New Mexico/EZ Policies
EZ Policies for New Mexico
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|Policy||Place||Policy Type||Active||Implementing Sector||Summary|
|Advanced Energy Tax Credit (Corporate) (New Mexico)||New Mexico||Corporate Tax Credit||Yes||State/Territory||A taxpayer that holds an interest in a qualified generating facility located in New Mexico and that files a New Mexico corporate income tax return may claim an advanced energy corporate income tax credit in an amount equal to 6% of the eligible generation plant costs of a qualified generating facilities (see § 7-2A-25).
Click here for more information, including forms to apply for the tax credit.
|Advanced Energy Tax Credit (Personal) (New Mexico)||New Mexico||Personal Tax Credit||Yes||State/Territory||A taxpayer who holds an interest in a qualified generating facility located in New Mexico and who files an individual New Mexico income tax return may claim an advanced energy income tax credit in an amount equal to 6% of the eligible generation plant costs of a qualified generating facility.
Click here for more information, including forms to apply for the tax credit.
|Agricultural Biomass Income Tax Credit (Corporate) (New Mexico)||New Mexico||Corporate Tax Credit||Yes||State/Territory||House Bill 171 of 2010 created a tax credit for agricultural biomass from a dairy or feedlot transported to a facility that uses agricultural biomass to generate electricity or make biocrude or other liquid or gaseous fuel for commercial use. For the purposes of this tax credit, agricultural biomass means wet manure. The Energy, Minerals and Natural Resources Department may adopt additional specifications for agricultural biomass through a rule making process. The credit is effective for biomass originating between January 1, 2011 and January 1, 2020. The credit is worth $5 per wet ton. Eligible projects must apply to the Taxation and Revenue Department for the credit. The Taxation and Revenue Department is authorized to distribute $5 million in these credits annually and will award a qualification document to eligible projects on a first come, first served basis. The qualification document may be submitted by the taxpayer with that taxpayer's corporate income tax return or may be sold, exchanged or otherwise transferred to another taxpayer. The taxpayers involved in a credit transfer must notify the Taxation and Revenue Department within ten days of the sale, exchange or transfer. If a tax payer cannot claim all the credit they have been awarded for the year, they may carry forward any unused credit for a maximum of four consecutive years.|
|Agricultural Biomass Income Tax Credit (Personal) (New Mexico)||New Mexico||Personal Tax Credit||Yes||State/Territory||House Bill 171 of 2010 created a tax credit for agricultural biomass from a dairy or feedlot transported to a facility that uses agricultural biomass to generate electricity or make biocrude or other liquid or gaseous fuel for commercial use. For the purposes of this tax credit, agricultural biomass means wet manure. The Energy, Minerals and Natural Resources Department may adopt additional specifications for agricultural biomass through a rule making process. The credit is effective for biomass originating between January 1, 2011 and January 1, 2020. The credit is worth $5 per wet ton. Eligible projects must apply to the Taxation and Revenue Department for the credit. The Taxation and Revenue Department is authorized to distribute $5 million in these credits annually and will award a qualification document to eligible projects on a first come, first served basis. The qualification document may be submitted by the taxpayer with that taxpayer's personal income tax return or may be sold, exchanged or otherwise transferred to another taxpayer. The taxpayers involved in a credit transfer must notify the Taxation and Revenue Department within ten days of the sale, exchange or transfer. If a tax payer cannot claim all the credit they have been awarded for the year, they may carry forward any unused credit for a maximum of four consecutive years.|
|Air Quality Control Act (New Mexico)||New Mexico||Environmental Regulations||Yes||State/Province||This act states the duties and powers of the New Mexico Environmental Improvement Board and local agencies. It also states the enforcement of regulations, permit fees, inspection of facilities and penalties.|
|Alternative Energy Product Manufacturers Tax Credit (New Mexico)||New Mexico||Industry Recruitment/Support||Yes||State/Territory||The Alternative Energy Product Manufacturers tax credit may be claimed for manufacturing alternative energy products and components, including renewable energy systems, fuel cell systems, and electric and hybrid-electric vehicles. Alternative energy components include parts, assembly of parts, materials, ingredients, or supplies that are incorporated directly into end-use products. In 2011 S.B. 233 added "products extracted from or secreted by a single cell photosynthetic organism" to the list of eligible alternative energy products.
The total amount of the credit is approved by the Taxation and Revenue Department and is not to exceed 5% of the taxpayer’s qualified expenditures. A qualified expenditure is the purchase of manufacturing equipment made after July 1, 2006.
To be eligible to claim a credit, the taxpayer must employ at least one new full-time employee for every $500,000 of expenditures up to $30,000,000, and at least one new full-time employee for every $1,000,000 of expenditures over $30,000,000.
The alternative energy product manufacturers tax credit may only be deducted from the taxpayer's modified combined tax liability, which is the total liability for the reporting period for the gross receipts, compensating tax, and withholding tax. Any portion of the alternative energy product manufacturers tax credit that remains unused at the end of the taxpayer's reporting period may be carried forward for 5 years.
|Ambient Air Quality Standards (New Mexico)||New Mexico||Environmental Regulations||Yes||State/Province||This regulation establishes ambient air quality standards for the areas of New Mexico under the jurisdiction of the Environmental Improvement Board. The maximum allowable concentrations of total suspended particulate in the ambient air are as follows: 24-hour average: 150 ug/m3; 7-day average: 110 ug/m3; 30-day average: 90 ug/m3; Annual geometric mean: 60 ug/m3. The maximum allowable concentrations of sulfur-containing air contaminants and for carbon monoxide are also listed.|
|Angel Investment Credit (New Mexico)||New Mexico||Personal Tax Incentives||Yes||State/Province||A taxpayer who files a New Mexico income tax return and who is a “qualified investor” may take a tax credit of up to $25,000 (25% of a qualified investment of not more than $100,000) for an investment made in a New Mexico company that is engaging in high-technology research or manufacturing. The taxpayer may claim the angel investment credit for up to two qualified investments in a taxable year, provided that each investment is in a different qualified business. Any portion of the tax credit remaining unused at the end of the taxpayer’s taxable year may be carried forward for three consecutive years.|
|Biomass Equipment & Materials Compensating Tax Deduction (New Mexico)||New Mexico||Sales Tax Incentive||Yes||State/Territory||In 2005, New Mexico adopted a policy to allow businesses to deduct the value of biomass equipment and biomass materials used for the processing of biopower, biofuels, or biobased products in determining the amount of Compensating Tax due.
