House approves $10 million fund and grant program to jump‑start geothermal development

The House passed House Bill 289 as amended, sending to the Senate a measure that expands state support for geothermal research and early project development. The bill creates a geothermal projects development fund for competitive grants and establishes program administration in the Energy, Minerals and Natural Resources Department (EMNRD).

Supporters told the chamber the state has substantial geothermal potential in multiple regions, including Hidalgo, Socorro and areas along the Rio Grande Rift. Proponents said the $10 million appropriation included in the session’s budget (as a nonreverting fund) will be used for grant awards of up to $250,000 each to help with mapping, feasibility, workforce development and early‑stage project work. “This is next‑generation geothermal,” said Tom Solomon (identified in committee testimony as the geothermal working group chair), describing efforts to access heat from hot dry rock as well as conventional hydrothermal resources.

Lawmakers and EMNRD staff said grant recipients could include political subdivisions, tribes, universities, nonprofits and private developers, subject to a competitive selection process and existing procurement rules. Questions on the floor focused on project permitting, water consumption, seismic risk and whether projects on tribal or federal lands would be eligible. EMNRD representatives said projects will be required to obtain all applicable state and federal permits; the department will evaluate water use and seismic risk as part of project studies.

Critics pressed for safeguards for public input, transparency and environmental monitoring. The sponsor and department staff said grant applications will follow eligibility criteria and that public notice and rulemaking will provide opportunities for comment. Supporters said early pilot projects — including Lightning Dock near Lordsburg, the only existing geothermal plant in the state — point to opportunities for job creation, workforce training and new dispatchable renewable resources that could provide stable electricity and complement wind and solar.

The House approved the bill on final passage; recorded votes showed 35 in favor and 23 opposed. Supporters said the appropriation had been placed in the state budget and the bill was intended to operationalize the fund and authorize EMNRD to run the competitive grant program.

Ending: Sponsors said they anticipate the program will accelerate research and pilot projects and be followed by EMD/EMNRD rulemaking to implement grant criteria and reporting requirements.