Committee gives due pass to HB128, creating $20 million Local Solar Access Fund to support small community solar and storage projects

House Bill 128, which would establish a Local Solar Access Fund at the New Mexico Finance Authority and include a nonrecurring appropriation of $20 million to support planning and implementation grants for distributed, community-focused solar and battery-storage projects, received a due-pass recommendation from the Senate Conservation Committee.

Sponsor and witnesses said the fund prioritizes small projects—rooftop and small ground-mounted systems with optional battery storage—aimed at public buildings such as community centers, schools, fire stations and water treatment plants. Testimony emphasized resiliency benefits (keeping critical facilities powered during wildfire-driven public-safety power outages and other emergencies), reduced utility bills for publicly owned facilities, and assistance to rural and tribal communities that lack access to capital or technical expertise. Supporters called the fund a one-time investment that would leverage federal dollars and local matching where possible.

Committee members asked about scale and costs. Witnesses said the $20 million would likely fund several hundred small projects (many under 100 kW) and that an approximate industry estimate gives roughly 6–7 megawatts of solar capacity for $20 million if measured purely on a per-megawatt cost basis; proponents said megawatt totals are a poor metric for the bill’s intent because the fund is aimed at many small, geographically distributed resiliency projects rather than large utility-scale generation. The committee explored workforce and procurement provisions; an amendment requiring hiring New Mexico workers was added.

Questions also covered siting, existing local land-use constraints, and end-of-life recycling for solar panels; witnesses noted panels are largely recyclable and cited emerging recycling capacity in the region. The committee recorded a 5–3 vote in favor of a due pass; proponents said the fund could significantly expand local resilience and reduce long-term operating costs for publicly owned facilities.