New Mexico's Compensating Tax is an excise, or "use" tax, which is typically levied on the purchaser of the product or service for using tangible property in the state. The tax applies to imports of factory and office equipment, and other items. The rate is 5.125% on certain property used in New Mexico and 5% on certain services used in New Mexico. Compensating Tax is designed to protect New Mexico businesses from unfair competition from out-of-state business not subject to a sales or gross receipts tax. This biomass Compensating Tax deduction is analogous to a sales tax exemption for renewable energy equipment available in some other states.
|Canadian River Compact (Multiple States)||Texas
|Siting and Permitting||Yes||State/Province||The Canadian River Commission administers the Canadian River Compact which includes the states of New Mexico, Oklahoma, and Texas. Signed in 1950 by the member states, the Compact was subsequently ratified by the respective state legislatures, approved by Congress, and was signed into law by the President in 1952. The interstate Canadian River Commission includes one state commissioner appointed by the governor of each member state and one federal commissioner appointed by the President. The major purposes of the Compact are to promote interstate comity; to remove causes of present and future controversy; to make secure and protect present developments within the States; and to provide for the construction of additional works for the conservation of the waters of Canadian River.|
|Climate Action Plan (New Mexico)||New Mexico||Climate Policies||Yes||State/Province||Recognizing the profound implications that global warming and climate variation could have on the economy, environment and quality of life in the Southwest, New Mexico Governor Bill Richardson signed Executive Order 05-033 on June 5th, 2005, establishing the New Mexico Climate Change Action Council and the New Mexico Climate Change Advisory Group (CCAG). The Climate Change Action Group reviewed and provided recommendations to the Governor’s office regarding climate change policy. The Council was chaired by the Secretary of the Environment and will had representatives from the Departments of Agriculture; Economic Development; Energy, Mining, and Natural Resources; General Services; Health; Indian Affairs; and Transportation. The State Engineer, Director of Game and Fish, and the Governor’s Advisor on Energy and Environment also served on the Council. Drawing on its own expertise and the perspectives of the CCAG members, the Advisory Group found meaningful solutions that fit New Mexico’s unique needs and circumstances.|
|Collateral Support Program (New Mexico)||New Mexico||Loan Program||Yes||State/Province||The New Mexico Finance Authority has been approved to administer a $13.2 million Small Business Collateral Support Participation Program. The funds are dedicated to help finance credit worthy small businesses leverage private lending when they are unable to obtain the capital required to expand and create jobs.
Through the Collateral Support Participation program, the Finance Authority is able to partner directly with banks to provide capital to credit worthy businesses seeking to expand and create or retain jobs. Under this bank participation program, the Finance Authority is able to fund quickly and efficiently lower the interest rate paid by the business and mitigate the bank’s risk by purchasing a portion of the bank’s loan, often in a subordinated collateral position. The amount of the Finance Authority’s participation will vary based upon the location of the business, the term of the loan and the collateral position offered to the Finance Authority.
In order to qualify for Collateral Support Participation program funds, a small business must:
- Be located in New Mexico - Use the loan proceeds for business purposes - Be a non-profit corporation or a for-profit corporation, partnership, limited liability company or partnership, sole proprietorship, cooperative or other entity that is authorized to conduct business in the State of New Mexico - Have 500 or fewer employees- Meet the bank’s lending requirements with the exception of the deficient collateral, which is enhanced through the program
|Community Development Block Grant/Economic Development Infrastructure Financing (United States)||United States||Grant Program
|Yes||Federal||Community Development Block Grant/Economic Development Infrastructure Financing (CDBG/EDIF) provides public infrastructure financing to help communities grow jobs, enable new business startups and expansions for existing businesses. State programs help achieve the national objective of CDBG by funding projects in which at least 51 percent of the new jobs created are made available to low and moderate income individuals. The maximum amounts awarded under the program are $1 million for new businesses locating to the state and $500,000 for existing businesses expanding in the state.|
|Construction Permits and Fees (New Mexico)||New Mexico||Environmental Regulations
|Yes||State/Province||Industries that wish to build or modify facilities that emit air pollutants (emissions) into the air must obtain an air quality permit prior to constructing. Thus, these permits are called construction permits.
"Construction" means fabrication, erection, installation or relocation of a stationary source, including but not limited to temporary installations and portable stationary sources. The regulations establish the requirements for obtaining construction permits for air quality. The rule also establishes a schedule of fees for the construction permit program, including construction permits, permit revisions, and technical reviews of existing permits.
Two permitting divisions apply: Minor Source Units and Major Source Units.
Minor Source Units are for all sources with the potential emission rate greater than 10 pounds per hour, or 25 tons per year, of criteria pollutants (such as nitrogen oxides and carbon monoxide). Air quality construction permits must be obtained for new or modified sources prior beginning construction.Major Source Units are have a potential to emit more than 100 tons per year for criteria pollutants, or for landfills greater than 2.5 million cubic meters (2.5 million-mg). In addition, TV major sources also include facilities that have the potential to emit greater than ten tons per year of a single Hazardous Air Pollutant, or 25 tons per year of any combination of Hazardous Air Pollutants (HAP).
|Drinking Water State Revolving Loan Fund (New Mexico)||New Mexico||State Loan Program||Yes||State/Territory||The Drinking Water State Revolving Loan Fund provides low-cost financial assistance to eligible public water systems to finance the cost of repair and replacement of drinking water infrastructure, maintain or achieve compliance with the federal Safe Drinking Water Act (SWDA) requirements, and protect drinking water quality and public health.
