e a n b 24 Utility Affordability and Relief Act, that the customer u [ continues to experience economic hardship related to the .219503.3 - 5 - HCPAC/HB 206 coronavirus disease 2019 public health emergency and obtains approval of the application for economic hardship from the public utility.

ForThe acommission residentialmay customercontract whowith qualifiesa forthird theparty, utilityincluding billa reliefgovernmental program,agency, aor publicmay utilityenter shallinto applya tomemorandum theof customer'sunderstanding accountwith a temporarygovernmental creditagency, equal to one-halfqualify ofpublic theutility arrearscustomers incurredfor by the customerutility duringbill therelief coronavirusprogram diseaseor 2019to publicprocess healthcertifications emergencyof andeconomic shallhardship entermade intoby anpublic installmentutility agreement,customers orand modifymay anassess existingcosts installment agreement, with the customer for thethis customerservice to pay the remainder of the arrears on the customer's account incurred during the coronavirus disease 2019 public healthutilities; emergency.

Theprovided temporarythat creditutilities shallmay representrecover the amountcosts ofpursuant arrearsto incurredSection by7 theof customer during the coronavirusUtility diseaseAffordability 2019and publicRelief healthAct. emergency that could be permanently forgiven by the public utility pursuant to the utility bill relief program.

eThe tcommission 17may Ifshare the customer makesdata allwith payments on the installment w l n d 18 agreement, the temporary credit applied to the customer's = = 19 account shall become a permanentthird creditparty andfor thethese customer'spurposes. a l i a e r 20 arrears incurred during the coronavirus disease 2019 public a t m m 21 health emergency shall be satisfied.

d r e 22 D.

UnlessThe acommission residentialshall customer'scoordinate applicationwith forthe cdepartment eof sfinance kand 23administration economicto hardshipensure isthat approved, if a residential customer e a n b 24 defaults on an installment agreement entered into pursuant to uthe [maximum Subsectionextent Cpossible ofany thisfunding section,from the temporaryfederal creditemergency ofrental one-halfassistance .219503.3program -available 6for -payment HCPAC/HB 206 of theutility arrears incurredis duringprovided theto coronavirus disease 2019 public healthutilities emergency shall be removed from the residential customer's account and replacedapplied by a permanent credit that is equal to andqualifying in addition to the amount paid by the customer onaccounts; the installment agreement before default.

provided that nothing in the Utility Affordability and Relief Act shall limit the federal h emergency rental assistance program from paying the maximum g o amount of rental arrears allowable for a qualifying renter, t hr g e i k regardless of whether the renter has entered into an h r i s installment agreement with a public utility or has had h , t, temporary or permanent credits placed on the renter's public e u g e b l utility account.

e e h n d d i = = o h SECTION 4.

[NEW MATERIAL ] INSTALLMENT AGREEMENTS-- l ] b ,d i a º e RESTRICTIONS ON DISCONNECTION AND COLLECTION FROM CUSTOMERS.-- r i = r t e w d A.

A public utility shall offer its residential m a n o d m :

b e d s º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 5 - e a n e d r e l u [ A d HENRC/HCPAC/HB 206 customers with arrears incurred during the coronavirus disease public health emergency an installment agreement with a payback term that is at least double the number of months for which a customer failed to pay at least fifty percent of the amount owed for that month;

provided that a public utility shall not be required to offer a payback term of more than twenty-four months, and a customer may request a shorter payback term.

B.

A public utility shall not assess nor seek to recover late fees against a residential customer for arrears incurred during the coronavirus disease 2019 public health emergency.

An installment agreement entered into pursuant to Subsection A of this section shall not include late fees for arrears incurred during the coronavirus disease 2019 public health emergency.

C.

A public utility shall not discontinue h electricity, gas, water or wastewater service to or pursue g o collection against a residential customer for arrears incurred t hr g e i k during the coronavirus disease 2019 public health emergency if:

h r i s (1) the customer enters into an installment h , t, agreement and makes payments under the installment agreement;

e u g e b l e e h or n d d i = = o h (2) the customer's payments are deferred or l ] b ,d i a º e forgiven due to economic hardship.

r i = r t e w d SECTION 5.

[NEW MATERIAL ] UTILITY BILL RELIEF PROGRAM-- m a n o d m :

b e d s º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 6 - e a n e d r e l u [ A d REQUIREMENTS--ACCOUNT CREDITS.-- A.

The "utility bill relief program" is created and shall be administered in accordance with the provisions of the Utility Affordability and Relief Act.

B.

A public utility shall enroll in the utility bill relief program a residential customer who has arrears incurred during the coronavirus disease 2019 public health emergency if the customer requests to participate in the utility bill relief program and:

(1) the customer meets the qualifications to receive assistance pursuant to the federal low income home energy assistance program;

or (2) the customer has an annual income equal to or less than two hundred fifty percent of the federal poverty level proven by:

(a) verification that a member of the customer's household has qualified for public assistance through the federal supplemental nutrition assistance program, the federal temporary assistance for needy families program, h the UCB patient assistance program, the federal special g o supplemental nutrition program for women, infants, and children t hr g e i k or the children, youth and families department's child care h r i s assistance program;

or h , t, (b) a certification of economic hardship e u g e b l establishing that the customer's annual household adjusted e e h n d d i = = o h gross income, as defined in the Income Tax Act, is below two l ] b ,d i a º e hundred fifty percent of the federal poverty level.

r i = r t e w d C.

A public utility may enroll into the utility m a n o d m :

b e d s º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 7 - e a n e d r e l u [ A d HENRC/HCPAC/HB 206 bill relief program a residential customer who has arrears incurred during the coronavirus disease 2019 public health emergency, who requests to be enrolled in the program and who submits to the public utility a certification of economic hardship.

A residential customer may submit a certification of economic hardship to the public utility if the customer is prevented from being able to make payments on an installment agreement because the customer or a member of the customer's household:

(1) became unemployed during the coronavirus disease 2019 public health emergency and remains unemployed;

(2) had working hours reduced by forty percent or more during the coronavirus disease 2019 public health emergency and remains working under reduced hours;

(3) is suffering or has suffered severe symptoms of the coronavirus disease 2019 resulting in a present h financial impact on the customer;

u » r (4) left employment to care for one or more t h g e dependents that needed care because of the coronavirus disease l i h r i s 2019 public health emergency and continues to provide such h , e h care;

or t u g e b l (5) is otherwise experiencing a significant e e , gh n d d i = = o h financial hardship specified by the customer that prevents the l ] b ,d i a º r customer from being able to make payments on an installment e r = t e w d agreement.

m a n o d m :

b r e t º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 8 - e a n e d r e l u [ A d D.

