Secretary James Kenney touts New Mexico's environmental funding as an economic development tool

PUEBLO OF SANDIA — State Environment Secretary James Kenney pitched his agency as a financing option Wednesday for companies and nonprofit groups looking to decarbonize their fleet or launch similar projects.

In a speech before business leaders gathered at the Economic Forum, Kenney said his department hopes to spend heavily this year on economic development efforts, including low- or no-cost loans for clean-water projects.

More broadly, he said, a “tsunami” of federal funding — reaching into the billions of dollars — is arriving in New Mexico and will aid environmental protection efforts.

The state government, Kenney said, can take an expansive view of what would qualify for funding. An effort to move away from diesel or gasoline, for example, could help protect groundwater from contamination by reducing leaks, Kenney said, perhaps unlocking clean-water funding.

The agency also has cash that can help finance the purchase of electric vehicles or heavy equipment. Development of old commercial or industrial sites, installation of solar panels and other projects may also qualify for financial assistance, he said.

The Bipartisan Infrastructure Law passed by Congress is responsible for some of the funding.

“We’re really trying to get out there with these pots of money,” Kenney said.

Getting the money out the door can be a challenge. Cash balances in the program that provides low-interest loans for clean-water projects, for example, climbed over a six-year period while use of the fund by local governments remained low, according to a report issued last month by the Legislative Finance Committee.

The share of New Mexicans with access to water that meets health standards also fell, the report found, though analysts attributed the change to more stringent standards.

Kenney on Wednesday encouraged business, nonprofit and government executives to request a meeting to explore how the Environment Department can fill financing gaps.

“Let’s fund some really big ideas,” Kenney said.

The department’s goal for the year is to award $65 million in economic-investment grants to communities throughout the state, he said, but that’s just some of what’s available.

“We’re at a record amount of money coming into this state,” he said. “You should come to us first. You should think about what the state can do for you.”

He made his presentation to about 85 business leaders and others gathered at the Sandia Golf Club event center at the Pueblo of Sandia, just north of Albuquerque.