The New Mexico Economic Development Department (EDD) has announced the recipients of grants from the Energy Transition Economic Development Assistance Fund, aimed at bolstering economic diversification and job creation outside of the fossil fuel sector.
Established by the 2019 Energy Transition Act (ETA), which sets ambitious renewable energy targets for the state, the fund is designed to mitigate the impact of coal plant closures and support affected communities. With a focus on areas within 100 miles of qualifying facility closures, particularly the San Juan Generating Station, the fund aims to provide workforce training and economic relief.
The 2023 Legislature allocated $5.9 million to EDD for projects unrelated to fossil fuel development. Following an RFP process initiated on March 1, 2024, four projects were selected out of 15 submissions by an evaluation committee comprising experts in economic development, renewable energy, climate change, and social equity, with input from state agencies and an Indigenous-led nonprofit.
Acting EDD Cabinet Secretary Mark Roper announced the projects at Gov. Michelle Lujan Grisham’s Cabinet in Your Community event in Farmington on April 11, highlighting their alignment with the ETA’s objectives.
The funded projects include:
Northern New Mexico Indigenous Farmers Inc. (NNMIF) in Shiprock
Award: $3,638,375
Objective: Replace the Hogback Water Pumping Station with a solar-powered pumping station equipped with microgrid and energy storage capabilities. This project aims to revitalize agricultural lands within the Hogback Chapter of the Navajo Nation by providing consistent irrigation water, addressing issues stemming from outdated infrastructure.
Funding Source: Gold King Mine Spill Settlement, State of New Mexico Severance Tax Bonds.
C&E Concrete in Grants
Award: Partial funding for photovoltaic (PV) systems totaling 245 kW across their facilities, including a storage solution for enhanced power resiliency and community disaster relief.
Objective: Transition from supplying limestone to closed power plants towards clean energy production, reducing reliance on fossil fuels and mitigating emissions.
Funding Source: U.S. Department of Agriculture.
City of Farmington
Award: Partial funding for solar generation and battery storage proposal.
Objective: Add renewable generating and storage capacity to the Farmington Electric Utility System, lowering electricity costs for ratepayers.
Purple Adobe Lavender Farm in Abiquiú
Award: Support for the installation of three solar arrays to reduce carbon footprint and promote sustainable agriculture practices.
Objective: Become a community leader in green business practices while enabling year-round operations.
These projects signify New Mexico’s commitment to renewable energy solutions and economic growth, particularly in regions affected by changes in the energy sector. With the closure of the Escalante Power Plant significantly impacting low-income rural areas, these investments aim to drive positive change and resilience in local economies.