HB 9 — CLIMATE SOLUTIONS ACT

e t 17 (c) the secretary of transportation, or w l n d 18 the secretary's designee;

= = 19 (d) the secretary of workforce a l i a e r 20 solutions, or the secretary's designee;

a t m m 21 (e) the secretary of finance and d r e 22 administration, or the secretary's designee;

c e s k 23 (f) the secretary of general services, e a n b 24 or the secretary's designee;

u [ (g) the director of the New Mexico .219486.3 - 6 - HENRC/HB 9 department of agriculture, or the director's designee;

(h) the state engineer, or the state engineer's designee;

(i) the secretary of economic development, or the secretary's designee;

(j) the superintendent of regulation and licensing, or the superintendent's designee;

(k) the secretary of Indian affairs, or the secretary's designee;

and (l) additional cabinet secretaries or their designees as determined by the governor on a permanent or ad hoc basis;

(b) twoone representativesrepresentative of triballocal ande localt governments;17 government;

w l n d 18 (c) two representatives of disproportionatelytribal impacted= communities;= 19 governments;

(d)a threel members,i witha onee eachr having20 an(d) expertisetwo inrepresentatives mitigation,of economica developmentt orm workforcem development;21 disproportionately impacted communities;

ed tr 17e 22 (e) twothree membersmembers, representingwith relevantone weach lhaving nc de 18s industrialk sectors23 thatan willexpertise bein involvedmitigation, ineconomic implementingdevelopment =or =workforce 19e a ln climateb solutions;24 development;

andu i[ a e r 20 (f) theone membersmember ofrepresenting therelevant sustainable.219486.3 a- t7 m- mHENRC/HB 219 economicindustry developmentand subgroupbusiness sectors that aremay notbe membersaffected ofby the dclimate rsolutions eproposed; 22 council.

cand e(g) sone kmember 23representing C.relevant industry and business sectors that may be involved in implementing climate solutions.

TheC. council shall be co-chaired by the secretary e a n b 24 of energy, minerals and natural resources and the secretary of u [ environment.

.218006.3The -council 5shall -be D.co-chaired by the secretary of energy, minerals and natural resources and the secretary of environment.

TheD. co-chairs shall appoint advisory members to the council and subgroups created by the council.

AdvisoryThe membersco-chairs shall serveappoint foradvisory amembers termto the council and, in addition to the economic inclusion subgroup created pursuant to Section 8 of fourthe yearsClimate andSolutions Act, may becreate reappointedpermanent toor servead forhoc onesubgroups of the council with additional term.advisory members from communities and industries impacted by the topic of the subgroup appointed by the co- chairs.

E.Advisory members of the council or a subgroup of the council shall serve for a term of four years and may be e t 17 reappointed to serve for one additional term.

Thew co-chairsl shalln convened regular18 meetingsE. of the council, and any subgroup, throughout the year as needed to carry out the Climate Solutions Act, but no less than quarterly.

InThe additionco-chairs toshall theconvene requirementsregular meetings of the= Open= Meetings19 Act,the meetingcouncil noticesand shallany besubgroup inthroughout publishedthe inyear aas mannerneeded that is reasonably likely to reacha membersl ofi thea public,e includingr tribal20 memberscarry andout membersthe ofClimate disproportionatelySolutions impactedAct, communities,but thatno mayless havethan anevery interestsix in a specifict agendam item.m 21 months.

In addition to the requirements of the Open Meetings d r e 22 Act, meeting notices shall be published in a manner that is c e s k 23 reasonably likely to reach members of the public, including e a n b 24 tribal members and members of disproportionately impacted u [ communities, that may have an interest in a specific agenda .219486.3 - 8 - HENRC/HB 9 item.

Public members of the council or a subgroup of the council may receive per diem and mileage as provided in the Per Diem and Mileage Act but shall receive no other e t 17 compensation, perquisite or allowance.

w l n d 18 SECTION 4.

[NEW MATERIAL] CLIMATE LEADERSHIP COUNCIL-- = = 19 a l DUTIES--REPORT.-- i a e r 20 A.

The council shall develop and recommend for a t m m 21 implementation a statewide strategy for New Mexico to:

d r e 22 (1) prepare for climate change, reduce c e s k 23 vulnerabilities, expand training and access to high-road e a n b 24 employment and enhance the resilience of New Mexico's u [ communities, especially disproportionately impacted .218006.3 - 6 - communities, of natural and built systems and of economic sectors to climate impacts and risks;

(2) advance a framework for mitigation consistent with the statewide greenhouse gas emission reductions required by Section 6 of the Climate Solutions Act, with sustainable economic growth and with high-road employment and training;

(3) support New Mexico's communities in planning and preparing for and responding to climate change;

(4) advance the recommendations of the sustainable economic development subgroup;

and (5) support the resilience and sustainability of the state's economy and its communities, especially disproportionately impacted communities.

B.

The statewide strategy shall include a statewide plan, timelines for implementation, performance metrics and e t 17 budgets and identify specific recommended climate solutions and w l n d 18 agency rules, policies, programs or partnerships to further = = 19 a l resilience, mitigation, diversification and inclusion.

i a e r 20 C.

