On February 21, 2025, the New Mexico House of Representatives introduced House Bill 2, a legislative proposal aimed at addressing various funding and operational needs within the state's energy and natural resources sectors. The bill outlines several key appropriations and extensions intended to enhance energy efficiency, compliance, and infrastructure projects across New Mexico.

One of the primary provisions of House Bill 2 is the allocation of $5 million to support a community energy efficiency block grant program statewide. This initiative is designed to promote energy-saving measures at the community level, potentially reducing energy costs and environmental impacts.

Additionally, the bill seeks to extend the expenditure period for previously allocated funds aimed at addressing inspection and compliance backlogs within the Oil Conservation Division. Specifically, it extends the use of $2.525 million appropriated from the general fund through fiscal year 2026, allowing for continued efforts to ensure regulatory compliance in the oil sector.

House Bill 2 also includes funding for the development of a New Mexico-specific quadrennial energy review and transition plan, with an allocation of $2 million. This plan is expected to guide the state's energy policies and initiatives in alignment with federal standards and local needs.

Moreover, the bill proposes to match federal funds for grant programs under the Infrastructure Investment and Jobs Act, with an allocation of $940,700. This matching funding is crucial for leveraging additional federal resources to improve infrastructure within the state.

The State Engineer's office is also a significant focus of House Bill 2, with provisions extending the expenditure periods for $5 million allocated for the planning and repair of acequias and community ditches, as well as $10 million for critical dam maintenance and improvement projects. Both funding streams are extended through fiscal year 2026, ensuring that essential water management and flood control projects can proceed without interruption.

As discussions around House Bill 2 continue, stakeholders are closely monitoring its implications for New Mexico's energy landscape and infrastructure resilience. The bill's provisions reflect a proactive approach to addressing pressing issues in energy efficiency, regulatory compliance, and infrastructure maintenance, positioning New Mexico to better meet its energy needs and environmental responsibilities in the coming years.