For a residential customer enrolled in the utility bill relief program pursuant to submitting a certification of economic hardship, the public utility shall defer the start of an installment agreement by at least four months unless the customer requests a shorter time period.

If a public utility determines upon a showing of good cause that a residential customer who submits a certification of economic hardship will not be able to foreseeably repay arrears incurred during the coronavirus disease 2019 public health emergency through an installment agreement, the public utility may forgive all of the customer's arrears.

E.

For a residential customer enrolled in the utility bill relief program, a public utility shall apply to the customer's account a temporary credit equal to one-half of the arrears incurred by the customer during the coronavirus disease 2019 public health emergency and shall enter into an installment agreement, or modify an existing installment agreement, with the customer for the customer to pay the remainder of the arrears on the customer's account incurred h during the coronavirus disease 2019 public health emergency.

u » r The temporary credit shall represent the amount of arrears t h g e incurred by the customer during the coronavirus disease 2019 l i h r i s public health emergency that could be permanently forgiven by h , e h the public utility pursuant to the utility bill relief program.

t u g e b l If the customer makes all payments on the installment e e , gh n d d i = = o h agreement, the temporary credit applied to the customer's l ] b ,d i a º r account shall become a permanent credit and the customer's e r = t e w d arrears incurred during the coronavirus disease 2019 public m a n o d m :

b r e t º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 9 - e a n e d r e l u [ A d HENRC/HCPAC/HB 206 health emergency shall be satisfied.

F.

If a residential customer defaults on an installment agreement entered into pursuant to Subsection E of this section, the temporary credit of one-half of the arrears incurred during the coronavirus disease 2019 public health emergency shall be removed from the residential customer's account and replaced by a permanent credit that is equal to and in addition to the amount paid by the customer on the installment agreement before default.

E.G.

A public utility, with the agreement of the h customer, may modify an installment agreement entered into u » r pursuant to Subsection CE of this section at any time to allow a t h g e customer additional time to make payments on outstanding l i h r i s arrears and prevent the customer from defaulting on the eh t, 17e h installment agreement.

wt lu ng de 18b F.l H.

An electric cooperative may stop acceptingenrolling ore e , gh n d d i = = 19o approvingh applicationscustomers forin economicthe hardshiputility bill relief program if the electric a l ] b ,d i a eº r 20 cooperative determines that the total costs of the utility bill ae r = t me mw 21d relief program to be recovered from customers, reflecting dm r e 22 actually applied temporary and permanent credits and projected c e s k 23 administrative costs, would exceed one percent of total e a n bo 24d customerm electricity: bills from the prior year.

b r e t º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 10 - e a n e d r e l u [ G.A d actually applied temporary and permanent credits and projected administrative costs, would exceed one percent of total customer electricity bills from the prior year;

Aprovided publicthat utilityan mayelectric contractcooperative withshall anot thirdstop .219503.3enrolling -in 7 - HCPAC/HB 206 party, including a governmental agency, to determine if a residential customer qualifies for the utility bill relief program orcustomers towho evaluatequalify and approve applications for economicthe hardshipprogram andpursuant mayto shareParagraph customer(1) dataof withSubsection theB thirdof partythis forsection. these purposes as allowed by law.

H.I.

A residentialpublic customer who qualifies for the utility billmay reliefrely programon shall be deemed eligible for low-income programs offered by a publicsigned utilityand undersubmitted thecertification Efficient Use of Energyeconomic Acthardship forwithout thefurther currentdocumentation andor followingverification calendarof years unless the programsfacts in questionthe requirecertification; additional proof of eligibility under federal or state law.

SECTIONprovided 6.that a public utility may verify the facts in a certification of economic hardship if verification appears warranted, and the public utility may use a third party to conduct verifications and share customer data with the third party for these purposes as allowed by law.

[NEWJ. MATERIAL] APPLICATION FOR ECONOMIC HARDSHIP.-- A.

A residential customer maywho submitqualifies anfor applicationthe utility bill relief program shall be deemed eligible for economiclow- hardship:income programs offered by a public utility under the Efficient Use of Energy Act for the current and following calendar years unless the programs in question require additional proof of h eligibility under federal or state law.

(1)g too qualifySECTION for6. the utility bill relief e t 17 program if the customer does not otherwise meet the criteria in w l n d 18 Paragraph (1) of Subsection B of Section 5 of the Utility = = 19 Affordability and Relief Act;

or[NEW aMATERIAL l] iUTILITY aCUSTOMER eNOTIFICATION r 20 (2) if the customer believes that the customer a t mhr mg 21e cannoti makek anyREQUIREMENTS.-- installmenth agreement payments due to the d r ei 22s economicA. hardship.

cNo later than sixty days after the effective h , t, date of the Utility Affordability and Relief Act or, if the e su kg 23e B.b l coronavirus disease 2019 public health emergency has not e e h n d d i = = o h terminated, after the expiration of the coronavirus disease l ] b ,d i a º e 2019 public health emergency, a public utility shall:

Onr ai case-by-case= basis,r at public utility, or e aw nd b(1) 24notify third-partyresidential contractor,customers shallwith evaluatearrears applicationsm for u [ economic hardship and shall approve a residentialn customer'so .219503.3d -m 8: - HCPAC/HB 206 application if the customer demonstrates that:

(1)b thee customerd ors anotherº membero oft then customer's= household.219987.2AIC isMarch currently3, or2021 was(10:11am) withins sixk monthsm ofe the- effective11 date- ofe a n e d r e l u [ A d HENRC/HCPAC/HB 206 incurred during the Utilitycoronavirus Affordabilitydisease and2019 Reliefpublic Acthealth eligibleemergency forthat benefitsa pursuantcustomer may enter into an installment agreement to thepay Unemploymentback Compensationarrears Law,over thea federalterm pandemicthat unemploymentmay compensationbe program,at theleast pandemicdouble emergencythe unemploymentnumber compensationof programmonths orfor federal-statewhich extendeda benefitscustomer pursuantfailed to pay at least fifty percent of the federalamount Coronavirusowed Aid,for Relief,that month and Economicshall Securityprovide Act;contact information for a customer to establish an installment agreement;

(2) the customer or another member of the customer's household became unemployed or had working hours reduced by forty percent or more during the coronavirus disease 2019 public health emergency and remains unemployed or working under reduced hours;

(3) the customer or another member of the customer's household is suffering or has suffered severe e t 17 symptoms of the coronavirus disease 2019 resulting in a present w l n d 18 financial impact on the customer;

= = 19 (4) the customer or another member of the a l i a e r 20 customer's household left employment to care for one or more a t m m 21 dependents that needed care because of the coronavirus disease d r e 22 2019 public health emergency and continues to provide such c e s k 23 care;

or e a n b 24 (5) the existence of other continuing u [ circumstances due to the coronavirus disease 2019 public health .219503.3 - 9 - HCPAC/HB 206 emergency that significantly impair the customer's ability to make payments.