To implement the statewide strategy, the council a t m m 21 shall:

d r e 22 (1) advise, recommend and collaborate with c e s k 23 state agencies on implementing climate solutions appropriate to e a n b 24 the jurisdiction of a state agency and may petition a state u [ agency or a state agency's rulemaking body to adopt rules under .218006.3 - 7 - each agency's statutory authority to implement the recommended strategies advanced by the council;

(2) recommend programs to encourage implementation of climate solutions and create high-road employment opportunities throughout the state and in particular in disproportionately impacted communities;

(3) work with the state land office and federal bureaus and agencies that manage land and natural resources in New Mexico on developing and implementing climate solutions;

(4) identify legislative changes needed to address climate change and implement climate solutions;

and (5) provide recommendations and set priorities, with an emphasis on disproportionately impacted communities, equity and expanding a sustainable economy, for expenditures from the clean energy grants fund when funds are e t 17 available.

w l n d 18 D.

The council shall submit an annual report to the = = 19 a l governor and appropriate interim legislative committees no i a e r 20 later than September 15, 2021 and every year thereafter by a t m m 21 September 15.

The report shall include the progress made d r e 22 toward achieving statewide greenhouse gas emissions reductions c e s k 23 pursuant to Section 6 of the Climate Solutions Act, identify e a n b 24 legislative changes needed to implement the statewide strategy u [ or identified climate solutions and provide other .218006.3 - 8 - recommendations to implement the statewide strategy.

[NEW MATERIAL] SUSTAINABLECLIMATE ECONOMICLEADERSHIP DEVELOPMENTCOUNCIL-- SUBGROUP--MEMBERSHIP--DUTIES--STRATEGICDUTIES--REPORT.-- PLAN.-- A.

ByThe nocouncil latershall thandevelop Augusta 1,statewide 2021,strategy theand co-chairsspecific ofstate theagency councilimplementation shallrecommendations convene,for inNew collaborationMexico withto achieve the secretariesemissions ofreductions economicand developmentpolicy andgoals workforceof solutions,Section a3 sustainableof economicthe developmentClimate subgroup.Solutions Act.

The sustainable economic development subgroup shall be co-chaired by the secretaries of economic development and workforce solutions.

The votingstatewide membershipstrategy ofshall theinclude sustainablea economicstatewide developmentplan subgroupthat shallprioritizes consistthe reduction of oneimpacts representativeon eachdisproportionately fromimpacted the:communities and includes:

(1) time lines for implementation;

(2) performance metrics;

e t 17 (3) budgets;

w l n d 18 (4) specific recommended climate solutions and = = 19 the state agencies that have committed to developing rules, a l i a e r 20 policies, programs or partnerships to implement the climate a t m m 21 solutions;

and d r e 22 (5) recommended legislative changes to further c e s k 23 resilience, mitigation, diversification and inclusion.

e a n b 24 C.

The council shall provide recommendations and u [ set priorities for expenditures from the clean energy grants .219486.3 - 9 - HENRC/HB 9 fund, when funds are available, with an emphasis on disproportionately impacted communities, equity and expanding a sustainable economy.

D.

The council shall submit an annual report to the governor and appropriate interim legislative committees no later than September 15, 2021 and every year thereafter by September 15.

The report shall include the progress made toward achieving statewide greenhouse gas emissions reductions pursuant to Section 3 of the Climate Solutions Act, identify legislative changes needed to implement the statewide strategy or identified climate solutions and provide other recommendations to implement the statewide strategy.

SECTION 6.

[NEW MATERIAL] STATE AGENCIES--RULEMAKING.-- A.

No later than September 30, 2022, a state agency, or rulemaking body that has the authority to adopt rules for a state agency or has committed to promulgating rules e t 17 or implementing a policy, program or partnership pursuant to w l n d 18 Section 5 of the Climate Solutions Act, shall, consistent with = = 19 the state agency's area of jurisdiction, promulgate rules or a l i a e r 20 enact policies, programs or partnerships to achieve the policy a t m m 21 goals of Section 3 of the Climate Solutions Act and ensure that d r e 22 the emissions reductions of Section 3 of the Climate Solutions c e s k 23 Act are met across geographic areas and economic sectors of the e a n b 24 state.

u [ B.

Rules, policies, programs and partnerships .219486.3 - 10 - HENRC/HB 9 adopted pursuant to this section and Section 7 of the Climate Solutions Act:

(1) shall require immediate, reasonable and consistent progress toward the greenhouse gas emissions reductions established in Section 3 of the Climate Solutions Act, taking into account early reductions of emissions in determining whether the requirements of a consistent emissions reductions pathway have cumulatively been met;

(2) shall prioritize strategies to reduce air pollution emissions in, and their impacts on, Indian nations, tribes and pueblos and other disproportionately impacted communities in New Mexico;

(3) shall account for and include under the statewide emissions limit emissions that occur as a result of electricity and fuels imported into the state, regardless of where they occur;

e t 17 (4) may include regulatory strategies that are w l n d 18 being implemented in another jurisdiction, and a state agency = = 19 may coordinate with another jurisdiction to reduce greenhouse a l i a e r 20 gas emissions;

provided that reductions in net greenhouse gas a t m m 21 emissions that occur under coordinated programs shall only be d r e 22 accounted for if the implementing rules of each coordinated c e s k 23 jurisdiction are sufficiently rigorous to ensure the integrity e a n b 24 of the reductions in greenhouse gas emissions in the u [ atmosphere;

and .219486.3 - 11 - HENRC/HB 9 (5) shall be amended from time to time to ensure timely progress toward the emissions reductions established in Section 3 of the Climate Solutions Act and cumulative achievement of the associated emissions reduction pathway and to ensure that the other requirements of this subsection are being met.

