New Mexico 2026 Regular Session Status: Passed Senate 3 D cosponsors

SB 235 — MICROGRID OVERSIGHT ACT

Last action — action postponed indefinitely

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

This bill has passed the Senate. Introduced February 03, 2026. It now moves to the second chamber.

Next likely step: consideration and a floor vote in the House.

Odds of enactment

Moderate chance

Based on the sponsor, cosponsors, and committee posture, this bill has a moderate chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 54% · moderate confidence

  • Passed Senate

    Current position in the legislative process.

  • 4 sponsors

    4 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (3 D).

  • Cleared a recorded vote

    Passed 1 recorded vote so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

259 added · 163 removed

Plain-language change summary

The recent amendments to Bill SB 235 introduce a "Microgrid Renewable Portfolio Standard" and give the Public Regulation Commission the authority to oversee compliance with this standard. Additionally, the bill now mandates annual reporting from microgrid operators and prevents public utilities from raising rates to cover microgrid development costs. These changes are significant because they establish a regulatory framework for microgrids, ensuring they are developed responsibly and fairly without passing extra costs onto consumers.

→
Previous
Latest
SENATE BILL 235 57TH LEGISLATURE- STATE OF NEW MEXICO - SECOND SESSION, 2026 INTRODUCED BY Jeff Steinborn and Antoinette Sedillo Lopez and Joanne J.
SENATE CONSERVATION COMMITTEE SUBSTITUTE FOR SENATE BILL 235 57TH LEGISLATURE -STATEOFNEWMEXICO- SECOND SESSION , 2026 4 6 8 10 AN ACT RELATING TO UTILITIES;
Ferrary and Patricia Roybal Caballero 7 9 AN ACT RELATING TO UTILITIES;
REQUIRING THE PUBLIC REGULATION COMMISSION TO PROMULGATE A RULE CREATING A RENEWABLE PORTFOLIO STANDARD FOR MICROGRIDS;
CREATING THE MICROGRID RENEWABLE PORTFOLIO STANDARD;
PROVIDING AUTHORITY FOR THE PUBLIC REGULATION COMMISSION TO REGULATE COMPLIANCE WITH THE MICROGRID RENEWABLE PORTFOLIO STANDARD;
PROHIBITING PUBLIC UTILITY RATE INCREASES TO COVER THE COSTS ASSOCIATED WITH MICROGRID INFRASTRUCTURE DEVELOPMENT.
PROHIBITING PUBLIC UTILITY RATE INCREASES TO COVER THE COSTS ASSOCIATED WITH e t 17 MICROGRID INFRASTRUCTURE DEVELOPMENT.
e t 17 w l n d 18 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
w l n d 18 = = 19 a l BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
= = 19 a l SECTION 1.
i a e r 20 SECTION 1.
[NEW MATERIAL] SHORT TITLE.--This act may be i a e r 20 cited as the "Microgrid Oversight Act".
[NEW MATERIAL] SHORT TITLE.--This act may be a t m m 21 cited as the "Microgrid Oversight Act".
a t m m 21 SECTION 2.
d r e 22 SECTION 2.
[NEW MATERIAL] DEFINITIONS.--As used in the d r e 22 Microgrid Oversight Act:
[NEW MATERIAL] DEFINITIONS.--As used in the c e s k 23 Microgrid Oversight Act:
c e s k 23 A.
e a n b 24 A.
"commission" means the public regulation e a n b 24 commission;
"commission" means the public regulation u [ commission;
u [ B.
.233839.5 SCONC/SB 235 B.
"electric public utility" means an electric .233719.2 public utility regulated by the commission, pursuant to the Public Utility Act, that is not also a cooperative nonprofit membership corporation organized pursuant to the Rural Electric Cooperative Act;
"electric public utility" means an electric public utility regulated by the commission, pursuant to the Public Utility Act, that is not also a cooperative nonprofit membership corporation organized pursuant to the Rural Electric Cooperative Act;
"low-income household" means a household in which the current annual income is at or below eighty percent of the area median income, adjusted for family size, as published by the United States department of housing and urban development or that is enrolled in a low-income program facilitated by the state or a low-income energy program led by a utility or as determined by the commission;
D.
(2) is capable of generating not less than twenty megawatts;
e t 17 (2) is capable of generating not less than w l n d 18 twenty megawatts;
and (3) is capable of operating independently or connected to the grid;
and = = 19 (3) is capable of operating independently or a l i a e r 20 connected to the grid;
D.
a t m m 21 E.
"self-source generation resource" means a permanent or temporary electricity-generating resource that is dedicated to primarily serving the persons connected either directly or indirectly through business affiliates to a e t 17 microgrid;
"renewable energy" means electric energy d r e 22 produced by use of a renewable energy resource;
and w l n d 18 E.
c e s k 23 F.
