Source: http://database.aceee.org/state/new-mexico
Timestamp: 2017-06-24 01:49:42
Document Index: 175045541

Matched Legal Cases: ['§62', '§62', '§62', '§62', '§62', '§62', '§ 62']

New Mexico | ACEEE
New Mexico first set energy standards for public buildings in 2006. Executive Order 2006-001 called for adoption of LEED-Silver standards in new public buildings in excess of 15,000 square feet and/or using over 50kW peak electrical demand, and that such buildings achieve a minimum delivered energy performance standard of 50% of the average consumption for that building type. New construction and renovation of existing buildings between 5,000 and 15,000 square feet must achieve a minimum delivered energy performance standard of 50% of the average consumption for that building type. Renovations of existing buildings in excess of 15,000 square feet and/or using over 50 kW peak electric demand must meet LEED-Silver standards and achieve a minimum delivered energy performance standard of 50% of the U.S. energy consumption for that building type. Under Executive Order 2006-01 and Senate Bill 200 (below), the state reviews over $186 million of renovation projects in all institutions of higher learning that must meet these criteria.
New Mexico continues to implement Executive Order 2007-053, which launched a statewide energy efficiency initiative that calls for state agencies to reduce energy usage by 20% below 2005 levels by 2015. The 2012 DOE SEP competitive award has a goal to realize 20% energy savings by the year 2020 in the General Services Department building inventory through the WISE (Whole-building Investments for Sustainable Efficiency) program.
SB 200 of 2010 established a wider building requirement for certain building projects throughout the state that receive state funding. New buildings and building additions of 3,000 square feet or more, and buildings undergoing certain system renovations must be designed and constructed to attain Energy Star certification. These buildings must meet an Energy Star rating of 75 or better. The Energy Conservation and Management Division (EMCD) encourages spublic entities to confuct energy audits then provides technical assistance to enable these entities to implement and fund identified measures. In addition, ECMD state tracks energy use in public buildings using Portfolio Manager. This data will be used to develop and inform a sustainable whole building energy retrofit program for public facilities. To date, the state has benchmarked approximately 20% of public buildings.
The state of New Mexico and the staff of the Energy Conservation and Management Division (ECMD) and State Energy Office (SEO) are committed in meeting the EPACT Goal of improving energy efficiency by 25%, the Advanced Energy Initiative (AEI) and the 20in20 initiative. Many steps have been taken to promote energy efficiency in New Mexico, including the implementation of many clean energy Executive Orders. The State Energy Office will also be reviewing and evaluating New Mexico's energy usage data to measure compliance with these goals. This will be reported by the end of each program year.
Alternative Fuel Acquisition Act, signed into law in 2002 and amended in 2007, requires that 75% of vehicles bought by state agencies and educational institutions meet or exceed national CAFE standards, are hybrid vehicles, are capable of using alternative fuel, or are plug-in electric vehicles. The Energy, Conservation, and Management division (ECMD) of the New Mexico Energy, Minerals, and Natural Resources Department (EMNRD) is required to compile and submit an annual report to the Governor and the Legislature evaluating the status and effectiveness of the Act. The state has an Alternative Fuels Program Manager who coordinates reporting for statutory requirements related to transportation and promotes New Mexico-produced gaseous fuels. The manager also promotes, coordinates, monitors, and implements state alternative fuel transportation programs to include mass transit demonstration projects and petroleum reduction strategies. As part of New Mexico's "Lead by Example" initiatives set forth in Executive Order 2007-053, it shall be the goal of all Executive Branch state agencies to achieve a 20 percent usage reduction below 2005 levels in the state fleet and transportation-related activities by 2015 based on the average transportation-related energy usage per state employee. Through a rideshare program, the state promotes multimodal and efficient motor transport.
The Energy, Conservation, and Management division (ECMD) of the New Mexico Energy, Minerals, and Natural Resources Department (EMNRD) houses information about the state’s ESPC statutes, including guidelines for qualifying ESCOs and a few other model documents. EMNRD has initiated and now co-chairs the New Mexico Energy Service Coalition, a public-private partnership that seeks to support the use of energy performance contracting; educate the general public on energy efficiency; develop and disseminate information on energy efficiency practices; and provide a forum for networking. Coalition members include EMNRD, energy service providers, financiers, efficient equipment suppliers and reps, building improvement and service companies, building owners and property managers, and others from schools, higher education, government, and healthcare facilities. ECMD has processed $49.5 million in energy performance contracting projects in the past few years. These projeccts span over 200 buildings across 13 institutions and 8.6 million square feet. These efforts are supporting New Mexico’s partnership with DOE in the Better Buildings Performance Contracting Accelerator, through which the state committed to achieve $50 million in energy performance contracting projects by 2016. The state currently has $15.7 million worth of efficiency projects under construction.
