Committee advances HB128 to create $60 million Local Solar Access Fund administered by NMFA

The House Energy, Environment & Natural Resources Committee on Oct. 12, 2025, voted to advance House Bill 128, which would create a Local Solar Access Fund at the New Mexico Finance Authority (NMFA) and make a $60 million annual nonreverting appropriation to finance grants that help public entities, school districts, tribal governments and local governments install solar systems and related equipment.

Sponsor Rep. Huerbo Caballero introduced the amended bill and said the change to the committee substitute was technical and clarified the NMFA rulemaking and removed a contingency clause. "It's a very technical amendment based on feedback we received, to improve the rulemaking section and clarify it and to remove, the contingency section based on feedback we received from NMFA," Caballero said.

The nut graf: supporters said HB128 would fill a financing gap for rural, tribal and low-income public entities that lack access to capital or tax credits and would expand resilience, reduce operating costs and create local jobs; committee members asked for clarity on storage prioritization and long-term program funding.

Program design and administration details

- Fund and appropriation: The bill creates a Local Solar Access Fund at NMFA and contemplates a $60,000,000 annual nonreverting appropriation to be administered by NMFA in coordination with the Energy, Minerals and Natural Resources Department (EMNRD). Sponsor and witnesses explained NMFA would administer the grants while EMNRD would provide technical review and rulemaking consultation.

- Eligible recipients: The substitute targets public entities, school districts, municipalities, counties, tribal governments, pueblos and political subdivisions such as land grants, with a focus on communities that lack access to private tax-credit financing because they are non-taxable public bodies.

- Rulemaking and priorities: The bill requires rulemaking to define eligibility, evaluation criteria and grant award processes; committee members suggested prioritizing systems with energy storage and other resilience features during implementation.

Public comment and stakeholder support

The committee took a short roster of public testimony. Supporters included JD Bullington (representing Gallup-McKinley County School District and other clients), Glenn Weichel (Third Act New Mexico), Jim Deschardins (Renewable Energy Industries Association of New Mexico) and Jane Yee (Environmental Justice Caucus). Online testimony from Stephanie Weisberg (350 New Mexico) supported local energy independence for rural communities.

Committee questions

Members asked whether NMFA is the appropriate administering agency and why the program is structured as an appropriation rather than a tax-credit incentive. Sponsor and witnesses said NMFA cannot directly receive appropriations from the general fund without routing through EMNRD, and the grant structure is intended to serve public entities that cannot use tax credits. Committee members also requested clarification about whether the fund would prioritize storage and about the program's dependence on oil-and-gas revenue versus other funding sources.

Committee action and vote

The committee adopted a technical amendment to the bill and then voted to advance HB128 as amended. The committee roll-call showed a do-pass-as-amended recommendation (committee vote: 7 yes, 4 no). The chair called for the bill to proceed to the next committee(s) and noted sponsors are working to place the requested appropriation in the budget bill.

Why this matters

Supporters said the fund would help local governments, schools and tribal entities deploy distributed solar and resilience projects that reduce energy costs and provide backup power during outages. Opponents and some members urged more explicit prioritization for storage, clearer funding sources and coordination with existing federal and state programs.

Ending note

With a do-pass-as-amended recommendation from committee, HB128 moves forward in the legislative process; sponsors and agencies will continue technical work on rulemaking, prioritization of storage and the funding pathway for the $60 million appropriation.