Annual Report 3 - New Mexico - Energy, Minerals and Natural ...

463) to the statutes have been the reduction of the minimum plant size to 1 MW, adding biomass as an eligible
resource, adding a tax credit dedicated solely to solar, and making the credit refundable. Many other details have been
fine-tuned to improve the PTC program’s effectiveness. The rule is now under consideration for further changes due
to the most recent amendments to the statute; however, this does not impede the PTC application review process or
applicants obtaining approval for tax credits. The tax incentive expires at the end of December 2018.
Renewable Energy Act (REA) [NMSA 1978, § 62-16]: Established the state’s Renewable Portfolio Standard
(RPS) requiring that independently-owned utilities (IOUs) have 15 percent renewable energy in their portfolios
by 2015 and 20 percent by 2020. The IOUs are required to file “Renewable Energy Plans” annually to convey how
they intend to meet the RPS requirements. The Rural Electric Cooperatives’ requirement, beginning in 2015, is five
percent by 2015 and 10 percent by 2020. To date, the REA has been responsible for the development of over 600
MW of wind farm development and over 100 MW of utility-scale solar power, representing over $1.5 billion of instate
capital investment.
ENERGY EFFICIENCY AND CONSERVATION PROGRAM: In these
challenging economic times, energy efficiency is the win-win option for everyone. Energy efficiency takes stock of the
current energy consumption and determines the measures that will reduce it. These measures may include no-cost
behavioral changes such as turning off lights and setting PCs to power-saver mode; low-cost actions such as weatherstripping
doors and windows and changing to compact fluorescent light bulbs; and more comprehensive actions that
add insulation, upgrade heating and cooling systems, and integrate automated control systems. These may be applied
to residential buildings as well as commercial. New construction provides the most opportunities to incorporate costeffective
energy efficiency measures, while renovations greatly extend the productive life of existing buildings. Energy
efficiency projects are providing jobs throughout New Mexico and, at the end of the day, the building owner reaps the
benefits of lower utility bills.
Energy Efficiency and Conservation Development
Sustainable Building Tax Credit (SBTC) [NMSA 1978, § 7-2A-21]: Has benefitted New Mexicans in 29
counties by incentivizing builders to build highly energy-efficient and healthy, comfortable homes. Initiated in late
2007, the number of residential tax credits grew from 2 to over 100 in 2008, then increased to almost triple that
in 2009; applications submitted in 2010 will surpass 2009’s total. Although the residential building industry has
dramatically slowed in this economic downturn, the demand for green homes has had a significant positive effect.
Homeowners who live in these homes are saving up to 40 percent on their utility bills and reducing the state’s energy
consumption by almost eight billion BTU annually. The commercial tax credit has generated even larger savings of
over 56 billion BTU in a total of 625,000 square feet of building space. In addition to helping the building industry
in difficult times, the dollars saved from all the energy savings is money that goes back into the local communities.
The energy saved is enough to power over 650 typical homes a year. Contrary to the perceptions of some, energy
efficient green building is not just the domain of luxury homes but, importantly, is very affordable for “middle class”
home construction as well. This is confirmed by the large number of modestly-sized new homes that have qualified
for the SBTC. The tax incentive expires in December 2013.
ANNUAL REPORT 2010
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