Clear Horizons Act clears first legislative hurdle after marathon hearing

SANTA FE — The highest-profile climate change bill under consideration during this year’s 30-day legislative session passed its first Senate committee hearing Tuesday, but only after weathering a broad blast of opposition from business and industry groups.

After five hours of public testimony and debate, the Senate Conservation Committee voted 5-4 to advance the Clear Horizons Act to its next assigned committee.

The vote on the legislation, Senate Bill 18, broke down largely along party lines, with Sen. Joseph Cervantes, D-Las Cruces, joining the committee's three Republican members in casting "no" votes. He voiced concern the legislation could lead to a flood of litigation, especially in southern New Mexico.

Other critics, including representatives from New Mexico's dairy, mining and restaurant industries, voiced economic concerns, saying the bill would raise costs and could lead to some businesses being shuttered.

"I don't believe we can regulate our way to utopia, and I don't believe we can tax our way to prosperity," said Sen. Ant Thornton, R-Sandia Park. 

However, supporters of the bill expressed a sense of urgency to enshrine greenhouse gas emission limits in state law amid rising temperatures and a recent increase in natural disasters across New Mexico.

"Affordability isn't just about monthly bills, it's about the costs when disasters hit," said Demis Foster, the chief executive officer of Santa Fe-based Conservation Voters New Mexico, who urged legislators to be on the "right side of history." 

Several officials in Gov. Michelle Lujan Grisham's administration also spoke in favor of the bill, which would codify an executive order issued by the governor in 2019 that directed New Mexico to reduce greenhouse gas emissions by 45% by 2030.

New Mexico Environment Secretary James Kenney described the bill as the "engine" to power the state's climate action plan, while Ali Rye, the state director of the Department of Homeland Security and Emergency Management, cited recent changes in the state's weather and an accompanying spike in wildfires and other natural disasters. The two largest wildfires in modern state history have erupted in the last five years.

"We're not preparing for a specific season (anymore)," Rye said. "Disasters are happening throughout the year." 

Specifically, the Clear Horizons Act would set future deadlines for meeting statewide greenhouse gas emissions — including a 100% reduction of greenhouse gas emissions by 2050, based on 2005 levels. It would also establish new methane emission limits for the oil and gas industries.

Previous attempts to pass similar legislation have stalled at the Roundhouse due to concerns about its impact on local agricultural operations and the state's oil and natural gas industry, which generates about 35% of the state's general fund revenue.

New Mexico is currently the nation's second-highest oil producing state — behind only Texas — and the fifth-highest producer of natural gas, according to the U.S. Energy Information Administration.

In response to concerns raised in past years, Senate President Pro Tem Mimi Stewart, D-Albuquerque, the bill's sponsor, made several changes to the legislation this year, including exempting emissions of less than 10,000 metric tons per year.

During the Senate Conservation Committee hearing, she read off a list of more than 20 other states that have already set carbon emission limits, including Colorado, Washington and Oregon.

Stewart also pushed back against suggestions by Sen. Candy Spence Ezzell, R-Roswell, that the legislation would make New Mexico follow in California's footsteps.

"We wrote this ourselves over the last several years," Stewart said at one point during Tuesday's debate.

Meanwhile, several legislators also questioned the bill's potential impact on Project Jupiter, a massive data center under construction in Santa Teresa that has prompted debate in Doña Ana County.

Air quality permits for the project, which would be fueled by natural gas, indicate it could produce more than 2.8 gigawatts of electricity via fossil fuels, with significant carbon emissions.

Kenney declined to speak specifically about Project Jupiter due to its pending air quality applications before the state Environment Department, but said the legislation would allow the state to regulate greenhouse gas emissions from data centers.

"We are on the sideline (currently), and that's a shame for such an important aspect of our economy," Kenney said during Tuesday's hearing.

Matthew Gonzales, vice president of state affairs for the Consumer Energy Alliance, a nonprofit group that supports Project Jupiter, described the vote to advance the Clear Horizons Act as disappointing.

"Instead of thoughtful environmental policy, this creates rigid mandates that will drive up costs and invite years of litigation, turning the law into a revenue-generating tool for attorneys rather than a practical solution for New Mexicans," Gonzales said in a statement.

The bill now advances to the Senate Tax, Business and Transportation Committee with just over two weeks remaining in this year's 30-day legislative session.

Dan Boyd covers state government and politics for the Journal in Santa Fe. Follow him on X at @DanBoydNM or reach him via email at dboyd@abqjournal.com.