Axios Pro: Energy Policy

March 27, 2024

Axios Pro Exclusive Content

🐪 Happy Wednesday and happy recess! With Congress out of town, we're turning our attention today to the states — New Mexico in particular.

🎶 Today's last tune is from New Mexico Gov. Michelle Lujan Grisham (featured below): "Misty" by Ella Fitzgerald.

1 big thing: NM's transmission challenge

Lujan Grisham in 2022. Photo: Adria Malcolm/Bloomberg via Getty Images

New Mexico Gov. Michelle Lujan Grisham is confident the SunZia transmission line will stay on track despite recent challenges from tribes, Nick and Jael write.

Why it matters: The long-delayed project to send renewable power from New Mexico to West Coast population centers is a symbol of the biggest challenges to the energy transition.

  • The governor talked with Axios about New Mexico's transition plans and what Washington can learn from the states about climate policy.

Driving the news: Lujan Grisham said she believes SunZia will get built. She commended the Biden administration for getting the federal permitting process across the finish line.

  • But she said the company behind the project "could have done a little more work collaborating with sovereign nations."
  • Having the state "invest some time and energy there, I think, can mitigate a lot of that," she said. But "it may not interrupt all those lawsuits, and it might change some of [the] design."

Context: The project broke ground last year — after nearly two decades of planning and permitting.

  • But tribes and environmental groups have sued to stop it, and construction was briefly suspended last year in response to tribal concerns.
  • Pattern Energy, the company behind the project, "has always put the protection of tribal cultural resources at the forefront of this project and will continue to do so," a company spokesperson said in an email.

Between the lines: This is a big project for New Mexico, which has an energy transition law, a net zero goal by 2050 and is looking to become a player in renewables.

  • The lengthy process to get projects like SunZia in the ground is one obstacle that Lujan Grisham sees.
  • Modernizing the grid, she said, is taking too long, and that compounds supply chain challenges in the renewable energy industry.
  • "I can build another 40,000 acres of solar fields," she told us. "I can quadruple the amount of battery storage we have. I can have two of North America's largest wind energy farms … but I can't put enough of those green electrons onto antiquated grids."

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