The "Renewable Energy Financial Assurance Act" establishes a framework for ensuring financial assurance for the decommissioning of renewable energy facilities in New Mexico. The act defines key terms related to renewable energy facilities and decommissioning, and grants the energy conservation and management division authority over financial assurance matters. Owners or operators of renewable energy facilities are required to provide financial assurance before commencing commercial operations, with the amount determined by the division. Acceptable forms of financial assurance include surety bonds, letters of credit, and cash accounts, among others. The division is tasked with reviewing these requirements periodically to account for inflation and changes in decommissioning costs.

Additionally, the act creates the "renewable energy decommissioning fund," which will be administered by the division and consist of various sources of funding, including appropriations and donations. This fund will be used to facilitate the decommissioning of renewable energy facilities. If an owner or operator fails to comply with financial assurance requirements, the division can order decommissioning or forfeiture of the financial assurance, with any forfeited funds directed to the decommissioning fund. The act also allows the division to seek indemnification from owners or operators if financial assurance is insufficient to cover decommissioning costs.