HM 9 — RENEWABLE ENERGY INVESTMENT STRATEGIC PLAN

HOUSEA MEMORIAL 9REQUESTING THTHAT LEGISLATURETHE - STATE OFINVESTMENT NEWOFFICE MEXICODEVELOP -A SECONDSTRATEGIC SESSIONPLAN ,PROVIDING 2020FOR INTRODUCEDSTATE BYINVESTMENT JosephIN L.NEW MEXICO RENEWABLE ENERGY, STORAGE AND TRANSMISSION.

Sanchez6 andWHEREAS, Danielthe R.New Mexico renewable energy industry is a growth sector;

Barrone and AndreaWHEREAS, Romerothe andvast Abbasmajority Akhilof Thisrevenue documentcollected incorporatesby amendmentsthe thatstate haveland beenoffice adoptedis duringderived from the currentenergy legislativeindustry; session.

Theand documentWHEREAS, isfossil fuels are a toolfinite toresource, showand the amendmentsfossil infuel contextindustry and is notsubject to beeconomic usedboom forand thebust purposecycles; of amendments.

Aand MEMORIALWHEREAS, REQUESTINGthe THATstate's THEeconomy STATEwould INVESTMENTbe OFFICEstrengthened DEVELOPby Adiversifying STRATEGICinvestments PLANin PROVIDINGNew FORMexico STATErenewable INVESTMENTenergy INprojects, NEWbroadening MEXICOenergy RENEWABLEexports hand ENERGY,upgrading STORAGEenergy ANDtransmission TRANSMISSION.infrastructure;

gand oWHEREAS, tNew hrMexico grenewable eenergy iprojects kinclude WHEREAS,energy thegenerated Newfrom Mexicowind, solar geothermal, biomass and other renewable sources and storage and transmission resources that are predominantly used to store or transmit renewable energy industrygenerated iswith aNew hMexico ror iNew-Mexico- sbased growthrenewable sector;energy equipment manufacturing facilities;

and hWHEREAS, ,other t,southwestern estates uare gseeking WHEREAS,to thebecome vastrenewable majorityenergy ofleaders, revenueand collectedNew byMexico theis ein bcompetition lHM e9/a ePage h1 statewith landthese officestates isto derivedprovide fromenergy for the United States energy industry;market;

and nWHEREAS, dif dlarge-scale ienergy =projects = o h WHEREAS, fossil fuels are anot finiteanticipated resource,in andNew Mexico, the lstate ]may breceive ,ddiminished iaccess ato ºnew ehigh-capacity fossiltransmission fuellines industry is subject to economic boom and bustan raccompanying idiminished =ability rto texport eits wrenewable denergy; m a n o cycles;

and dWHEREAS, mrenewable :energy projects will be disproportionately built in 2020 and 2021 due to incentives provided by the federal investment tax credit;

bNOW, eTHEREFORE, dBE sIT ºRESOLVED oBY tTHE nHOUSE =OF .216156.2AICREPRESENTATIVES FebruaryOF 17,THE 2020STATE (8:37am)OF sNEW kMEXICO mthat ethe estate arecognize nthe eimmediate dneed rto ebuild land uinvest [in Alarge-scale dNew WHEREAS,Mexico therenewable state'senergy economyprojects wouldand beto strengthenedbecome bya diversifyingleader investments in Newthe Mexico renewable energy projects,market broadeningand energythat exportsimmediate andparticipation upgradingin energythis transmissionmarket infrastructure;may generate significant revenue for the state;

and WHEREAS, New Mexico renewable energy projects include energy generated from wind, solar Hflº , geothermal, biomass»Hfl and other renewable sources and storage and transmission resources that are predominantly used to store or transmit renewable energy generated with New Mexico or New- Mexico-based renewable energy equipment manufacturing facilities;

and WHEREAS, other southwestern states are seeking to become renewable energy leaders, and New Mexico is in competition with these states to provide energy for the United States energy market;

and WHEREAS, if large-scale energy projects are not h anticipated in New Mexico, the state may receive diminished u » r access to new high-capacity transmission lines and an t h g e l i accompanying diminished ability to export its renewable energy;

h r i s and h , e h WHEREAS, renewable energy projects will be t u g e b l e e , gh disproportionately built in 2020 and 2021 due to incentives n d d i = = o h provided by the federal investment tax credit;

l ] b ,d i a º r NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF e r = t e w d m a n o REPRESENTATIVES OF THE STATE OF NEW MEXICO that the state d m :