DSIRE New Mexico
Oak Ridge National Laboratory: New Mexico ESPC Legislation
New Mexico Incentives and Laws for Acquisition / Fuel Use
New Mexico Energy Performance Contracting Programs
Buildings Score: 3.5 out of 7 Buildings Summary List All
Residential and commercial buildings must comply with the 2009 IECC. The state has completed a gap analysis and utilities offer training as part of their energy efficiency programming.
The 2009 New Mexico Energy Conservation Code (NMECC) is based on the 2009 IECC with state-specific amendments for residential building codes. All areas of the state are covered by local building jurisdictions and must meet or exceed the state minimum code. Because localities are permitted to adopt stretch codes, the City of Santa Fe and Town of Taos have adopted more stringent building codes. Builders can also use the NM 2009 Energy Conservation Code Residential Applications Manual to comply when building a passive solar or high mass home.
Utility Involvement: Regulatory guidelines have been established requiring significant utility involvement in supporting building energy code compliance. NM’s largest investor-owned utility has provided building code training as part of its energy efficiency programming. Utilities conducted workshops on the energy code as part of the Efficent Use of Energy Act which support energy efficiency.
Training/Outreach: New Mexico is actively engaged in providing/supporting training programs and outreach, participating in five events in the most recent reporting year.
The state has an interconnection standard that applies to CHP and favorable revenue streams available for CHP projects. No new CHP systems were installed in New Mexico in 2015.
There are currently some additional supportive policies that encourage renewable-fueled CHP in New Mexico. Biomass-fueled CHP systems are eligible for a corporate tax credit through the Renewable Energy Production Tax Credit and a sales tax incentive through the Biomass Equipment & Materials Compensating Tax Deduction. Recycled energy projects may also be eligible for an Advanced Energy Tax Credit.
Utilities Score: 4 out of 20 Utilities Summary List All
New Mexico has three investor-owned electric utilities (IOUs), three natural gas utilities, and seventeen customer-owned rural electric distribution cooperatives. The 2005 Efficient Use of Energy Act requires the electric IOUs and gas utilities to acquire cost-effective and achievable energy efficiency (EE) and load management resources available in their territories (NMSA 1978, §62-17-5(G)). Electric IOUs must spend 3% of customer bills, while the gas utilities shall not spend more than 3% of total annual revenues. Currently, the three electric IOUs and the largest gas utility, New Mexico Gas, choose to recover program costs and a proposed profit incentive through a tariff rider with an annual reconciliation mechanism. These four utilities offer a variety of energy efficiency programs, including programs targeted at low-income customers and multi-family housing. Electric IOUs have a statutory goal of saving eight percent of 2005 retails sales through their EE programs by calendar year 2020. The three electric IOUs, Public Service Company of New Mexico (PNM), Southwestern Public Service Company (SPS), and El Paso Electric (EPE), are all on target to meet this savings goal. Furthermore, "New Mexico should participate in regional efforts to reduce energy consumption by twenty percent by 2020 through programs to reduce energy consumption." (NMSA 1978, §62-17-2(H)). The rural electric distribution cooperatives are only required to examine the potential for offering cost-effective programs to reduce energy consumption or peak electricity demand (NMSA 1978, §62-17-11(A)). Each cooperative's governing body will approve any slate of programs. A percentage of the cooperatives offers energy efficiency programs as of 2016.
The Efficient Use of Energy Act (EUEA), enacted in 2005, directs New Mexico's public utilities to evaluate and implement cost-effective energy efficiency and load management programs in their resource portfolios (NMSA 1978, Chapter 62 Article 17). By 2014, electric and natural gas utilities shall achieve savings of 5% of 2005 total retail kWh sales by 2014 and 8% of 2005 total retail kWh sales by 2020. Program costs are 3% of customer bills for investor-owned electric utilities and shall not exceed 3% of total annual revenues for gas utilities. Program costs and incentives may be recovered through a tariff rider or base rates. Distribution cooperative utilities are to establish targets for energy efficiency and load management and implement those programs that are economically feasible and practical for their members and customers. Cooperative members shall approve any such programs (NMSA 1978, §62-17-11).
The Efficient Use of Energy Act ("EUEA") provides the statutory requirements for incorporating energy efficiency as a resource. It directs "public utilities to develop all cost-effective and achievable energy efficiency and load management resources," (NMSA 1978, §62-17). The EUEA notes that integrated resource plans should consider energy efficiency as well as the traditional supply-side resources in formulating the plan (NMSA 1978, §62-17-10).
The New Mexico Public Regulation Commission ("PRC") sets out the rules for implementing statute. The PRC's energy efficiency rule, NMAC 17.7.2, was recently updated in 2014 (Case No. 13-00310-UT).
