The proposed "Well Repurposing Act" allows the Energy, Minerals and Natural Resources Department of New Mexico to authorize the conversion of oil or gas wells into facilities that provide energy storage or develop geothermal energy. The bill includes definitions for "energy storage," "geothermal energy development," and "geothermal resources," clarifying the scope of the act. It also grants the department the authority to establish specific fees and financial assurance requirements related to these conversions.

Additionally, the act stipulates that oil or gas wells converted for energy storage and actively operated will not be classified as inactive or abandoned, but rather as being used for beneficial purposes. However, if a well authorized for energy storage ceases operations for twelve months or longer, it must be plugged and abandoned in accordance with state law. The provisions of this act are set to take effect on July 1, 2025.