"zero carbon resource" means an electricity- = = 19 a l generating resource that emits no carbon dioxide into the i a e r 20 atmosphere.
"renewable energy resource" means the following e a n b 24 energy resources, with or without energy storage:
a t m m 21 SECTION 3.
u [ (1) solar, wind and geothermal;
[NEW MATERIAL] OVERSIGHT AUTHORITY--POWERS AND d r e 22 DUTIES OF COMMISSION.-- c e s k 23 A.
.233839.5 - 2 - SCONC/SB 235 (2) hydropower facilities;
On or before July 1, 2027, the commission shall e a n b 24 begin promulgating a rule to create a microgrid renewable u [ portfolio standard that an owner or operator of a microgrid .233719.2 - 2 - shall comply with that requires a microgrid to achieve incremental benchmarks for electricity generation from renewable and zero carbon resources, culminating in one hundred percent electricity generation from zero carbon resources by 2045.
(3) biomass resources, limited to agriculture or animal waste, small-diameter timber not to exceed eight inches, salt cedar and other phreatophyte or woody vegetation removed from river basins or watersheds in New Mexico;
provided that these resources are from facilities certified by the energy, minerals and natural resources department to:
(a) be of appropriate scale to have sustainable feedstock in the near vicinity;
(b) have zero life cycle carbon emissions;
and (c) meet scientifically determined restoration, sustainability and soil nutrient principles;
(4) fuel cells that do not use fossil fuels to create electricity;
and (5) landfill gas and anaerobically digested e t 17 waste biogas;
w l n d 18 G.
"self-source generation resource" means a = = 19 permanent or temporary electricity-generating resource that is a l i a e r 20 dedicated to primarily serving the persons connected either a t m m 21 directly or indirectly through business affiliates to a d r e 22 microgrid;
c e s k 23 H.
"zero carbon energy" means electric energy e a n b 24 produced by use of a zero carbon resource;
and u [ I.
"zero carbon resource" means an electricity- .233839.5 - 3 - SCONC/SB 235 generating resource that emits no carbon dioxide into the atmosphere.
SECTION 3.
[NEW MATERIAL] OVERSIGHT AUTHORITY--POWERS AND DUTIES OF COMMISSION.-- A.
The commission has authority over matters relating to the compliance of microgrids in the state with the microgrid renewable portfolio standard.
Show all 105 changed rows (65 more)
Previous
Latest
(1) require and collect fees that are used to cover the cost of the commission's oversight of compliance with the rule promulgated pursuant to Subsection A of this section;
(1) require and collect fees that are used to cover the cost of the commission's oversight of microgrids' compliance with the microgrid renewable portfolio standard from owners and operators of microgrids;
and (2) prohibit the operation of a microgrid that fails to meet the requirements of the rule promulgated pursuant to Subsection A of this section.
and (2) prohibit the operation of a microgrid that fails to meet the requirements of the microgrid renewable portfolio standard.
C.
Beginning January 1, 2029 and January 1 every year thereafter, an owner or operator of a microgrid shall issue a report to the commission that includes:
e t 17 (1) total annual energy generation measured in w l n d 18 megawatt-hours;
= = 19 a l (2) total annual energy generation of i a e r 20 renewable energy measured in megawatt-hours, organized by a t m m 21 technology type;
d r e 22 (3) the status of compliance with the c e s k 23 microgrid renewable portfolio standard;
e a n b 24 (4) total water use, including water used for u [ power generation and cooling of facilities directly served by .233719.2 - 3 - the microgrid;
and (5) other information the commission may require to verify compliance.
Section 62-17-12 NMSA 1978 (being Laws 2025, Chapter 93, Section 6) is recompiled in the Microgrid Oversight Act and is amended to read:
[NEW MATERIAL] MICROGRID RENEWABLE PORTFOLIO e t 17 STANDARD.-- w l n d 18 A.
A microgrid shall meet the microgrid renewable = = 19 a l portfolio standard requirements to include renewable energy in i a e r 20 its electric energy supply portfolio, as demonstrated by a t m m 21 accurate metering and energy audits.
d r e 22 B.
Renewable energy shall comprise no less than c e s k 23 forty percent of a microgrid's total annual energy generation:
e a n b 24 (1) for a microgrid that begins operation on u [ or after May 20, 2026;
and .233839.5 - 4 - SCONC/SB 235 (2) no later than January 1, 2028 for a microgrid in operation prior to May 20, 2026.
C.
Renewable energy shall comprise no less than fifty percent of a microgrid's total annual energy generation no later than January 1, 2030.
D.
Renewable energy shall comprise no less than eighty percent of a microgrid's total annual energy generation no later than January 1, 2040.
