A bill passed by the New Mexico Legislature would boost advanced grid technologies, which are seen as a way to make the grid more efficient and potentially reduce the need to build new transmission lines.

House Bill 93 by Rep. Kristina Ortez (D) now awaits a signature from Gov. Michelle Lujan Grisham, who has until April 10 to act. Bills not acted upon by the governor are “pocket vetoed.”

Another bill that passed before the Legislature’s 60-day session ended March 22 was HB 295 by Rep. Nathan Small (D). It would ensure that transmission projects owned by the New Mexico Renewable Energy Transmission Authority (RETA) are exempt from property tax, even if those projects are leased and operated by another entity.

That includes Pattern Energy, according to a fiscal impact report on the bill. Pattern is co-developing the 550-mile, 525-kV SunZia transmission line in partnership with RETA.

Grid modernization also may have a new source of grant funding under Senate Bill 48, by Sen. Mimi Stewart (D), which if signed by the governor would create a community benefit fund.

According to the Sierra Club Rio Grande Chapter, the fund would invest $210 million to create jobs and “strengthen the communities most impacted by climate change.” The Sierra Club is part of a statewide coalition, Clear Horizons New Mexico, that supported the bill.

Community fund allocations would include $70 million to the grid modernization grant fund and $15 million to the community energy efficiency development block grant fund.

Grid Efficiency

HB 93 would require public utilities to consider the deployment of advanced grid technologies as part of their integrated resource plans. Utilities also could include requests for advanced grid technology in their applications for grid modernization projects.

Under existing law, a public utility can file an application with the New Mexico Public Regulation Commission for grid modernization projects. If approved by the PRC, the utility may recover costs of the projects through base rates, an approved tariff rider or both.

HB 93 would update the law to add advanced grid technology to the types of projects for which a utility may seek approval.

Advanced grid technologies are defined as hardware or software that increases the efficiency, capacity or reliability of the grid. They may include advanced conductors or grid-enhancing technologies such as dynamic line ratings, advanced power flow controllers or topology optimization.

“We might not have to build as many transmission lines by making our current [grid] scenario as efficient as possible,” Sen. Michael Padilla (D), a bill co-sponsor, told the Senate Conservation Committee on March 11. Padilla said the bill also would promote economic development.

HB 93 directs the PRC to evaluate whether an advanced grid technology project will reduce ratepayer costs by delaying the need for investment in new generation or transmission. Other factors for the PRC to consider include improved reliability, increased access to clean energy and whether it’s “the most cost-effective among reasonable alternatives.”

Advanced Energy United called the bill’s passage “a major clean energy victory.” Advanced grid technologies can be “a smarter, faster, more cost-effective way to upgrade the grid,” Michael Barrio, a senior principal at AEU, said in a blog post.

Barrio noted that much of the Legislature’s focus this session was on public safety, making it harder for clean-energy-related bills to receive attention. He said one missed opportunity was HB 13, which included a framework for distribution system planning and measures to promote transportation and building electrification. The House passed the bill, but it stalled in the Senate.

Fuel Standard Repeal Fails

Another bill that failed was HB 328, by Rep. Randall Pettigrew (R), which aimed to block the adoption of rules to enact a clean transportation fuel standard. HB 328 was referred to committee but never was heard.

The Legislature finally approved a clean fuel standard last year, after several previous attempts, and the New Mexico Environment Department is in the rulemaking process. The state Environmental Improvement Board is expected to hold a hearing this summer on the proposed regulations.