
ZERO GREENHOUSE GAS EMISSIONS CLEARS SENATE CONSERVATION COMMITTEE
“The future of this bill is litigation,” so stated Senate Judiciary Committee Chair Joseph Cervantes (D-Dona Ana), who joined the three Republicans on the Senate Conservation Committee in voting no on Senate Bill 4.
Nonetheless, the measure passed on a vote of 5-4, sending it to the Senate Finance Committee for further consideration. Cervantes, both a lawyer and farmer, is well known for scrutinizing legislation to help ensure that definitions are complete and clear and that there is minimum ambiguity. Cervantes also objected to delegating more authority to executive agencies. “We’ve done too much of that lately,” he said. Cervantes pointed out that in this bill the decisions will be made “someplace else, sometime later, by someone else.”
SB 4, sponsored by Senate President Pro Tempore Mimi Stewart (D-Bernalillo), seeks zero greenhouse gas emissions by 2050 and a 45% reduction by 2030, just five years from now. In testimony before the committee, GACC President and CEO Terri Cole opposed the measure:
“The scale and scope of the bill would affect all buildings and structures. In just five short years, emissions have to be cut by 45%. We are very concerned with the unintended consequences to our jobs base and overall economy with such an aggressive mandate. In particular, we believe the oil and gas industry will be negatively affected and the message to businesses wanting to come here and businesses trying to grow here will be negative – just the opposite of what all of us want and need.
“This bill needs a realistic plan for implementation, which is difficult to achieve when the definitions lack clarity. We have many questions. How will all the new rules that will be issued be enforced? How many more staffers in the Environment Department and elsewhere have to be hired? The bill will affect virtually every sector of our economy: electric generation, transportation, home heating fuels, buildings, all forms of waste, manufacturing and extraction of raw materials, agricultural and forest products and, of course, oil and gas. We believe this transition is too aggressive and lacks a necessary balanced strategy. Please vote against SB 4. Thank you.”
Cole was joined by many business people and business organizations who spoke in opposition. As the New Mexico Oil and Gas Association pointed out, greenhouse gas emissions have been reduced 26% in the Permian, largely due to innovation in the industry that increases efficiency and profitability. Representatives of agriculture voiced strong concern about the cost of complying with the zero emissions standard, which very adversely affects agriculture and lower income communities. Jim Winchester, representing the Independent Petroleum Producers Association of New Mexico, flatly stated, “The goals of this bill are unattainable unless you shut down all industries. …” Supporters of the bill included environmental organizations, climate activists and many young people.
Committee Republicans, Sens. Candy Spence Ezzell (R-Chaves and Eddy), Larry Scott (R-Chaves, Eddy and Lea) and Jim Townsend (R-Eddy and Otero), probed deeply into the bill’s provisions, focusing on the detrimental economic effects that are probable in their view. Sen. Stewart defended the bill, saying it builds on the governor’s executive order and that the Environment Department and the Environmental Improvement Board are very capable of doing the necessary analysis to develop a plan that then can be translated via rulemaking into regulations that will be applied statewide. Stewart asserts that the bill will not harm the oil and gas industry “in any way.”
As Sen. Scott said, “This is a big deal.” Indeed, it is. The sweeping nature of this bill, which intrudes into every segment of our economy, presents a very negative outlook for businesses in our state. For example, the New Mexico Gas Company estimates that at least 40% of its customers will be forced to switch from natural gas for space and water heating. How many tens of thousands of dollars will this cost homeowners and businesses to comply with just this one provision? What will be the cost of forcing everyone to use electric vehicles if transportation fuels must be zero greenhouse gas emissions? While the goals may be laudable, the bill is impractical, failing to balance protection of the environment with the need to increase jobs, wages and grow our economy.
WORKER’S COMP ATTORNEY FEE INCREASE ADVANCES
This afternoon, the House Labor Veterans’ and Military Affairs Committee met to go over House Bill 66, Worker’s Compensation Attorney Fees & Discovery Cost Increases, sponsored by Rep. Pamelya Herndon (D-Bernalillo). The Chamber was there to oppose the bill.