A customer's participation in federal, state or local programs that provide aid to those in need because of the coronavirus disease 2019 public health emergency, including housing assistance, may be used as evidence of a continuing circumstance that significantly impairs a customer's ability to make payments.

C.

If a residential customer's economic hardship prevents the customer from making any payments on an installment agreement, a public utility may:

(1) forbear requiring payments on an installment agreement until the condition creating the economic hardship has ended or until a time agreed upon with the customer;

or (2) apply a permanent credit to the customer's account for all arrears incurred during the coronavirus disease e t 17 2019 public health emergency and deem the arrears satisfied.

w l n d 18 SECTION 7.

[NEW MATERIAL] UTILITY CUSTOMER NOTIFICATION = = 19 REQUIREMENTS.-- a l i a e r 20 A.

No later than sixty days after the effective a t m m 21 date of the Utility Affordability and Relief Act or, if the d r e 22 coronavirus disease 2019 public health emergency has not c e s k 23 terminated, after the expiration of the coronavirus disease e a n b 24 2019 public health emergency, a public utility shall:

u [ (1) notify residential customers with arrears .219503.3 - 10 - HCPAC/HB 206 incurred during the coronavirus disease 2019 public health emergency that a customer may enter into an installment agreement to pay back arrears over a term that may be at least double the number of months for which a customer failed to pay at least fifty percent of the amount owed for that month and shall provide contact information for a customer to establish an installment agreement;

and (b) if a residential customer is eh t 17 continuing to experience economic hardship due to coronavirus wu l» nr d 18 disease 2019, including unemployment, underemployment or =t =h 19g e illness, that would prevent the customer from currently paying a l i ah e r 20i s back arrears, including through an installment agreement, the ah t, me mh 21 customer may apply to the public utility for furthera relieflimited ddeferral rt u g e 22b throughl of the first payment on an applicationinstallment foragreement economicor hardship,of payments e e , gh n d d i = = o h under an existing installment agreement, and the public cutility el s] kb 23,d utilityi a º r shall provide contact information for a residential customer to e ar n= bt 24e customerw tod submit ana applicationcertification forof economic hardship.

um [a B.n o d m :

Inb additionr toe thet notificationsº ofo Subsectiont An .219503.3= -.219987.2AIC 11March -3, HCPAC/HB2021 206(10:11am) ofs thisk section,m ae public- utility12 that- ise ana electricn cooperativee shalld notifyr itse residentiall customersu with[ arrearsA incurredd duringB. the coronavirus disease 2019 public health emergency that the funds available for arrears forgiveness due to economic hardship may be limited and will be made available on a first-come, first-served basis.

SECTIONIn 8.addition to the notifications of Subsection A of this section, a public utility that is an electric cooperative shall notify its residential customers with arrears incurred during the coronavirus disease 2019 public health emergency that the funds available for arrears forgiveness due to economic hardship may be limited and will be made available on a first-come, first-served basis.

[NEWSECTION MATERIAL]7. COST RECOVERY FOR PUBLIC UTILITIES.-- A.

[NEW MATERIAL ] COST RECOVERY FOR PUBLIC UTILITIES.-- A.

To the extent allowed by law, any federal, state, local or philanthropic funding received for the purposes of mitigating customer arrears, e t 17 including funding received prior to the effective date of the w l n d 18 Utility Affordability and Relief Act, shall be applied to =h = 19 arrears forgiven for the purposes of cost recovery pursuantand shall be g o applied for the purposes of cost recovery prior to aany lt ihr ag e i k deduction from fees pursuant to Section 8 of the Utility h r 20i thats act.Affordability and Relief Act.

ah t, mt, m 21 B.

An investor-owned public utility that is subject de ru g e 22b l to the rate regulation by the publiccommission regulationpursuant commissionto cSection e se kh 23n pursuantd tod Sectioni = = o h 62-8-7 NMSA 1978, but not including a small epublic autility, nl ] b 24,d publici utility,a º e shall be entitled to recover all reasonable u [ costs for implementationr ofi the= utilityr billt reliefe program,w .219503.3d -implementation 12 - HCPAC/HB 206 including the cost of permanent forgiveness of arrears under the programutility andbill administrativerelief costsprogram, suchincluding asm those incurred from the use of a thirdn partyo ord additionalm staffing: or technology needed to determine customer eligibility and evaluate applications for economic hardship.

b e d s º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 13 - e a n e d r e l u [ A d HENRC/HCPAC/HB 206 the cost of permanent forgiveness of arrears under the program and administrative costs such as those incurred from the use of a third party or additional staffing or technology needed to determine customer eligibility and evaluate applications for economic hardship.

Recovery of costs for the utility bill relief program shall not be amortized for longer than twice the time period it took for the costs to be incurred by the investor-owned public utility, unless a longer time e t 17 period is requested by the investor-owned h public utility.

An w l n d 18 investor-owned public utility may retain u » r its costs for the = = 19 utility bill relief program as a regulatory assett onh itsg bookse aasset lon iits abooks e r 20 pending recovery.

al ti mh mr 21i s C.

The public regulation commission shall ensure d r e 22 that the costs of h , e h the utility bill relief program are allocated cequitably eamong st ku 23g equitablye amongb l all rate classes in a utility rate case.

e ae , gh n bd 24d i = = o h D.