E.
Zero carbon energy shall comprise one hundred percent of a microgrid's total annual energy generation no later than January 1, 2045.
F.
An owner or operator of a microgrid shall issue a report to the commission beginning July 1, 2027, and January 1 every year thereafter, that includes:
(1) total annual energy generation measured in megawatt-hours;
e t 17 (2) total annual energy generation of w l n d 18 renewable energy measured in megawatt-hours, organized by = = 19 technology type;
a l i a e r 20 (3) the status of compliance with the a t m m 21 microgrid renewable portfolio standard;
d r e 22 (4) total water use, including water used for c e s k 23 power generation and cooling of facilities directly served by e a n b 24 the microgrid;
u [ (5) information related to alternative .233839.5 - 5 - SCONC/SB 235 compliance with the microgrid renewable portfolio standard pursuant to Section 5 of the Microgrid Oversight Act;
and (6) other information the commission may require to verify compliance.
SECTION 5.
[NEW MATERIAL] ALTERNATIVE COMPLIANCE WITH THE MICROGRID RENEWABLE PORTFOLIO STANDARD.-- A.
The owner or operator of a microgrid may satisfy up to ten percent of renewable energy generation required under the microgrid renewable portfolio standard through the purchase and installation of residential solar energy systems serving low-income households.
B.
Residential solar energy systems that qualify for alternative compliance with the microgrid renewable portfolio standard include:
(1) photovoltaic or solar thermal systems installed on properties occupied by low-income households that e t 17 are used to offset the use or cost of nonrenewable energy by w l n d 18 those households;
and = = 19 (2) shared or community solar facilities from a l i a e r 20 which the energy generated or the monetary savings on utility a t m m 21 bills are allocated to low-income households.
d r e 22 C.
Residential solar energy systems shall be c e s k 23 installed:
e a n b 24 (1) or placed in service on or after May 20, u [ 2026;
.233839.5 - 6 - SCONC/SB 235 (2) within the state;
and (3) within the county where the microgrid is located and prioritizing residents closest to the microgrid.
D.
The estimated annual solar energy generation of the installed systems expressed as a percentage of the microgrid's total annual energy generation that the solar energy is capable of offsetting shall be credited toward a microgrid owner's or operator's compliance with the microgrid renewable portfolio standard.
The owner or operator of a microgrid may count an installed residential solar energy system toward the microgrid renewable portfolio standard for the duration of the system's projected operational lifespan.
E.
The owner or operator of a microgrid pursuing alternative compliance pursuant to this section shall provide evidence to the commission demonstrating:
(1) that the associated renewable energy e t 17 generation has not been otherwise claimed for renewable w l n d 18 portfolio standard compliance;
and = = 19 (2) how the calculation made pursuant to a l i a e r 20 Subsection D of this section was reached.
a t m m 21 F.
Residential solar energy systems applied toward d r e 22 alternative compliance pursuant to this section shall not be c e s k 23 eligible for state solar tax credits.
e a n b 24 SECTION 6.
Section 62-17-12 NMSA 1978 (being Laws 2025, u [ Chapter 93, Section 6) is recompiled in the Microgrid Oversight .233839.5 - 7 - SCONC/SB 235 Act and is amended to read:
[This section authorizes] An electric public utility, subject to approval by the [public regulation] commission, [to] may acquire self-source generation resources e t 17 or energy and dedicate those resources or energy to retail w l n d 18 services, wholesale services or self-generation services, or = = 19 a l any combination of those services [and rates established for i a e r 20 those services shall take into account the public interest and a t m m 21 need, reliability and affordability].
[This section authorizes] An electric public utility, subject to approval by the [public regulation] commission, [to] may acquire self-source generation resources or energy and dedicate those resources or energy to retail services, wholesale services or self-generation services, or any combination of those services [and rates established for those services shall take into account the public interest and need, reliability and affordability].
The [public regulation] d r e 22 commission shall not approve an acquisition pursuant to this c e s k 23 section from a facility that does not qualify as a self-source e a n b 24 generation resource or if the acquisition would increase rates u [ to cover the costs associated with microgrid infrastructure .233719.2 - 4 - development.
