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Senate committee backs microgrid oversight bill after split debate over data centers
Summary
The Senate Tax, Business and Transportation Committee recommended SB235 on a 6–4 vote, advancing a bill that would require large 'microgrids' (20 MW threshold) powering data centers to meet renewable-energy minimums, bar rate-shifting to customers, and give the Public Regulation Commission oversight and annual reporting duties.
A Senate committee on Thursday recommended approval of SB235, a bill that would subject large microgrids and data centers to minimum renewable-energy standards, new reporting requirements and Public Regulation Commission oversight.
The sponsor, Sen. [Steinborn] (transcript speaker identified as sponsor in hearing), framed the measure as a response to rapid data-center development — citing a proposed ‘Project Jupiter’ in southern Doña Ana County — and said the bill would require covered microgrids to meet the same renewable portfolio baseline used for utilities (40 percent) and prohibit utilities from shifting the microgrid’s costs to ratepayers. “It would require annual reporting of energy and water usage and ensure the PRC has oversight,” the sponsor said during opening remarks.
Supporters including environmental groups, tribal representatives and community advocates told the committee the measure would protect air quality, water resources and low-income ratepayers in communities near large energy-using facilities. “This bill creates a framework to regulate and protect ratepayers and water in our state,” Caitlin Victorino of NM Vote said in support.
Opponents from the business community, economic development groups and some industry coalitions argued SB235 imposes costly mandates and regulatory uncertainty that could deter investment. Mike Miller, representing petroleum and producer associations, said many microgrids are reliability tools—especially in remote areas—and that imposing rigid portfolio mandates could undermine essential backup power systems.
Committee members pressed on threshold size and regulatory scope. Sponsor’s response and the bill text set a 20-megawatt minimum (about 4–5,000 homes) for covered systems. The sponsor said the bill allows up to 10 percent of the renewable standard to be satisfied by community solar investments in the host county to help attainability while providing local benefits.
After questions and exchanges, the committee recorded a 6–4 vote to recommend SB235 for further consideration. The committee’s action moves the bill forward with instructions for continued review on implementation details, including reporting formats, enforcement authority, and interactions with existing Public Regulation Commission rules.
The bill’s next procedural stop is committee-of-origin follow-up and then scheduling for the Senate floor; no final implementation timeline was set at the hearing.