The bill increases the cap on attorney fees from $22,500 to $30,000, and then increases it annually based on the Consumer Price Index. It also increases the amount of discovery fees that can be advanced to an attorney, from $3,000 to $6,000.
In addition to the Chamber, several groups testified against HB 66, including:
- New Mexico Mutual Casualty Company, which served on a 2023 worker’s comp task force and said the indexing and increase in advanced discovery fees were not in the agreed-upon recommendations
- New Mexico County Insurance Authority, whose members created the Workers’ Compensation Fund in 1987 when commercial rates for this coverage increased dramatically and numerous carriers opted not to offer coverage to public entities. It also spoke against the indexing.
- Builders Trust, which also served on the task force and which solely insures contractors, pointed out there is no data supporting increasing the advanced discovery fees.
D’Val Westphal, executive vice president for policy and programs at the Greater Albuquerque Chamber of Commerce, testified that:
“The Chamber believes Worker’s Compensation payments should first and foremost help injured workers. But according to the bill’s FIR, the 2023 task force warned that raising attorney fee caps has the potential for a larger portion of worker’s compensation awards being allocated to legal fees rather than aiding in recovery and compensation for lost wages among workers’ compensation claimants. That same task force found that the vast majority of cases, 93 percent, did not reach the fee cap.
“There’s also the concern, raised with this proposal last year, that the increased limits will contribute to higher losses incurred for insurers, which will translate into higher workers’ compensation insurance rates, which will hurt New Mexico employers who are already struggling.”
Westphal closed by acknowledging the committee members “know better than most about unintended consequences, and HB 66 is rife with them. We respectfully ask you vote against it.”
The committee passed the bill on a 7-4 vote. It’s now headed to House Judiciary. And we’ll be there too!
JOURNEYMAN-APPRENTICE RATIO MOVES AHEAD

The House Labor Veterans’ and Military Affairs Committee also heard House Bill 68 – One-to-One Apprentice to Journeyman Ratio, sponsored by Rep. Joy Garratt (D-Bernalillo).
The bill would do exactly what its title says: require one journeyman for each apprentice. The current ratio is two apprentices for each journeyman. The Chamber opposed the bill.
Several groups testified against HB 68, saying the current ratio was established with sound and valid reasoning, and the proposed change will be extremely detrimental to the construction workforce and would increase costs. Those who testified against HB 68 included:
- Association of General Contractors
- NAIOP
- National Electrical Contractors of New Mexico
- Sheet Metal Contractors
- The Electrical Co-op Association
Westphal testified for the Chamber that:
“HB 68 is, in all honesty, a solution in search of a problem. The current 2-to-1 journeyman-to-apprentice ratio effectively balances training, supervision and workforce needs. It allows a journeyman to oversee two apprentices – meaning two apprentices have not only oversight but real jobs to go to, jobs that pay their bills while delivering hands-on training and quality construction work. HB 68 will cut this workforce in half, limiting the number of new journeymen being trained as well as the projects their companies are able to take on and complete. That is not a formula for growing our skilled trade workforce or for completing construction jobs on budget and on time. Our state is already in a workforce deficit, losing more journeymen to retirement than it is training, and HB 68 will exacerbate that deficit.”
She added that “our contractors need to be flexible and efficient to tackle construction projects in this economy, and they need flexibility and efficiency when it comes to bringing tomorrow’s journeymen online. At the same time, we need to have sufficient apprentice slots available so New Mexicans have the opportunity to work and learn a trade at the same time. Let’s not remove that flexibility and efficiency, and let’s not slash the number of apprenticeships available for today’s and tomorrow’s workforce.”
The committee passed the bill on a 7-4 vote. We’ll be there next, as it’s now headed to House Judiciary.
ENERGY STORAGE TAX BREAK PASSES HOUSE ENERGY

Early this morning the House Energy, Environment and Natural Resources Committee passed House Bill 51, Energy Storage System Tax Credits, sponsored by Rep. Debra Sariñana (D-Bernalillo) and vice-chair of the committee.
Sariñana kicked off the discussion by explaining that energy storage systems capture and stores energy for later use, then ran down the specifics of the bill and said it’s needed now to encourage more adopters, to help consumers save money and have reliable backup energy sources when usage is high.
