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Committee adopts amendment and gives due pass to bill enabling state pursuit of Class 6 primacy for carbon storage

2527570 · March 7, 2025
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Summary

Lawmakers adopted an amendment adding tribal consultation and then voted 9‑0 to give House Bill 457 a due pass as amended, directing state agencies to prepare for potential state regulation of Class 6 carbon dioxide storage wells.

Senator Sherr presented House Bill 457, which the sponsor said would clarify New Mexico's legal and regulatory framework so the state can apply to assume federal permitting authority ("primacy") for EPA Class 6 wells used for deep geological storage of carbon dioxide.

"Primacy allows us the legislature here to put in place stricter state‑led guidelines," the sponsor said, and the bill would allow the New Mexico Mining and Natural Resources department (MNERD) to administer, monitor and regulate Class 6 permitting rather than leaving permitting only to the U.S. Environmental Protection Agency.

The sponsor said the bill adds state‑level requirements including tribal consultation, community engagement and community benefit agreements. The testimony noted that three states already have primacy and that several others and the Navajo Nation have expressed interest.

Carlos Lucero of PNM told the committee that carbon capture and storage, while still developing commercially, could become a tool to manage CO2 from generating facilities if it proves viable and cost effective; PNM signaled support for the bill.

An expert witness described long‑running projects worldwide and said the technical aspects of carbon injection and storage are well understood in oil and gas and acid gas disposal practice. The expert noted existing tools — such as site evaluations for capacity, geologic barriers, monitoring and financial assurances — form part of the technical and regulatory foundation addressed in the bill.

The committee adopted an amendment to add tribal consultation language and then voted on a motion for a due pass as amended. The committee clerk announced the final tally: 9 votes yes, 0 votes no. The bill will proceed from the committee with a due pass recommendation.