Summary:

 House Bill 289 (HB 289) amends the provisions of the Geothermal Projects Development Fund and appropriates twenty million dollars ($20,000,000).


 

Legislation Overview:

 House Bill 289 (HB 289) expands those who may obtain a grant from the Geothermal Projects Development Fund (Section 71-9-12 NMSA 1978) to include other entities that participate in a competitive bidding process conducted in accordance with the Procurement Code.
It appropriates twenty million dollars ($20,000,000) from the General Fund (GF) to Geothermal Projects Development Fund for expenditure in Fiscal Year (FY) 2026 and subsequent FYs.

Any unexpended or unencumbered balance remaining at the end of a FY will not revert to the GF.

 

Current Law:

 The Geothermal Resources Project Act became law in 2024 with an initial allocation of two million five hundred thousand dollars ($2,500,000) towards future geothermal energy projects that tap into the Earth’s subsurface heat for electricity generation, hot water provision, and heating and cooling solutions. This Act established the Geothermal Projects Development Fund  to facilitate grants and loans for project financing and cost-benefit studies. Advocates point out that development of geothermal energy advances clean energy goals and helps mitigate carbon emissions and enhances energy security.  There have been questions raised about these projects causing more seismic activity and, in essence, being the equivalent of hydraulic fracturing (fracking).
 

Amendments:

 2/28/25
The House Appropriation and Finance Committee amended HB 289 (HB 289A HAFC) by removing the appropriation from the title and content of the bill.