NEWS
GRID
The Federal Energy Regulatory Commission (FERC) approved Southwestern Power Group’s (SWPG) plan to sell capacity on the $2.4 billion RioSol transmission project, a 1.6-GW line spanning about 550 miles between New Mexico and Arizona. SWPG, co-developing the project with the New Mexico Renewable Energy Transmission Authority, will start the solicitation process in late 2024 to secure financing. Pattern Energy Group and SWPG affiliate Agua Fria Energy plan to participate. Additionally, the California Independent System Operator (CAISO) seeks to integrate the SunZia transmission project, which is expected to be operational by December 2025, into its grid.
REGULATION
E&E News: Sen. Joe Manchin of West Virginia has gained the support of Sen. Martin Heinrich (New Mexico) for his new permitting overhaul package, which appeals to both fossil fuel and clean energy interests but faces opposition from environmentalists. Sen. Heinrich, emphasized the importance of building transmission lines and investing in emerging energy technologies like geothermal to combat climate change. He believes the legislation will create jobs, grow the workforce, and provide affordable, reliable electricity while meeting climate goals. The bill, co-sponsored by Sen. John Barrasso, faces a challenging path to passage amid a tight congressional calendar and a presidential election. Senate Majority Leader Chuck Schumer has shown openness to advancing permitting legislation despite previous skepticism. The bill includes provisions for streamlining renewable energy projects and granting categorical exclusions similar to those for oil and gas, aiming to garner bipartisan support, though it remains contentious among lawmakers and environmental groups. Read the story.
Press Releases: U.S. Senator Martin Heinrich and Representative Scott Peters led a bipartisan effort with 40 lawmakers to urge the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) to finalize a strong Gas Pipeline Leak Detection and Repair Rule. This rule, mandated by the bipartisan Protecting Our Infrastructure of Pipelines and Enhancing Safety (PIPES) Act of 2020, aims to reduce methane emissions and enhance public safety by implementing advanced leak detection technologies and expediting repair on natural gas pipelines. The rule is significantly behind schedule, as it was directed to be finalized by the end of 2021 but has experienced delays, prompting lawmakers to push for its urgent completion to safeguard community safety and reduce environmental impact. The initiative is supported by several environmental organizations and aims to align with the priorities outlined in the White House’s Methane Action Plan. Read the story.
ENERGY EQUITY
Santa Fe New Mexican: A school district in San Juan County, New Mexico, is facing financial difficulties as the region transitions from coal-fired power to renewable energy. The Central Consolidated School District, which spans nearly 3,000 square miles and serves about 5,000 students, relies heavily on tax revenue from coal power plants, which have been integral to its funding. With the closure of the San Juan Generating Station and the potential closure of the Four Corners Power Plant, the district is experiencing significant funding shortfalls. The district’s superintendent, Steve Carlson, highlights the dire situation with increased student homelessness and inadequate funding for maintaining school facilities. Lawmakers and local officials are urging the Public Regulation Commission to enforce the provisions of the Energy Transition Act to support the district’s financial stability and local economic needs. Read the story.
WIND
TechXplore: Wind turbine technician Terrill Stowe trains new technicians for the growing wind industry at Mesalands Community College in Tucumcari, New Mexico. The U.S. now has around 75,000 turbines powering 40 million homes, doubling its capacity in a decade but struggling to find enough skilled workers. Stowe trains 10 to 20 students per semester, emphasizing the job’s demands and heights. Wind industry growth is driven by lower technology costs, better efficiency, and government incentives like the Inflation Reduction Act. Recent recruits joined for clean energy and high wages. Despite safety improvements, the job remains challenging with hazards like wind, ice, and lightning. Read the story.
SOLAR
Solar Power World: The New Mexico Energy, Minerals and Natural Resources Department (EMNRD) is now accepting applications for the Supplemental New Solar Market Development Tax Credit program, aimed at taxpayers who were denied solar tax credits from 2020 to 2023 due to exhausted funds. This supplemental fund was established by the legislature and Governor Michelle Lujan Grisham to address these previous denials. The program, originally launched in 2020, offers up to 10% in tax credits on the cost of installing solar thermal and photovoltaic systems, with a maximum of $6,000 per taxpayer per year. After rapidly reaching its funding limits annually, the 2024 legislative session increased the program’s funding, allocating $20 million for those previously denied and raising the annual cap to $30 million. The program has benefitted over 13,000 New Mexicans since its inception, providing average tax credits of $3,078 and helping to add over 100 MW of distributed solar generation to New Mexico’s power grid. Applications for both supplemental and 2024 tax credits are now open. Read the story.
Solar Power World: Contractor meticulously installs solar on oldest church in US. Read the story
STORAGE
Carlsbad: The Eddy County Commission is hesitant to issue industrial revenue bonds (IRBs) worth $230 million to Peregrine Energy for a renewable energy battery facility near Carlsbad, New Mexico. Bowen expressed concerns that the project, which involves constructing a 150-megawatt storage unit on approximately 30 acres, is not fully prepared to begin. Unlike typical utility projects that are ready for immediate commencement, further discussions with the Boulder-based clean energy company are deemed necessary. The proposed facility would feature nearly 100 battery storage units and connect to Xcel Energy power lines to support electricity demands. The commission is expected to vote on an inducement resolution in the next two months, which would commit the county to the project, followed by a vote on the ordinance to grant the IRBs. Read the story.
OIL & GAS
OA Online: The Permian Basin, a major economic powerhouse in Texas and New Mexico, is highlighted for its significant contributions to the U.S. economy in the latest Economic Report by the Permian Strategic Partnership (PSP). The report underscores the Basin’s role in supporting essential government services and its status as a leader in efficient oil production with low CO2 emissions per barrel. By 2050, the Basin is projected to generate around $350 billion in gross product and support approximately 1.2 million jobs nationwide. The region is also a major contributor to state revenues, with $18.2 billion in taxes collected and significant payments to educational funds in Texas. Additionally, New Mexico is leading the U.S. in solar capacity growth, with significant investments in renewable energy sources like wind and solar continuing in the Basin. The Permian Basin’s role is pivotal not only domestically, where it will account for 50% of U.S. oil production by 2030, but also globally, with substantial reserves making it comparable to the top oil-producing nations. The PSP emphasizes the Basin’s continued potential for economic growth and energy security, making it a cornerstone for future American economic stability. Read the story.
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