The PRC mandates that electric utilities must file an IRP and a four-year action plan every three years. The Integrated Resource Planning ("IRP") rule states that "the utility shall consider all feasible supply-side and demand-side resources" when identifying possible resource options (NMAC 17.7.3.9.F). Energy efficiency requirements shall be considered when developing resource portfolios (NMAC 17.7.3.9.G(2)). Last Updated: July 2016
Summary: 5% reduction from 2005 total retail electricity sales by 2014, and an 8% reduction by 2020.
In 2008, New Mexico legislature passed HB 305, which amended the Efficient Use of Energy Act (first passed in 2005) and established energy efficiency targets for the state. The 2008 law required investor-owned utilities to achieve a 5% reduction from 2005 total retail electricity sales by 2014 and a 10% reduction by 2020 (see NM Stat. § 62-17-1 et seq.).
The state’s targets were amended in 2013 with the passage of HB 267. The law established a fixed tariff rider for funding energy efficiency and load management programs. The bill was a compromise among energy efficiency advocates, New Mexico’s utilities, and representatives of the Public Regulation Commission, and preserved the targets but reduced the energy savings requirement in 2020 for electric utilities from 10% to 8% of sales.
Though targets have been adjusted downward, steady funding makes it likely that long-term targets will be surpassed. If a utility determines it cannot achieve the energy saving requirements, it must report to the Commission, explain the shortfall, and propose alternative requirements based on acquiring cost-effective and achievable energy efficiency and load management resources. If the commission determines that the requirements exceed the achievable amount of energy efficiency and load management available, it may establish lower requirements for the utility (see NMAC 17.7.2).
Distribution cooperative utilities, which are not fully regulated by the PRC, must annually consider self-imposed electricity reduction targets and design demand side management programs to enable them to meet those targets. Each cooperative utility must submit a report to the PRC annually describing their demand side management efforts from the previous year.
New Mexico has no natural gas EERS.
Currently no utility has a decoupling or lost revenue adjustment mechanism in New Mexico. In Case No. 15-00261-UT (for higher retail electric rates), PNM proposed a decoupling mechanism, which the Hearing Examiner recommended rejecting in the Recommended Decision issued in August 2016. The Commission has not issued a final order.
El Paso Electric's 2016 profit incentive was decided in a stipulated agreement in Case No. 13-00176-UT and was set at 7.0% of a 2016 budget of approximately $5.8 million. Southwestern Public Service's 2016 profit incentive was decided in Case No. 15-00119-UIt earns a base level incentive of 6.80% on a budget of approximately $11.5 million, based on a minimum cumulative savings threshold. This amount can be adjusted downward if there is a shortfall in low income program spending in program year 2016. Each GWh of additional savings above 31.805 net customer GWh earns an additional 0.1% in profit incentive, up to a maximum of 7.11%. Finally, Public Service Company of New Mexico's 2016 profit incentive was also decided in a stipulated agreement in Case No. 14-00310-UT and is based on a linear progression of cumulative savings towards the 2020 goal. The 2016 profit incentive is conditional on achieving energy savings of six percent of 2005 retail sales and is approximately 7.10% of program costs.
Cost-effectiveness test(s) used: UCT
Section 8 of the Efficient Use of Energy Act concerns the legislative requirements for measurement and verification of energy efficiency programs. Annual reports must be submitted by each utility and a comprehensive M&V report must be conducted by an independent evaluator every three years. Typically, a subset of programs is independently evaluated every year. New programs are independently evaluated in their first year and every year the two programs with the highest projected energy savings are evaluated. The Commission has oversight in selecting the independent program evaluator and uses an RFP process for this purpose. The Utility Cost Test (UCT) is conducted in New Mexico and is considered to be the primary test for decision making and evaluating program cost-effectiveness. The benefit-cost tests are required for total program level screening. New Mexico has a Technical Resources Manual (TRM) that provides deemed savings for 15 of the most common measures implemented in the state.
It was later codified in New Mexico Administrative Code that: “In developing the utility cost test for energy efficiency and load management measures and programs directed to low-income customers, unless otherwise quantified in a commission proceeding, the public utility shall assume that 20% of the calculated energy savings is the reasonable value of reductions in working capital, reduced collection costs, lower bad-debt expense, improved customer service, effectiveness, and other appropriate factors qualifying as utility system economic benefits” [17.7.2.9 NMAC - Rp. 17.7.2.9 NMAC, 1-1-15].
A self direct option is offered statewide in the territories of three investor-owned utilities. Eligible customers must have electricity consumption greater than 7,000 MWh per year. Participants can receive credit for up to 70% of the annual energy efficiency rider. Self direct customers provide their own engineering analysis and must meet the same total resource cost test as all the other industrial and commercial offerings.
There is no provision for large customers to opt out entirely from paying for energy efficiecy programs
New Mexico has no policies in place that require utilities to release energy use data to customers or third parties. Last Updated: August 2016
The state has not pursued policies to encourage efficient transportation systems.