New Mexico
‘Renewable’ geothermal energy boosted by bill passed by New Mexico House
Oak Ridge scientists create energy-saving geothermal battery
Scientists have developed geothermal “batteries” that actually tap and store the heat energy of the Earth to provide heating, cooling and hot water.
Angela M. Gosnell, Knoxville News Sentinel
Geothermal energy would be incentivized using state money by a New Mexico House bill that passed the full chamber this week, and moved on to the Senate for further consideration in the final week of the 2024 Legislative Session.
House Bill 91 would send $25 million from the State’s General Fund to two newly-created funds to finance geothermal projects.
Geothermal energy uses heat pulled from underground to the surface, generating electricity and viewed as a renewable energy and alternative to fossil fuels.
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The first fund created by the bill would be a non-reverting Geothermal Projects Development Fund that would be administered by the Energy, Minerals and Natural Resources Department, appropriated by the Legislature.
It would be able to offer up to $250,000 grants for studies of proposed geothermal projects, and grants for financing such projects.
Recipients must be political subdivisions of the state, like municipalities or counties, along with state universities, indigenous tribes or pueblos.
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The other fund created by the will would be the Geothermal Projects Revolving Loan Fund, also administered by EMNRD to provide loans to the same groups as the grant fund for financing the projects.
Another $600,000 would be appropriated for added staff and operating expenses at EMNRD to aid in carrying out the bill’s provisions. Any funds left from that provision would revert back to the General Fund in Fiscal Year 2025.
The bill passed the House on a bipartisan 60-5 vote and was sent to the Senate Finance Committee for further discussion and action. The bill must pass both chambers before they can be signed into law by Gov. Michelle Lujan Grisham.
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Before the full House vote, HB 91 passed unanimously from the House Energy and Natural Resources and House Administration and Finance committees.
The session ends Feb. 16, about 10 days after HB 91 passed on the House Floor.
In its analysis of the bill EMNRD, the agency argued the “non-recurring” appropriation to pay for staff for carrying out the bill was inadequate to create a long-term regulatory environment for the growing geothermal industry in New Mexico.
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The agency said it would aim to hire three full-time employees with a total annual salary of $325,000, if the $600,000 was added to its recurring base budget.
Language in the bill also called on EMNRD’s Energy Conservation and Management Division (ECMD) to apply for federal grants for geothermal projects, but the department’s analysis contended those grants usually go to universities, not state agencies.
“While the division may be able to assist those institutions and organizations with grant proposals, the chance that the division would be eligible for federal funding under existing programs could be limited,” read the report.
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EMRND also voiced concerns about the $250,000 grant cap, offering a $10 million cap would be more helpful to projects exploring for geothermal resources underground, developments EMNRD argued could exceed “seven figures.”
“The grant cap amount is a very low incentive for high temperature geothermal projects where one exploration or temperature gradient well can exceed seven figures,” read the report. “Only actual exploration will provide the data needed to measure future development.”
What is geothermal energy? Where does it come from in New Mexico?
A geothermal project, as defined in HB 91 is one that used the heat of the earth more than 100 degrees farenheit to generate electricity for industrial, commercial or residential purposes.
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Sponsor Rep. Patricia Roybal Caballero (D-13) of Albuquerque said geothermal energy is already produced in New Mexico, and the bill would help the state bolster what she called “clean energy” from this source.
“Geothermal is now a reliable renewable energy option for many homes and businesses in New Mexico,” Roybal Caballero said. “This bill would allow us to take advantage of our unique geology to help make geothermal energy more available statewide, while supporting our clean energy and climate goals.”
Last year’s version of the legislation House Bill 365 passed both the House and Senate during the 2023 Legislative Session, but was pocket vetoed after Gov. Michelle Lujan Grisham took no action to sign it into law ahead of the deadline.
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During the Jan. 23 meeting of the House Energy and Natural Resources Committee, which ultimately granted the bill a “do pass” recommendation, Roybal Caballero who also sponsored last year’s geothermal bill said it enjoyed support from both sides of the aisle.
She said she expected such support this year.
“We’re attempting to open opportunity and access as much as we can in the renewable energy world,” Roybal Caballero said.
Thomas Solomon, a retired electrical engineer and member of the New Mexico Geothermal Working Group, served as an expert during the meeting, explaining New Mexico’s strong geothermal resources were around the Rio Grande Rift.
He said the rift gradually pulled the earth apart over time, bringing more the subsurface to the surface.