The program offers principal forgiveness starting at 25% of project costs. Depending on determinations to be made by the New Mexico Financing Authority, additional principal forgiveness for up to a total of 75% of project costs may be awarded for communities that qualify as disadvantaged communities and certified "green projects". Green projects include green infrastructure, water conservation, energy efficiency improvements, or other environmentally innovative activities. See the website above for complete details, including the fiscal year 2015 Intended Use Plan (effective July 2014).
|Energy Efficiency & Renewable Energy Bond Program (New Mexico)||New Mexico||State Bond Program||Yes||State/Territory||New Mexico's Energy Efficiency and Renewable Energy Bonding Act, which became law in April 2005, authorizes up to $20,000,000 in bonds to finance energy efficiency and renewable energy improvements in state government and school district buildings. At the request of a state agency or school district, the New Mexico Energy, Minerals and Natural Resources Department will conduct an energy assessment of a building to determine specific efficiency measures which will result in energy and cost savings. A state agency or school district may install or enter into contracts for the installation of energy efficiency measures on the building identified in the assessment. An installation contract may be entered into for a term of up to 10 years.
The bonds are exempt from taxation by the state, and any type of renewable energy system and most energy efficiency measures, including energy recovery and combined heat and power (CHP) systems, are eligible for funding. Projects financed with the bonds will be paid back to the bonding authority using the savings on energy bills.
|Excess Emissions (New Mexico)||New Mexico||Environmental Regulations||Yes||State/Province||This regulation establishes requirements for a source whose operation results in an excess emission and to establish criteria for a source whose operation results in an excess emission to claim an affirmative defense in an administrative or judicial enforcement action from a civil penalty. "Excess emission" means the emission of an air contaminant, including a fugitive emission, in excess of the quantity, rate, opacity or concentration specified by an air quality regulation or permit condition. The owner or operator of a source subject to a permit or to the notification requirement under the New Mexico Air Quality regulations must establish and implement a plan to minimize emissions during routine or predictable startup, shutdown, and scheduled maintenance through work practice standards and good air pollution control practices. The owner or operator must maintain the plan at the location authorized by the permit, at the facility, or at the nearest occupied facility, and provide the plan to the New Mexico Environment Department upon written request. The emission of an air contaminant in excess of the quantity, rate, opacity, or concentration specified in an air quality regulation or permit condition that results in an excess emission is a violation of the air quality regulation or permit condition and may be subject to an enforcement action. The owner or operator of a source having an excess emission must, to the extent practicable, operate the source, including associated air pollution control equipment, in a manner consistent with good air pollution control practices for minimizing emissions.|
|Forestry Policies (New Mexico)||New Mexico||Environmental Regulations||Yes||State/Province||New Mexico's forests are managed by the State Forestry Department, within the New Mexico Energy, Minerals, and Natural Resources Department. In 2010 the Department issued the New Mexico Statewide Natural Resources Assessment and Strategy and Response Plans, including discussion of potential for biomass energy from forest biomass:
New Mexico offers the Biomass Equipment and Materials Compensating Tax Deduction, allowing businesses to deduct the value of equipment and materials used for processing of biobased products:
The State's forestry regulations and guidelines include required harvesting practices and harvesting permit requirements:http://www.emnrd.state.nm.us/SFD/ForestMgt/ForestMgt.html
|Gross Receipts Tax Exemption for Sales of Wind and Solar Systems to Government Entities (New Mexico)||New Mexico||Sales Tax Incentive||Yes||State/Territory||New Mexico has a gross receipts tax structure for businesses instead of a sales tax. Businesses are taxed on the gross amount of their business receipts each year before expenses are deducted. Receipts associated with the sale of certain wind turbine equipment to federal, state, or local government entities are exempt from being added to gross receipts. S.B. 201, signed in March 2010, extended this exemption to solar thermal electric and photovoltaic systems sold to a government on or after July 1, 2010.|
|Ground Water Protection Act (New Mexico)||New Mexico||Environmental Regulations||Yes||State/Province||The purpose of the Ground Water Protection Act is to provide substantive provisions and funding mechanisms to the extent that funds are available to enable the state to take corrective action at sites contaminated by leakage from storage tanks. The act establishes the Storage Tank Committee, states the New Mexico Environment Department’s right of entry and inspection, and storage tank fee.|
|Ground and Surface Water Protection (New Mexico)||New Mexico||Environmental Regulations
|Yes||State/Province||This regulation implements the New Mexico Water Quality Act. Any person intending to make a new water contaminant discharge or to alter the character or location of an existing water contaminant discharge, unless the discharge is being made or will be made into a community sewer system or subject to the Liquid Waste Disposal Regulations adopted by the New Mexico Environmental Improvement Board, must file a notice with the Ground Water Quality Bureau of the New Mexico Environment Department for discharges that may affect ground water, and/ or the Surface Water Quality Bureau of the department for discharges that may affect surface water.
However, notice regarding discharges from facilities for the production, refinement, pipeline transmission of oil and gas, the oil field service industry, oil field brine production wells, geothermal installations and carbon dioxide facilities must be filed instead with the Oil Conservation Division. Any person intending to inject fluids into a well, including a subsurface distribution system, unless the injection is being made subject to the Liquid Waste Disposal Regulations adopted by the New Mexico Environmental Improvement Board, must file a notice with the Ground Water Quality Bureau of the Environment Department.Procedures for certification of federal national pollutant discharge elimination system (NPDES) permits, standards for ground water of 10,000 mg/l tds concentration or less, applications for discharge permits and renewals, monitoring requirements and fees are also stated.
