Energy Efficiency Policies

Energy Efficiency Resource Standard:

In 2008, NM approved the Efficient Use of Energy Act (HB 305, and updated in 2019 w/ HB 291) that applies to electric and gas utilities. IOUs required to offer customers demand-side programs that achieve savings equal to 5% of 2005 retail sales by 2014 and 8% of 2005 retail sales by 2020. HB 291 updated this by calling for a 5% savings relative to 2020 retail sales between 2021-2025. Coops required to develop their own energy efficiency targets and programs to meet the targets.

Building Codes:

In 2020, NM updated to the 2018 IECC. The code applies statewide but local jurisdictions can adopt more restrictive standards. NM code built upon the IECC with regional climate zones to its code to tailor requirements to regional location and altitude.

Appliance Standards:

NM has not set appliance standards beyond the federal appliance standards.

Tax Credit:

In 2021, NM updated an existing tax credit that encourages sustainable and green building practices, the Sustainable Building Tax Credit (NMSA 7-2-18 and NMSA 7-2A-21) to increase its stringency. The tax credit provides incentives for sustainable construction in both commercial and residential buildings, with bonuses for EV-ready and zero-carbon buildings, as well as additional incentives for building retrofits which replace windows, doors, insulation, and other infrastructure and appliances with EnergyStar-rated products that efficiently electrify building space and water heating.