An electric cooperative or a small public ul [] b ,d i a º r utility shall be entitled to recover all reasonable costs for .219503.3e -r 13= -t HCPAC/HBe 206w d implementation of the utility bill relief program, including them cost of permanent forgiveness of arrears under the program and administrative costs such as those incurred from the use of a thirdn partyo ord additionalm staffing: or technology needed to determine customer eligibility and evaluate applications for economic hardship.

b r e t º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 14 - e a n e d r e l u [ A d the cost of permanent forgiveness of arrears under the program and administrative costs such as those incurred from the use of a third party or additional staffing or technology needed to determine customer eligibility and evaluate applications for economic hardship.

All actual costs incurred by an electric cooperative or small public utility to establish, implement and maintain the utility bill relief e t 17 program, including permanent forgiveness of arrears, but not w l n d 18 including forgone late charges, are presumed to be reasonable = = 19 unless the contrary is shown.

Recovery of costs for the a l i a e r 20 utility bill relief program shall not be amortized for longer ah t m m 21 than twice the time period it took for the costs to be incurred dg ro e 22 by the electric cooperative or small public utility, unless a ct hr g e si k 23 longer time period is requested by the electric cooperative or eh ar ni bs 24 small public utility.

uh [, t, SECTION 9.8.

[NEW MATERIAL]MATERIAL ] ELECTRIC COOPERATIVE--ALLOWABLE .219503.3e -u 14g -e HCPAC/HBb 206l DEDUCTION FROM FEES PAID TO THE STATE.-- e e h n d d i = = o h A.

In a year when an electric cooperative is applyingl permanent] creditsb to,d partiallyi ora fullyº forgivee customerapplying arrearspermanent pursuantcredits to thepartially Utilityor Affordabilityfully andforgive Reliefr Act,i an= electricr cooperativet maye deductw fromd feescustomer paidarrears to the state pursuant to Section 62-8-8 NMSA 1978 an amount equal to fifty percent of the amountUtility theAffordability cooperativeand willm seeka ton collecto fromd customersm in: that year to recover the cooperative's costs pursuant to the Utility Affordability and Relief Act.

b e d s º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 15 - e a n e d r e l u [ A d HENRC/HCPAC/HB 206 Relief Act, an electric cooperative may deduct from fees paid to the state pursuant to Section 62-8-8 NMSA 1978 an amount equal to fifty percent of the amount the cooperative will seek to collect from customers in that year to recover the cooperative's costs pursuant to the Utility Affordability and Relief Act.

e t 17 B.

If the state receives federal funds for utility w l n d 18 bill forgiveness or support, the state may deposit in the = = 19 general fund those funds in an amount equal to the funds not a l i a e r 20 received from an electric cooperative pursuant to Section a t m m 21 62-8-8 NMSA 1978 as a result of the deduction allowed by d r e 22 Subsection A of this section.

c e s k 23 SECTION 10.

[NEW MATERIAL] SHORT TITLE.--Sections 10 e a n b 24 through 16 of this act may be cited as the "Community Energy u [ Efficiency Development Block Grant Act".

.219503.3 - 15 - HCPAC/HB 206 SECTION 11.

[NEW MATERIAL] DEFINITIONS.--As used in the Community Energy Efficiency Development Block Grant Act:

A.

"affordable housing" means residential housing primarily for low-income persons, including housing currently occupied by low-income persons or housing that is affordable to low-income persons based on assessed value, rent or estimated mortgage;

If the state receives federal funds for utility bill forgiveness or support, the state may deposit in the general fund those funds in an amount equal to the funds not received from an electric cooperative pursuant to Section h 62-8-8 NMSA 1978 as a result of the deduction allowed by u » r Subsection A of this section.

t h g e SECTION 9.

[NEW MATERIAL ] SHORT TITLE.--Sections 9 l i h r i s through 15 of this act may be cited as the "Community Energy h , e h Efficiency Development Block Grant Act".

t u g e b l SECTION 10.

[NEW MATERIAL] DEFINITIONS.--As used in the e e , gh n d d i = = o h Community Energy Efficiency Development Block Grant Act:

l ] b ,d i a º r A.

"affordable housing" means residential housing e r = t e w d primarily for low-income persons, including housing currently m a n o d m :

b r e t º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 16 - e a n e d r e l u [ A d occupied by low-income persons or housing that is affordable to low-income persons based on assessed value, rent or estimated mortgage;

B.

"department" means the energy, minerals and e t 17 natural resources department;

w l n d 18 E.

"division" means the energy conservation and = = 19 management division of the department;

a l i a e r 20 F.

"energy efficiency" means measures that target a t m m 21 efficient energy consumer behavior, equipment or devices and d r e 22 result in a decrease in energy consumption without reducing the c e s k 23 amount or quality of energy services, and includes health and eh a n b 24 safety measures that use efficient equipment or devices to ug [o improve indoor air or drinking water quality;

.219503.3t -hr 16g -e HCPAC/HBi 206k G.

"low-income person" means an individual, couple h r i s or family whose annual household adjusted gross income, as h , t, defined in Section 62 of the federal Internal Revenue Code of e u g e b l 1986, as that section may be amended or renumbered, does not e e h n d d i = = o h exceed two hundred percent of the federal poverty level;

l ] b ,d i a º e H.

"registered apprenticeship program that promotes diversity"r meansi an= apprenticeshipr programt registerede pursuantw tod thediversity" Apprenticeshipmeans Assistancean Act that encourages diversity among participants, participation by those underrepresented in the industry associated with the apprenticeship program andregistered participationpursuant fromm disadvantageda communitiesn aso determinedd bym the: workforce solutions department;

b e d s º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 17 - e a n e d r e l u [ A d HENRC/HCPAC/HB 206 to the Apprenticeship Assistance Act that encourages diversity among participants, participation by those underrepresented in the industry associated with the apprenticeship program and participation from disadvantaged communities as determined by the workforce solutions department;

(1) a building, structure or portion thereof that is primarily occupied or designed for or intended primarily for occupancy as a residence by one or more e t 17 households, including congregate housing, manufactured homes w l n d 18 and other facilities;

and = = 19 (2) real property that is offered for sale or a l i a e r 20 lease for the construction or location on that real property of a t m m 21 a building, structure or portion thereof that is intended d r e 22 primarily for occupancy as a residence by one or more c e s k 23 households;

and eh a n b 24 J.