|Hazardous Waste Act (New Mexico)||New Mexico||Environmental Regulations||Yes||State/Province||"Hazardous waste" means any solid waste or combination of solid wastes that because of their quantity, concentration or physical, chemical or infectious characteristics may: cause or significantly contribute to an increase in mortality or an increase in serious irreversible or incapacitating reversible illness; or pose a substantial present or potential hazard to human health or the environment when improperly treated, stored, transported, disposed of or otherwise managed. The law excludes drilling fluids, produced waters and other wastes associated with the exploration, development or production of crude oil or natural gas or geothermal energy from the definition of hazardous waste. Also excluded is solid waste from the extraction, beneficiation or processing of ores and minerals, including phosphate rock and overburden from the mining of uranium ore. Rules are stated for permits, storage tanks waste monitoring and testing and penalties.|
|Hazardous Waste Management (New Mexico)||New Mexico||Environmental Regulations
|Yes||State/Province||The New Mexico Environment Department's Hazardous Waste Bureau is responsible for the management of hazardous waste in the state. The Bureau enforces the rules established by the Environmental Improvement Board. These rules establish regulations for the management of hazardous waste, including standards for the identification and listing of hazardous waste, for generators and transporters of hazardous waste, for owners and operators of hazardous waste treatment, storage, and disposal facilities, for specific wastes and such facilities, for land disposal restrictions, and for issuing, suspending, revoking, or modifying permits. A schedule of fees is provided for facilities seeking permits, currently permitted, or undergoing corrective action for past or present hazardous waste management activities. Fees paid are for deposit in the hazardous waste fund to meet necessary expenses in the administration and operation of the state hazardous waste program.|
|High Wage Jobs Tax Credit (New Mexico)||New Mexico||Corporate Tax Incentive||Yes||State/Province||A taxpayer who is an eligible employer may apply for and receive a tax credit for each new high-wage economic-based job. The credit amount equals 10% of the wages and benefits paid for each new economic-base job created. Qualified jobs criteria include minimum salary requirements. To qualify, employers must make more than 50% of their sales to persons outside of New Mexico. Qualified employees must reside in New Mexico and cannot own more than 50% of the company or be a relative of the employer.|
|Interconnection Standards (New Mexico)||New Mexico||Interconnection||Yes||State/Territory||Interconnection in New Mexico is governed by New Mexico Public Regulation Commission (PRC) Rule 568 and Rule 569. These rules, adopted in July 2008, revised and clarified the state's existing rules. Rule 569 applies to all qualifying facilities (QFs) under PURPA, which generally includes all renewable-energy systems and combined-heat-and-power (CHP) systems up to 80 megawatts (MW) in capacity.
Rule 568 applies to renewable-energy systems and CHP systems up to 10 MW in capacity. The purpose of Rule 568 is to simplify the interconnection requirements for QFs up to 10 MW and to encourage the use of small-scale, customer-owned renewables or alternative energy resources. All utilities subject to PRC jurisdiction must offer net metering and must comply with these standards. (Municipal utilities, which are not regulated by the commission, are exempt.)
Interconnection applications will generally follow this review path:
* Systems up to 10 kilowatts (kW) in capacity are eligible for the "Simplified Interconnection Process," which includes simplified applications. * Systems greater than 10 kW and up to 2 MW are eligible for the "Fast Track Process," which might include supplemental review. * Systems greater than 2 MW and up to 10 MW must follow the "Full Interconnection Study Process." * Systems greater than 10 MW must follow the "Case Specific Study Process."
All systems must comply with all relevant local and national standards (including the NEC, IEEE and UL standards), and must meet any additional requirements approved by the PRC. A redundant external disconnect device is required for all interconnected systems. For systems greater than 10 kW, the disconnect switch must be visibly marked and accessible to and lockable by the utility.
The PRC may require the owner of a generating facility with a rated capacity of up to 250 kW to obtain general liability insurance prior to connecting with a utility if the utility provides a sufficient reason for doing so. A utility may directly and independently require owners of systems greater than 250 kW to provide proof of insurance, with reasonable limits not to exceed $1 million, or other reasonable evidence of financial responsibility. A mutual indemnification agreement between the customer and the utility is required.Interconnected customers must pay an application fee that varies according to the size of the system. Systems up to 10 kW must pay $50; systems greater than 10 kW and up to 100 kW must pay $100; and systems greater 100 kW must pay $100 plus $1 per kW. In addition to these fees, a small utility with fewer than 50,000 customers may charge reasonable consulting fees for systems greater than 10 kW.
|Interstate Oil and Gas Conservation Compact (Multiple States)||Alabama
|Environmental Regulations||Yes||State/Province||The Interstate Oil and Gas Compact Commission assists member states efficiently maximize oil and natural gas resources through sound regulatory practices while protecting the nation's health, safety and the environment.
The Commission serves as the collective voice of member governors on oil and gas issues and advocates states' rights to govern petroleum resources within their borders.
The Commission formed the Geological CO2 Sequestration Task Force, which examines the technical, policy and regulatory issues related to safe and effective storage of CO2 in the subsurface (depleted oil and natural gas fields, saline formations and coal beds).
The Commission also funds research on hydraulic fracking, reusing water used in extracting oil and gas, and makes recommendations on national energy policies and statutes for individual states.The Commission also has several associate states: North Carolina, South Carolina, Georgia, Tennessee, Missouri, Idaho, Oregon and Washington. In addition, it has international affiliations with the Canadian provinces of Alberta, British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Saskatchewan, and the Yukon.
|Job Training Incentive Program (New Mexico)||New Mexico||Training/Technical Assistance||Yes||State/Province||This program funds classroom and on-the-job training for newly-created jobs in expanding or relocating businesses for up to six months. The program reimburses 40-75% of employee wages. Custom training may also be covered. Three categories of businesses are eligible for the program: companies that manufacture or produce a product in New Mexico; non-retail service companies exporting a substantial percentage of service out of state; and certain green industries. Jobs must be full-time and year round to be eligible.|
|Local Option - Renewable Energy Financing District/Solar Energy Improvement Special Assessments (New Mexico)||New Mexico||PACE Financing||Yes||State/Territory||Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow for more information about PACE financing and a comprehensive list of all PACE programs across the country.
Solar energy improvement financing institutions are authorized to loan property owners up to 40% of the assessed value of the property for purposes of solar energy (photovoltaic or solar thermal) improvements. The property owner will enter into a direct agreement with a certified financial institution for the funding and they will be required to apply to the county as well, since the loan through the private institution will be paid via an assessment on their property tax and will constitute a lien on the property. The county devises the process for transferring funds collected via the special assessment to the participating financial institution. No county my pass an ordinance that contains additional provisions to those outlined in the law (e.g., an ordinance may not require property owners to receive an energy audit as a condition of participation).