“Meaning the drilling cost to access those geothermal resources is lower here in New Mexico because you don’t have to drill so deep,” Soloman said. “That’s what makes geothermal resource potential in this state so attractive.”
Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on the social media platform X.
The governor sets the agenda for the session, including for the budget, so here is what they are looking at so far.
SANTA FE, N.M. — As the regular session of the New Mexico Legislature is set to begin Jan. 20, lawmakers have already filed dozens of bills.
Bills include prohibiting book bans at public libraries and protections against AI, specifically the distribution of sensitive and “Deepfake” images
Juvenile justice reform is, again, a hot topic. House Bill 25 would allow access to someone’s juvenile records during a background check if they’re trying to buy a gun.
Gov. Michelle Lujan Grisham sets the agenda and puts forth the proposed budget lawmakers will address during the session. The governor is calling for lawmakers to take up an $11.3 billion budget for the 2027 fiscal year, which is up 4.6% from current spending levels.
Where would that money go? More than $600 million would go to universal free child care. Meanwhile, more than $200 million would go to health care and to protect against federal funding cuts.
There is also $65 million for statewide affordable housing initiatives and $19 million for public safety.
After years of failure to land a “big fish” business for New Mexico’s economy (or effectively use the oil and gas revenues to grow the economy) Gov. Michelle Lujan Grisham with the help of her Economic Development Secretary Rob Black have lured no fewer than three large data centers to New Mexico. These data centers are being built to serve the booming world of Artificial Intelligence (AI), and they will have profound impacts on New Mexico.
It is our view that having these data centers locate in New Mexico is better than having them locate elsewhere. While we have many differences of opinion with this governor, we are pleased to see her get serious about growing and diversifying New Mexico’s oil-dependent economy albeit quite late in her second term.
Sadly, the governor and legislature have chosen not to use broad based economic reforms like deregulation or tax cuts to improve New Mexico’s competitiveness. But, with the failure of her “preferred” economic development “wins” like Maxeon and Ebon solar both of which the governor announced a few years ago, but haven’t panned out, the focus on a more realistic strategy is welcome and long overdue.
Currently, three new data centers are slated to be built in New Mexico:
- Oracle’s Project Jupiter in Santa Teresa with an investment of $165 billion.
- Project Zenith slated to be built in Roswell amounts to a $11.7 billion investment.
- New Era Energy & Digital, Inc. While the overall investment is unclear, the energy requirement is the largest of the three at 7 gigawatts (that’s seven times the power used by the City of San Francisco).
What is a data center? Basically, they are the real-world computing infrastructure that makes up the Internet. The rise of AI requires vast new computing power. It is critical that these facilities have uninterrupted electricity.
That electricity is going to be largely generated by traditional sources like natural gas and possibly nuclear. That contravenes New Mexico’s Energy Transition Act of 2019 which was adopted by this Gov. and many of the legislators still in office. Under the Act electrical power emissions are supposed to be eliminated in a few years.
With the amount of money being invested in these facilities and the simple fact that wind and solar and other “renewable” energy sources aren’t going to get the job done. In 2025 the Legislature passed and MLG signed HB 93 which allows for the creation of “microgrids” that won’t tax the grid and make our electricity more expensive, but the ETA will have to be amended or ignored to provide enough electricity for these data centers. There’s no other option.
New Mexicans have every right to wonder why powerful friends of the governor can set up their own natural gas microgrids while the rest of us face rising costs and decreased reliability from so-called “renewables.” Don’t get me wrong, having these data centers come to New Mexico is an economic boon.
But it comes tempered with massive subsidies including a 30-year property tax exemption and up to $165 billion in industrial revenue bonds. New Mexico is ideally suited as a destination for these data centers with its favorable climate and lack of natural disasters like hurricanes, tornadoes, and floods. We shouldn’t be giving away such massive subsidies.
Welcoming the data center boom to New Mexico better than rejecting them and pushing them to locate in other states. There is no way to avoid CO2 emissions whether they happen here or somewhere else. But, there are questions about both the electricity demand and subsidies that must be addressed as New Mexico’s data center boom begins.
What will the Legislature, radical environmental groups, and future governors of our state do to hinder (or help) bring these data centers to our State? That is an open question that depends heavily on upcoming statewide elections. It is important that New Mexicans understand and appreciate these complicated issues.
Paul Gessing is president of New Mexico’s Rio Grande Foundation. The Rio Grande Foundation is an independent, nonpartisan, tax-exempt research and educational organization dedicated to promoting prosperity for New Mexico based on principles of limited government, economic freedom and individual responsibility
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