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-HOUSE MEMORIAL 60
+Fiscal impact reports (FIRs) are prepared by the Le gislative Finance Committee (LFC) for standing finance
+committees of the Legislature. LFC does not assume responsibility for th e accuracy of these reports if they
+are used for other purposes.
 
-57th legislature - STATE OF NEW MEXICO - second session, 2026
+F I S C A L    I M P A C T    R E P O R T
 
-INTRODUCED BY
+BILL NUMBER: House Memorial 60
+SHORT TITLE: Study Use of Buildings as Grid Asset
+SPONSOR: Hochman-Vigil
+LAST
+UPDATE:
+ ORIGINAL
+DATE:
 
-Dayan Hochman-Vigil
+2/13/26
 
-A MEMORIAL
+ANALYST: Davidson
 
-REQUESTING THE ENERGY CONSERVATION AND MANAGEMENT DIVISION OF
-THE ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT TO DIRECT
-THE CREATION OF A STUDY GROUP TO STUDY AND DEVELOP A
-COMPREHENSIVE APPROACH TO MAKE BUILDINGS A FLEXIBLE GRID ASSET
-VIA ELECTRIFICATION IN NEW MEXICO THAT ENABLES THE USE OF
-BUILDINGS AS A GRID ASSET AND LOWERS ENERGY BILLS.
+ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
+(dollars in thousands)
+Agency/Program FY26 FY27 FY28 3 Year
+Total Cost
+Recurring or
+Nonrecurring
+Fund
+Affected
+EMNRD No fiscal impact $100 No fiscal
+impact $100 Nonrecurring General Fund
+Parentheses ( ) indicate expenditure decreases.
+*Amounts reflect most recent analysis of this legislation.
 
-     WHEREAS, New Mexico faces growing electricity demand and
-the need to modernize the electric grid while keeping energy
-costs affordable for residents and businesses; and
+Sources of Information
 
-     WHEREAS, building technologies, including energy controls
-and analytic and electric appliances, can lower utility bills,
-reduce peak demand on the electric grid and support economic
-development while improving energy efficiency and comfort; and
+LFC Files
 
-     WHEREAS, electric appliances add megawatts to the grid
-that can be strategically leveraged to reduce peak demand and
-put downward pressure on rates when enrolled in demand
-flexibility programs, rates and tariffs to the benefit of
-ratepayers and the grid; and
+Agency or Agencies Providing Analysis
+Energy, Minerals and Natural Resources Department
 
-     WHEREAS, adopting electric building technologies,
-especially in concert with demand flexibility programs, can
-increase customer cost certainty and control and reduce New
-Mexico pollution emissions through beneficial electrification;
-and
+SUMMARY
 
-     WHEREAS, energy efficiency and building shell improvements
-can amplify the benefits that building electrification enrolled
-in flexibility programs provide to the customer, ratepayers and
-the grid; and
+Synopsis of House Memorial 60
 
-     WHEREAS, this is an opportunity to prioritize
-affordability, consumer protection, energy efficiency and grid
-reliability by developing flexibility programs that enable
-buildings and electric appliances to use energy more flexibly,
-efficiently and cost-effectively; and
+House Memorial 60 requests the Energy, Minera ls and Natural Resources Department’s
+(EMNRD) Energy Conservation and Management  Division (ECAM) to convene a study
+regarding the use of buildings as grid assets in  concert with electrific ation and possibly demand
+flexibility. The memo rials tasks the study and subsequent working group with identifying best
+practices, financing mechanisms, consumer protections and workfo rce needs, and then provide
+the working group’s recommendations and present them by November 1 st, 2026, to the
+appropriate interim legislative committee.
 
-     WHEREAS, these priorities can be more easily attained by
-expanding the number of flexibility-enabled buildings,
-appliances and devices in New Mexico; and
+This bill does not contain an effective date and, as  a result, would go into effect 90 days after the
+Legislature adjourns, which is May 20, 2026.
 