b r e t º o t n = .216156.2AIC February 17, 2020 (8:37am) s k m e - 2 - e a n e d r e l u [ A d recognize the immediate need to build and invest in large-scale New Mexico renewable energy projects and to become a leader in the renewable energy market and that immediate participation in this market may generate significant revenue for the state;

and BE IT FURTHER RESOLVED that the state investment officeoffice, Hflº and the economic development department»Hfl, in consultation with the state land office, and the economic development department be requested to research and draft a strategic plan to establish a New Mexico renewable energy HM 9/a Page 2 investment policy, with the purpose of beginning investment in New Mexico renewable energy projects before 2021;

and BE IT FURTHER RESOLVED that the state investment office be h requested to make a recommendation to the state investment u » r council on the adoption of the strategic plan, which shall also t h g e l i be presented to the appropriate interim legislative committees;

h r i s and h , e h Hflº BE IT FURTHER RESOLVED that the strategic plan pursue t u g e b l e e , gh investment opportunities with returns at or above market rates n d d i = = o h for funds subject to the Uniform Prudent Investor Act and that l ] b ,d i a º r for funds that seek economically targeted investments, the e r = t e w d m a n o strategic plan pursue investments that maximize benefit to dtaxpayers, mincluding :investment opportunities with returns at or above market rates;

band rBE eIT tFURTHER ºRESOLVED othat, tin ndeveloping =a .216156.2AICstrategic Februaryplan, 17,the 2020state (8:37am)investment soffice kbe mrequested eto -examine, 3report -and emake arecommendations nto ethe dstate r e l u [ A d taxpayers, including investment opportunitiescouncil withon returnseach atof orthe abovefollowing: market rates;

and»Hfl BE IT FURTHER RESOLVED that, in developing a strategic plan, the state investment office be requested to examine, report and make recommendations to the state investment council on each of the following:

the impact of supplementing current oil and gas investments with large investments in New Mexico renewable energy projects Hflº , which may include a request for information soliciting responses from private investment funds capable of managing those investment vehicles»Hfl, and the effect this may have on revenue and investment risk strategies;

the identification of fund managers, investment funds and innovative and new investment vehicles capable of managing and investing in New Mexico renewable energy projects;HM 9/a Page 3 projects which may include a request for information soliciting responses from private investment funds capable of managing those investment vehicles;

the identification of state funding sources h eligible for investment in identified investment vehicles and u » r other innovative strategies to allow investment of state t h g e l i funding sources in New Mexico renewable energy projects;

h r i s D.

strategies for financing low and moderate risk h , e h debt for utility-scale solar, wind and storage projects in New t u g e b l e e , gh Mexico and analyzing which state funding sources may n d d i = = o h participate in these investments;

l ] b ,d i a º r E.

opportunities to provide economically targeted einvestments rin =New tMexico erenewable wenergy dprojects mthat aincrease nrevenue oto investmentsthe instate Newland Mexicooffice, renewableNative energyAmerican projectstribes thatand dthe mstate; :

b r e t º o t n = .216156.2AIC February 17, 2020 (8:37am) s k m e - 4 - e a n e d r e l u [ A d increase revenue to the state land office, Native American tribes and the state;

the amount of New Mexico renewable energy project investment opportunities available in calendar year 2020 and subsequent years;

the identification or development of a suitable quantifiable metric for measuring increases in state revenue HM 9/a Page 4 resulting from investment in New Mexico renewable energy projects;

investment opportunities in advanced renewable energy, storage and transmission projects and projects that h promote environmental remediation;

u » r J.

investment opportunities in renewable energy t h g e l i manufacturing, construction and related industry in New Mexico-Mexico-based h r i s based businesses;

h , e h K.

strategies for prioritizing investing money from t u g e b l e e , gh state funding sources in New Mexico renewable energy projects;

n d d i = = o h and l ] b ,d i a º r L.

other information deemed relevant by the state e r = t e w d m a n o investment office;

and dBE mIT :FURTHER RESOLVED that copies of this memorial be transmitted to the state investment council, the state investment officer, the commissioner of public lands, the economic development department, the energy, minerals and natural resources department, the secretary of Indian affairs and the secretary of environment.

bHM r9/a ePage t º o t n = .216156.2AIC February 17, 2020 (8:37am) s k m e - 5 -25 e a n e d r e l u [ A d BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the state investment council, the state investment officer, the commissioner of public lands, Hflº the economic development department, the energy, minerals and natural resources department,»Hfl the secretary of Indian affairs and the secretary of environment.