A state Senate committee voted Thursday to advance four measures, moving forward a $100,000 appropriation to New Mexico State University to plan a Rio Hondo Watershed District and approving a $100,000 qualified microgrid tax credit for installations in designated underserved communities, while tabling a contested change to air‑quality civil penalties and clearing a bill to legalize certified equine dental practitioners.

The committee approved Senate Bill 384, as amended to specify Taos County, by a due‑pass vote; advanced Senate Bill 418, the qualified microgrid tax‑credit measure, by unanimous consent; tabled Senate Bill 391, which would limit civil penalties under the Air Quality Control Act; and gave a due pass to Senate Bill 412, the equine dental maintenance exemption.

Why it matters: The Rio Hondo appropriation funds local planning and is aimed at creating a watershed district that advocates said would help preserve water quantity and quality for small, rural communities and acequias in northern Taos County. The microgrid tax credit is intended to accelerate private microgrid construction for large, often industrial loads in underserved areas and to make New Mexico more competitive for digital‑infrastructure projects. The air‑quality penalty bill drew sharp objections from several senators who said it risks federal conflict and could reduce enforcement; it was tabled. The equine dental bill responds to a shortage of large‑animal veterinary services by authorizing certified, nonveterinarian equine dental providers under defined training and oversight.

The Rio Hondo measure

Senate Bill 384 would appropriate $100,000 to New Mexico State University via the New Mexico Department of Agriculture to plan, develop and create a Rio Hondo Watershed District in Taos County. "The Rio Hondo is in rural Taos County in northern New Mexico," the bill sponsor told the committee, noting the district is intended to provide a framework that transcends jurisdictional boundaries and enables local stakeholders to address watershed needs.

Carlos Miera, identified in committee testimony as a commissioner with a ditch association that is one of nine acequias drawing from the Rio Hondo, told the committee the watershed begins at the Taosqui Valley headwaters and flows past Valdez and other small communities. Miera said local water quality testing, conducted with New Mexico State University's Water Resources Institute, showed "high quality" water and that residents rely on the stream for livestock and domestic use. "Our goal then is to maintain that high quality of water," he said.

Other supporters said the watershed planning would protect irrigation and domestic supplies during drought. Floyd Archuleta, describing himself as past president of the Lourdes Montes Neighborhood Association, said his neighborhood irrigates about 1,400 acres and that water quality and quantity are a continuing concern. A remote commenter identified as Zia Ideas noted the Rio Hondo feeds the Rio Grande watershed and local recreation and orchards.

Committee members asked whether the appropriation would cover formation steps for a watershed district and whether water rights in the area are adjudicated. Miera said the Abeyta adjudication process has proceeded toward a settlement agreement for parts of the Rio Hondo and that the coalition working on the watershed has partnered with the U.S. Forest Service, Taos County and New Mexico State University. The committee agreed to an amendment inserting "in Taos County" into the bill language; the amendment was placed by motion and accepted as friendly in committee discussion.

Votes and action: A motion to give SB 384 a due pass as amended was moved by Senator Townsend and seconded in committee; the committee reported the bill out by a vote of 8 to 0.

Microgrid tax credit (SB 418)

Senate Bill 418 would create a $100,000 tax credit per qualified microgrid installed in an underserved community in New Mexico prior to Jan. 1, 2031. Senator Michael Padilla, the bill sponsor, said eligible taxpayers would apply to the Energy, Minerals and Natural Resources Department within 12 months following the calendar year of installation; the proposal includes transferability and carry‑forward provisions and requires rulemaking to set an application process.

Jennifer Bradfield, an attorney who described herself as working with developers seeking to install large digital infrastructure and solar generation, said the bill targets projects that can bring jobs and private investment to underserved areas — including Borderplex and central Albuquerque sites — and can be built more quickly than utility transmission upgrades. Industry supporters told the committee the credit would help attract large manufacturing, data center and other employers that need dispatchable localized power.

