The "Solar and Wind Financial Assurance Act" establishes a framework for ensuring financial responsibility for the decommissioning of solar and wind energy generation facilities in New Mexico. The act mandates that owners or operators of these facilities provide financial assurance, such as an irrevocable letter of credit or a facility-specific decommissioning insurance policy, prior to operation. The division responsible for overseeing these facilities will set specific decommissioning requirements, including the removal and proper disposal of equipment, site remediation, and monitoring. Existing facilities must comply with these financial assurance requirements by January 1, 2028.

Additionally, the act creates the "solar and wind decommissioning fund," which will be administered by the division and funded through various sources, including appropriations and forfeitures from non-compliance with financial assurance requirements. If an owner or operator fails to meet these requirements, the division can order decommissioning or forfeiture of the financial assurance. The act also allows the division to seek indemnification from operators if the financial assurance proves insufficient to cover decommissioning costs. Overall, this legislation aims to ensure that solar and wind energy facilities are responsibly decommissioned, protecting the environment and public interests.