|Mandatory Utility Green Power Option (New Mexico)||New Mexico||Mandatory Utility Green Power Option||Yes||State/Territory||In addition to meeting the requirements of the state renewables portfolio standard, New Mexico investor-owned utilities (IOUs) are required to offer a voluntary program for purchasing renewable energy to customers. The voluntary renewable tariff may also allow consumers to purchase renewable energy within certain energy blocks and by source of renewable energy. IOUs are also required to develop an educational program communicating the benefits and availability of the green power option. The state's rural electric distribution cooperatives are also required to offer a voluntary green power program if their suppliers make such renewable resources available under their supply contracts. They are also required to report to the commission by April 30 of each year concerning the availability of renewable energy to them, and the annual demand from their customers for renewable energy.|
|Municipal Waste Combustion (New Mexico)||New Mexico||Environmental Regulations||Yes||State/Province||This rule establishes requirements for emissions from, and design and operation of, municipal waste combustion units. "Municipal waste" means all materials and substances discarded from residential dwellings and similar types of materials discarded from institutional, commercial, governmental, and industrial sources. The term does not include industrial process waste or hazardous wastes.|
|Natural Gas Processing Plant- Sulfur (New Mexico)||New Mexico||Environmental Regulations||Yes||State/Province||This regulation establishes sulfur emission standards for natural gas processing plants. Standards are stated for both existing and new plants. There are also rules for stack height requirements, record keeping and reporting.|
|Net Metering (New Mexico)||New Mexico||Net Metering||Yes||State/Territory||Net metering is available to all "qualifying facilities" (QFs), as defined by the federal Public Utility Regulatory Policies Act of 1978 (PURPA)*, which pertains to systems up to 80 megawatts (MW) in capacity. Previously, net metering in New Mexico was limited to systems up to 10 kilowatts (kW) in capacity.
Net-metered customers are credited or paid for any monthly net excess generation (NEG) at the utility's avoided-cost rate. If a customer has net excess generation (NEG) less than $50 during a monthly billing period, the excess is carried over to the customer’s next monthly bill. If NEG exceeds $50 during a monthly billing period, the utility will pay the customer the following month for the excess. Customers do not own the renewable-energy credits (RECs) associated with the generation of electricity by net-metered systems.
All utilities subject to PRC jurisdiction must offer net metering. (Municipal utilities, which are not regulated by the commission, are exempt.) Customers on a time-of-use tariff are permitted to net meter. There is no statewide cap on the aggregate capacity of net-metered systems.
The PRC adopted revised interconnection standards for customer-sited generators in July 2008; separate rules are in effect for systems less than or equal to 10 MW and systems larger than 10 MW. The PRC's interconnection rules also include a simplified interconnection process and application for systems less than or equal to 10 kW, and a fast-track process for systems less than or equal to 2 MW.
* In general, QFs under PURPA include renewable-energy systems and combined heat and power (CHP) systems.
|Open Burning (New Mexico)||New Mexico||Environmental Regulations||Yes||State/Province||The New Mexico Environment Department's Air Quality Bureau regulates the open burning rules established by the Environmental Improvement Board. These rules are established to protect public health and welfare by establishing controls on pollution produced by open burning. Open burning is allowed for recreational and ceremonial purposes, for barbecuing, for heating purposes in fireplaces, for the noncommercial cooking of food for human consumption and for warming by small wood fires at construction sites. This rule does not apply to open burning for the purpose of waste disposal. Open burning of natural gas is allowed at gasoline plant and compressor stations and when used or produced in drilling, completion and work over operations on oil and gas wells, when necessary to avoid serious hazard to safety. Open burning of hazardous waste2 is allowed only when conducted in compliance with interim status regulations, or a permit issued, pursuant to the New Mexico Hazardous Waste Act and any other permits issued by the department. The regulation applies statewide, except in Bernalillo County and on Tribal and Pueblo Lands (where NMED does not have authority over air quality).|
|Operating Permits and Emission Fees (New Mexico)||New Mexico||Environmental Regulations
|Yes||State/Province||The New Mexico Environment Department's Air Quality Bureau processes permit applications for industries that emit pollutants to the air. The Permitting Section consists of three units, the Minor Source Unit, the Major Source Unit and the Technical Services Unit. The Bureau is governed by regulations established by the Environmental Improvement Board, which establish the requirements for obtaining an operating permit. It also establishes a schedule of operating permit emission fees. An annual operating permit emission fee shall be paid to the department by each owner or operator subject to this part. The annual fee shall be calculated by taking the product of the allowable emission rate for each fee pollutant expressed in tons per year and the appropriate fee per ton of pollutant.|
|PNM - Performance-Based Solar PV Program (New Mexico)||New Mexico||Performance-Based Incentive||Yes||Utility||In March 2006, PNM initiated a renewable energy credit (REC) purchase program as part of its plan to comply with New Mexico's renewable portfolio standard (RPS). PNM will purchase RECs from customers who install photovoltaic (PV) and solar thermal electric systems up to 1 megawatt (MW). PNM will then be able to apply these RECs towards their obligations under the state's RPS, which requires 4% of the total generation capacity to come from solar electricity and 0.6% from distributed generation by 2020.
REC payments are based on the system's total output. PNM will purchase RECs from each participant as part of the regular monthly billing process. Participants will receive a monthly bill documenting the number of kilowatt-hours (kWh) produced by the PV system, the number of RECs purchased by PNM, the purchase price per REC and the total price of RECs purchased that billing period. REC purchase payments will be applied as a credit to the participant's electric bill on a monthly basis. REC prices will decline over time as certain MW targets are met. The prices included here are current as of August 30, 2014.
|Property Tax Exemption for Residential Solar Systems (New Mexico)||New Mexico||Property Tax Incentive||Yes||State/Territory||Residential solar energy systems are exempted from property tax assessments in New Mexico in most circumstances. For the purposes of determining property taxes, the value of a property cannot increase by the greater of 3% of the previous year's assessment or 6.1% of the assessment from two years ago according to state law. An assessment may exceed these restrictions, however, if physical improvements are made to the property. Under H.B. 233, enacted in 2010, residential solar systems will not be treated as physical improvements and therefore will not increase the value of the property for property tax purposes. Future assessments, however, can include the value of a solar energy system if the property is sold.
