Roadrunner Capitol Reports
Legislation Detail

H 6 CLEAN FUTURE ACT

Rep Nathan Small

Actions: HPREF [2] HENRC/HGEIC-HENRC [4] DNP-CS/w/o rec-HGEIC [8] DNP-CS/DP API.

Scheduled: Not Scheduled

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Summary:
 House Bill 6 (HB 6) enacts the Clean Future Act and new sections of the Air Quality Control Act and provides powers and duties. HB 6 establishes greenhouse gas emissions limits. It directs the Environmental Improvement Board to adopt rules to reduce greenhouse gas emissions and directs the assessment of fees. It creates a fund and makes an appropriation. 
Legislation Overview:
 House Bill 6 (HB 6) enacts the Clean Future Act with the goal of limiting direct greenhouse emissions in NM to 50 percent of their 2005 levels by 2030; and by 2050 achieve at least net-zero emissions with a proviso. HB 6 requires each state entity by 15 April each year to give the Department of Energy (NMED) and the Energy, Minerals, Natural Resources Department (EMNRD) certain information including the effects of climate change on state programs and operations, adaptation and mitigation practices, progress toward goals of the Clean Future Act and suggested statutory or regulatory authority or programs to reduce emission. The NMED and EMNRD will jointly publish these reports annually by 1 July that will incorporate the agencies’ data with other required information as specified. It requires the first report to include a determination of the 2005 levels of statewide emissions. HB 6 gives the respective secretary the authority to delegate the necessary or appropriate power and duties to the secretary’s respective staff to meet greenhouse emissions limits. It contains six definitions: direct emissions; disproportionately impacted community; greenhouse gas; net-zero emissions; offset; and state entity

HB 6 creates new sections of the Air Quality Control Act. It requires the NMED no later than 30 June 2025 to petition the Environmental Improvement Board (EIB) to promulgate rules to reduce greenhouse gas emissions with the same goals as those in the Clean Future Act. It allows regulation of sources within the boundaries of a local authority. It allows local boards to adopt greenhouse emission reduction rules if they are at least as stringent as those of the EIB. The EIB will establish protocols, that will be reviewed and approved by the department, concerning greenhouse emission gas offset credits systems that will include transfer, sale and trading of these credits; requirements for the obtaining of these credits; and reasonable fees to be paid by sources.  

It modifies the Air Quality Control Act by creating a non-reverting State Climate Fund that the NMED will administer for the purpose of carrying out the greenhouse gas emission rules.  The fund will receive the fees established by the EIB rules

Any unexpended or unencumbered balance remaining in the fund at the end of any Fiscal Year (FY) does not revert to the General Fund (GF)

 
Committee Substitute:
 1/31/22
Synopsis: 
The House Energy, Natural Resources Committee introduced a committee substitute for HB 6 (CS/HB 6 HENRC). It enacts the Clean Future Act and new sections of the Air Quality Control Act and provides powers and duties. HB 6 establishes greenhouse gas emissions limits. It directs the Environmental Improvement Board to adopt rules to reduce greenhouse gas emissions and directs the assessment of fees.

Analysis
The House Energy, Natural Resources Committee introduced a committee substitute for HB 6 (CS/HB 6 HENRC).  It enacts the Clean Future Act with the goal of limiting direct greenhouse emissions in NM to less than fifty (50) percent of their 2005 levels by 2030; and by 2050, less than ninety (90) percent of 2005 levels which may include direct reduction and excess emissions reduction credits. 

CS/HB 6 HENRC creates new sections of the Air Quality Control Act (AQCA) that provides the Environmental Improvement Board (EIB) with the exclusive authority to adopt rules for the purpose of meeting climate goals and emission limits under these sections. 

CS/HB 6 HENRC creates a section that details the powers and duties of the EIB under the AQCA for the purposes of the CFA and uses the same definitions as the CFA. It requires the NMED no later than 30 June 2025 to petition the Environmental Improvement Board (EIB) to promulgate rules to reduce greenhouse gas emissions pursuant to the CFA goals. As part of the process, CS/HB 6 HENRC requires the NMED to hold at least three public meetings in three distinct regions of the state where disproportionately impacted communities are located and to consider the input from these meetings when drafting the petition.  

It specifies the rules will include regulation of sources within the boundaries of a local authority and allows for consideration of the sources’ requirements/reductions under state or federal law. It allows local boards to adopt greenhouse emission reduction rules if they are at least as stringent as those of the EIB. The greenhouse emission reduction goals are the same as in the CFA. Other specific content of the rules includes reporting and disclosure requirements; greenhouse gas emissions permitting, limits and reduction requirements; protocols for review and approval of offsets and credits including transfer, sale and trading; help for non-compliant sources to obtain credits or offsets to meet these requirements; and reasonable fees (the latter as determined by the act) to be paid by the source.  
  
CS/HB 6 HENRC requires each state entity by 15 April each year to give the Department of Energy (NMED) and the Energy, Minerals, Natural Resources Department (EMNRD) certain information including the effects of climate change on state programs and operations; adaptation and mitigation practices; progress toward goals of the CFA; suggested statutory or regulatory authority or programs to reduce emission; and identification of opportunities to increase energy efficiency investments and targets for electric utilities. The NMED and EMNRD will jointly publish these reports annually by 1 July that will incorporate the agencies’ data with other required information as specified. It directs the first report to include a determination of the 2005 levels of statewide emissions. CS/HB 6 HENRC lists required topics in each subsequent annual report similar to the topics in the individual state agency reports.

It gives the respective secretary the authority to seek resources from the legislature and other sources, to coordinate state agencies’ efforts, and to take action they deem necessary or appropriate to reach the greenhouse gas emissions limits. 
 
Relates To:
 HB 6 relates to HJR 2 and SJR 221268