C.

In consultation with the council, a state agency, or a state agency's rulemaking body, shall promulgate rules and policies pursuant to Subsection A of this section that:

(1) create incentives to reach emissions limits early, including state-funded incentives authorized by the legislature, create high-road employment and reduce barriers to implementing climate solutions and developing a sustainable economy and promoting economic inclusion;

(2) enhance carbon sequestration through e t 17 natural processes and explore permanent geologic sequestration w l n d 18 from industrial sources;

= = 19 (3) improve the resilience of water supplies, a l i a e r 20 including by reducing water consumption, improving water a t m m 21 efficiencies, implementing resilient water management d r e 22 strategies, promoting water reuse and ensuring that climate c e s k 23 change impacts and risks are fully considered in state water e a n b 24 management decisions;

u [ (4) increase energy efficiency and zero- .219486.3 - 12 - HENRC/HB 9 emissions energy utilization statewide through regularly updated building and industry standards, support for sustainable building design, construction, management and deconstruction, incentives for installing energy-efficient appliances and fixtures, in particular in low-income communities and other disproportionately impacted communities, utilizing renewable energy sources and contracting for the purchase of renewable energy;

(5) reduce emissions from vehicles by reducing emissions from state and corporate vehicle fleets, increasing public transit options, increasing the use of alternative fuel vehicles, increasing the use and availability of low- and zero- emitting vehicles as allowed under Section 177 of the federal Clean Air Act and using regulatory frameworks that are at least as stringent as applicable federal law;

(6) eliminate waste sent to landfills and e t 17 prevent pollution by minimizing the generation of waste and w l n d 18 pollutants, diverting more waste for beneficial use, reducing = = 19 the purchase and use of paper and single-use plastics, a l i a e r 20 increasing the use of compostable and organic materials and a t m m 21 decreasing the use of chemicals;

d r e 22 (7) provide data, science, tools and support c e s k 23 to communities to plan for and implement strategies to foster e a n b 24 climate resilience and mitigation, including planning with u [ community and industry partners and through coordination of .219486.3 - 13 - HENRC/HB 9 state research, higher education, public education, cultural affairs and extension programs;

and (8) provide requirements for the use of project labor agreements or community workforce agreements for projects developed and constructed in accordance with the requirements of climate solutions pursuant to the Climate Solutions Act.

D.

A state agency shall fully consider and account for climate risks and impacts, the statewide emissions reductions established in Section 3 of the Climate Solutions Act and the reduction of other harmful emissions in its rules, programs, investments, infrastructure and natural resource planning and management.

SECTION 7.

[NEW MATERIAL] DEPARTMENT OF ENVIRONMENT-- RULEMAKING.--In addition to rulemaking pursuant to Section 6 of the Climate Solutions Act, the department of environment, e t 17 pursuant to rules adopted by the environmental improvement w l n d 18 board by September 30, 2022, and amended as needed, shall = = 19 ensure that the state attains quantifiable, enforceable a l i a e r 20 reductions in greenhouse gas emissions to meet the statewide a t m m 21 emissions reductions established in Section 3 of the Climate d r e 22 Solutions Act and shall address any deficit in achieving the c e s k 23 required emissions reductions statewide through the e a n b 24 promulgation of rules as needed to achieve the reductions u [ required by Section 3 of the Climate Solutions Act.

The .219486.3 - 14 - HENRC/HB 9 environmental improvement board's rules:

A.

shall include and provide for the execution of protocols:

(1) for the department of environment to track all statewide greenhouse gas and air pollutant emissions, quantify emissions from fuels extracted and exported from New Mexico and track the reductions of emissions of greenhouse gases and other harmful pollutants that have been achieved through the implementation of state agency rules, policies, programs and partnerships pursuant to Section 6 of the Climate Solutions Act;

(2) for the department of environment to track the impacts of current emissions of air pollutants on disproportionately impacted communities and certify that the state through its state agencies is cumulatively meeting or exceeding the reductions required by a consistently declining e t 17 emissions reduction pathway pursuant to Section 3 of the w l n d 18 Climate Solutions Act;

and = = 19 (3) for a state agency acting pursuant to the a l i a e r 20 Climate Solutions Act to report to the council on a consistent a t m m 21 and timely basis the emissions impact of the state agency's d r e 22 rules, policies, programs or partnerships implemented pursuant c e s k 23 to Section 6 of the Climate Solutions Act;

and e a n b 24 B.

may take into account rules that other state u [ agencies and local jurisdictions have adopted and that remain .219486.3 - 15 - HENRC/HB 9 in effect, to the extent that those rules require quantifiable and enforceable reductions of greenhouse gas emissions.

SECTION 8.

[NEW MATERIAL] ECONOMIC INCLUSION SUBGROUP-- MEMBERSHIP--DUTIES--STRATEGIC PLAN.-- A.

By no later than August 1, 2021, the co-chairs of the council shall convene, in collaboration with the secretaries of economic development and workforce solutions, an economic inclusion subgroup.

The economic inclusion subgroup shall be co-chaired by the secretaries of economic development and workforce solutions.

B.