Mike D'Antonio, speaking for Xcel Energy, said microgrids could allow high‑demand customers to receive power sooner than waiting on multi‑year interconnection studies, helping New Mexico compete for jobs. Committee members asked about the bill's definition of "underserved community," which the sponsor said was taken from recently enacted law and would be administered by Taxation and Revenue; members urged consulting tax officials about whether a fixed percentage would be preferable to the bill's "near the federal poverty level" phrasing.

Technical items: The bill requires a qualified microgrid to include self‑source generation resources capable of producing not less than 20 megawatts. The sponsor also said installations must comply with the state's Energy Transition Act requirements and that the bill's provisions would not override ETA standards.

Votes and action: A motion to give SB 418 a due pass was moved and seconded in committee. The committee reported the bill out by unanimous vote.

Air‑quality penalties (SB 391) — tabled

Senate Bill 391 would change how the Environment Department assesses civil penalties under the Air Quality Control Act by removing consideration of a permittee's ability to pay and by providing that self‑reported violations, or violations resulting from mechanical mishaps where the operator maintained equipment to manufacturers' recommendations, should not automatically trigger civil penalties if the permittee is actively mitigating harm.

Senator Scott, the sponsor, said the bill is designed to align penalties with the conduct and to encourage self‑reporting and remediation. Opponents on the committee, including Senator Cedillo Lopez, warned that the proposed changes conflict with federal Environmental Protection Agency guidance and the state implementation plan process and could jeopardize federal funds tied to air‑quality compliance. Several speakers expressed concern that the bill's language about "appropriate action" and "mitigation" is indeterminate and would invite litigation rather than administrative resolution.

The New Mexico Environment Department did not appear; committee members said the department had indicated it opposes the bill and that the department is involved in litigation related to the underlying facts that prompted the proposal.

Votes and action: A motion to table SB 391 was made in committee and carried; the bill was tabled.

Equine dental maintenance (SB 412)

Senate Bill 412 would authorize certified equine dental practitioners to perform routine dental maintenance on horses if they meet specified education and certification standards. Sponsor Senator Ezell introduced Wayne Needham, president of the International Association of Equine Dentistry (IAED), who told the committee IAED certification typically requires roughly 300–350 hours of training and hands‑on work on about 150 horses, plus 12 hours of continuing education annually. A testifier identified as Zachary Rhodes, an IAD‑certified practitioner, said the bill does not alter veterinary prescription rules for sedation; he said practitioners must comply with a valid veterinarian‑client‑patient relationship for drugs.

Supporters said the bill addresses a nationwide shortage of large‑animal veterinarians and would expand affordable, insured dental care for horse owners and rescue operations. Committee members asked about sedation safety and oversight; witnesses said most equine dental work uses standing sedation, that practitioners operate in consultation with veterinarians, and that legalization would allow practitioners to obtain professional insurance.

Votes and action: A motion to give SB 412 a due pass was moved by Senator Townsend and seconded; the committee reported the bill out by unanimous vote.

What’s next

Each advanced bill will move to the next committee or the Senate floor as required by chamber rules. The committee left SB 391 on the table after lengthy debate about federal consistency and enforcement. Committee members signaled further amendments could follow as bills proceed.

Quotes (from committee testimony)

"Our goal then is to maintain that high quality of water," Carlos Miera, a ditch association commissioner, said about the Rio Hondo.

"I believe we can't change what we can't measure," an online commenter identified as Zia Ideas said about river monitoring.

"This development would bring in numerous jobs and great investment to the state," Jennifer Bradfield, an attorney working with a microgrid developer, said of projects the credit is meant to attract.

"If they're being hammered, there will be no self reporting," Senator Townsend said in debate over the air‑quality penalty bill.

"It's really about animal welfare," Wayne Needham, president of the International Association of Equine Dentistry, said about the equine dental bill.

Ending

Committee documents and fiscal analyses noted the $100,000 appropriation and the microgrid credit's $100,000 per project cap; members requested clarifications on definitions (notably "underserved community") and on cross‑jurisdiction impacts before the bills reach their next committee. The air‑quality penalties bill was tabled after objections that the language could conflict with EPA and jeopardize federal programs.