Senate committee members on Saturday advanced two companion bills to create and fund a Community Benefit Fund intended to pay for locally driven climate and energy projects across New Mexico.

Senate Bill 48 sets out the fund's purpose and eligible projects; Senate Bill 49 transfers $340 million from the general fund to the agencies and accounts named in SB 48. The committee adopted an amendment to SB 48 requiring the state to ensure tribal and indigenous communities are included in any data used by a screening or mapping tool and voted to give both bills a "due pass" recommendation to the full Senate.

The sponsor identified the main aims and dollar allocations. "This is the Community Benefit Fund. It is designed to get money all across the state in our communities on projects that reduce greenhouse gas emissions," said Senator Mimi Stewart, the bills' sponsor. Stewart told the committee the package would put money to work immediately, with agencies and programs already identified in the bill text and a plan to use a data tool to locate overburdened communities.

Nut graf: Supporters, including state agency officials and environmental and tribal advocates, said the package would move federal and state climate investments to local projects that are "shovel ready" and create jobs. Opponents — primarily industry and business groups — warned the appropriation is large, raised questions about cost and fiscal trade‑offs, and said the bills risk picking winners and losers in the economy.

What the bills would fund. The sponsor and her staff walked committee members through a chart embedded in the bill materials showing where the $340 million would be directed:

- $100,000,000 to the Energy, Minerals and Natural Resources Department (EMNRD) for grid modernization, resilience and reliability grants (including microgrids and other distribution upgrades needed for community solar and school charging).
- $60,000,000 to the Public School Facilities Authority to support electric school buses and the difference in cost between diesel and electric buses (and associated charging infrastructure).
- $50,000,000 to the Department of Transportation for electric vehicle infrastructure, bicycle and pedestrian infrastructure.
- $40,000,000 to EMNRD for energy efficiency and renewable technology grants.
- $40,000,000 to the Economic Development Department for economic diversification and development initiatives tied to climate objectives.
- $25,000,000 to Workforce Solutions for training programs tied to non‑extractive industries and job transition supports.
- $5,000,000 to the State Supplemental Land and Water Conservation Fund (a state program used by cities and counties for recreational and conservation projects).

Stewart and agency witnesses said many projects are "shovel ready." "We have identified over $1,000,000,000 in projects that people have wanted to do… and there is $340,000,000 in the budget," Stewart said. Justin Garoot of Conservation Voters New Mexico and other proponents told the committee that groupings of projects, from school bus electrification to microgrids in small towns, already have local demand and could be launched quickly if funding is available.

Data tool, tribal data and the amendment. An amendment adopted by the committee removed a statutory requirement to use an existing federal screening product and instead directed the Department of Finance and Administration and EMNRD to develop or identify a data tool using spatial datasets to identify overburdened communities. The amendment also added a sentence directing state departments to "ensure that data from tribal and indigenous communities are included in the data used by the data tool." Senator Scott asked whether the change meant the state would build a new tool; the sponsor and staff said the amendment provides flexibility to use or validate existing tools (witnesses mentioned the EPA's EJSCREEN as an example) or to build a state‑validated tool.

Supporters' pitch. Speakers in the hearing included representatives of the governor's office, state agencies and a coalition of environmental, tribal and youth groups. They emphasized economic development and workforce benefits alongside environmental aims. "This is not just about climate action and climate change. It's about creating jobs in the state," Travis Kellerman, the governor's senior climate policy adviser, told the committee. Rebecca Roos, the governor's infrastructure adviser, said agencies and programs referenced in the bills are ready to scale with state funding.

Opposition and fiscal concern. Business groups, chambers of commerce and oil‑and‑gas representatives said the $340 million transfer would divert general‑fund dollars from other needs and could destabilize the state budget if made recurring. Larry Sontag of the New Mexico Business Coalition and Ashley Wagner of the New Mexico Oil and Gas Association warned of market distortions and fiscal risk; the Independent Petroleum Association of New Mexico questioned whether electric vehicle subsidies and large training appropriations were the best use of taxpayer money.

Committee action and votes. The committee adopted the amendment to SB 48 on a roll call and later approved a motion recommending SB 48 "due pass as amended." The committee also voted to recommend SB 49, the appropriation vehicle, for a due pass. The sponsor said many projects across the state — including items listed in handouts and a set of "unfunded projects" compiled for committee review — would be eligible to apply for grants or agreements under the fund.

What the bills do not do. The bills do not impose mandates forcing local governments or school districts to adopt electric vehicles or infrastructure; supporters repeatedly described the program as voluntary grant and competitive funding available to local applicants. The bills also do not change federal authorities over tribal lands; sponsors and witnesses said departments will consult with tribes and tribal agencies.

Next steps. With the committee "due pass" recommendations, the bills advance toward the full Senate for further debate and votes. If enacted, the bills would direct a one‑time set of appropriations (as presented) to the targeted programs and require agency reporting on progress and outcomes. Committee members asked agencies to return with details on specific projects, project lists, and the mechanics of the data tool and tribal engagement.

Votes at a glance

- Senate Bill 48 (Community Benefit Fund): Amendment adopted (roll call recorded), committee recommended "due pass as amended" (committee vote 5 yes, 3 no).
- Senate Bill 49 (appropriation mapping): Committee recommended "due pass" (committee vote 5 yes, 3 no).

Ending: Supporters framed the package as a way to deliver state funding quickly to local climate and resilience projects; opponents framed it as an expensive diversion of general‑fund dollars that would require trade‑offs. The bills now move to the full Senate, where advocates said they will keep pressing for the appropriation to remain intact and for agencies to deliver grant readiness and tribal consultation.