STUDY USE OF BUILDINGS AS GRID ASSET

HM060

HOUSE MEMORIAL 60

57
th legislature
- STATE OF NEW MEXICO -
second session
, 2026

INTRODUCED BY

Dayan Hochman-Vigil

A MEMORIAL

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.

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

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

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

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

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

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

WHEREAS, these priorities can be more easily attained by
expanding the number of flexibility-enabled buildings,
appliances and devices in New Mexico; and

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

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;

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

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

BE IT FURTHER RESOLVED that the goals of the study group
in developing recommendations include identifying best
practices for:

A. utility and non-utility building flexibility,
efficiency and electrification programs and planning;

B. establishing consumer protections and program
participation standards;

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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