-     WHEREAS, a study group would be a collaborative effort to
-align, harmonize or consolidate activities across utility
-planning, building trades, consumer programs, workforce
-development, financing mechanisms and state clean-energy goals
-for maximum benefit, administrative efficiency and ease of
-consumer access; and
+FISCAL IMPLICATIONS
 
-     WHEREAS, it is important to ensure that the priorities and
-efforts of utilities, grid operators, the public regulation
-commission, consumers, architects and engineers, builders,
-contractors, distributed energy resource providers, aggregators
-and other stakeholders are aligned;
+Memorials do not contain appropriations and ar e not enforceable as state law. The study
+requested in this memorial is outside of the nor mal operations of ECAM and is likely to result in
+additional costs for them. EMNRD did not provide an  estimate as to what implementation of the
+bill would cost. LFC estimates the bill could requir e ECAM to need additional funds for contract
+House Memorial 60 – Page 2
 
-     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF
-REPRESENTATIVES OF THE STATE OF NEW MEXICO that the energy
-conservation and management division of the energy, minerals
-and natural resources department be requested to convene a
-study group that includes stakeholders to develop and make
-recommendations to the appropriate interim legislative
-committee for a comprehensive statewide approach to
-accelerating and maximizing the deployment of building
-technologies, including electric appliances, that are enrolled
-in demand flexibility programs, rates and tariffs, to the
-benefit of the electric grid and energy affordability for
-ratepayers, including recommendations for necessary funding and
-proposed legislation; and
+work for implementation.
 
-     BE IT FURTHER RESOLVED that the energy conservation and
-management division of the energy, minerals and natural
-resources department coordinate the activities of the study
-group, including meeting at regular intervals; and
+SIGNIFICANT ISSUES
 
-     BE IT FURTHER RESOLVED that the goals of the study group
-in developing recommendations include identifying best
-practices for:
+EMNRD analysis notes that, due to the rapidly evolving nature of energy and technology, the bill
+could provide an opportunity for the state to study the utilization of buildings as  “miniature
+power plants” to support the grid and offset peak demand.
 
-          A.  utility and non-utility building flexibility,
-efficiency and electrification programs and planning;
+EMNRD further notes the number of energy storage systems are declining nationally, while
+adoption of new technologies continues to grow. With a careful rollout of utility incentive
+frameworks, strategic deployments, and appropriate rate desi gn, EMNRD suggests New Mexico
+could identify new methods to address peak energy use needs.
 
-          B.  establishing consumer protections and program
-participation standards;
+For similar memorials calling fo r additional study by EMNRD, the agency has previously noted
+that the short implementation t imeline and the dead line for submitting study findings could
+present challenges for effective implementation.
 
-          C.  ensuring avenues for third-party solution
-providers to assist consumers;
-
-          D.  developing financing mechanisms to accelerate
-deployment of building technologies and complementary building
-efficiency upgrades with little or no up-front cost to
-consumers;
-
-          E.  ensuring equitable access to programs for
-low-income and environmental justice communities;
-
-          F.  integrating building flexibility programs with
-utility integrated resource planning and distribution system
-planning;
-
-          G.  identifying workforce development and contractor
-training needs;
-
-          H.  evaluating rate design options that support
-flexible energy use;
-
-          I.  establishing measurement and verification
-standards;
-
-          J.  proposing public policies to support affordable,
-efficient and grid-responsive buildings; and
-
-          K.  identifying complementary energy affordability
-strategies and programs; and
-
-     BE IT FURTHER RESOLVED that the study group be composed of
-a minimum of eleven members, one each appointed from the
-following agencies and stakeholder entities:
-
-          A.  the energy conservation and management division
-of the energy, minerals and natural resources department;
-
-          B.  the staff of the public regulation commission;
-
-          C.  the New Mexico mortgage finance authority;             D.  investor-owned New Mexico electric utility
-companies;
-
-          E.  New Mexico rural electric cooperatives,
-distributed energy resource providers and aggregators;
-
-          F.  building contractors and trades representatives;
-
-          G.  heat pump manufacturer representatives;
-
-          H.  consumer advocacy organizations;
-
-          I.  low-income and environmental justice community
-representatives;
-
-          J.  energy efficiency and building science experts;
-and
-
-          K.  a representative from New Mexico's clean energy
-industry; and
-
-     BE IT FURTHER RESOLVED that the energy conservation and
-management division of the energy, minerals and natural
-resources department write a final report and present its
-findings and recommendations to the appropriate interim
-legislative committee before November 1, 2026; and
-
-     BE IT FURTHER RESOLVED that copies of this memorial be
-transmitted to the co-chairs of the New Mexico legislative
-council, the governor, the secretary of energy, minerals and
-natural resources, the chief of staff of the public regulation
-commission, the president of the New Mexico rural electric
-cooperative association, the presidents and chief executive
-officers of investor-owned electric utility companies in New
-Mexico, the executive director of the New Mexico mortgage
-finance authority and the chief executive officer of New Mexico
-counties.
-
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+AD/SEC/dw