"underserved community" means an area in the u [» r state, including a county, municipality or neighborhood, or .219503.3t -h 17g -e HCPAC/HB 206 subset of an area, where:

l i h r i s (1) the median adjusted gross income as h , e h defined in Section 62 of the Internal Revenue Code of 1986, as t u g e b l that section may be amended or renumbered, does not exceed two e e , gh n d d i = = o h hundred percent of the federal poverty level;

or l ] b ,d i a º r (2) there is a high energy burden or limited e r = t e w d access to energy efficiency services as determined by departmentm rule.a n o d m :

SECTIONb 12.r e t º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 18 - e a n e d r e l u [ A d department rule.

SECTION 11.

e t 17 (1) adopt rules to:

w l n d 18 (a) administer the community energy = = 19 efficiency development program;

a l i a e r 20 (b) governrestrict theeligibility acceptance,for evaluationcertain afunds, tif mrequired m 21 and prioritization of applications submitted by qualifiedthe dentity rthat eprovided 22the entitiesfunding for grants made pursuant to the Communityprogram; Energy c e s k 23 Efficiency Development Block Grant Act;

e(c) agovern nthe bacceptance, 24evaluation (c)and determineprioritization whetherof theapplications statussubmitted ofby aqualified uentities [for persongrants ormade householdpursuant isto low-income;the Community Energy Efficiency Development Block Grant Act;

andh .219503.3 - 18 - HCPAC/HB 206 (d) assessdetermine whether the value,status rent or estimated mortgage of residentiala housingg iso affordableperson to persons or householdshousehold ofis lowlow-income; income;

(2)and solicit,t reviewhr andg prioritizee communityi energyk efficiency(e) projectassess applications;whether the value, rent or h r i s estimated mortgage of residential housing is affordable to h , t, persons or households of low income;

(3)e makeu grantsg fore communityb energyl efficiency(2) projectssolicit, fromreview theand prioritize community energye efficiencye developmenth blockn grantd fund;d i = = o h energy efficiency project applications;

(4)l approve] andb enter,d intoi contractsa withº granteese to(3) implementmake selectedgrants affordablefor housingcommunity energy r i = r t e w d efficiency projects;projects from the community energy efficiency m a n o d m :

providedb thate thed contractss shallº includeo projectt performancen measures,= penalties.219987.2AIC orMarch other3, provisions2021 that(10:11am) ensures thek successfulm completione of- the19 projects- ine accordancea withn Articlee 9,d Sectionr 14e ofl theu constitution[ ofA Newd MexicoHENRC/HCPAC/HB and206 reportingdevelopment onblock projectgrant performance,fund; energy savings and non-energy benefits resulting from energy efficiency e t 17 measures;

and w(4) lapprove nand denter 18into (5)contracts exchange information with thegrantees Newto Mexicoimplement =selected =affordable 19housing mortgage finance authority detailing the work done in the state a l i a e r 20 to implement energy efficiency measures.projects;

aprovided tthat mthe mcontracts 21shall C.include project performance measures, penalties or other provisions that ensure the successful completion of the projects in accordance with Article 9, Section 14 of the constitution of New Mexico and reporting on project performance, energy savings and non-energy benefits resulting from energy efficiency measures.

TheC. department shall not be required to carry d r e 22 out the responsibilities in Subsection B of this section in any c e s k 23 year that there are insufficient funds available for making e a n b 24 grants in the community energy efficiency block grant fund.

uThe [department D.shall not be required to carry out the responsibilities in Subsection B of this section in any year that there are insufficient funds available for making grants in the community energy efficiency block grant fund.

ByD. November 1 of each year in which a community .219503.3 - 19 - HCPAC/HB 206 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 in the community energy efficiency development program by people in underserved communities, the types of projects funded by grants made through the program and any recommended changes with respect to the program.

SECTIONIn 13.a year in which state or federal funds have been deposited into the community energy efficiency block grant h fund or in which a community energy efficiency project is in u » r operation, the department and the New Mexico mortgage finance t h g e authority shall coordinate on the work done in the state to l i h r i s implement energy efficiency measures.

[NEWh MATERIAL], PROJECTe REQUIREMENTS.--h A.E.

ABy county,November municipality1 orof Indianeach nation,year tribein orwhich puebloa maycommunity submitt anu applicationg toe b l energy efficiency project is in operation, the department forshall ae grante for, gh n d d i = = o h provide to the interim legislative committee that addresses the l ] b ,d i a communityº r status of the development of energy efficiency project.measures and e r = t e w d programs a report on the status of participation in the m a n o d m :

b r e t º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 20 - e a n e d r e l u [ A d community energy efficiency development program by people in underserved communities, the types of projects funded by grants made through the program and any recommended changes with respect to the program.

SECTION 12.

[NEW MATERIAL ] PROJECT REQUIREMENTS.-- A.

A county, municipality, Indian nation, tribe or pueblo or the New Mexico mortgage finance authority may submit an application to the department for a grant for a community energy efficiency project.

(1) describe the community energy efficiency project for which a grant is requested and how the project would support infrastructure improvements for affordable e t 17 housing;

w l n d 18 (2) describe how the community energy = = 19 efficiency project would benefit an underserved community in a l i a e r 20 which it is located;

a t m m 21 (3) identify the targeted underserved d r e 22 community;

ch e s k 23 (4) set forth the energy efficiency eg ao n b 24 improvements to residential units located within an underserved ut [hr g e i k community that meet the following eligibility criteria pursuant .219503.3h -r 20i -s HCPAC/HB 206 to Article 9, Section 14 of the constitution of New Mexico:

h , t, (a) residential housing units occupied e u g e b l by low-income persons within an underserved community;

or e e h n d d i = = o h (b) residential housing units within an l ] b ,d i a º e underserved community that otherwise meet the criteria for r i = r t e w d housing that is affordable to low-income persons as established bym thea departmentn ino rule;d m :

b e d s º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 21 - e a n e d r e l u [ A d HENRC/HCPAC/HB 206 by the department in rule;

(7) identify one or more community partners e t 17 that will identify and work with targeted households to w l n d 18 implement a community energy efficiency project in an = = 19 underserved community and set forth the experience of the a l i a e r 20 community partner in working with the targeted underserved a t m m 21 community;

d r e 22 (8) set forth any commitment by a service ch e s k 23 provider or community partner to employ apprentices from a eu a» nr b 24 registered apprenticeship program that promotes diversity or to ut [h g e provide paid internships to persons from the targeted .219503.3l -i 21h -r HCPAC/HBi 206s underserved communities;

and h , e h (9) provide a project budget detailing t u g e b l anticipated expenditures and additional sources of funding that e e , gh n d d i = = o h would complement a grant obtained pursuant to the Community l ] b ,d i a º r Energy Efficiency Development Block Grant Act.

e r = t e w d C.

