State awards nearly $6M for northwestern NM energy projects

Apr. 15—The New Mexico Economic Development Department on Friday announced the allocation of more than $5.8 million for four non-fossil fuel projects to help create jobs and economic diversity in the northwestern part of the state.

The money comes following the legally mandated closure of the San Juan Generating Station, a massive coal-fired power plant in San Juan County, in 2022. The electric station fueled jobs and economic development in the area.

So New Mexico's Energy Transition Act, or ETA, created a $20 million fund to provide workforce training and economic relief. The Economic Development Department got nearly $6 million to allocate for development not related to fossil fuels within 100 miles of the San Juan Generating Station.

On Friday, the agency announced Northern New Mexico Indigenous Farmers Inc. in Shiprock got $3.6 million to upgrade a water pumping station and a solar-powered pumping station, the city of Farmington got $1 million for renewable generating and storage capacity, C&E Concrete in Grants got $977,000 to develop three photovoltaic (PV) systems and Purple Adobe Lavender Farm in Abiquiú got $187,000 to help install three solar arrays.

The state department chose the four projects from a pool of 15 following a March 2024 request for proposals, according to the Economic Development Department. The agency said its evaluation committee was made up of economic development, renewable energy, climate change and social equity experts, and had Indigenous representation and consultation.

"Ultimately, the final awards honor the objectives and intent of the ETA, providing support for renewable energy projects in low-income, rural, and Indigenous communities affected by coal plant closures and creating opportunities for New Mexico-based renewable energy companies," said Mark Roper, acting secretary of the Economic Development Department, in a statement.

The money came later than the state anticipated. The Economic Development Department originally planned to choose projects before 2024.

None of the selected projects were part of a 2020 request for information process, when 26 companies submitted plans on how to use the energy dollars.

Nor were the projects any of the four proposals that were suggested in October 2023 by an advisory committee, formed by the Energy Transition Act and whose job was to help advise the state on how to award the dollars.

This isn't the first time there's been confusion around the process of accessing Energy Transition Act funding.

From the $20 million pot of money, the Indian Affairs Department received $1.8 million to allocate. The agency announced awards for five Indigenous organizations and centers in July 2024, then rescinded the dollars a few months later.