Bill > HB263

This bill amends existing New Mexico law to clarify the system for renewable energy certificates (RECs), which are essentially credits representing the generation of renewable energy. Specifically, it modifies how the Public Regulation Commission (PRC) establishes and manages these certificates, which rural electric cooperatives use to prove they are meeting their renewable portfolio standard (RPS), a requirement to generate a certain percentage of their electricity from renewable sources. The bill clarifies that a REC has a minimum value of one kilowatt-hour, defines that 3,412 British thermal units (BTUs) of useful thermal energy is equivalent to one kilowatt-hour for RPS compliance, and provides a specific formula to calculate the REC value for geothermal heat pump systems based on their performance and capacity. It also details ownership rules for RECs, stating they generally belong to the generator unless transferred by agreement or under specific circumstances like qualifying facilities or pre-2004 contracts. The bill further outlines that RECs can be traded, but their use by a distribution cooperative for RPS compliance requires the associated energy to be contracted for delivery, consumed, or generated within New Mexico, unless the cooperative is part of a broader regional market. It mandates that RECs used for RPS compliance must be registered with a system that tracks ownership and verifies generation to prevent double-counting, and once used or transferred by a cooperative, they cannot be reused. Unused RECs can be carried forward for up to four years before being retired. Finally, the bill reiterates that distribution cooperatives are responsible for proving their RECs come from eligible renewable sources and haven't been previously used or transferred.