The [public regulation] e t 17 commission shall not approve an acquisition pursuant to this w l n d 18 section from a facility that does not qualify as a self-source = = 19 generation resource or if the acquisition would increase rates a l i a e r 20 to cover the costs associated with microgrid infrastructure a t m m 21 development.
[C.
d r e 22 [C.
Energy generated and sold from a self-source generation resource that is owned in whole or in part by a qualified microgrid shall not be considered retail sales or energy as contemplated under Sections 62-15-34, 62-16-4 and 62-18-10 NMSA 1978 until 2035, whether serving the qualified microgrid or purchased in whole or in part by the electric public utility to provide service.
Energy generated and sold from a self-source c e s k 23 generation resource that is owned in whole or in part by a e a n b 24 qualified microgrid shall not be considered retail sales or u [ energy as contemplated under Sections 62-15-34, 62-16-4 and .233839.5 - 8 - SCONC/SB 235 62-18-10 NMSA 1978 until 2035, whether serving the qualified microgrid or purchased in whole or in part by the electric public utility to provide service.
provided that e t 17 the purchase does not increase rates to cover the costs w l n d 18 associated with microgrid infrastructure development.
provided that the purchase does not increase rates to cover the costs associated with microgrid infrastructure development.
= = 19 a l D.
D.
A person [who] that only provides [self-source i a e r 20 generation sales] or sells electricity from a self-source a t m m 21 generation resource to that person's employees or tenants, when d r e 22 the service or commodity is not resold to or used by others, c e s k 23 shall not be considered an electric public utility.
A person [who] that only provides [self-source generation sales] or sells electricity from a self-source generation resource to that person's employees or tenants, when e t 17 the service or commodity is not resold to or used by others, w l n d 18 shall not be considered an electric public utility.
e a n b 24 [E.
= = 19 [E.
u [ (1) "electric public utility" means an .233719.2 - 5 - electric public utility certified by the public regulation commission to provide retail electric service in New Mexico pursuant to the Public Utility Act that is not also a distribution cooperative utility;
a l i a e r 20 (1) "electric public utility" means an a t m m 21 electric public utility certified by the public regulation d r e 22 commission to provide retail electric service in New Mexico c e s k 23 pursuant to the Public Utility Act that is not also a e a n b 24 distribution cooperative utility;
(2) "net-zero carbon resource" means an electricity generation resource that emits no carbon dioxide into the atmosphere, or that reduces methane emitted into the atmosphere in an amount equal to no less than one-tenth of the tons of carbon dioxide emitted into the atmosphere, as a result of electricity production;
u [ (2) "net-zero carbon resource" means an .233839.5 - 9 - SCONC/SB 235 electricity generation resource that emits no carbon dioxide into the atmosphere, or that reduces methane emitted into the atmosphere in an amount equal to no less than one-tenth of the tons of carbon dioxide emitted into the atmosphere, as a result of electricity production;
and e t 17 (c) is capable of operating w l n d 18 independently and disconnected from the grid;
and (c) is capable of operating independently and disconnected from the grid;
= = 19 a l (4) "self-source generation resource" means a i a e r 20 permanent or temporary electricity generating resource that is a t m m 21 dedicated to primarily serving the persons connected either d r e 22 directly or indirectly through business affiliates to the c e s k 23 construction and installation of a qualified microgrid;
(4) "self-source generation resource" means a permanent or temporary electricity generating resource that is dedicated to primarily serving the persons connected either e t 17 directly or indirectly through business affiliates to the w l n d 18 construction and installation of a qualified microgrid;
and e a n b 24 (5) "self-source generation sales" means sales u [ of electricity to persons or utilities generated from a self- .233719.2 - 6 - source generation resource.]" - 7 - 4 6 8 10 12 14 16 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 [ .233719.2
and = = 19 (5) "self-source generation sales" means sales a l i a e r 20 of electricity to persons or utilities generated from a self- a t m m 21 source generation resource.]" d r e 22 - 10 - c e s k 23 e a n b 24 u [ .233839.5
⬇ Download PDF
View plain text versions (2)