Notwithstanding the application requirements of m a n o d m :

b r e t º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 22 - e a n e d r e l u [ A d Subsection B of this section, the New Mexico mortgage finance authority may submit an application that:

(1) describes the community energy efficiency project for which a grant is requested and how the project would support infrastructure improvements for affordable housing that would complement and not duplicate other energy efficiency programs in the state;

(2) either meets the requirements of Paragraphs (2) through (4) of Subsection B of this section or sets forth the energy efficiency improvements to residential housing units, regardless of whether the residential housing units are located in an underserved community if the residential housing units meet the eligibility criteria established by the New Mexico mortgage finance authority pursuant to Article 9, Section 14 of the constitution of New Mexico;

provided that the application shall describe how energy efficiency improvements to the residential housing units will help to reduce the energy burden of low-income households that may not qualify for other energy efficiency programs in the h state;

u » r (3) proposes a series of energy efficiency t h g e measures expected to reduce energy use in targeted households l i h r i s and the estimated reduction of energy use from the h , e h implementation of the measures;

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

m a n o d m :

b r e t º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 23 - e a n e d r e l u [ A d HENRC/HCPAC/HB 206 (5) identifies one or more community partners that will identify and work with targeted households and sets forth the experience of the community partner in working with underserved communities;

and (6) provides a project budget detailing anticipated expenditures and additional sources of funding that would complement a grant awarded pursuant to the Community Energy Efficiency Development Block Grant Act.

D.

SECTION 14.13.

[NEW MATERIAL]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 h infrastructure necessary to support affordable housing projects g o as provided by Article 9, Section 14 of the constitution of New t hr g e i k Mexico.

eh tr 17i s B.

Prior to the department's final approval of an wh l, nt, d 18 application for a grant pursuant to the Community Energy =e =u 19g e b l e e h Efficiency Development Block Grant Act, an applicant that is a an ld d i a= e= ro 20h county or a municipality shall provide the department with a al t] mb m,d 21i a º e copy of the ordinance enacted by the county or municipality d r ei 22= thatr providest the county's or municipality's formal approval c e sw kd 23m for a specific community energy efficiency development block e a n bo 24that grantprovides and includes in the ordinancecounty's theor termsmunicipality's andformal conditionsapproval ofd um [: the grant approved by the department.

Theb departmente shalld nots .219503.3º -o 22t -n HCPAC/HB= 206.219987.2AIC approveMarch an3, application2021 for(10:11am) as communityk energym efficiencye project- if24 the- countye ora municipalityn failse tod enactr ane ordinancel thatu gives[ formalA approvald for thea termsspecific and conditions approved by the department for the community energy efficiency development block grant and includes in the ordinance thosethe exact terms and conditions.conditions of the grant approved by the department.

The department shall not 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.

The department shall not approve an application eh t 17 for a community energy efficiency project if an Indian nation, wu l» nr d 18 tribe or pueblo fails to enact a resolution that gives formal =t =h 19g e approval for the terms and conditions approved by the a l i ah e r 20i s department for the community energy efficiency development ah t, me mh 21 block grant and includes in the resolution those exact terms dt ru g e 22b l and conditions.

ce e s, kgh 23n SECTIONd 15.d i = = o h D.

[NEWPrior MATERIAL]to SELECTIONthe OFdepartment's PROJECTS.--final approval of an l ] b ,d i a º r application from the New Mexico mortgage finance authority for e r = t e w d a grant pursuant to the Community Energy Efficiency Development m a n bo 24d A.m :

Whenb reviewingr ande selectingt communityº energyo ut [n efficiency= projects.219987.2AIC forMarch grants3, from2021 the(10:11am) communitys energyk .219503.3m e - 2325 - HCPAC/HBe a n e d r e l u [ A d HENRC/HCPAC/HB 206 efficiencyBlock developmentGrant blockAct, grantthe fund,New Mexico mortgage finance authority shall provide the department shallwith consider:formal approval of the New Mexico mortgage finance authority to accept a specific community energy efficiency development block grant.

SECTION 14.

[NEW MATERIAL ] SELECTION OF PROJECTS.-- A.

When reviewing and selecting community energy efficiency projects for grants from the community energy efficiency development block grant fund, the department shall consider:

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

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

n d d i = = o h (5) the value of the project as a el t] 17b ,d i a º e demonstration project to provide data for the effectiveness of wr li n= r t e w d 18m a n o implementing similar projects elsewhere;

and =d = 19 (6) the degree to which the project benefits a l i a e r 20 an underserved community, including any non-energy benefits and a t m m: 21 health benefits provided by the project.

b e d s º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 26 - e a n e d r e 22l B.u [ A d (6) the degree to which the project benefits an underserved community, including any non-energy benefits and health benefits provided by the project.

ProvidedB. that the criteria are published in the c e s k 23 project solicitation, the department may further consider in e a n b 24 its review and selection of community energy efficiency u [ projects:

.219503.3Provided -that 24the -criteria HCPAC/HBare 206published (1)in the degreeproject tosolicitation, which the projectdepartment willmay protectfurther publicconsider health,in includingits protectingreview underservedand communitiesselection fromof acommunity publicenergy healthefficiency threatprojects: such as the coronavirus disease 2019;

(1) the degree to which the project will protect public health, including protecting underserved communities from a public health threat such as the coronavirus disease 2019;

SECTIONC. 16.

In considering an application from the New Mexico mortgage finance authority, the department shall h consider whether full or partial funding of the New Mexico g o mortgage finance authority application would:

t hr g e i k (1) promote geographic diversity of the h r i s portfolio of community energy efficiency projects;

h , t, (2) reduce the energy burden of low-income e u g e b l persons, within or outside of underserved communities, who e e h n d d i = = o h would not be likely to otherwise receive energy efficiency l ] b ,d i a º e improvements through other state programs;

or r i = r t e w d (3) help create a portfolio of community m a n o d m :

b e d s º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 27 - e a n e d r e l u [ A d HENRC/HCPAC/HB 206 energy efficiency projects that would best meet the goals of the Community Energy Efficiency Development Block Grant Act.

SECTION 15.

