In a move to power the future, the Sandoval County Commission on Oct. 23 greenlit $300 million in bonds for a renewable battery storage facility and approved contracts to expand county facilities.
Commissioners approved an ordinance to issue up to $300 million in industrial revenue bonds (IRBs) for a battery farm that will maintain clean energy for the Public Service Company of New Mexico (PNM). Additionally, they allocated nearly $4 million for renovations of county buildings, including one for the new Regional Emergency Communication Center and an expansion of the Public Works Administration building.
The battery project, the Gila Monster Battery Energy Storage Project, is owned by the California-based ESVolta Development, LLC.
Estimated at $262 million, the battery farm will provide clean energy for PNM. Spanning 9.5 acres near the PNM Rio Puerco switching substation south of Rio Rancho, the facility will deliver 50 megawatts of battery power. Construction is slated to begin in 2027, with full power production expected by 2029.
“Battery energy storage systems are just like the batteries in our phones and our laptops, just a lot more,” said James Doone, development manager for ESVolta. “It’s important to note that PNM uses these batteries to store electricity and the grid operator uses them to manage the grid.”
According to Doone, the facility will use lithium iron phosphate batteries, a safer and more eco-friendly choice compared to older nickel manganese cobalt batteries. While cobalt batteries provided higher energy density, they also generated more heat, increasing fire risk. This choice additionally sidesteps the ethical concerns tied to cobalt, much of which is mined in the Congo. Each battery container will measure roughly 20 feet long, 10 feet high and 4 feet wide.
The estimated $262 million project cost includes about $5 million for land acquisition, around $51 million for labor and installation and about $200 million for the batteries.
According to Rob Burpo, Sandoval County financial adviser, the company requested flexibility in case costs increase in coming years, which is why the IRBs are set at $300 million.
“I want to make a point about this because this kind of information has been distorted in the past,” said David Heil, Sandoval County Commission chair. “This is a $300 million industrial revenue bond the taxpayers don’t pay. This is paid by the party that we were contracting with.”
According to Burpo, the project will generate funds for Sandoval County and local schools through Payment in Lieu of Taxes. Sandoval County will receive about 58% of the payments, while about 41% will be divided among area school districts.
Since the project is located in the Rio Rancho school district, Rio Rancho schools will get half of the school portion. Another 40% is shared among all school districts in the county based on their land size, with Albuquerque Public Schools (APS) — which includes Corrales — receiving the largest portion due to its larger area. The last 10% is divided by student enrollment, meaning districts with more students receive more. Even though the project is near Rio Rancho, APS’ total enrollment of over 81,000 students is factored in, which increases its share.
“I don’t like it, we didn’t write it,” Burpo said. “I spoke against it, but that’s the way the legislation is written.”
Commissioners raised questions about the facility’s security and fire safety. Commission Vice Chair Michael Meek asked about any major incidents in similar facilities.
Doone said he was aware of only one incident in New York, though he didn’t have specific details. He said the company adheres to the National Fire Protection Association standards for installing stationary energy storage systems and ensuring lithium battery storage safety.
Commissioner Jay Block expressed concerns about the facility’s security measures, particularly regarding the remote control desk that monitors the system, which may be located out of state. He asked about the potential risks of vandalism or other malicious acts that could threaten public safety.
According to Doone, the facility will be fenced, though he was uncertain about the presence of security cameras, adding that he assumes they will be included.
“I’m just a little concerned, not just here in New Mexico, but around some of these facilities,” Block said. “With just some bad actors that can do a lot of damage in these places that are remote.”
In other business, the commissioners approved a $2.78 million contract with B&D Industries to renovate and expand the county building for the new Regional Emergency Communication Center. The funding primarily comes from the American Rescue Plan Act, with about $400,000 from legislative allocations.
Additionally, commissioners approved a $450,843 agreement with File Construction for water system upgrades at the Placitas Community Library and Fire Station 41, funded by a 2019 general obligation bond.
Commissioners also approved a $1.21 million contract with Anissa Construction to expand the Public Works Administration building, enhancing service infrastructure. This project will also be funded by the American Rescue Plan Act.
The commission approved a resolution that amended a loan agreement with the New Mexico Finance Authority, allowing the prepayment of the AMIKids loan. The loan totaled about $2.36 million, plus $28,500 in interest that was due on Oct. 31. This prepayment will enhance the county’s Moody’s rating by eliminating a contingent liability.
The county also accepted a federal grant from the U.S. Department of Housing and Urban Development for $850,000 to renovate Bernalillo’s historic El Zócalo building, which has not been updated since the 1920s. This includes addressing issues like the dirt floor and restrooms that do not comply with the Americans with Disabilities Act. The grant was secured through the 2023 Congressional Directed Spending application, sponsored by Rep. Melanie Stansbury and Sen. Ben Ray Luján.