The voting membership of the economic inclusion subgroup shall consist of one representative each from the:

= = 19 a l (7) public education department;

a l i a e r 20 (8) state investment council;

Advisory members of the sustainable economic inclusion c e s k 23 development subgroup shall be appointed by the co-chairs of the council, e a n b 24 climate leadership council and shall consistnot ofbe fiveadvisory members of u [ the council whoand areshall notconsist votingu members[ of the sustainable .218006.3 - 9 - economic development subgroup and representatives of:

.219486.3 - 16 - HENRC/HB 9 (1) one representative of the state land office;

(2) one representative of tribal governments and organizations;

(3) one representative of local governments;

and (4) organizationstwo withrepresentatives experienceof indisproportionately sustainableimpacted economiccommunities developmentor planningorganizations andwith workforceexperience development and working with disproportionately impacted communities.communities;

(5) two representatives of organizations with experience in sustainable economic development planning and workforce development;

and (6) one representative from industry sectors involved in achieving the goals of Section 3 of the Climate Solutions Act.

The sustainable economic developmentinclusion subgroup shallmay developcreate aworking sustainablegroups developmenton strategic plan that provides specific andtopics. measurable steps to implement the recommendations contained in the New Mexico clean energy workforce development study commissioned by the workforce solutions department and to expand economic inclusion and development in the equitable attainment of net-zero emissions levels by 2050 and implementation of the climate solutions e t 17 proposed by the council, including, as appropriate, with the w l n d 18 use of an environmental justice screening tool.

TheA =working =group 19shall ae t 17 include advisory members, appointed by the co-chairs of the w l sustainablen developmentd strategic18 plancouncil, shall:from communities and industries impacted by the topic.

i= a= e19 rE. 20 (1) be informed by input from communities a t m m 21 across New Mexico, including, and with a focus on, d r e 22 disproportionately impacted communities and communities likely c e s k 23 to be affected by changes in local economic activities in the e a n b 24 transition to achieving net-zero emissions levels;

uThe [economic (2)inclusion withsubgroup inputshall fromdevelop relevantan statea agencies,l .218006.3i -a 10e -r include20 aeconomic inclusion strategic plan that provides specific and a t m m 21 measurable steps to implement the recommendations ofcontained in d r e 22 the New Mexico clean energy workforce development study;study c e s k 23 commissioned by the workforce solutions department and to e a n b 24 expand economic inclusion and development in the equitable u [ attainment of net-zero emissions levels by 2050 and .219486.3 - 17 - HENRC/HB 9 implementation of the climate solutions proposed by the council, including, as appropriate, with the use of an environmental justice screening tool.

The economic inclusion strategic plan shall:

(1) be informed by input from communities across New Mexico, including, and with a focus on, disproportionately impacted communities and communities likely to be affected by changes in local economic activities in the transition to achieving net-zero emissions levels;

(2) with input from relevant state agencies, include a plan to implement the recommendations of the New Mexico clean energy workforce development study;

e t 17 (b) create new and high-road employment w l n d 18 opportunities;

= = 19 (c) diversify the state's revenue and a l i a e r 20 tax base to stabilize the state's budget;

a t m m 21 (d) increase overall economic stability d r e 22 and resilience of the state's economy;

and c e s k 23 (e) advance the social, ecological and e a n b 24 cultural resilience of communities;

u [ (4) useidentify statepolicy procurementchanges processesor recommended .219486.3 - 18 - HENRC/HB 9 statutory changes to the Procurement Code to support suppliedsupplier diversity and economic inclusion, including the setting and tracking of targets for state agencies and local public bodies to contract with businesses located in New Mexico that provide high-road employment opportunitiesopportunities, ebusinesses towned 17by throughBlack bestor valueAfrican contracting;American people, indigenous people and people of color and businesses located in disproportionately impacted communities;

w l n d 18 (5) identify methodshow to supportensure communitiesthat inapprenticeship = = 19 a l developing short-term and long-termjob planstraining forprograms localthat sustainablereceive istate afunds eshall rbe 20accessible economicto developmentindividuals andwith joblimited creationEnglish that:proficiency;

a(6) tidentify mmethods mto 21support (a)communities advancein localdeveloping communityshort-term goals and dlong-term rplans efor 22local priorities;sustainable economic development and job creation that:

c(a) eadvance s k 23 (b) expand opportunities for local ecommunity agoals n b 24 employment and workforcepriorities; development;

ue [t (c)17 advance(b) economicexpand inclusionopportunities for Newlocal .218006.3w -l 11n -d Mexicans;18 employment and workforce development;

(d)= create= enhanced19 opportunities(c) foradvance Neweconomic Mexicansinclusion tofor accessNew capitala andl resourcesi toa createe andr expand20 sustainableMexicans; jobs and businesses;

(e)a supportt communitiesm inm expanding21 economic(d) create enhanced opportunities infor waysd thatr aree culturally22 appropriateNew Mexicans to access capital and affirming;resources to create and c e s k 23 expand sustainable jobs and businesses;

and (f)e ensurea thatn apprenticeshipb and24 job(e) trainingsupport programscommunities thatin receiveexpanding stateu funds[ shalleconomic beopportunities accessiblein toways individualsthat withare limitedculturally Englishappropriate proficiency;.219486.3 - 19 - HENRC/HB 9 and affirming;

and (6)(7) advise and work with state agencies to implement the sustainableeconomic developmentinclusion strategic plan with the goal of expanding sustainable economic opportunity in New Mexico.