A solar energy system is defined as a system that provides space heat, water heat, or electricity to the property. The term specifically does not include windows, dark-colored water tanks, or non-vented trombe walls.
|Public Project Revolving Fund (PPRF) (New Mexico)||New Mexico||Loan Program||Yes||State/Province||The New Mexico Finance Authority’s Public Project Revolving Fund (PPRF) funds infrastructure and capital equipment projects with low-cost and low-interest rate loans. The key characteristics of the PPRF is that all participating borrowers, regardless of their credit worthiness, receive ‘AAA’ insured interest rates; among the lowest interest rates available in the market. The PPRF is used to assist a wide range of governmental entities in accessing the capital markets at an all-in cost that is highly competitive and usually more competitive than other financing alternatives available to public entities. NMFA is an AAA / Aa1 credit (Agency Reports) whose bonds are highly sought by investors allowing NMFA to issue bonds in the capital markets at very attractive rates. NMFA passes the pricing benefits it receives in the public capital markets on to New Mexico communities in the form of loans. NMFA charges a flat fee of 1.5%, capped at $75,000, on loans that it makes from the PPRF.|
|Qualifying RPS State Export Markets (New Mexico)||New Mexico||Renewables Portfolio Standards and Goals||Yes||State/Province||This entry lists the states with Renewable Portfolio Standard (RPS) policies that accept generation located in New Mexico as eligible sources towards their RPS targets or goals. For specific information with regard to eligible technologies or other restrictions which may vary by state, see the RPS policy entries for the individual states, shown below in the Authority listings. Typically energy must be delivered to an in-state utility or Load Serving Entity, and often only a portion of compliance targets may be met by out-of-state generation. In addition to geographic and energy delivery requirements, ownership, registry, and other requirements may apply, such as resource eligibility, generator vintage and capacity limitations, as well as limits on Renewable Energy Certificate (REC) vintage. The listing applies to RPS Main Tiers only, and excludes solar or distributed generation that may require interconnection only within the RPS state. This assessment is based on energy delivery requirements and reasonable transmission availability. Acceptance of unbundled RECs varies. There may be additional sales opportunities in RPS states outside the Eastern Interconnection. REC prices in markets with voluntary goals (North Dakota, South Dakota) may be lower.|
|R&D Small Business Tax Credit (New Mexico)||New Mexico||Corporate Tax Incentive||Yes||State/Province||A qualified small business R&D small business is eligible for a credit equal to the sum of all gross receipts taxes, compensating taxes, or withholding taxes due to the state for up to three years. Qualified R&D small businesses can employ no more than 25 employees or have a total revenue of more than $5 million.
Qualified research is defined as that undertaken for the purpose of discovering information that is technological in nature and the application of which is intended to be useful in the development of a new or improved business component and in which substantially all activities constitute elements of a process of experimentation related to new or improved function, performance, reliability or quality, but not related to style, taste, cosmetic or seasonal design factors.
Qualified R&D small business means a business that: 1. Employs no more than 25 employees in any prior calendar month 2. Had total revenue of no more than $5 million dollars in any prior fiscal year. 3. Did not in any prior calendar month have more than 50% of its voting securities or other equity interest with the right to designate or elect the board of directors or other governing body of the qualified business owned directly or indirectly by another business4. Has made qualified research expenditures for the period of 12 calendar months ending with the month for which the credit is sought of at least 20% of its total expenditures for those 12 months.
|Renewable Energy Act (New Mexico)||New Mexico||Generating Facility Rate-Making
Renewables Portfolio Standards and Goals
|Yes||Utility||The purposes of the Renewable Energy Act are to prescribe the amounts of renewable energy resources that public utilities shall include in their electric energy supply portfolios for sales to retail customers in New Mexico by prescribed dates; allow public utilities to recover costs through the rate-making process incurred for procuring or generating renewable energy used to comply with the prescribed amount; and protect public utilities and their ratepayers from renewable energy costs that are above a reasonable cost threshold.|
|Renewable Energy For Electric Utilities (New Mexico)||New Mexico||Generating Facility Rate-Making
Renewables Portfolio Standards and Goals
|Yes||Utility||The purpose of this rule is to implement the Renewable Energy Act, and to bring significant economic development and environmental benefits to New Mexico. This rule applies to electric public utilities and rural electric distribution cooperatives. Each public utility must develop a reasonable cost renewable energy portfolio. In developing its renewable energy portfolio, a public utility shall take into consideration the potential for environmental and economic benefits to New Mexico. The renewable portfolio standard shall be no less than five percent (5%) of annual retail jurisdictional energy sales for calendar year 2006 and six percent (6%) for calendar years 2007 through 2010, except as modified by Subsection C of this section. The renewable portfolio standard shall be no less than ten percent (10%) for calendar years 2011 through 2014. The renewable portfolio standard shall be no less than fifteen percent (15%) for calendar years 2015 through 2019. The renewable portfolio standard shall be no less than twenty percent (20%) for calendar year 2020 and subsequent years. Rural electric distribution cooperatives must offer their retail customers a voluntary renewable energy tariff to the extent that their suppliers under their all-requirements contracts make such renewable resources available. Rural electric distribution cooperatives must report to the commission by April 30 of each year concerning the availability to them of renewable energy and the annual demand for renewable energy pursuant to their voluntary tariff.|
|Renewable Energy Production Tax Credit (Corporate) (New Mexico)||New Mexico||Corporate Tax Credit||Yes||State/Territory||Enacted in 2002, the New Mexico Renewable Energy Production Tax Credit provides a tax credit against the corporate income tax of $0.01 per kilowatt-hour (kWh) for companies that generate electricity from wind or biomass. Companies that generate electricity from solar energy receive a tax incentive that varies annually according to the following schedule:
According to the EMNRD, this incentive averages $0.027 per kWh annually.
For electricity generated prior to October 1, 2007, excess credit may be carried forward for up to 5 consecutive taxable years. For electricity generated on or after October 1, 2007, excess credit shall be refunded to the taxpayer in order to allow project owners with limited tax liability to fully utilize the credit.
|Renewable Energy Production Tax Credit (Personal) (New Mexico)||New Mexico||Personal Tax Credit||Yes||State/Territory||Enacted in 2002, the New Mexico Renewable Energy Production Tax Credit provides a tax credit against the personal income tax of $0.01 per kilowatt-hour (kWh) for companies that generate electricity from wind or biomass. Companies that generate electricity from solar energy receive a tax incentive that varies annually according to the following schedule:
According to the Energy, Minerals and Natural Resources Department, this incentive averages $0.027 per kWh annually.
|Renewables Portfolio Standard (New Mexico)||New Mexico||Renewables Portfolio Standard||Yes||State/Territory||Note: The New Mexico Public Regulation Commission (PRC) passed an order in December 2012, making some significant changes to the state's Renewables Portfolio Standard. Notably, the order increased the carve-out for wind from 20% to 30% of the overall standard. It also increased the reasonable cost threshold for investor-owned utilities such that 3% of their total annual revenue must be spent procuring renewable energy. Cooperative utilities will also have to comply with a 5% reasonable cost threshold beginning in 2015.
