This announcement comes after the 2023 legislative session where Gov. Grisham vetoed the proposed Geothermal Resources Development Act or House Bill 365. The bill had previously been approved under both legislative chambers with virtually no opposition, with votes of 37-0 in the Senate and 63-3 in the House. Unfortunately, the bill was one of several that were vetoed amidst concerns over the sustainability of several proposed tax cuts and financial incentives.
Legislation in phases
Ortiz y Pino has told the Economic and Rural Development and Policy Committee that, following the meeting with the geothermal working group, Gov. Grisham is expected to include geothermal legislation an the call for the upcoming session.
The plan is for geothermal legislation to be introduced in two phases:
The first phase aims to focus on providing grants and loans to existing businesses that will utilize or transition to geothermal
The second phase aims to promote the longer-term development of geothermal with a target of supplying 10% of the state’s electricity
New Mexico has favorable conditions
The Senator said that the geothermal working group was formed with Tom Solomon of 350 New Mexico. The impetus for forming the group was a TED Talk that the Senator watched that said that New Mexico has the geology, workforce, and expertise for geothermal development. “To us, geothermal offers the perfect solution,” he said.
Shari Kelly, a senior geophysicist and field geologist with the Bureau of Geology and Mineral Resources at New Mexico Institute of Mining and Technology, echoed this sentiment and said that “many people in the geothermal industry recognize that we have good geology.”
Kelly further expounded, saying that the best resources are in the Valles Caldera National Preserve. However, these are off-limits for geothermal development.
Th most viable candidate for a geothermal project will be somewhere within the Rio Grande Rift. This is an area with a relatively thin crust and rift-relate faulting, creating pathways for geothermal to manifest as various hot springs.