The fund consists of appropriations, gifts, grants and donations to the fund and income from investment of ethe tfund, 17but shall not consist of federal funding allocated to the fund.state for the federal weatherization assistance program pursuant to 42 U.S.C.

ExpendituresSection from6863 or the fundfederal shalllow beincome madehome onenergy warrantassistance wprogram l n d 18 of the secretary of finance and administration pursuant to =42 =U.S.C. 19 vouchers signed by the secretary of energy, minerals and a l i a e r 20 natural resources or the secretary's authorized representative.

aSections tthrough m8630. m 21 B.

MoneyExpenditures infrom the fund isshall subjectbe tomade appropriationon bywarrant dof rthe esecretary 22of thefinance legislatureand toadministration thepursuant department to carryvouchers outsigned by the purposessecretary of cenergy, eminerals sand knatural 23resources or the Communitysecretary's Energyauthorized Efficiencyrepresentative. Development Block Grant Act;

eh aB. n b 24 provided that money in the fund that is derived from the u [ federal government may be expended by the department without .219503.3 - 25 - HCPAC/HB 206 legislative authorization for any purpose that is consistent with the goal of reducing the energy burden of low-income individuals or underserved communities as otherwise allowed by law, including carrying out the purposes of the community energy efficiency development block grant program.

SECTIONMoney 17.in the fund is subject to appropriation by u » r the legislature to the department to carry out the purposes of t h g e the Community Energy Efficiency Development Block Grant Act, l i h r i s including the administrative costs of the department;

Sectionprovided 58-18-5.2h NMSA, 1978e (beingh Lawsthat 1981,money Chapterin 173,the Sectionfund 2,that asis amended)derived from the federal t u g e b l government may be expended by the department without e e , gh n d d i = = o h legislative authorization for any purpose that is amendedconsistent tol read:] b ,d i a º r with the goal of reducing the energy burden of low-income e r = t e w d individuals or underserved communities as otherwise allowed by m a n o d m :

"58-18-5.2.b r e t º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 28 - e a n e d r e l u [ A d law, including carrying out the community energy efficiency development block grant program and the administrative costs of the department.

AUTHORITYSECTION DUTIES.--The16. authority shall:

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

make"[NEW availableMATERIAL to] theUTILITY MortgageREPORTING FinanceON AuthorityDISCONNECTIONS, ActARREARS oversightAND committeePEOPLE allWITHOUT ofSERVICE.-- itsA. records and facilities upon written request;

andBy B.December 31, 2022, the commission shall promulgate rules requiring that each utility under the commission's jurisdiction report:

exchange(1) withon a quarterly basis the energynumber conservationof andcustomers managementin divisioneach customer class that are disconnected, the reason for disconnection, the number of customers reconnected after disconnection, the energy,number mineralsof disconnected and naturalreconnected resourcescustomers departmentthat informationwere detailingeligible workfor donethe infederal low-income home energy assistance program, the statecurrent number of customers eligible for disconnection due to implementarrears energyand efficiencythe measures."average SECTIONamount 18.of arrears for customers eligible for disconnection;

A(2) newon sectionan annual basis the number, or best h estimate of Chapterthe 62,number, Articleof 6prospective NMSAresidential ecustomers g o that are not receiving utility service in the utility's service t 17hr 1978g ise enactedi tok read:territory and any information available about why those h r i s customers are not receiving service;

wand h , t, (3) any other information the commission e u g e b l ndetermines dis 18necessary "[NEWand MATERIAL]available UTILITYfor REPORTINGunderstanding ONand DISCONNECTIONS,e e h n d d i = = 19o ah lmonitoring ARREARSthe ANDprovision PEOPLEof WITHOUTuninterrupted SERVICE.--electricity and gas l ] b ,d i a º e service to all New Mexicans and low-income New Mexicans in r 20i A.= r t e w d particular.

Bym December 31, 2022, the commission shall a tn mo m 21 promulgate rules requiring that each utility under the d rm e: 22 commission's jurisdiction report:

cb e d s kº 23o (1)t on a quarterly basis the number of e a n b= 24.219987.2AIC customersMarch in3, each2021 customer(10:11am) classs thatk arem disconnected,e the u [ reason for disconnection, the number of customers reconnected .219503.3 - 2629 - HCPAC/HBe 206a aftern disconnection,e thed numberr ofe disconnectedl andu reconnected[ customersA thatd wereHENRC/HCPAC/HB eligible206 forB. the federal low-income home energy assistance program, the current number of customers eligible for disconnection due to arrears and the average amount of arrears for customers eligible for disconnection;

(2)For onthe anpurposes annualof basisthis thesection, number,"low-income" ormeans bestan estimateannual ofhousehold theadjusted number,gross ofincome, residentialas customersdefined thatin arethe notIncome receivingTax utilityAct, serviceof inequal theto utility'sor serviceless territorythan andtwo anyhundred informationpercent availableof aboutthe whyfederal thosepoverty customerslevel." areSECTION not17. receiving service;

andA (3)new anysection otherof informationChapter the62, commissionArticle determines6 NMSA is necessaryenacted and available for understanding and monitoring the provision of uninterrupted electricity and gas service to allread: New Mexicans and low-income New Mexicans in particular.

"[NEW MATERIAL ] PUBLIC UTILITY REPORT ON ACHIEVING ENERGY AND WATER EQUITY.-- A.

By December 31, 2022, the commission shall issue an order requiring each public utility providing electricity service to provide a report that includes the following:

(1) an analysis of the benefits, costs and feasibility of providing all prudent energy efficiency improvements to fifty percent of all low-income New Mexico households by 2030 and one hundred percent of all low-income New Mexico households by 2050, including an analysis of the h benefits to energy affordability, utility load and greenhouse g o gas emissions;

t hr g e i k (2) identifies whether the utility's rates are h r i s affordable to low-income customers in its service territory, h , t, and if not, identifies what type of low-income discount rate, e u g e b l e e h alone or in combination with other actions such as energy n d d i = = o h efficiency improvements, the utility would recommend to achieve l ] b ,d i a º e energy affordability;

and r i = r t e w d m a n o (3) identifies whether changes could be made d m :

b e d s º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 30 - e a n e d r e l u [ A d to the utility's policies, to the rules or orders of the commission or in statute to improve energy affordability, reduce energy burden and ensure continuous energy access for low-income New Mexicans.