In March 2007, New Mexico passed SB 418, which directs investor-owned utilities to generate 20% of total retail sales to New Mexico customers from renewable energy resources by 2020, with interim standards of 10% by 2011 and 15% by 2015. The bill also establishes a standard for rural electric cooperatives of 10% by 2020 (see below). Furthermore, utilities are to set a goal of at least 5% reduction in total retail sales to New Mexico customers, adjusted for load growth, by January 1, 2020.
Renewable energy is defined as electric energy generated by low- or zero-emissions generation technology with substantial long-term production potential; solar; wind; geothermal; hydropower facilities brought in service after July 1, 2007; fuel cells that are not fossil fueled; and biomass resources, such as agriculture or animal waste, small diameter timber, salt cedar and other phreatophyte or woody vegetation removed from river basins or watersheds in New Mexico, landfill gas and anaerobically digested waste biomass. Renewable energy does not include electric energy generated from fossil fuel or nuclear facilities.
Utilities document compliance with the RPS through the use of renewable-energy certificates (RECs). A REC represents one kilowatt-hour (kWh) of renewable electricity. RECs used for RPS compliance on or after January 1, 2008 must be registered with the Western Renewable Energy Generation Information System (WREGIS). RECs not used for compliance, sold, or otherwise transferred may be carried forward for up to four years.
RPS for Investor-Owned Utilities In August 2007, the PRC issued an order and rules requiring that investor owned utilities meet the 20% by 2020 target through a "fully diversified renewable energy portfolio" which is defined as a minimum of 20% solar power, 30% wind power, and 5% from either biomass, geothermal energy, hydro brought into service after July 1, 2007, and other renewables starting in 2011. Additionally 1.5% must come from distributed renewables by 2011, rising to 3% in 2015. Distributed resources counted toward the other portfolio requirements cannot also be counted for the distributed requirement. Utilities will be excused from the diversification targets should costs of achieving them raise the cost of electricity by more than 2 percent or if the targets cannot be accomplished without impairing system reliability.
The reasonable cost threshold for 2006 was 1% of the utilities' total annual revenue, and increased by one-fifth percent per year until January 1, 2011. The reasonable cost threshold for 2013 and 2014 is 3%. In any given year, if the cost to procure renewable energy is greater than the reasonable cost threshold, a public utility will not be required to incur that cost or to procure that resource, provided that the condition excusing performance under the renewable portfolio standard in any given year will not operate to delay the annual increases in the renewable portfolio standard in subsequent years. A public utility that believes its procurement will exceed the reasonable cost threshold shall file with the commission a request for waiver of the renewable portfolio standard for the applicable calendar year.
The additional cost of the RPS to non-governmental customers who consume more than 10 million kWh per year is also limited so as not to exceed the lower of 1% of that customer's annual electric charges or $49,000. This procurement limit increases by 0.2% or $10,000 per year until January 1, 2011, when it remains fixed at the lower of 2% of the customer's annual electric charges or $99,000. After January 1, 2012, the $99,000 limit is adjusted for inflation by the amount of the cumulative change in the Consumer Price Index, Urban (CPI-U) between January 1, 2011 and January 1 of the procurement plan year. SB 549 of 2011 exempts political subdivisions of the state, under certain conditions, from all utility charges associated with renewable energy generation.
On July 1 of every year, investor-owned utilities must file a report to the PRC on its procurement and generation of renewable energy during the prior calendar year and submit a procurement plan.
RPS for Rural Electric Cooperatives In March 2007, SB 418 created a separate renewables portfolio standard for rural electric distribution cooperatives: 5% of retail sales by 2015, increasing 1% per year to reach 10% renewables by 2020. Cooperatives are not required to incur RPS compliance costs that exceed the “reasonable cost threshold”, which is set at 1% of the distribution cooperative’s gross receipts from business transacted in New Mexico for the preceding calendar year. This reasonable cost threshold increases to 5% beginning in 2015.
In addition to the RPS, SB 418 established a “renewable energy and conservation fee” to support programs or projects to promote the use of renewable energy, load management or energy efficiency. Distribution cooperatives may collect from its customers a fee of no more than 1% of the customer’s bill, not to exceed $75,000 annually from any single customer.
Distribution cooperatives must report to the PRC by March 1 of each year on its purchases and generation of renewable energy during the preceding calendar year.
BackgroundIn December 2002, the PRC unanimously approved a renewables portfolio standard (RPS) requiring investor-owned utilities to derive 5% of annual retail sales to New Mexico customers from renewable energy sources by 2006, rising to 10% by 2011. In March of 2004, Senate Bill 43 codified the PRC rules and established additional requirements. New Mexico subsequently doubled its RPS for investor-owned utilities and created a separate standard for rural electric cooperatives in March 2007 (Senate Bill 418).
|Rural Jobs Tax Credit (New Mexico)||New Mexico||Corporate Tax Incentive
Personal Tax Incentives
|Yes||Local||This credit can be applied to taxes due on (state) gross receipts, corporate income, or personal income tax. Rural New Mexico is defined as any part of the state other than Los Alamos County; certain municipalities: Albuquerque, Rio Rancho, Farmington, Las Cruces, Roswell, and Santa Fe; and a 10-mile zone around those select municipalities. The rural area is divided into two tiers: Tier 2 = Non-metro area municipalities that exceed 15,000 in population: Alamogordo, Carlsbad, Clovis, Gallup, and Hobbs; Tier 1 = Everywhere else in a rural area. The maximum tax credit amount with respect to each qualifying job is equal to: Tier 1: 25% of the first $16,000 in wages paid for the qualifying job (may be taken for four years); Tier 2: 12.5% of the first $16,000 in wages paid for the qualifying job (may be taken for two years). A qualifying job is a job filled by an eligible employee for 48 weeks in a 12-month qualifying period. The credit may be carried forward for up to 3 years.|
|Small Business Loans (New Mexico)||New Mexico||Loan Program||Yes||State/Province||The Loan Fund, a non-profit organization, offers loans for small businesses and start-ups, and for business lines of credit. The loan can be used to finance equipment, inventory, building renovations, operating capital, and business expansions. Each loan application is reviewed on a case-by-case basis, but typical loan rates and terms are: 8-10% interest rates; amounts from $5000 - $500,000; terms from 1-10 years, and 15-20 year amortizations for real estate-based loans.|
|Smoke and Visible Emissions (New Mexico)||New Mexico||Environmental Regulations||Yes||State/Province||This rule establishes controls on smoke and visible emissions from certain sources. This rule is not intended to preempt any more stringent controls on smoke and visible emissions provided in any other air quality control regulation or in any local ordinance or regulation. The owner or operator of stationary combustion equipment shall not permit, cause, suffer or allow visible emissions from the stationary combustion equipment to equal or exceed an opacity of 20 percent.|
|Solar Market Development Tax Credit (New Mexico)||New Mexico||Personal Tax Credit||Yes||State/Territory||New Mexico provides a 10% personal income tax credit (up to $9,000) for individuals, sole proprietorship businesses (or one that is required or allowed to elect to file taxes using IRS Form 1040), and agricultural enterprises who purchase and install certified photovoltaic (PV) and solar thermal systems. Eligible systems include grid-tied commercial PV systems, off-grid and grid-tied residential PV systems, and (active) solar hot water or hot air systems. To be eligible, systems must first be certified by the New Mexico Energy, Minerals and Natural Resources Department. Note that solar pool or hot tub heaters are not eligible for this tax credit.
