HB 259 STATE INVESTMENT IN CLIMATE TECHNOLOGY

Rep Linda Serrato

Actions: [4] not prntd-HRC [8] w/drn-prntd-ref- HENRC/HTRC-HENRC

Scheduled: Not Scheduled

 House Bill 259 (HB 259): This legislative act is related to public finance in the state of New Mexico. This act focuses on authorizing a percentage of the severance tax permanent fund to be invested in private equity funds specifically targeting climate technology.  

 House Bill 259 (HB 259):  Section 1: New Section of the Severance Tax Bonding Act.  Investment in Climate Technology Private Equity Funds: 
•	At least two percent of the market value of the severance tax permanent fund is allocated for investment in climate technology private equity funds.

Risk and Priority Criteria: 
•	The state investment officer is directed to make investments only if the risk of loss is commensurate with expected returns. 
•	Priority for investments should be given to funds that prioritize investments in New Mexico-based projects with a permanent office presence or dedicated personnel, and that will significantly and positively impact the state's economy.

Definitions:
•	Climate Technology: Research and development in technology should focus on reducing greenhouse gas emissions or mitigating the effects of climate change.
•	Climate Technology Private Equity Fund: Any limited partnership, limited liability company, or corporation organized and operating in the United States, with the primary business activity of investing funds in return for equity in climate technology projects.

Section 2: The effective date of the provisions of this act is specified as July 1, 2024.