E.F.

The sustainable economic developmentinclusion subgroup shall provide an annual report, in conjunction with the annual e t 17 report of the council pursuant to Section 45 of the Climate w l n d 18 Solutions Act, to the governor and the appropriate interim = = 19 a l legislative committees beginning no later than September 15, i a e r 20 2021, and every year thereafter on September 15.

The report a t m m 21 shall include progress on implementation of the recommendations d r e 22 of the New Mexico clean energy workforce development study, c e s k 23 identify legislative changes needed to implement the statewide e a n b 24 strategy, including identified sustainable economic solutions,inclusion ustatewide [plan and provide other recommendations to implement the statewide .218006.3 - 12 - strategy.

SECTION 6.9.

[NEW MATERIAL] STATEWIDERULEMAKING GREENHOUSERELATED GASTO EMISSIONSECONOMIC REDUCTIONS--POLICY.--e t 17 INCLUSION.-- w l n d 18 A.

TheBy stateSeptember shall30, achieve:2022, the general services = = 19 department shall, to the extent authorized within the agency's a l i a e r 20 statutory authority, adopt procurement rules for climate a t m m 21 solutions projects to ensure that all New Mexico workers, d r e 22 especially in disproportionately impacted communities, have c e s k 23 opportunities to access the jobs created by the implementation e a n b 24 of climate solutions, identify ways to ensure that all New u [ Mexicans have an opportunity to participate in governmental .219486.3 - 20 - HENRC/HB 9 procurement for climate solutions projects and consider the use of incentives to achieve inclusion of all interested New Mexicans.

(1)If quantifiablethe andgeneral enforceableservices statewidedepartment greenhouseconcludes gasthat emissionsadditional reductionslegislative thatauthority areis equivalentneeded to atimplement leastthe fiftyeconomic percentinclusion belowstrategic 2005plan levelsdeveloped by 2030the andeconomic net-zeroinclusion emissionssubgroup, byit 2050;shall identify the legislative authority needed in the report required pursuant to Section 5 of the Climate Solutions Act.

and (2) at least a sixty percent reduction in methane, carbon dioxide and volatile organic compound emissions from the oil and gas sector as compared to 2005 emission levels by 2030.

AnBy agencySeptember may30, use2022, athe laterworkforce baselinesolutions yeardepartment, forto reductions from the oilextent andauthorized gaswithin sector to ensure the qualityagency's ofstatutory emissionsauthority, datashall ifadopt theworkforce agencydevelopment increasesrules thefor reductionclimate targetsolutions proportionatelyprojects to theensure sizethat ofall theNew sectorMexico inworkers thehave newopportunities baselineto eaccess tjobs 17created yearby asthe comparedimplementation toof 2005climate tosolutions meetand thethat statewidea emissionssustainable weconomy lis ncreated dfor 18all reductionsworkers, pursuantwith topriority Subsectiongiven Ato ofdisproportionately thisimpacted section.communities.

The workforce e t 17 solutions department shall develop training and registered w l n d 18 apprenticeship opportunities for all New Mexicans interested in = = 19 training for jobs created through the achievement of greenhouse a l SECTIONi 7.a e r 20 gas emissions reductions and shall consider the use of a t m m 21 incentives to achieve inclusion of all interested New Mexicans.

[NEWd MATERIAL]r STATEe AGENCIES--RULEMAKING.--22 iIf athe workforce solutions department concludes that additional c e rs 20k A.23 legislative authority is needed to implement the economic e a n b 24 inclusion strategic plan developed by the economic inclusion u [ subgroup, it shall identify the legislative authority needed in .219486.3 - 21 - HENRC/HB 9 the report required pursuant to Section 5 of the Climate Solutions Act.

NoSECTION later10. than September 30, 2022, a state a t m m 21 agency, or rulemaking body that has the authority to adopt d r e 22 rules for a state agency, shall identify the climate solutions c e s k 23 that are consistent with the state agency's area of e a n b 24 jurisdiction and shall promulgate rules or enact policies, u [ programs or partnerships to implement the identified climate .218006.3 - 13 - solutions and support resilience and mitigation.

Rules adopted pursuant to this subsection and Subsection C of this section:

(1) shall ensure the reduction of greenhouse gas emissions across geographic areas and economic sectors of the state;

(2) shall require immediate, reasonable and consistent progress toward the greenhouse gas emissions reductions established in Section 6 of the Climate Solutions Act, taking into account early reductions of emissions greater than the reductions required in determining whether the requirements of a consistent emissions reductions pathway have cumulatively been met;

(3) shall prioritize strategies to reduce air pollution emissions in, and their impacts on, disproportionately impacted communities and Indian nations, tribes and pueblos in New Mexico;

e t 17 (4) may include regulatory strategies that are w l n d 18 being implemented in another jurisdiction, and a state agency = = 19 a l may coordinate with another jurisdiction to reduce greenhouse i a e r 20 gas emissions;

provided that reductions in net greenhouse gas a t m m 21 emissions that occur under coordinated programs shall only be d r e 22 accounted for if the implementing rules of each coordinated c e s k 23 jurisdiction are sufficiently rigorous to ensure the integrity e a n b 24 of the reductions in greenhouse gas emissions in the u [ atmosphere;

.218006.3 - 14 - (5) shall account for and include under the statewide emissions limit emissions that occur as a result of electricity and fuels imported into the state, regardless of where they occur;

and (6) shall be amended over time to ensure timely progress toward the emissions reductions established by Section 6 of the Climate Solutions Act and cumulative achievement of the associated emission reduction pathway, and to ensure that the other requirements of this subsection are being met.

