HM 71 — STUDY SMART, HYBRID MICROGRIDS FOR NEW ENERGY

HOUSEA MEMORIAL 71REQUESTING 54THTHE LEGISLATURE - STATE OF NEW MEXICO -RENEWABLE FIRSTENERGY SESSION,TRANSMISSION 2019AUTHORITY INTRODUCEDTO BYESTABLISH AbbasA AkhilTASK PursuantFORCE toTO HouseSTUDY RuleTHE 24-1,EFFICACY thisOF documentSMART, incorporatesHYBRID amendmentsMICROGRIDS thatTO haveACCELERATE beenTHE adoptedIMPLEMENTATION priorOF toA considerationMIX ofOF thisENERGY measureTHAT byEMPHASIZES theCLEAN, House.RENEWABLE ENERGY.

It7 isWHEREAS, athere toolis tosupport showin thestate amendmentsgovernment into contextincrease andthe israte notof toaffordable, berenewable usedenergy foradoption into the purposestate's ofoverall amendments.energy mix;

Aand MEMORIALWHEREAS, REQUESTINGrenewable THEportfolio HENRCºENERGY,standards MINERALSlegislation ANDintroduced NATURALin RESOURCESthe h2019 DEPARTMENTlegislative NEWsession MEXICOsets RENEWABLEa ENERGYgoal TRANSMISSIONof gfifty opercent trenewables hrby AUTHORITY»HENRC2030 TOfor ESTABLISHinvestor-owned Autilities TASKand FORCEforty TOpercent STUDYby THE2030 EFFICACYfor grural eelectric icooperatives, kwith OFhigher SMART,renewable HYBRIDpenetration MICROGRIDSgoals TOin ACCELERATEfuture THEyears, IMPLEMENTATIONbut OFthere hare rinadequate iplans sin Aplace MIXto OFachieve ENERGYthose THATgoals; EMPHASIZES CLEAN, RENEWABLE ENERGY.

h , t, e u g e b l e e h WHEREAS, there is support in state government to increase n d d i = = o h the rate of affordable, renewable energy adoption into the l ] b ,d i a º e r i = r state's overall energy mix;

and t e w d m a n o WHEREAS, renewable portfolio standards legislation d m :

b e d s º o t n = .214357.2 s k m e e a n e d r e l u [ A d introduced in the 2019 legislative session sets a goal of fifty percent renewables by 2030 for investor-owned utilities and forty percent by 2030 for rural electric cooperatives, with higher renewable penetration goals in future years, but there are inadequate plans in place to achieve those goals;

and WHEREAS, new design standards could be used to increase the rate at which renewable energy sources are implemented in HM 71/a Page 1 New Mexico, bringing the advantages of greater affordability, resiliency and reliability to the electrical grid;

and h WHEREAS, the current regulations, rules and laws u » r surrounding energy do not take into consideration the newest t h g e l i technological advances with regard to renewable energy;

and h r i s WHEREAS, the smart integration of renewable resources into h , e h New Mexico's energy portfolio mix has the potential to lower t u g e b l e e , gh overall carbon dioxide emissions and to make the grid stronger, n d d i = = o h more resilient, more reliable and more cost-effective,cost- leffective, ] b ,d i a º r especially when combined with current energy generation e r = t e w d m a n o sources;

and dWHEREAS, mgiven :the vital importance of reliable electricity, making renewable energy accessible is critically important to the health of the electrical grid as a key component of the local economy;

band rWHEREAS, esmart, thybrid ºmicrogrids oare tmodern, nsmall- =scale .214357.2versions sof kthe mcentralized eelectricity -system 2that -deliver eelectricity ato nhomes eand dbusinesses, rintegrate emultiple lelectricity ugeneration [sources Ainto dthe HENRCºWHEREAS,electrical agrid, gapincluding issolar developingand betweenwind wealthy and poorallow Newelectrical Mexicansgrid withoperators respect to accessingdirect renewable energy sources due to upfrontdifferent capitallocations costsaround associatedthe withelectrical installinggrid equipment and converting to usingmeet moredemand; reliable renewable energy;

and WHEREAS, it is fundamentally unfair that those New Mexicans who can afford the newestuse andof bestsmart, energyhybrid generationmicrogrids technologyprovides driveopportunities the cost of energy up for thoseworkforce whodevelopment cannot,by necessitatingrequiring statespecialized leadershipinstallation and utilitylong-term providersmaintenance; to be the driving force behind the proliferation of affordable renewable energy;

