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Committee backs HB 295 to clarify property-tax exemption for Renewable Energy Transmission Authority projects
Summary
The Senate Conservation Committee gave a favorable recommendation to House Bill 295 (4–1, with four excused), a technical fix clarifying that transmission lines owned by the Renewable Energy Transmission Authority (RETA) are tax‑exempt under longstanding state practice; proponents said the change protects investment in clean‑energy transmission.
The Senate Conservation Committee recorded a favorable recommendation on House Bill 295, a technical change to the property tax code intended to confirm that property owned by the Renewable Energy Transmission Authority (RETA) is tax‑exempt.
Proponents, including Lynn Mosteller, RETA’s executive director, told the committee the change aligns the tax code with the authority’s constitutional exemption and long‑standing practice used to incentivize large transmission investments. Mosteller said the structure — RETA acquisition, lease and leaseback of transmission projects — reduces costs for developers and has supported major renewable transmission and wind projects in New Mexico.
“It's a technical fix to the property tax code for RITA owned projects,” Mosteller told the committee. She said the exemption applies to RETA‑owned transmission lines and related structures, not to wind farms themselves.
Supporters said confirming the exemption will protect existing and future private investment, and will not alter county revenue streams because counties continue to receive funds through community benefit agreements and other local arrangements rather than through the property tax on RETA property. Committee testimony referenced the Renewable Energy Transmission Authority Act (2007) as the enabling statute behind RETA’s structure.
The committee voted to recommend passage of HB 295 by a 4–1 margin, with four senators recorded as excused. The roll call recorded Senators Charlie, Hamlin, Pope and De Lopez as voting yes and Senator Scott as voting no; several members were listed as excused. After the vote the committee lost quorum and later items were rolled.
The bill’s supporters said the measure is intended as a cleanup to ensure state law reflects the policy that RETA property has been treated as governmental and therefore tax‑exempt since RETA’s creation in 2007. Lynn Mosteller and Jeremy Turner (former RETA executive director) were present as expert witnesses. The committee did not adopt amendments during the hearing.
What happens next is procedural: a favorable committee recommendation moves the bill forward in the legislative process, subject to floor action and potential amendments.