The Chamber was also there to support the bill. We believe the bill is a textbook example of a positive way to incentivize individuals to make an investment in energy storage.
Here are a few of the other statements in support of the bill:
- From Positive Energy, a solar company with 100 employees, which said the storage is essential as the sun shines just part of the day and the wind doesn’t always blow.
- From an activist who worked on power grid models at NMSU, who said New Mexico needs more battery storage to complete the state’s energy transition.
- From J.D. Bullington on behalf of the city of Santa Fe and Public Power New Mexico, who said the technology has evolved from a dream to an essential reality for the state’s energy transition.
- From former Rep. Abbas Akhil, who spoke in support on behalf of both the N.M. Society of Professional Engineers and the TESLA Owners Club.
- And from the Sierra Club, who spoke on the need to make this technology affordable to New Mexicans.
Rep. Rod Montoya (R-San Juan) expressed concern about potential battery fires but said he would reserve his questions for the bill’s next committee hearing. Other committee members expressed concerns over how and where batteries would be disposed of and if tax incentives are indeed good tax policy or simply distort the market and pick winners and losers.
The committee voted to pass the bill 6-4. HB 51 is now headed to the House Taxation & Revenue Committee.

MANDATE TO PROTECT PUBLIC HEALTH, ENVIRONMENT DELAYED UNTIL THURSDAY
Also this morning, the Chamber was in the House Agriculture, Acequias and Water Resources Committee to testify against House Bill 34, Oil & Gas: EMNRD Mandate to Protect Public Health & Environment, sponsored by Rep. Debra Sariñana (D-Bernalillo).
The bill broadly mandates the Oil Conservation Division to protect “public health” and the environment” and targets the oil and gas industry.
After vetting what they thought was the current version of HB 34, and hearing in-person and online comment, committee members learned they did not have the committee substitute and determined they would go directly to committee comment and action when they reconvene on Thursday.
The Chamber opposed the bill. Other opponents who testified against HB 34 included:
- The New Mexico Oil and Gas Association, which said the bill is an unworkable mandate.
- The New Mexico Chamber of Commerce, which pointed out that the lack of definitions creates uncertainty that hurts business, the efforts duplicate those of the Environmental Protection Agency, and the unfunded mandate puts an undue burden on the Oil Conservation Division.
- Occidental Petroleum, which highlighted the lack of guidance in the bill and the duplicative mandate.
- And an online testimony that cited the current statute creating the Environment Department, pointing out it is not appropriate to assign its duties to another agency.
J.D. Bullington opposed the bill on behalf of the Chamber:
“This bill is obviously well-intentioned; however, the GACC believes this bill expands the responsibilities of the Oil Conservation Division in a manner that is too broad and too vague. One of the biggest concerns is the lack of a definition of what, exactly, the OCD will be charged with regarding the protection of ‘public health’ or the ‘environment.’ That ambiguity subjects the division to unrealistic demands, likely unfunded mandates and potential litigation when the division does not deliver on matters that are vaguely implied but not clearly spelled out. The GACC also believes HB 34 unnecessarily duplicates work already being done by the Air Quality Bureau and the New Mexico Department of Environment.”
Bullington went on to explain that “Chamber members of course want clean air and water and the environment protected for generations to come. But the GACC favors clearly defined regulations that provide specific guidance, instead of the approach being taken with HB 34.”
When the committee discovered it did not have the substitute version in its binders (Sponsor Sariñana explained it cleans up language but does not make substantive changes), members voted against tabling. It will be up for a vote in the committee Thursday morning. Should it pass, it will head to House Energy, Environment & Natural Resources.
INTRODUCING NEW LEGISLATORS
HOUSE
District 38: Rebecca Dow, R-Dona Ana, Sierra and Socorro
Republican Rebecca Dow will represent District 38, which is centered around Truth or Consequences and Elephant Butte. Dow held this seat for six years, relinquishing it to run for governor. After sitting out two years, she was unopposed in her primary and defeated incumbent Tara Jaramillo in the general election to rejoin the House.
