The bill modifies the Renewable Portfolio Standard (RPS) for public utilities in New Mexico, allowing them to request a waiver from RPS and zero carbon emission requirements if compliance would result in residential rate increases exceeding one-half percent. This waiver enables public utilities to invest in carbon-based energy generation facilities and operate them throughout their useful life. Additionally, the bill establishes a voluntary certified natural gas monitoring and reporting program, which requires operators to follow specific protocols aimed at promoting low-emission natural gas production and ultimately creating a carbon intensity standard for natural gas in the state.

Furthermore, the bill introduces a corporate income tax credit to incentivize the installation of qualified greenhouse gas-reducing natural gas technologies. This credit allows taxpayers to claim 15% of the purchase price for eligible equipment and software, with provisions for certification through the department of environment. The tax credit will be applicable for taxable years starting on or after January 1, 2026, and will take effect on July 1, 2026. Importantly, any unused portion of the credit cannot be refunded or carried forward, and taxpayers are required to report the credit amount to the department, ensuring transparency in its fiscal impact.

Statutes affected:
introduced version: 62-16-4