New Mexico’s Energy Transition Act

The 2019 Energy Transition Act (ETA) is a landmark legislation enacted in New Mexico to transition the state toward a sustainable energy future. The ETA mandates that investor-owned utilities achieve a renewable energy portfolio of 50% by 2030 and 100% zero-carbon resources by 2045, with rural electric cooperatives reaching the same goal by 2050. This ambitious framework positions New Mexico as a leader in renewable energy adoption, aiming to reduce reliance on fossil fuels and promote environmental stewardship.

Beyond setting renewable energy standards, the ETA establishes three dedicated funds managed by the Indian Affairs Department, the Economic Development Department, and the Department of Workforce Solutions. These funds are designed to support communities and workers affected by the closure of coal-fired plants, such as the San Juan Generating Station. The allocated resources focus on economic development, workforce retraining, and tribal assistance, ensuring that the transition to clean energy is equitable and inclusive.

However, as of mid-2023, challenges have emerged in the implementation of the ETA. A significant portion of the $20 million designated for transition assistance remains unspent, and replacement job opportunities in affected regions have been limited. The delay in fund distribution and the lack of a cohesive strategy have raised concerns about the effectiveness of the support mechanisms intended to aid displaced workers and communities during the energy transition.

Summary sourced from: https://governor.state.nm.us and https://nmlegis.gov

Bill text: https://www.nmlegis.gov/Sessions/19%20Regular/bills/senate/SB0489.pdf

Policy Analysis

Does the policy solution re-distribute power from mainstream institutions to impacted Black communities?

The ETA aims to support communities affected by the energy transition, particularly those impacted by coal plant closures. While the policy establishes funds for economic development and workforce training, it does not explicitly focus on redistributing power to Black communities. To enhance its impact, the ETA could incorporate provisions that prioritize investments in Black-owned energy enterprises and community-led renewable projects, ensuring that marginalized groups have greater control over energy resources and decision-making processes.

Does this policy provide more decision-making power at the hands of Black
communities?

The current structure of the ETA involves state-managed funds without explicit mechanisms for direct input from Black communities. Incorporating community advisory boards comprising representatives from Black and other marginalized groups could ensure that the voices of those most affected by the energy transition are heard and prioritized. This participatory approach would align with Just Transition principles by empowering communities to shape their energy futures.

Does the policy undermine extractive economies like capitalism and restore community power around a local and regenerative economy/primary production?

The ETA’s emphasis on transitioning to renewable energy sources contributes to reducing dependence on extractive fossil fuel industries. However, to fully promote a regenerative economy, the policy could further support local, community-owned energy projects and cooperatives. By facilitating access to funding and technical assistance for these initiatives, the ETA would help build local wealth and resilience, challenging traditional capitalist models that often marginalize Black communities.

Does the policy repair past harm and uphold civil and human rights, health, and environmental protections?

The ETA acknowledges the need for economic and workforce support in communities affected by the energy transition, which is a step toward addressing past harms associated with fossil fuel industries. To strengthen this commitment, the policy could include targeted health and environmental remediation programs in areas disproportionately impacted by pollution. Ensuring that Black communities receive equitable access to these programs would uphold civil and human rights, fostering environmental justice and improved public health outcomes.

Developed by Natalie Rivas