Senate Finance Committee backs site-readiness bill that expedites utility approvals, adds PPRF authority with shortened sunset

The New Mexico Senate Finance Committee moved Senate Bill 170 forward with amendments after hearing support from utilities and business groups and opposition from a consumer advocate.

Sponsors and agency witnesses told the committee the bill and a companion site-readiness measure are designed to make New Mexico “ready” when large commercial or industrial projects consider locating or expanding here by allowing certain pre-deployment of utility infrastructure and a more expedited regulatory review. Secretary-designate Rob Black, introduced to the committee as an expert witness, told the committee, “We do believe that the ability to deploy utilities quickly is essential for us to be competitive for economic development,” and said the bill was drafted in consultation with the Public Regulation Commission (PRC).

The measure requires the PRC to act on certain economic-development-related utility applications within six months; if the PRC does not act within that timeframe the filings are deemed approved under the bill’s procedures as discussed in the hearing. The committee adopted an amendment that the sponsor said ensures public comment “all throughout the process.” Testimony from regulated utilities and business groups supported the bill’s intent to shorten timelines. Carlos Lucero of the Public Service Company in New Mexico told the committee that current timelines can take “3, 4 years” and said SB 170 “will help pre build infrastructure and expedite the rate making process to attract and retain commercial and industrial businesses.” Enrique Nell of the Greater Albuquerque Chamber of Commerce said oversight by the Economic Development Department and the PRC plus a sunset were intended to provide checks on the program.

Opponents raised concerns about consumer protections and the potential for shifting costs to ratepayers. Marielle Nassy, executive director and senior attorney at New Energy Economy, said the bill “would undermine the current regulatory practice and twists 62 dash 9 dash 6, which requires that the utility seek prior approval before it constructs,” and warned that fast-tracking could force ratepayers to bear undue financial risk.

The bill also expands the New Mexico Finance Authority (NMFA) Public Project Revolving Fund (PPRF) authority to include certain utility projects to accelerate pre-deployment of infrastructure. Marquita, identified in the hearing as an NMFA official, told the committee the authority replenishes the PPRF through bond issuance and said the authority “just closed on a $100,000,000 bond” and that the program has the capacity to fund roughly “$300–$400 million of loans annually” under current assumptions.

Several senators expressed concern about removing legislative approval of PPRF project authorizations for an extended period; the sponsor and NMFA staff said the bill would use a temporary delegation with a sunset. Committee members proposed and accepted an amendment shortening a proposed long sunset to read through June 30, 2028 (the sponsor had proposed a longer date); the amendment was seconded and approved for committee consideration.

The committee moved a do-pass recommendation on SB 170 on a roll call. The recorded vote was 9 in favor, 1 opposed (Senator Steinborn). The committee sent the bill forward with the adopted amendment requiring public input and the shortened sunset date.

Votes at a glance: SB 170 — do pass to next committee/floor, 9-1 (roll call recorded in committee transcript).

Next steps noted in the hearing: witnesses said site certification by the Economic Development Department would precede a PRC filing; the department said it expects a 30-day certification step and anticipates only a limited number of qualifying sites in the near term. The committee discussion also referenced the companion site-readiness bill (identified in the record as Senate Bill 169) and said the measures are intended to function together.