Action History

  1. action postponed indefinitely

  2. Sent to House Judiciary Committee

  3. passed Senate

  4. DO PASS committee report adopted

  5. DO NOT PASS, replaced with committee substitute

  6. germane

  7. Sent to Senate Committees' Committee & Senate Conservation Committee & Senate Tax, Business and Transportation Committee

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

4 sponsors · 0 co-sponsors · 108 not signed on · 20 voted No

Sponsors (4)

Co-sponsors (0)

None.

Not signed on (108)

108 members have not signed on to this bill.

Show all 108 →

"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.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

senate passage

Passed 22 Yea · 20 Nay
Party YeaNayPresentNot Voting
Democrat 21400
Unaffiliated 1000
Republican 01600
Total 222000
% of votes cast 52%48%0%0%
How each member voted (42)
Member Party Vote
SEDILLO-LOPEZ — Yea
Angel M. Charley Democrat Yea
Antonio Maestas Democrat Nay
Benny Shendo, Jr. Democrat Yea
Carrie Hamblen Democrat Yea
Cindy Nava Democrat Yea
Elizabeth "Liz" Stefanics Democrat Yea
George K. Muñoz Democrat Nay
Harold Pope Democrat Yea
Heather Berghmans Democrat Yea
Jeff Steinborn Democrat Yea
Joseph Cervantes Democrat Yea
Katy Duhigg Democrat Yea
Leo Jaramillo Democrat Yea
Linda M. López Democrat Yea
Linda M. Trujillo Democrat Yea
Martin Hickey Democrat Yea
Micaelita Debbie O'Malley Democrat Yea
Michael Padilla Democrat Nay
Mimi Stewart Democrat Yea
Natalie Figueroa Democrat Yea
Pete Campos Democrat Yea
Peter Wirth Democrat Yea
Roberto "Bobby" J. Gonzales Democrat Nay
Shannon D. Pinto Democrat Yea
William P. Soules Democrat Yea
Anthony L. Thornton Republican Nay
Candy Spence Ezzell Republican Nay
Craig W. Brandt Republican Nay
Crystal Brantley Republican Nay
David M. Gallegos Republican Nay
Gabriel Ramos Republican Nay
James G. Townsend Republican Nay
Jay C. Block Republican Nay
Joshua A. Sanchez Republican Nay
Larry R. Scott Republican Nay
Nicole Tobiassen Republican Nay
Pat Boone Republican Nay
Pat Woods Republican Nay
Rex Wilson Republican Nay
Steve D. Lanier Republican Nay
William E. Sharer Republican Nay

Official roll call →

Subjects

technology energy
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 235?
SB 235 is sponsored by Roybal Caballero, Patricia, Joanne J. Ferrary (Democrat), Jeff Steinborn (Democrat), and Antoinette Sedillo Lopez (Democrat).
What is the current status of SB 235?
This bill has passed the Senate. Introduced February 03, 2026. It now moves to the second chamber.
Where can I track SB 235?
Track SB 235 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on SB 235

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of SB 235

Last checked for changes 2 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →