The One Big Beautiful Bill Act — signed into law on July 4 by President Trump — furthered the Trump administration’s cutdowns on renewable energy sources in favor of producing natural energy resources using federal lands and waters.
The bill introduces changes to tax credits intended to incentivize the expansion of renewable energy companies building solar and wind farms across the U.S. The effects of the bill are likely to directly affect New Mexicans, Rep. Melanie Stansbury (D) said.
“New Mexicans could be looking at a price hike in their electric bills of more than $400 a year because of this bill. It is going to have a direct effect on the overall modernization of our infrastructure, as well as the bottom line for families and paying their utilities,” Stansbury said in an interview with the Daily Lobo.
According to a report published by the Center for American Progress, the OBBBA terminates several federal investments in clean energy, which could raise prices nationally including price hikes of energy costs in New Mexico by an average of $210 per year starting in 2026.
The passage of the bill could make it difficult for energy providers like Public Service Company of New Mexico, which is trying to modernize New Mexico’s electric grid and make millions of dollars in infrastructure investments, Stansbury said.
PNM has published a grid modernization plan as part of their commitment to making New Mexico carbon-free by integrating solar into the state’s energy mix.
Renewable energy is the largest source of New Mexico’s in-state electricity generation, with wind power accounting for 37% of the state’s total energy generation in 2024, according to the U.S Energy Information Administration. Solar power accounted for 13% of New Mexico’s energy generation, behind natural gas and coal.
The bill repeals regulations on vehicle emissions that could increase oil demand, raising annual gas expenses for New Mexicans by $390 by 2030, according to the report published by the Center for American Progress.
“In the Natural Resources parts of this bill, it actually repeals royalties, and that’s not going to make oil and gas or energy cheaper for Americans. What that does is it makes profit margins higher for CEOs and for shareholders,” Stansbury said.
The bill will reduce additions of new, cost-effective electricity capacity in New Mexico, raising power prices for consumers, decreasing job growth, and leading to an estimated $110 million drop in GDP in New Mexico by 2035, according to Energy Innovation.
The OBBBA will increase the number of oil and gas permits approved, New Mexico State Representative John Block (R-51) said.
“We’re seeing the permitting process being approved. We saw barely any permits or leases approved under (former U.S. Secretary of the Interior) Deb Haaland, and we also saw bans on exporting liquid natural gas. So now Trump has opened all that up,” Block said.
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The Bureau of Land Management approved slightly more drilling permits during the Trump administration (14,608) than the Biden administration (13,658), according to Oil and Gas Watch.
State officials are scrambling to complete renewable energy projects before the tax cuts expire in late 2025, according to SourceNM. It’s unclear whether these projects will be completed in time to further New Mexico’s electricity generation away from oil and gas.
Maria Fernandez is the copy editor for the Daily Lobo. She can be reached at copy@dailylobo.com or on X @dailylobo