and»HENRCand HM 71/a Page 2 WHEREAS, givensmart, thehybrid vitalmicrogrids importancecould ofassist reliablethe electricity,state makingin integrating renewable energy accessiblesources isinto criticallyNew importantMexico's toenergy theportfolio healthmix, ofwhile theallowing electricallocal gridcommunities asto aparticipate keyin componentand ofsupport therenewable localenergy economy;generation in the state;

and WHEREAS, smart,plans hybridto microgridsmeet are modern, small-scale h versions of the centralizedstate's electricityrenewable systemportfolio thatstandard deliverneed uto »consider rfinancing topportunities hand electricityalternatives to homesthe andcentralized businesses, integrate multiple g e l i electricity generationsystem sourcesso intoas theto electrical grid, h r i s including solar and wind and allow electricalall gridNew operatorsMexicans to hparticipate ,in eNew hMexico's t u g direct energy tofuture; different locations around the electrical grid e b l e e , gh to meet demand;

andNOW, nTHEREFORE, dBE dIT iRESOLVED =BY =THE oHOUSE hOF WHEREAS,REPRESENTATIVES theOF useTHE ofSTATE smart,OF hybridNEW microgridsMEXICO providesthat lthe ]New bMexico ,drenewable ienergy transmission authority be requested to establish a ºtask rforce eto rstudy =the opportunitiesefficacy forof workforceusing developmentsmart, byhybrid requiringmicrogrids tto eaccelerate wthe dimplementation mof a nmix oof specializedenergy installationthat andemphasizes long-termclean, maintenance;renewable energy;

and dBE mIT :FURTHER RESOLVED that the task force be requested to study how the legislative and executive branches of state government, in concert with the public regulation commission, may best:

b r e t º o t n = .214357.2 s k m e - 3 - e a n e d r e l u [ A d WHEREAS, smart, hybrid microgrids could assist the state in integrating renewable energy sources into New Mexico's energy portfolio mix, while allowing local communities to participate in and support renewable energy generation in the state;

and HENRCº WHEREAS, leadership at the state and utility level is needed to ensure that renewable energy sources may be accessed by all neighborhoods, not just those where residents can privately afford them, to accelerate the integration of renewable energy into the electrical grid using the latest technology and to maintain overall grid health in a transformed energy generation environment;

and»HENRC WHEREAS, plans to meet the state's renewable portfolio standard need to consider financing opportunities and alternatives to the centralized electricity system so as to allow all New Mexicans to participate in New Mexico's energy h future;

u » r NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF t h g e l i REPRESENTATIVES OF THE STATE OF NEW MEXICO that the h r i s HENRCº energy, minerals and natural resources department New h , e h Mexico renewable energy transmission authority»HENRC be t u g e b l e e , gh requested to establish a task force to study the efficacy of n d d i = = o h using smart, hybrid microgrids to accelerate the implementation l ] b ,d i a º r of a mix of energy that emphasizes clean, renewable energy;

and e r = t e w d m a n o BE IT FURTHER RESOLVED that the task force be requested to d m :

b r e t º o t n = .214357.2 s k m e - 4 - e a n e d r e l u [ A d study how the legislative and executive branches of state government, in concert with the public regulation commission, may best:

HENRCºrequirefacilitate facilitate»HENRC the inclusion of smart, hybrid microgrids and updated hybrid technologies into utilities' HM 71/a Page 3 integrated resource plans;

and BE IT FURTHER RESOLVED that the HENRCº New Mexico renewable energy transmission authority convene a»HENRCa task force HENRCºinclude that includes»HENRCincludes representatives of:

h C.

an investor-owned electric utility in New g o t hr Mexico;

g e i k D.

a municipal electric utility provider in New h r i s Mexico;

h , t, e u g E.

and e b l e e h F.

a private business in the clean and renewable n d d i = = o h energy field;

and l ] b ,d i a º e BE IT FURTHER RESOLVED that the task force report its r i = r t e w d m a n o findings, conclusions and recommendations to the appropriate dinterim mlegislative :committee by December 1, 2019;

band eBE dIT sFURTHER ºRESOLVED othat tcopies nof =this .214357.2memorial sbe ktransmitted mto ethe -chair 5and -executive edirector aof nthe eNew dMexico rrenewable eenergy ltransmission uauthority, [the Achair dof interimthe legislativepublic committeeregulation bycommission Decemberand 1,the 2019;governor.

andHM BE71/a ITPage FURTHER4 RESOLVED25 that copies of this memorial be transmitted to the HENRCº secretary of energy, minerals and natural resources chair and executive director of the New Mexico renewable energy transmission authority»HENRC, the chair of the public regulation commission and the governor.

- 6 - » 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 = .214357.2 s k em e e a n e d r e l u [ A d