B.

To the extent relevant to a state agency's statutory authority, a state agency, or a state agency's rulemaking body, shall promulgate rules and policies pursuant to Subsection A of this section that:

(1) create incentives to reach emissions limits early, create high-road employment and reduce barriers e t 17 to implementing climate solutions and developing a sustainable w l n d 18 economy while promoting equity;

= = 19 a l (2) ensure that climate risks, impacts, i a e r 20 mitigation, and harmful emissions reductions are fully a t m m 21 considered and accounted for in state programs, planning, d r e 22 investments, infrastructure and natural resource planning and c e s k 23 management;

e a n b 24 (3) increase energy efficiency statewide, u [ through building and industry standards, incentives for .218006.3 - 15 - installing energy-efficient appliances and fixtures, in particular in low-income communities, utilizing renewable energy sources, contracting for the purchase of renewable energy and other energy conservation and efficiency measures;

(4) optimize building performance, including by adopting and implementing requirements and incentives for high-performance, sustainable building design, construction, operation, management, maintenance and deconstruction and reducing the consumption of energy, water and materials;

(5) reduce emissions from vehicles by optimizing vehicle fleets and travel, increasing public transit options, increasing the use of alternative fuel vehicles, increasing the use and availability of low- and zero-emitting vehicles as allowed under Section 177 of the federal Clean Air Act and using regulatory frameworks that are at least as stringent as applicable federal law;

e t 17 (6) enhance carbon sequestration through w l n d 18 natural processes and explore permanent geologic sequestration = = 19 a l from industrial sources;

i a e r 20 (7) eliminate waste and prevent pollution by, a t m m 21 among other things, minimizing the generation of waste and d r e 22 pollutants, diverting more waste for beneficial use, reducing c e s k 23 the purchase and use of paper and single-use plastics, e a n b 24 increasing the use of compostable and organic materials and u [ decreasing the use of chemicals;

.218006.3 - 16 - (8) improve the resilience of water supplies, including by reducing water consumption, improving water efficiencies, implementing resilient water management strategies, promoting water reuse and ensuring that climate change impacts and risks are fully considered in state water management decisions;

(9) provide data, science, tools and support to communities to plan for and implement strategies to foster climate resilience and mitigation, including planning with community and industry partners and through coordination of state research, higher education, public education, cultural affairs and extension programs;

(10) require the use of project labor agreements or community workforce agreements for public or publicly regulated contracts or investments;

and (11) establish supplier diversity targets and e t 17 implementation plans.

w l n d 18 C.

In addition to the provisions of Subsection A of = = 19 a l this section, the department of environment, pursuant to rules i a e r 20 adopted by the environmental improvement board by September 30, a t m m 21 2022, and amended as needed, shall ensure that the state d r e 22 attains quantifiable, enforceable reductions in greenhouse gas c e s k 23 emissions to meet the statewide emissions reductions e a n b 24 established in Section 6 of the Climate Solutions Act and u [ shall, within its statutory authority, address any deficit in .218006.3 - 17 - achieving the required emissions reductions statewide.

The environmental improvement board's rules:

(1) shall include and provide for the execution of protocols:

(a) for the department of environment to track all statewide greenhouse gas and air pollutant emissions, quantify emissions from fuels extracted and exported from New Mexico and track the reductions of emissions of greenhouse gases and other harmful pollutants that have been achieved through the implementation of state agency rules pursuant to the Climate Solutions Act;

(b) for the department of environment to track the impacts of current emissions of air pollutants on disproportionately impacted communities and certify that the state is cumulatively meeting or exceeding the reductions required by the consistently declining emissions reduction e t 17 pathway pursuant to Paragraph (2) of Subsection A of this w l n d 18 section;

and = = 19 a l (c) for how state agencies provide i a e r 20 information on a consistent and timely basis to the council for a t m m 21 inclusion in the council's annual report required by Subsection d r e 22 D of Section 4 of the Climate Solutions Act;

and c e s k 23 (2) may take into account rules that other e a n b 24 state agencies have adopted and that remain in effect, to the u [ extent that those rules require quantifiable and enforceable .218006.3 - 18 - reductions of greenhouse gas emissions.

D.

In addition to the provisions of Subsection A of this section, by September 30, 2021, the general services department shall, to the extent authorized within the agency's statutory authority, adopt procurement rules for climate solutions projects to ensure that all New Mexico workers, especially in disproportionately impacted communities, have opportunities to access the jobs created by the implementation of climate solutions, identify ways to ensure that all New Mexicans have an opportunity to participate in governmental procurement for climate solutions projects and consider the use of incentives to achieve inclusion of all interested New Mexicans.

If the general services department concludes that additional legislative authority is needed to implement the sustainable development strategic plan developed by the sustainable economic development subgroup, it shall identify e t 17 the legislative authority needed in the report required w l n d 18 pursuant to Subsection E of Section 5 of the Climate Solutions = = 19 a l Act.

i a e r 20 E.