All relevant forms are available at the website listed above.
|Solid Waste (New Mexico)||New Mexico||Environmental Regulations||Yes||State/Province||The New Mexico Environment Department's Solid Waste Bureau manages solid waste in the state. The Bureau implements and enforces the rules established by the Environmental Improvement Board. These rules establish regulations for solid waste management. "Solid waste" means any garbage, refuse, sludge from a waste treatment plant, water supply treatment plant, or air pollution control facility and other discarded material including solid, liquid, semisolid, or contained gaseous material resulting from industrial, commercial, mining, construction, demolition and agricultural operations and from community activities. The rule establishes regulations for permits and registrations and standards for facilities.|
|Solid Waste Act (New Mexico)||New Mexico||Environmental Regulations||Yes||State/Province||The main purpose of the Solid Waste Act is to authorize and direct the establishment of a comprehensive solid waste management program. The act states details about specific waste management programs, permit requirements, penalties and solid waste assessment fees.|
|Technology Jobs Tax Credit (New Mexico)||New Mexico||Corporate Tax Incentive||Yes||State/Province||This credit has two parts: a basic credit and an additional credit, each equal to 4% of the qualified expenditures on qualified research at a qualified facility. The credit amount doubles for expenditures in facilities located in rural New Mexico (as defined for this tax credit as anywhere outside Rio Rancho or more than 3 miles outside Bernalillo, Dona Ana, San Juan or Santa Fe counties).
Eligible Uses 1. Expenditures: Includes a wide range of non-reimbursed expenses such as payroll, consultants and contractors performing work in New Mexico, software, equipment, technical manuals, rent, and operating expenses of facilities.
2. Research: Must be technological in nature and constitute elements of a process of experimentation leading to new or improved function, performance or reliability (not cosmetic, style).3. Facility: A building or group, with land and machinery, equipment and other real or personal property used in connection with the operation of the facility; excludes national labs.
Rates and Terms 1. Basic credit: The taxpayer claims the credit within one year following the end of the year in which the expenditure was made. The credit amount is applied against the taxpayer’s state gross receipts, compensating and withholding liabilities until the credit is exhausted.2. Additional credit: A taxpayer earns the additional credit by increasing its payroll. The annual payroll must increase by at least $75,000 over the base period and by at least $75,000 for each $1 million in qualified expenditures (equivalent to $40,000 in credit) it wishes to claim. The base period floats; it is defined as the 12-month period ending on the day one year prior to the day the taxpayer applies for the additional credit. The base period payroll amount is also to be adjusted for inflation so that merely keeping up with the inflation will not earn any credit. The credit is not refundable, but excess credit amounts may be carried forward.
|Water Quality Act (New Mexico)||New Mexico||Environmental Regulations||Yes||State/Province||This act establishes the Water Quality Control Commission and states the powers and duties of the commission. Rules are stated for adoption of regulations and standards and information is provided about permits, construction limitations and penalties.
The commission is the state water pollution control agency for New Mexico for all purposes of the federal Clean Water Act and the wellhead protection and sole source aquifer programs of the federal Safe Drinking Water Act.The duties and powers of the commission include adoption of a comprehensive water quality management program, the development of a continuing planning process, the administration of loans and grants from the federal government, the adoption of water quality standards, and the adoption of regulations "to prevent or abate water pollution in the state or in any specific geographic area or watershed of the state...or for any class of waters." Under this Act, water is defined as all water, including water situated wholly or partly within or bordering upon the state, whether surface or subsurface, public or private, except private waters that do not combine with other surface or subsurface water.
|Western Interstate Nuclear Compact State Nuclear Policy (Multiple States)||Arizona
|Siting and Permitting||Yes||State/Province||Legislation authorizes states' entrance into the Western Interstate Nuclear Compact, which aims to undertake the cooperation of participating states in deriving the optimum benefit from nuclear and related scientific or technological resources, facilities, and skills. The Compact is the legal basis for the Western Interstate Energy Board, which provides the instruments and framework for cooperative state efforts to "enhance the economy of the West and contribute to the well-being of the region's people." While originally intended to oversee nuclear issues, the Board's purview extends beyond nuclear power to state cooperation on general energy, electricity, and climate issues. The western states of Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming, along with associate members Alberta, British Columbia, and Saskatchewan, comprise the membership of the Board and are party to the Compact.|
|Xcel Energy - Solar*Rewards Program (New Mexico)||New Mexico||Performance-Based Incentive||Yes||Utility||Through the Solar*Rewards program, Xcel Energy is purchasing renewable energy credits (RECs) from customers in New Mexico who install photovoltaic (PV) systems. The RECs that Xcel purchases will help the utility comply with New Mexico's renewable portfolio standard (RPS) in exchange for a financial incentive to homeowners and businesses who install PV systems.
Larger systems between 100.1 kW and two megawatts can participate through a request for proposals (RFP) and will receive a per-kWh payment for their RECs at a rate to be determined through the RFP process.