- Dow is an expert in and advocate for Early Childhood Education, having started not-for-profit businesses to provide these services.
- Dow is strongly pro-business; with her husband she has run a successful technology company prior to her first being elected to the House.
- Dow has received numerous awards for her work in ECE and has helped found several support organizations.
- She is a graduate of Oral Roberts University, holding a degree in business.
District 53: Sarah Silva, D-Doña Ana and Otero
Democrat Sarah Silva will represent District 53, which adjoins the Texas border near El Paso and includes Chaparral and the most eastern portion of Las Cruces. Silva won the general election after being appointed as the Democratic candidate following the death of Jon Hill, who defeated incumbent Willie Madrid in the Democratic primary.
- Silva is a community organizer and community advocate, born in Vado and raised in the Mesilla Valley.
- In an interview with the Las Cruces Bulletin, she expressed opposition to the governor’s special session on public safety, saying it focused too much on increasing penalties.
- In the same interview, she stated the state has “a moral obligation to reduce the state’s dependence on oil and gas.”
- Silva is a graduate of the University of San Francisco.
District 19: Anthony “Ant” Thornton, R-Bernalillo, Sandoval, Santa Fe and Torrance
Republican Ant Thornton, an aerospace engineer, will represent District 19, which covers the East Mountain area and includes parts of Bernalillo, Sandoval, Santa Fe and Torrance counties. He won the general election and replaces Republican Sen. Dr. Gregg Schmedes, who did not seek re-election.
- The son of a career-enlisted Air Force man, Thornton dreamed of having a career in aviation, particularly as an engineer. He graduated from the University of Colorado with a degree in aerospace engineering, obtained his master’s from Stanford and his Ph.D. from Purdue.
- He spent 27 years at Sandia National Laboratories and was the first Black American director in Sandia’s history. After retiring from Sandia, he worked for Universities Space Research Association as a corporate director, growing the company from $100 million to $160 million in revenue.
- In 2022 the majority of New Mexico Republican voters chose Thornton to be the first Black American Republican nominee for lieutenant governor.
District 21: Nicole Tobiassen, R-Bernalillo
Republican Nicole Tobiassen, a business coach, will represent District 21, centered in Albuquerque’s Northeast Heights, east of Interstate 25 and north and south of Paseo del Norte. She won the general election and replaced Republican Sen. Mark Moores, who did not seek re-election.
- She had a successful career at Enterprise Rent-A-Car, was recognized as the No. 1 national account manager worldwide, excelled in growing the government contract sector, and developed strong relationships with the Border Patrol and New Mexico National Guard and an understanding of the challenges they face.
- She founded ActionCoach with her husband, Mark, providing coaching and guidance to business owners and leaders during challenging times.
- After her husband faced a sudden life-or-death health crisis in 2017 and had to be transferred to a specialized clinic out of state, Tobiassen became an advocate for better health care for all New Mexicans.
AROUND THE ROUNDHOUSE
Oil and Gas Contributions to the State
As we and others battle against legislation that would severely harm our oil and gas industry, it’s very important to keep in mind that 49% of the general fund revenue comes from oil and gas taxes, royalties and fees. Here’s some of how that money helps our state and communities.
Sen. Pete Campos on Progress in the Oil and Gas Industry
In case you missed it, Sen. Pete Campos (D-Colfax, Guadalupe, Harding, Mora, Quay, San Miguel and Taos) had a wonderful Op-Ed piece in today’s Albuquerque Journal regarding the oil and gas industry. Campos points out the tremendous progress made in reducing greenhouse gas emissions, writing “I am proud to say that we are rising to the challenge. Through stringent regulations and innovative practices, the industry is reducing its environmental footprint while continuing to drive our state’s economy. …In addition to regulatory measures, the industry continues to embrace and create new technologies and practices to foster environmental stewardship.”
Campos applauds the industry not only for greenhouse gas emission reductions but also for work done to improve water quality. He’s a believer in collaboration, calling it “the key to success.” Campos stresses the need for balanced approaches and recognizes the contributions of the oil and gas industry to the state. “The contributions of the oil and gas sector have laid a strong foundation of this (the state’s) prosperity. If we attempt to diminish the role of oil and gas, we risk losing vital economic stimulus and seeing jobs migrate to other states.” To read the entire piece, click here.