In addition to the provisions of Subsection A of a t m m 21 this section, by September 30, 2021, the workforce solutions d r e 22 department, to the extent authorized within the agency's c e s k 23 statutory authority, shall adopt workforce development rules e a n b 24 for climate solutions projects to ensure that all New Mexico u [ workers have opportunities to access jobs created by the .218006.3 - 19 - implementation of climate solutions and that a sustainable economy is created for all workers, with priority given to disproportionately impacted communities.

The workforce solutions department shall develop training and registered apprenticeship opportunities for all New Mexicans interested in training for jobs created through the achievement of greenhouse gas emissions reductions and shall consider the use of incentives to achieve inclusion of all interested New Mexicans.

If the workforce solutions department concludes that additional legislative authority is needed to implement the sustainable development strategic plan developed by the sustainable economic development subgroup, it shall identify the legislative authority needed in the report required pursuant to Subsection E of Section 5 of the Climate Solutions Act.

SECTION 8.

e t 17 "71-7-6.

CLEAN ENERGY GRANTS PROGRAM.-- w l n d 18 A.

The secretary shall establish the clean energy = = 19 a l grants program to provide clean energy grants to:

i a e r 20 (1) municipalities and county governments;

a t m m 21 (2) state agencies;

d r e 22 (3) state universities;

c e s k 23 (4) public schools;

e a n b 24 (5) post-secondary educational institutions;

u [ and .218006.3 - 20 - (6) Indian nations, tribes and pueblos.

The climate leadership council pursuant to the Climate Solutions Act shall provide recommendations to the e t 17 secretary and set priorities for expenditures from the clean w l n d 18 energy grants fund, when funds are available.

The secretary = = 19 may make grants from the fund for physical projects utilizing a l i a e r 20 clean energy technologies and clean energy education, technical a t m m 21 assistance and training programs.

The department may use no d r e 22 more than one hundred thousand dollars ($100,000) from the fund c e s k 23 for the administration of the grants program and to conduct e a n b 24 research or studies directly related to the Advanced Energy u [ Technologies Economic Development Act.

.219486.3 - 22 - HENRC/HB 9 C.

Factors that may be e t 17 considered in approving or denying disbursements from the fund w l n d 18 are the:

= = 19 a l (1) [the] geographic area of the state in i a e r 20 which the project is to be conducted in relation to other a t m m 21 projects;

d r e 22 (2) percentage of cash or in-kind c e s k 23 contributions applied to the total project;

e a n b 24 (3) [the] extent to which the project u [ incorporates an innovative new technology or an innovative .218006.3 - 21 - application of an existing technology;

e t 17 (5) [the] degree to which the project fosters w l n d 18 the general public's, students' or a specific government or = = 19 industry sector's overall understanding and appreciation of a l i a e r 20 clean energy technologies;

and[and] a t m m 21 (6) [the] extent to which the project d r e 22 stimulates in-state economic development, including jobs c e s k 23 creation, and further development of a commercial market for e a n b 24 clean energy technologies.technologies;

and u [ (7) extent to which the project will improve .219486.3 - 23 - HENRC/HB 9 or expand access to high-road employment for disproportionately impacted communities, as defined in the Climate Solutions Act.

(2) no less than three hundred thousand e t 17 dollars ($300,000) to state universities and post-secondary w l n d 18 educational institutions;

= = 19 a l (3) no less than three hundred thousand i a e r 20 dollars ($300,000) to Indian nations, tribes and pueblos;

and a t m m 21 (4) no more than two hundred thousand dollars d r e 22 ($200,000) to state agencies and public schools.

c e s k 23 E.

The minimum disbursements designated in this e a n b 24 section may be amended by the department if an insufficient u [ number of qualified projects are applied for by entities .218006.3e -t 2217 - seeking grant funding within a particular category or w l n d 18 categories.

= = 19 F.

The department shall report on disbursements a l i a e r 20 made from the fund to the legislative finance committee prior a t m m 21 to each regular legislative session.

d r e 22 (1) a list of recipients receiving c e s k 23 disbursements;

e a n b 24 (2) the amount of each disbursement;

u [ (3) the date of each disbursement;

.219486.3 - 24 - HENRC/HB 9 (4) a description of each project or expansion funded with a disbursement;

and (6) a description of the extent to which the grants program is [benefitting] benefiting the state's e t 17 environment, public health and economic development." w l n d 18 SECTION 9.11.

Section 74-2-2 NMSA 1978 (being Laws 1967, = = 19 a l Chapter 277, Section 2, as amended) is amended to read:

i a e r 20 "74-2-2.

DEFINITIONS.--As used in the Air Quality Control a t m m 21 Act:

d r e 22 A.

"air contaminant" means a substance, including c e s k 23 any particulate matter, fly ash, dust, fumes, gas, mist, smoke, e a n b 24 vapor, micro-organisms, radioactive material, any combination u [ thereof or any decay or reaction product thereof;

.218006.3e -t 2317 - B.

"air pollution" means the emission, except w l n d 18 emission that occurs in nature, into the outdoor atmosphere of = = 19 one or more air contaminants in quantities and of a duration a l i a e r 20 that may with reasonable probability injure human health or a t m m 21 animal or plant life or as may unreasonably interfere with the d r e 22 public welfare, visibility or the reasonable use of property;

c e s k 23 C.