ForBy December 31, 2022, the purposescommission ofshall thisissue section,an "low-income"order erequiring teach 17public meansutility anproviding annualwater householdservice adjustedand grosswastewater income,company asunder definedits injurisdiction wto lprovide na dreport 18that includes an analysis of the Incomebenefits, Taxcosts Act,and feasibility of equalproviding adequate water service to orfifty lesspercent thanof twoall hundredNew =Mexico =households 19by 2030 and one hundred percent of theall federalNew povertyMexico level."households aby l2050 ithat adesire ethat rservice 20in SECTIONtheir 19.jurisdiction.

A new section of Chapter 62, Article 6 NMSA a t m m 21 1978 is enacted to read:

d r e 22 "[NEW MATERIAL] PUBLIC UTILITY REPORT ON ACHIEVING ENERGY c e s k 23 AND WATER EQUITY.-- e a n b 24 A.

By December 31, 2022, the commission shall issue u [ an order requiring each public utility providing electricity .219503.3 - 27 - HCPAC/HB 206 service to provide a report that includes the following:

(1) an analysis of the benefits, costs and feasibility of providing all prudent energy efficiency improvements to fifty percent of all low-income New Mexico households by 2030 and 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 e t 17 commission or in statute to improve energy affordability, w l n d 18 reduce energy burden and ensure continuous energy access for = = 19 low-income New Mexicans.

a l i a e r 20 B.

By December 31, 2022, the commission shall issue a t m m 21 an order requiring each public utility providing water service d r e 22 and wastewater company under its jurisdiction to provide a c e s k 23 report that includes an analysis of the benefits, costs and e a n b 24 feasibility of providing adequate water service to fifty u [ percent of all New Mexico households by 2030 and one hundred .219503.3 - 28 - HCPAC/HB 206 percent of all New Mexico households by 2050 that desire that service in their jurisdiction.

By December 31, 2023, the commission shall promulgate rules or issue orders in response to recommendations made by utilities and members of the public to make immediate, h reasonable and consistent improvements toward energy g o affordability and to reduce energy burden as allowed by law, t hr g e i k with a goal of achieving fifty percent energy affordability for h r i s low-income New Mexicans by 2030 and one hundred percent by h , t, 2050, provided that the commission may apply policies to a e u g e b l subset of low-income New Mexicans.

In promulgating the rules e e h n d d i = = o h or issuing the orders, the commission shall consider the degree el t] 17b ,d i a º e to which the rules or orders:

wr li n= dr 18t e w d (1) improve energy affordability;

=m =a 19n (2)o reduced utilitym load;:

ab le id s º o t n = .219987.2AIC March 3, 2021 (10:11am) s k m e - 31 - e a n e d r 20e (3)l reduceu greenhouse[ gasA emissions;d HENRC/HCPAC/HB 206 (2) reduce utility load;

and(3) areduce tgreenhouse mgas memissions; 21 (4) impact ratepayers.

dand r(4) eimpact 22ratepayers. E.

ByE. December 31, 2023, the commission shall c e s k 23 promulgate rules or issue orders in response to recommendations e a n b 24 made by water utilities and wastewater companies under its u [ jurisdiction and members of the public to make immediate, .219503.3 - 29 - HCPAC/HB 206 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 one hundred percent of all New Mexico households by 2050 that desire that service.

By December 31, 2023, 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 one hundred percent of all New Mexico households by 2050 that desire that service.

(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 h standards for safety and enables complete plumbing at the g o customer's residence, including a water heater, sink, shower or t hr g e i k bathtub, toilet and a code-compliant system for removing h r i s wastewater;

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

e t 17 and w l n] db 18,d (3)i "low-income"a meansº ane annualand householdr =i = 19r adjustedt gross income, as defined in the Income Tax Act, of a l i a e rw 20d equal(3) to"low-income" ormeans lessan thanannual twohousehold hundredm percent of the federal a tn mo m 21 poverty level." d rm e: 22 SECTION 20.

Ab newe sectiond ofs theº Efficiento Uset ofn Energy= c.219987.2AIC eMarch 3, 2021 (10:11am) s k 23m Acte is- enacted32 - e a n e d r e l u [ A d adjusted gross income, as defined in the Income Tax Act, of equal to read:or less than two hundred percent of the federal poverty level." SECTION 18.

eA anew nsection bof 24 "[NEW MATERIAL] ELIGIBILITY BASED ON UTILITY BILL RELIEF u [ PROGRAM.--A customer eligible for the utility bill relief .219503.3 - 30 - HCPAC/HB 206 program pursuant to the Utility Affordability and Relief Act shall be deemed eligible for low-income programs offered by utilities pursuant to the Efficient Use of Energy Act unlessis theenacted programsto requireread: additional proof of eligibility under federal or state law." SECTION 21.

"[NEW MATERIAL] ELIGIBILITY BASED ON UTILITY BILL RELIEF PROGRAM.--A customer eligible for the utility bill relief program pursuant to the Utility Affordability and Relief Act shall be deemed eligible for low-income programs offered by utilities pursuant to the Efficient Use of Energy Act unless the programs require additional proof of eligibility under federal or state law." SECTION 19.

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

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

eh t, 17t, B.

Nothing shall prohibit [however] the commission we u g e b l ne de 18h from approving:

n d d i = = 19o h (1) economic development rates;

[and] a l ] b ,d i a eº re 20 (2) rates designed to retain load;

[or from ar ti m= m 21 approving] d r et 22 (3) energy efficiency programs designed to c e sw kd 23approving] reducem the burden of energy costs on low-income customers e a n bo 24d pursuantm to: the Efficient Use of Energy Act;

orb ue [d (4)s ratesº designedo tot recovern the= costs.219987.2AIC ofMarch .219503.33, 2021 (10:11am) s k m e - 3133 - HCPAC/HBe a n e d r e l u [ A d HENRC/HCPAC/HB 206 permanent(3) forgivenessenergy efficiency programs designed to reduce the burden of arrearsenergy costs on low-income customers pursuant to the UtilityEfficient AffordabilityUse andof ReliefEnergy Act.Act;

or (4) rates designed to recover the costs of permanent forgiveness of arrears pursuant to the Utility Affordability and Relief Act.

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." -h 32SECTION -20. 15 e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .219503.3

EMERGENCY.--It is necessary for the public u » r peace, health and safety that this act take effect immediately.

t h g e - 34 - 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 = .219987.2AIC March 3, 2021 (10:11am) s k m e e a n e d r e l u [ A d