House Memorial Designates Today “N.M. Oil and Gas Day”

House Memorial 4 was introduced today by Rep. Rod Montoya (R-San Juan). The memorial recognizes the oil and gas industry (click here to read the memorial).
Rep. Jack Chatfield (R-Colfax, Curry, Harding, Quay, San Miguel and Union) talked about his time working on an oil rig and thanked the industry for providing more than 40% of the state’s budget. Rep. Cathrynn Brown (R-Eddy and Lea) said the memorial brings home that we do need hydrocarbons to make modern life possible. Brown continued to say that Eddy County has received millions from the oil and gas industry that helps provide capital outlay, K-12 schools and higher education.
Rep. Elaine Sena Cortez (R-Lea) said New Mexico produces one of the cleanest barrels of oil in the world. “Oil and gas contributed 49% of all revenue to the state budget last year,” she said. Rep. Rod Montoya quipped that people have said he resembles Dr. Evil from the “Austin Powers” films. Putting his hand to his mouth, mimicking Dr. Evil from the films, he shared that “(We’ve had) $13 billion to our local and state governments.”
The memorial passed 69-0.
Successful Students

Rep. D. Wonda Johnson (D-McKinley and San Juan) introduced three students from the Navajo Preparatory School. They were Addison Salazar, who is also Miss Hozho Naasha, as well as Arcadia Riley of Laguna Pueblo and Carla Claunch, who is also a member of the cross country team. Rep. Johnson told the House that Navajo Prep is a college preparatory school located in Farmington. It has been fully sanctioned by the Navajo Nation since 1991, when the previous Navajo Academy closed due to lack of funding.
Dancing with The Stars…New Mexico Style!
Student performers from the National Dance Institute of New Mexico were brought to the House Floor by Majority Leader Reena Szczepanski (D-Santa Fe). Szczepanski said NDI-NM is celebrating its 31st year. The program is provided in 90 public schools across New Mexico and has served more than 159,000 children. The program has grown through public/private/corporate partnerships.
Big Brother…

When someone mentions “Big Brother,” it’s usually the government they’re talking about. But not today. Sen. Nicholas Paul (R-Chaves, Lincoln & Otero) introduced a certificate declaring January “National Mentoring Month,” and he recognized Big Brothers Big Sisters of Central New Mexico (BBBS).
BBBS serves 15 counties throughout the state and more than 3,000 youth. They match adult volunteers with kids who can benefit from a positive role model in their life.
Several senators stood in support of the non-profit and offered their own stories of volunteering to mentor kids in their communities through Big Brothers Big Sisters. Sen. Gabriel Ramos (R-Grant, Hidalgo, Luna) said he was one of the first “Bigs” in Grant County, and both he and Lt. Governor Howie Morales volunteered as big brothers at the same time. Sen. Jeff Steinborn (D-Doña Ana) also served as a “Big” and was a member of the program’s board of directors for a stint.
The senators all agreed that being a big brother or big sister can be a lifeline to kids who maybe need a different perspective on life, or just someone who believes in them. Steinborn said it’s really easy… you just contact BBBS and “tell them you want to be a Big. And they’ll do some screening and make sure it’s a good fit. And you can have this experience for as long as you as you like or don’t like.”
If you want to find out more about volunteering as a “Big,” fill out this form, and a BBBS staff member will contact you with more information!
SIGNING OFF FROM SANTA FE
As you can tell from our coverage, it’s been a whirlwind day. To say the least, the Legislature seems to be off to a fast start. With the tremendous contributions made by the oil and gas industry and progress made in reducing emissions, it continues to baffle us about the number of bills that are taking direct shots at the industry. Without this industry being successful and profitable, the state budget would go underwater faster than a lead tuna. And, as you can see, it’s not just the oil and gas industry, but all segments of our economy that face legislation that’s just not business-friendly. So, it’s important that all of us engage to fight the good fight on behalf of our businesses and our communities. Thanks for being with us today, and we’ll see you tomorrow. Until then, have a very pleasant evening.