"department" means the department of e a n b 24 environment;

u [ D.

"director" means the administrative head of a .219486.3 - 25 - HENRC/HB 9 local agency;

"emission limitation" or "emission standard" means a requirement established by the environmental improvement board or the local board, the department, the local authority or the local agency or pursuant to the federal act that limits the quantity, rate or concentration, or combination thereof, of emissions of air contaminants on a continuous e t 17 basis, including any requirements relating to the operation or w l n d 18 maintenance of a source to assure continuous reduction;

= = 19 a l F.

"federal act" means the federal Clean Air Act, i a e r 20 its subsequent amendments and successor provisions;

a t m m 21 G.

"federal standard of performance" means a d r e 22 standard of performance, emission limitation or emission c e s k 23 standard adopted pursuant to 42 U.S.C.

e a n b 24 H.

"hazardous air pollutant" means an air u [ contaminant that has been listed as a hazardous air pollutant .218006.3e -t 2417 - pursuant to the federal act;

w l n d 18 I.

"local agency" means the administrative agency = = 19 established by a local authority pursuant to Paragraph (2) of a l i a e r 20 Subsection A of Section 74-2-4 NMSA 1978;

a t m m 21 J.

"local authority" means any of the following d r e 22 political subdivisions of the state that have, by following the c e s k 23 procedure set forth in Subsection A of Section 74-2-4 NMSA e a n b 24 1978, assumed jurisdiction for local administration and u [ enforcement of the Air Quality Control Act:

.219486.3 - 26 - HENRC/HB 9 (1) a county that was a class A county as of January 1, 1980;

e t 17 L.

"mandatory class I area" means any of the w l n d 18 following areas in this state that were in existence on August = = 19 a l 7, 1977:

i a e r 20 (1) national wilderness areas that exceed five a t m m 21 thousand acres in size;

and d r e 22 (2) national parks that exceed six thousand c e s k 23 acres in size;

e a n b 24 M.

"modification" means a physical change in, or u [ change in the method of operation of, a source that results in .218006.3e -t 2517 - an increase in the potential emission rate of a regulated air w l n d 18 contaminant emitted by the source or that results in the = = 19 emission of a regulated air contaminant not previously emitted, a l i a e r 20 but does not include:

a t m m 21 (1) a change in ownership of the source;

d r e 22 (2) routine maintenance, repair or c e s k 23 replacement;

e a n b 24 (3) installation of air pollution control u [ equipment, and all related process equipment and materials .219486.3 - 27 - HENRC/HB 9 necessary for its operation, undertaken for the purpose of complying with regulations adopted by the environmental improvement board or the local board or pursuant to the federal act;

(a) an increase in the production rate, e t 17 if such increase does not exceed the operating design capacity w l n d 18 of the source;

= = 19 a l (b) an increase in the hours of i a e r 20 operation;

or a t m m 21 (c) use of an alternative fuel or raw d r e 22 material if, prior to January 6, 1975, the source was capable c e s k 23 of accommodating such fuel or raw material or if use of an e a n b 24 alternate fuel or raw material is caused by a natural gas u [ curtailment or emergency allocation or [an other] another lack .218006.3e -t 2617 - of supply of natural gas;

w l n d 18 N.

"nonattainment area" means for an air = = 19 contaminant an area that is designated "nonattainment" with a l i a e r 20 respect to that contaminant within the meaning of Section a t m m 21 107(d) of the federal act;

d r e 22 O.

"person" includes an individual, partnership, c e s k 23 corporation, association, the state or political subdivision of e a n b 24 the state and any agency, department or instrumentality of the u [ United States and any of their officers, agents or employees;

.219486.3 - 28 - HENRC/HB 9 P.

"potential emission rate" means the emission rate of a source at its maximum capacity to emit a regulated air contaminant under its physical and operational design, provided any physical or operational limitation on the capacity of the source to emit a regulated air contaminant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, e t 17 stored or processed, shall be treated as part of its physical w l n d 18 and operational design only if the limitation or the effect it = = 19 a l would have on emissions is enforceable by the department or the i a e r 20 local agency pursuant to the Air Quality Control Act or the a t m m 21 federal act;

d r e 22 Q.

"regulated air contaminant" means an air c e s k 23 contaminant, the emission or ambient concentration of which is e a n b 24 regulated pursuant to the Air Quality Control Act or the u [ federal act;

.218006.3e -t 2717 - R.

w l n d 18 S.

"significant deterioration" means an increase in = = 19 the ambient concentrations of an air contaminant above the a l i a e r 20 levels allowed by the federal act or federal regulations for a t m m 21 that air contaminant in the area within which the increase d r e 22 occurs;

c e s k 23 T.

"source" means a structure, building, equipment, e a n b 24 facility, installation or operation [that emits or may emit an] u [ at, from or by reason of which an air contaminant is emitted;

.219486.3 - 29 - HENRC/HB 9 U.

and e t 17 W.

"toxic air pollutant" means an air contaminant, w l n d 18 except a hazardous air pollutant, classified by the = = 19 a l environmental improvement board or the local board as a toxic i a e r 20 air pollutant." a t m m 21 SECTION 10.12.

EFFECTIVE DATE.--The effective date of the d r e 22 provisions of this act is July 1, 2021.

- 30 - 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 - 28 - e a n b 24 u [ .218006.3.219486.3